A Vodafone spokesperson said: "Given the performance and prospects of the Mobile by Sainsbury’s business in the prevailing market conditions, the investment required to sustain the joint venture is not viable for Vodafone."
Sainsbury's added: “We regret that Mobile by Sainsbury’s, a joint venture with Vodafone offering a mobile phone service to Sainsbury’s customers, is ending, and the service will no longer be available from 15 January 2016.
”Our priority now is to help our customers and make sure they are inconvenienced as little as possible.“
Sainsbury's will continue to sell phones and accessories as normal.
A spokeswoman added that the supermarket remains committed to mobile given its importance to customers.