Retailers' group slams Vodafone plans

RGDATA, the organisation representing Ireland's independent retail grocery sector, has condemned Vodafone’s plans to impose further cuts in retail margins.

Responding to a Vodafone notification that it is cutting retail margins for the second time in two years, RGDATA has accused the company of turning the screw on Irish retailers.

A letter to retailers from Vodafone informs them that margins will be cut from August 1, but does not say by how much.

RGDATA says it has learned that the margins for the €10 and €15 top ups will be cut from 6.5% to 5.5%, while margins for €20, €25 and €40 top ups will be slashed from 10% to 5.5%.

RGDATA Director General Tara Buckley said that these cuts would have serious adverse consequences for many retailers.

"Last year, Vodafone made huge profits of €328m in Ireland on a turnover of €2.1 billion,” Ms Buckley said.

“Now they say they need to cut the margins paid to retailers by 16% for the €10 and €15 Top Ups and a massive 45% for the €20, €25 and €40 Top Ups in order to ‘sustain growth in the Top Up Market’.

“This is a straightforward grab for more profit by a dominant player in the market at the expense of local shopkeepers.

“This move by Vodafone has incensed individual retailers, who are already facing major increases in operating costs.”