2degrees cites rapid growth in retail push

2degrees says its stores will be less confusing than Telecom's and Vodafone's. Photo / Greg Bowker

New mobile telecommunications provider 2degrees is challenging established rivals by planning a national retail network.

The third cellphone player - a minnow next to Telecom and Vodafone - is negotiating leases for CBD shops in Auckland, Wellington and Christchurch so it can sell products direct to customers now forced to the internet or other retailers.

Stephen Moon, head of 2degrees dealer sales, and Mia Fitzgerald, head of its retail sales channel, said yesterday the business was seeking to lease properties and find operators in the main centres for a new style of dedicated outlets.

Moon named Hamilton, Palmerston North, Tauranga, Nelson and Dunedin as a second tier of centres where stores of 40sq m to 50sq m were sought.

But first, the mobile business will open in top locations like Auckland's Queen St, he said.

From tomorrow, the business expects to have a new website - 2degreesdealer.co.nz - live so operators can inquire about stores.

Expressions of interest were sought via the site which aimed to provide answers about becoming a store operator, he said. 2degrees would not use the franchise model, he said.

The business would have more than eight stores open by this time next year, Moon predicted.

Vodafone already had 18 stores it operates nationally but far more owned by channel operators, a spokesman said.

A Telecom spokeswoman said she did not know about 2degrees' retail network plans.

Telecom had more than 115 stores nationwide - a mixture of Telecom-owned and dealer stores.

"We welcome the new competition in the mobile market and we wish them the best of luck," she said.

Bryony Hilless, head of 2degrees corporate communications and public relations, said customer pressure was forcing the retail move.

"We've grown so significantly in the year we've been in business that it's essential customers can interact directly with the company, so we are just now embarking on setting up our own flagship stores nationwide along with calling for interested people to become accredited 2degrees dealer stores," she said.

"Currently 2degrees doesn't have their own stores or dealers."

Customers buy 2degrees products and services from Dick Smith, Smith City, Warehouse Stationery, Mobil, New World, Woolworths, Countdown, Shell, Caltex, Whitcoulls, Pak'nSave, Bennetts and other shops depending on the area.

2degrees, which launched in August last year, says it acquired 206,000 customers in its first six months.

Moon said a key to the expansion platform was to target operators willing to pay for shop fit-out and operation under the 2degrees banner.

Fitzgerald said store numbers depended on finding appropriate properties, lease terms and establishment costs.

"We have ongoing lease negotiations in Auckland, Wellington and Christchurch and we're going to have a mix between owning our own stores and offering the opportunity to individuals to have their own business operating as a 2degrees store," she said.

Moon said operators would pay for their own shop fit-outs and stores would sell handsets and a full range of products but would be better than its rivals, offering a more simple, direct service.

Other shops were far too complicated and people would notice a huge difference in 2degrees stores, he said.

"With Telecom and Vodafone stores, there's an array of different types of options and plans and in reality they are quite confusing," he said.

The number of 2degrees customers who brought their existing mobile number with them when joining the new network had reached 75,000 by last month.