Mobilicity Inks Distribution Deal With Loblaw

by Gaurav Kheterpal on September 5, 2012

Mobilicity just added another feather to its illustrious cap – a deal with Loblaw to sell its products at almost 50 Prepaid Cell Phones Express kiosks located at select locations across Canada. Last November, Loblaw stated its intent to be ‘Canada’s biggest mobile retailer‘ and announced plans to open more than 200 full-service Mobile shops within its stores by the end of 2012.

On the other hand, Mobilicity is fast emerging as a go to case study for wireless retail distribution. Till date, the upstart carrier has managed to strike retail distribution agreements with  7-ElevenWalmart CanadaHMVZellersMetro Stores and The Brick.

As part of the deal, Loblaws shoppers will be able to purchase a variety of mobile phones offered by Mobilicity, including the Samsung Galaxy Mini, Samsung Gravity Touch, or Samsung C414 where they do their grocery shopping.

“We are thrilled to team up with Loblaw to offer unlimited wireless plans and unbeatable value to their customers,” said Mobilicity Chief Customer Officer Anthony Booth.  “Together, we can help make a difference in more Canadians’ lives by helping them stretch their hard-earned dollars further.”

Mobilicity says the deal will help reinforce its ongoing commitment to bringing down the cost of wireless for a growing number of Canadians across the country. As I’ve mentioned in my earlier posts, the carrier’s aggressive retail distribution expansion strategy continues to pay off and it’s no surprise that Mobilicity has “by far the highest ARPU among the startup new entrants.”

On the other hand, it’s a boost for Loblaw as the retail giant looks to explore alternate revenue lines to compensate for its relatively flat food sales,  However, there’s no doubt that Loblaw will face tough competition from several retail rivals including Walmart, 7-Eleven and several prospects including the likes of Shoppers Drug Mart Corp. and Canadian Tire Corp.

Loblaw already sells Wind Mobile and Public Mobile prepaid plans at select Mobile Express kiosks. The retail giant plans to hire 400 new employees to staff the mobile shops this year.

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Written by: Gaurav Kheterpal. Follow TheTelecomBlog.comby:RSS,TwitterFacebook, or YouTube.

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