South African mobile operator Cell C has announced that it is closing down 130 stores across the country as financial pressure continues to ravage the company, ITWeb reported. The operator says it is reviewing its operating model and organisational structure to address inefficiencies. Cell C has since initiated a Section 189 process, advising staff of the possibility of redundancy of certain positions and possible retrenchments.
Cell C has already circulated the list of the 130 stores soon to be shuttered to its senior managers. The operator has consistently been under-performing for some time, said ITWeb, generating losses of ZAR 33 billion over the years. It implemented a turnaround strategy in March 2019, which has now been extended to the retail space. This follows changes to the retail environment that have been accelerated by Covid-19, evolving consumer purchasing habits, and the poor financial performance of a number of stores, says Cell C.
Part of the turnaround strategy includes Cell C evolving its business strategy and operating model in order to run a more efficient and competitive business that is aligned to customer needs and behaviours. Cell C says it is embracing digital services and "driving digital inclusion" via collaborations and partnerships, with the aim to be customer champions and offer innovative services.
The Information Communication Technology Union (ICTU) says the news has caught it by surprise.
