Sainsbury’s has agreed to sell its travel money business to Fexco Group.
As part of a new “long-term” strategic partnership, Fexco will continue to operate Sainsbury’s 220 in-store travel money bureaux and online business under the Sainsbury’s brand.
In return, Sainsbury’s will receive an undisclosed share of revenue and rental income from the concessions. It means there will be no immediate impact on customers.
It marks another “milestone” in Sainsbury’s phased wind-down of its financial services business, following the sale of Sainsbury’s bank to NatWest Group in January last year.
The supermarket has also signed a new partnership with Allianz, which will take over car and home insurance policies for existing Sainsbury’s bank holders, alongside the latest sale.
“Travel money is a service our customers value and we’re pleased to be entering a new long-term partnership with Fexco Group that ensures they can continue to access foreign exchange both in-store and online with the same ease and confidence,” said Sainsbury’s CFO Bláthnaid Bergin.
“With over 220 bureaux nationwide and almost 10% of the UK market, this is a well-established part of our offer and we’re pleased it will continue under the Sainsbury’s brand. With specialist expertise and a strong track record in foreign exchange, Fexco Group is a strong fit for our business.
”I’m also pleased to confirm that there will be no immediate changes, and customers can expect the same high level of service they know and trust,” Bergin said.
Part of Sainsbury’s wider financial services restructuring
Sainsbury’s was “successfully on track” in transitioning its core banking services to a “distributed model” Bergin said.
“Today’s news means we will focus more of our time and resources on growing our core retail business.”
Irish foreign exchange provider Fexco and German bank Allianz are the latest companies to take ownership of Sainsbury’s core banking products since the sale was announced. They join NoteMachine, which runs the supermarket’s AGM business, and NewDay Group, which now handles the Argos Financial Card service.
“We are thrilled to welcome Sainsbury’s Travel Money, its talented team, and their millions of loyal customers to Fexco Group,” said Fexco Group CEO Neil Hosty.
“The reputation and reach of the Sainsbury’s Travel Money business, with over 220 locations, make it a perfect fit with our commitment to delivering market-leading travel money services,” he said. “Since 1981, Fexco Group has built a legacy of outstanding customer service, delivered through strong partnerships and product innovation.”
Hosty added: “We are excited to extend that same level of excellence and continuity to the exceptional Sainsbury’s group as we bring the Sainsbury’s Travel Money business into the Fexco Group family.”
It’s the latest financial services update to come from the sector within the last week, following Waitrose’s contrasting news that it will now offer “last minute” travel money via its in-store customer service desks.
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