LONDON (Reuters) -British supermarket group Sainsbury's has agreed to sell Sainsbury's Bank's travel money business to Fexco Group, it said on Wednesday, continuing its withdrawal from banking
UK's Sainsbury's sells travel money business to Fexco
Sainsbury's Strategic Shift in Banking Services
LONDON (Reuters) -British supermarket group Sainsbury's has agreed to sell Sainsbury's Bank's travel money business to Fexco Group, it said on Wednesday, continuing its withdrawal from banking services.
Details of the Fexco Deal
Sainsbury's strategy under CEO Simon Roberts is to focus on growing its core retail operation.
Recent Financial Performance
The travel money business operates online and through 220 bureaux inside Sainsbury's stores. It has about 10% of the UK market.
Sainsbury's said Fexco will provide foreign exchange services under the Sainsbury’s brand with Sainsbury's receiving an ongoing share of revenue and rental income. No financial details were disclosed.
The deal follows last year's sale of Sainsbury’s Bank’s personal loan, credit card and retail deposit portfolios to NatWest Group, the disposal of its cash machines business to NoteMachine and the sale of the Argos Financial Services cards portfolio to NewDay Group.
The supermarket group said Sainsbury’s Bank has also struck a deal for Allianz UK to offer replacement car and home insurance policies to existing Sainsbury's Bank customers.
Earlier this month, Sainsbury's, Britain's second largest grocer after Tesco, reported better-than-expected first quarter sales. Its shares are up 11% so far this year.
(Reporting by James Davey; editing by Sarah Young, Kirsten Donovan)
