Dixons Carphone’s multi-year deal with Vodafone is “crucial” for the company, according to CCS Insight director of consumer and connectivity Kester Mann.
Dixons announced that it will become an exclusive partner of Vodafone, with the deal coming after the retailer lost key partnerships with O2 and EE last year.
“The partnership comes after a hugely challenging recent period during which Dixons suffered the loss of two leading partners (O2 and EE), and elected to close all 531 stand-alone stores,” says Mann.
“It remains a shadow of its former self, with only one mobile network operator on board in an exclusive partnership.”
Under the new deal, Currys PC World and Carphone Warehouse customers will have access to Vodafone deals, but Dixons will no longer be offering advice on networks outside the ones it offers.
A spokesperson for the company said: “Dixons Carphone has thousands of colleagues delivering expert advice on mobile plans and a market-leading range of top branded mobile handsets, networks and accessories. “In terms of networks, we’ll be offering Vodafone, Virgin and iD Mobile.
“Our colleagues will offer impartial advice on all connectivity, handsets and services that we offer only.”
Mann adds that it is logical for Dixons to no longer position itself as offering impartial advice, despite this being a key positioning strategy in its past.
Because of this, Vodafone was able to negotiate this deal from a position of strength, as “the last mobile operator standing”, he says.
The operator will be hoping that the deal bolsters its turnaround efforts after years on the back foot, according to Mann.
“It is well-timed, coming shortly after the high-profile launch of its new set of tariffs called Evo,” he adds. “It supports an acquisition strategy by broadening its reach and targeting new demographics in a bid to take market share,” he says.
In addition, Vodafone will support Dixons Carphone’s new mobile offer, which is being launched later this year alongside iD Mobile – Dixons’ MVNO service.
