Marketing director Janet Connor said the retail strategy she has been leading, which includes tie-ups with Homebase, Safeway and Costa Coffee, would continue with the launch of similar ventures later this year. The sales division has been renamed as the retailing division to reinforce the positioning internally.
As part of its retail focus Abbey has also widened the Connor's responsibilities to include e-commerce, sharing the responsibility with deputy managing director John Berry. Current director of e-commerce Ambrose McGinn becomes sales and marketing director of the bank's wealth management division.
Keith Moor, head of marketing communications at Abbey National, added that since it launched a World Cup-themed campaign, which Abbey argues is usually the domain of retailers, the bank has seen a 15% rise in current account sales. Abbey branches containing a Costa Coffee branch outperform ordinary outlets and its trials of branches in Homebase stores is proving successful, claimed Moor.
The main reasons given for the warnings that profits would be "substantially lower than the £1.9bn forecast earlier this year were a rise in bad debt provision and a slump in sales of with-profits bonds.
The announcement has raised questions about senior management and chief executive Ian Harley admitted that his job is at risk.
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