Retail News Update

Thousands of independent retailers are gearing up for a third boycott of Vodafone products this weekend, in response to the mobile phone operator’s cut in commission payments.

The three-day boycott will take place from Friday 25 July 2008 to Sunday 27 July.

The retailers have been further incensed by Vodafone’s announcement earlier this week of revenues up 19% to £9.8bn in the three months to 30 June.

But the retailer did warn that revenues would be hit by the economic slowdown.

Independent retailer Kevin Hunt, who is organising the protests, said: “Why do Vodafone with such massive profits feel the need to cut the already small commission rate paid to retailers?

“This really is a disappointing development for retailers. Vodafone say it is cutting our percentage commission rate because it is investing in driving sales of top-up which, they say, will compensate us for the loss in revenue and will be of benefit to both Vodafone and retailers.

“However it is clear that Vodafone are, in truth, the only winners here.

“This is a difficult time for retailers and we must defend our businesses. I am urging every business owner in the UK who sells top-up to join the campaign to make Vodafone reverse their decision.”