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PHONES / MOBILE

Fone Zone Snaps Up Telstra Stores

By Oonagh Reidy | Wednesday | 11/12/2013

Vita Group to snap up more Telstra stores

The tech group plans acquire more Telstra stores, pushing the number to above 85. 

However, the number of stores to be purchased has not been disclosed, but CN understands the transactions will take place commencing 2014. 

The acquisition is expected to cost Vita $13m-17m in addition to capex costs, the group confirmed in a statement  

Brisbane based Vita Group currently operates 85 Telstra stores and 11 Business Centres.

"Vita have a number of stores within the neighbouring area. The proposed acquisition of these Telstra stores would allow Vita to provide more effective management, greater consistency of offers across all branded Telstra stores, access to a larger pool of employees as workloads fluctuate and a larger presence in the community," a Telstra spokesperson told CN. 

The move will not affect Vita's other retail operations including Telstra dealer Fone Zone, Apple Reseller Next Byte, and One Zero.

The group will also sell Telstra Stay Connected and Stay Connected Plus device swap services through its retail channels and ditch its own Swap and Extend Warranty.

The extended partnership places a tighter focus on Telstra strategic objectives including customer advocacy via its device replacement service. 

Vita expects a non cash benefit of $6.2m within the second half of FY14 and $8.5m in FY15, from increased remuneration from selling Stay Connected services. 

The new agreement means Vita Group hold a master license tenure with Telstra until 2018 , and has had a relationship with the telco since 1995. 


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