2degrees unveils retail chain

The new 2degree store set to open in Sylvia Park tomorrow. Photo / supplied

Mobile phone company 2degrees has announced the location of its first retail stores, as rival Telecom seeks to scale back its own retail operation.

2degrees' first store will open tomorrow in Auckland's Sylvia Park, while another two before the end of next week, one in Newmarket and the other in the Wellington CBD.

The company also has plans for a Christchurch store and says other outlets will be popping up around the country.

2degrees chief sales officer Mark Cleary said its retail network will be themed on a "kiwi backyard".

"We're delighted with how the stores have developed. They are warm and welcoming, there is nothing sterile or clinical about them," he said.

Currently consumers have to buy 2degrees products from other retailers or via the internet.

Cleary said he was confident 2degrees would be able to make up the difference in any job losses that may result from the closure of other telco stores in time.

2degrees' announcement comes as Telecom is reportedly set to close more than a dozen of its stores, putting a number of jobs at risk.

Telecom spokesperson Carly Morris said the company had identified the need to "have fewer points of presence across the country", but she refused to be drawn on numbers or job losses that may result from a review of stores.

"The mobile market has matured, there are more options for where to buy product and Telecom customers are demanding an improved and more consistent level of service, however they choose to interact with us."

Morris said the company would meet with the "most impacted" over the next week to discuss the implications of the review.

There were still "ongoing conversations" to be had before numbers could be finalised, she said.

Cleary said it was clear Telecom was feeling the heat from its rivals and questioned whether the company had gone "too wide".

"I have been involved in various mobile operations where companies go very large very quickly."

"We will never go to the length and scale they did," he said.

Cleary said the number of customers porting their number from Telecom had increased as 2degrees extended its reach in the South Island.

"Initially we would have seen a number of our ports come from Vodafone but since we have expanded our distribution, our porting is almost on par between Telecom and Vodafone," he said.

Telecom said it would be watching developments around 2degrees planned retail network with interest.

"In the meantime we're staying focused on the people that matter to us, our customers," Morris said.

Separately Telecom said it was gearing up to move the first of its staff into its new head office on Victoria Street after Labour Weekend.

The bulk of Telecom's 2500 strong staff will be in the new building by the end of November, a spokesperson said.

- with NZ Herald staff