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Home / Whanganui Chronicle

Whanganui AMI store to close in September

Laurel Stowell
By Laurel Stowell
Reporter·Whanganui Chronicle·
24 Jul, 2020 05:00 PM2 mins to read

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Whanganui's AMI store will close in September. Photo / Bevan Conley

Whanganui's AMI store will close in September. Photo / Bevan Conley

It doesn't bode well for the country's economic recovery when a profitable business closes up stores and saves costs, FIRST Union national finance organiser Callum Francis says.

He was reacting to insurance giant IAG's decision to close 53 of its stores across New Zealand on September 18 - including the one in Whanganui.

The store's four staff can now express an interest in a range of roles in the business, IAG customer and consumer general manager Kevin Hughes said. IAG is an Australian company that owns AMI, as well as State Insurance and the Lumley Insurance Group.

It is keeping just seven New Zealand AMI stores open until June next year, and will open pop-up stores in regions where a disaster hits.

Its customers are increasingly accessing the company by phone, email or online, rather than coming into a store, he said.

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The company will set up specialist "bespoke" services for people who need more help. They will be able to maintain relationships with staff through direct dial phone numbers, or by making appointments.

Staff will be upskilled to train for their new roles, and set up to work from home.

Some will absolutely love that, Francis said.

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"My personal opinion is that nobody should be forced into this situation to remain employed. Employees should retain the ability to move to a more secure office environment if they need it."

Customers might appear to be happy with digital service, but he said a reasonable proportion of society prefers face to face contact.

"Some customers will be so opposed that they will like to change providers."

Its decision to close stores and go digital could inspire others to follow, and will hinder the country's economic recovery, Francis said.

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"If organisations that we know have the option to keep operating decide to reduce their overall cost, it doesn't bode well for the rest of the country."

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