Black and blue, and green

Clive Bayley, managing director of former front three retail chain Fonehouse, is worried about the networks aggressive drive for direct sales. Last week he launched a campaign to raise money for a south London park through the recycling of old phones as part of a campaign to build the stores profile in the local community.

At the start of the year I said everyone should go on holiday until September, he says. It seems I was right, because things have been absolutely diabolical so far.

Bayley, whose Fonehouse chain numbers 18 stores, mostly within the M25, put poor sales so far this year down to the networks rather than the big high street multiples.

It is very, very tough at the moment. The networks direct deals are hard to compete against. Were just about holding our own now, but it has been really difficult, he says.

Were much more worried about the networks because they can hurt us more, as they seem to be going more direct.

Since it cut its exclusivity ties with T-Mobile, along with fellow front three old boys Chitter Chatter and Ace, Fonehouse has looked to work with a wider range of networks. As it stands, it offers only T-Mobile and Orange in-store, and all networks online.

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