Retail Remains Relevant for UK Operators

November is a crucial time for the telecom sector, coming a few weeks after the launch of the latest iPhone and ahead of the busy Christmas period. Amid continued questions about the role and relevance of high-street retail to telecom operators, I went to the Westfield shopping centre in West London to survey the landscape.

Mystery shopping is something I try to do a few times each year; as well as being good fun, it also gives me valuable insight into what matters most to the different providers. I last visited Westfield in October 2023, and you can read my musings from that trip here.

My first stop was EE’s flagship experience store, EE Studio. On my previous visit, I left disappointed at how little had changed since the shop opened a few months earlier. This time was different, with some updated displays and a new focus on virtual reality. Keeping things fresh is crucial to encouraging people to return, something EE said was a priority when it unveiled its experience store concept, but similar shops have struggled with this challenge.

Virtual reality is a great technology to showcase in-store, and I’m sure curious visitors will be itching to test out the many headsets and smart glasses on offer from brands including Meta and Ray-Ban, Xreal, TCL and Sony. The notable absentee, however, was the much-hyped but uber-expensive Apple Vision Pro, which Apple is keeping firm control over in its extensive retail network.

Gaming remains an important focus at the store, consistent with the philosophy of New EE to push into adjacent markets. EE TV, which launched in December 2023, was also prominent; it was showcased alongside broadband offers promoting Wi-Fi 7, a new technology that EE is marketing enthusiastically on billboards and social media.

Next up was O2, a much smaller and more conventional outlet. I was first struck by the space afforded to Google and Honor smartphones, which occupied stands in the central part of the store. Given the dominance in the UK of Apple and Samsung — which account for about three-quarters of all mobile phones in use, according to our research — this felt like a glimmer of hope for rival brands, which have largely been feeding off scraps. However, I’d wager that it reflects significant marketing spending to bolster their retail presence.

Of course, the “big two” still took the lion’s share of focus, including three large screens which promoted enticing discounts on Samsung’s Galaxy S24 range of smartphones and its Galaxy Book4 Pro laptop.

Among the array of mobile products, there was only a small focus on Virgin Media broadband. This felt like a missed opportunity as convergence and cross-selling is one of the main pillars of Virgin Media O2’s strategy. Like my previous visit, I didn’t spot anything related to Volt, the operator’s joint mobile and broadband offering, which launched to much fanfare but appears to have lost impetus.

On walls, adverts promoted the ever-popular Priority reward scheme and Switch Up programme, the latter enabling customers to swap their current phone for a new one every 90 days.

At the Three store, a showcase of four Motorola phones continued the theme of support for challenger brands. A sales assistant told me that the flip-style Razr 50 Ultra was selling best as it offers a cheaper alternative to other high-end foldables. On another stand, I counted six Honor devices on offer.

Three was also the only operator I spotted trying to woo business customers, and an attractive offer of 10 unlimited SIMs for £7.50 each per month caught my eye. There was also an advert trumpeting the “UK’s fastest 5G network”, as recognized by Ookla, which pointed out that Three has already signed up over half a million business customers.

Home broadband was prominent, with 4G and 5G routers on display. This is a leading driver of growth for Three, supported by a current offer of six months at half price. I also spotted adverts for Three’s device insurance, loyalty scheme and roaming SIMs for UK visitors.

My final stop was Three’s partner-to-be, Vodafone. I was first taken by the number of banners promoting how customers can get a new phone every year through its recently launched Vodafone Xchange programme or keep their current phone for longer thanks to its Lifetime Service Promise, which includes a battery refresh and lifetime warranty.

Broadband was prominent, with a large display promoting fast speeds and low prices. Vodafone is closing in on 1.5 million broadband customers and consistently reports double-digit year-on-year growth — an impressive achievement amid stern competition. I saw plenty of promotion for One Touch Switch — which the operator launched in September 2024 to make it easier for people to join from other providers — but all references to the controversial Great British Telecoms Switch campaign were gone after it was banned by the advertising watchdog over misleading claims.

Of the four operators, Vodafone had the biggest focus on pay-as-you-go. Although this is a market in long-term decline, CCS Insight has noted a small recent resurgence, as people seek more-affordable deals amid concerns about the cost of living. Even by 2028, we forecast it will still account for over 22 million mobile connections in the UK. On a display featuring brands like Doro and TCL, one model stood out: the pink Barbie feature phone, manufactured by HMD and recently reviewed by my CCS Insight colleague Andrea Berbel Torres.

I left the shopping centre reflecting on how busy, diverse and competitive the UK telecom market remains. The challenges facing physical retail are unlikely to lift any time soon, but shops remain a vital channel for the industry to sell, promote, engage and experiment. I look forward to my next trip.