Vodafone and Three have Merged in the UK!

As the long-anticipated merger between Vodafone and Three has now been fully completed, there’s one battleground that’s receiving far less attention than it deserves: the UK high street.

While analysts debate spectrum holdings, market consolidation, and regulatory outcomes, the truth is this - retail will make or break this merger.

Why? Because EE has fundamentally raised the bar. Their new gaming-led stores, powered by immersive experiences and staffed by tech-savvy advisors, are setting a new standard for what telco retail can be. And while it's still early days - with only 30 - 40 flagship locations fully transformed - they’ve created a blueprint that’s aspirational, modern, and commercially potent.

In contrast, Vodafone and Three face a perfect storm of retail fragility, fractured legacy, and brand fatigue. Fixing this won't be easy - but it is possible. Here’s how they got here, and what they must do next.

The Fairer Franchise Debacle: Vodafone’s Reputational Hangover

Let’s not sugar-coat it - Vodafone’s franchise program was a disaster. Marketed as a partnership, the model instead created tension, lawsuits, and eventually High Court proceedings. Dozens of small business owners were left disillusioned, and Vodafone’s own brand suffered collateral damage in its most important channel: retail.

While the rest of the industry was experimenting with experiential formats, Vodafone’s retail estate became a patchwork of demotivated operators, inconsistent service, and plummeting Net Promoter Scores (NPS). It remains a stain on the balance sheet - and one that will carry into this merger unless decisively addressed.

Three’s Inertia: Stuck in Merger Limbo

Three hasn’t fared much better. While historically seen as a scrappy challenger, its innovation pipeline has slowed to a crawl in the last 18 months. Awaiting merger approval became a strategic excuse, and the retail estate - once known for bold campaigns and disruptive pricing - has drifted into irrelevance.

While EE was launching cloud gaming lounges and immersive experiences, Three was offering yesterday’s price plans in yesterday’s stores.

EE: The Gold Standard of Modern Retail

Let’s give credit where it’s due. EE’s retail reboot - blending entertainment, gaming, tech demos, and digital-first service - is one of the most forward-looking concepts in global telecom. It’s not perfect. Execution remains limited to top-tier locations, and it’s not yet clear how scalable the model is across the full estate.

But perception matters. EE now has the “cool factor,” especially among Gen Z and digital natives. That’s territory Vodafone and Three used to covet - and need to reclaim.

So What Should Vodafone + Three Do Now?

The new combined brand (however it evolves) has a rare opportunity: to reinvent itself, clean house, and build a high street presence that’s relevant in 2025 - not 2015. Here are five bold, actionable moves they must make.

1. Cherry-Pick the Best 500 Stores - Fast

Combined, Vodafone and Three control over 1,000 retail locations. That’s far too many. Last time, it took Vodafone over two years to rationalize stores after the Phones4U acquisition - and that was a mistake.

This time, speed is everything. Get down to the best 500 stores within 6 - 9 months. Focus on footfall, profitability, and future potential. This isn’t about shrinking - it’s about concentrating firepower.

Each retained store should be treated as a strategic asset, not a retail checkbox.

2. Rebuild Around Operator-Owned Stores

The franchise model failed. Let’s say it clearly - the path forward is more operator-owned retail.

A 60/40 split in favor of direct ownership allows control over experience, consistent sales performance, and NPS-driven accountability. Franchises can’t pivot fast enough, aren’t incentivized for long-term brand building, and lack the flexibility for product expansion (like IOT and fixed-line convergence).

Centralized control enables unified execution - on training, design, systems, and staff incentives.

3. Create a New Retail Concept—Not an EE Copy

You can’t “out-EE” EE by copying them. What Vodafone + Three need is a distinctive, modern store concept that reflects their new ambition.

Here’s what it could look like:

• Zoned layouts for quick service, tech demos, and immersive consultations.

• A mobile fix-station counter that handles repairs, device setups, and accessory personalization.

• Heavy focus on product storytelling, especially around broadband bundles, smart home devices, and IOT applications.

• Areas to showcase Wifi 7, Mesh networks, streaming hubs, and security packages.

• In-store staff who are more like tech stylists or connected home advisors than traditional reps.

Design should feel premium, playful, and purposeful. Think “modern tech-lifestyle lounge,” not “phone shop 2.0.”

4. Train Like Their Future Depends on It (Because It Does)

The UK telecoms industry is dealing with a frontline talent crisis. Post-COVID turnover has left most stores staffed with undertrained, underprepared reps who lack the skills to sell consultatively.

If Vodafone + Three are serious about taking on EE, they need to build the most skilled retail sales force in the industry.

Invest in soft skills training platforms like Maplewave’s Showtime - programs that don’t just train reps to close, but to connect. Train every rep in:

• Needs discovery

• Objection handling

• Home product consultation

• Accessory bundling

• Tech confidence

Then, pay them well. Link bonuses to KPIs like wireless-to-fixed conversion, accessory attachment rate, and customer satisfaction.

5. Find - and Own - Their Retail Niche

EE now owns “gaming” in telecoms retail. VF/Three need their own lane. And the smart bet? The Connected Home.

The IOT/smart home category is exploding. And while EE flirts with it, Vodafone has the pedigree to dominate it - especially as a global leader in enterprise and industrial IOT. Now is the time to bring that to the consumer level.

Imagine flagship stores where:

• You can experience connected light switches, thermostats, smart locks, doorbells, and voice assistants working seamlessly together.

• You can get advice, installation, and aftercare from in-store advisors who are trained in every device.

• You can buy bundles that include mobile, broadband, and a curated IOT ecosystem - with support to match.

Build it right, and they could own “everything works at home” in the same way Carphone Warehouse could have owned the Geek Squad era - if they’d had the courage to follow through.

Final Thought: This Is a Second Chance at Relevance

The Vodafone + Three merger isn’t just a balance sheet play - it’s a brand resurrection. And nowhere will that battle be more visible than on the high street.

The choices they make in the next 12 months will decide whether they’re seen as legacy laggards or modern challengers.

They don’t need to beat EE by outspending them. They need to out-think them. Own the connected home. Build amazing retail experiences. Train the best reps in the country. And most of all - move fast.

Time is the one thing they don’t have. Their base will disappear very quickly, up to them how well they save it, and/or how quickly they can start to make gains at the competition.