Woolworths has entered into a strategic partnership agreement with afb, a Consumer Finance company to offer its customers opportunity to purchase goods on credit in any Woolworth’s stores in Kenya. The deal will see afb managing Woolworths Private Label Card Program; a customized retail card program that is tailored specifically for Woolworths customers.
afb is a consumer finance company that specializes in the provision of responsible credit products within Africa. Established in Ghana in 2009, afb is a high growth business with three core business divisions: Cards, Loans and Insurance. The company employs over 1500 people, servicing over 60,000 customers with plans to begin operations in Zambia during quarter 1 of 2014.
Woolworths Kenya has 7 stores in Kenya located at the Yaya Center, Sarit Center, Village Market, Junction Mall, Galleria Mall, City Mall Nyali and The Thika Road Mall. Speaking at the launch of the partnership in Nairobi, Woolworths Director Muchiri Wahome said the partnership was crucial for Woolworths in addressing ever-changing needs of customers.
“This partnership with afb is timely and significant and will allow our customers to easily access affordable credit facilities through our stores. Experience has shown that this type of credit program can go a long way in adding value to our loyal customers,” said Mr. Wahome.
Woolworths Store Card offers Woolworth’s customers an unsecured revolving credit facility that allows customers to purchase the latest quality merchandise and pay it off in 6 affordable monthly installments. Customers can apply in-store for the card and the full application process takes less than 24 hours to be instantly issued in the Woolworths store.
Availability of credit enables customers to purchase what they want, when they want it. Saving for a specific purchase often leads to disappointment when the item has been sold out.
Commenting on the deal, afb’s Managing Director of Cards, Brett van Aswegen says afb is excited to partner with one of Africa’s most successful and respected retailers. This is the first such program in Kenya which they believe will revolutionize retail sales by increasing spend in Woolworth’s stores. Availability of credit allows customers to purchase for a greater amount and more frequently than they normally would have been able to.
“In our pilot we have already seen significant lift in the average spend by consumers on their Woolworths Store Card,” said Mr. van Aswegen.
afb launched a general purpose retail credit card in Nairobi in April this year, that has already grown to an active customer base of over 12,000 customers and a merchant network of over 150 retail partners in Nairobi.
This year it announced partnerships with Manchester United and Chelsea where afb offers Kenyans the opportunity to shop with branded Retail Credit Cards. afb has also partnered with Airtel Kenya to offer a variety of financial services. afb will be expanding throughout Kenya in the next 18 months as well as a number of other African countries.