Warehouse and WestpacTrust form financial venture

By Phil Boeyen, ShareChat Business News Editor

Thursday 24th May 2001

Retailer The Warehouse (NZSE: WHS) is partnering with WestpacTrust (NZSE: WBC) to launch a financial services company.

The joint venture, to be called The Warehouse Financial Services, will provide retail financial services through the company's chain of 74 outlets.

Initial products will include credit cards and basic insurance offerings, although other services such as home loans, savings and investment services are being evaluated for the future.

"The products and services we offer our customers must have real customer value while being profitable," says WHS head Greg Muir.

"We plan to extend our range over time, in line with our strategy of offering different types of products across a range of price points."

The products and services will be sold through The Warehouse stores, by direct mail and over the phone.

"New Zealand consumers have come to expect greater convenience and wider choice. Our venture with WestpacTrust will combine value-for-money shopping and value-for-money financial products and services under the one roof," says Mr Muir.

The companies say the venture will leverage WestpacTrust's financial savvy with The Warehouse's distribution success.

The two already have a historical relationship in the sector, with WestpacTrust having operated the retailer's store card business since 1994.

Those 200,000 cardholders are expected to form a strong customer base for the new financial services company.

Under the agreement TheWarehouse will provide its brand, store locations and marketing channels and services, while WestpacTrust will provide most of the products, product management expertise, the back-end processing systems, infrastructure, and risk/credit management expertise.

The initial product range is being finalised but the companies say the first services should be on sale within the next six months.

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