FTC plans new credit services

Press, 22 June 1984, Page 10

FTC plans new credit services

PA Auckland Farmers’ Trading Company, Limited intends to introduce a range of insurance products, personal loan facilities and a customer deposit account giving access to a credit line, the company’s chief executive, Mr Peter Healey, says in his annual review. In addition, the retailer intends to extend the use of its credit card to other organisations. Mr Healey says these moves complement the deSment of Nationwide t Services, the company’s credit agency. During the year, Nationwide acquired the businesses of Credit Rating, Limited in Auckland and Creditguard, Limited in Christchurch.

Mr Healey says that in the last year the group has moved to improve productivity by improving the flow of information to its merchandising team. “We are now directing our attention to the effective use of this information in our inventory management programmes.

“We have also reviewed our distribution organisation and recognise that future improvements in the delivery of merchandise to stores will have beneficial effects.

“Our customer credit system is now being reviewed and a new improved customer credit system should ,be operational in 1985.” He says that all branches are now operating the point-of-sale computer system. “Stores are now provided with current sales and merchandise information on a daily basis to support store management in day-to-day control functions.

“Investigations are proceeding into the use of debit cards and electronic funds transfer systems as pay-

ment methods for customers.

He says the company has enjoyed considerable success as the result of mailing out advertising brochures with monthly statements and this method of sales is likely to be extended. New product lines have also been successful. In home computers, for instance, the company sold 2500 units worth more than $1 million in the first three months.

In the South Island, the company is continuing to “fine tune” its 13 former Haywrights stores. In the coming year a new 882 sq,m store will open at Three Kings, Auckland, and

the modernisation and renovation of key stores will continue.

The chairman, Mr Rawdon Busfield, says in his review that the Government’s interest rate and credit growth regulations may temporarily inhibit the introduction of some new financial services.

i As reported, the group lifted profit 24.4 per cent to $16,531,000 in the year to March 31. It was earned on sales 22.6 per cent up at 37.7 million. Dividend is being raised from 23 per cent to 24 per cent with shares issued in a one-for-eight bonus issue ranking for the 14 per cent final.