US Markets

Vodafone to close 15% of European stores

Credit: REUTERS/NEIL HALL

Vodafone will shut 15% of stores in Europe and upgrade some of the remaining outlets as customers buy online and change their expectations of in-store shopping, chief executive Nick Read said on Tuesday.

Adds quote, background

DUESSELDORF, Germany, Oct 8 (Reuters) - Vodafone VOD.L will shut 15% of stores in Europeand upgrade some of the remaining outlets as customers buy onlineand change their expectations of in-store shopping, chief executive Nick Read said on Tuesday.

The group will overhaul its 7,700 stores in Europe, offering more services at 40% of them by the end of 2021, Read said.

Customer service offered by Apple AAPL.O and Amazon AMZN.O had changed expectations, and Vodafone hopes to improve its services faster than former incumbent rivals like BT BT.L, Deutsche Telekom DTEGn.DE and Telefonica TEF.MC with targeted and personalised marketing, he said.

"If you believe that 40% of your transactions are going to be digital, then how does that impact why someone goes to a store. The journeys and the purpose of the store changes," Read told reporters at a briefing in Duesseldorf in Germany.

"(That) means that we will have more 'experience' stores, less standard format stores (and) more convenience, and kiosk and click-to-collect stores."

Vodafone, however, plans to continue store openings in Britain.

In September, it announced plans to open 24 new franchise stores in Britain this year, and it is examining the possibility of opening 50 more stores in 2020.

(Reporting by Paul Sandle, Writing by Alistair Smout, editing by Deepa Babington)

((alistair.smout@thomsonreuters.com; +44 207 542 7064; Reuters Messaging: alistair.smout.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More