Telecom's online shopping mall Ferrit to close

Telecom has decided to close its online shopping mall Ferrit as part of
the company’s focus on the delivery of its core services.

The decision reflects that there has been a range of changes in both the
telecommunications landscape and the company’s strategic priorities since
Ferrit first launched in 2005.

Alan Gourdie, Telecom Retail CEO, says Telecom’s strategy is focused on
building customer preference in the key areas of mobile, broadband and
ICT.

“In this changing market Telecom is directing its focus and resources to
core business areas such as significant commitments and investment in next
generation broadband and mobile technology to benefit our customers.

“Telecom’s aim in launching Ferrit was to help develop New Zealand’s
online retail market. Since 2005 we’ve seen a growth in retail adoption of
online with many retail players adopting ecommerce and web capabilities.

“Ferrit has continued to grow during the past three years but the current
retail environment has meant the break-even point has shifted out a number
of years. The decision has now been made to refocus and resources will be
directed to other areas,” says Mr Gourdie.

Telecom is advising its retail partners individually of its decision.
Ferrit will stop taking online orders on Wednesday 14 January at 5pm but
will continue to direct visitors to the retailers’ own websites from
ferrit.co.nz.

Ferrit will be working to ensure all existing orders are received by
customers in the normal delivery time.

Mr Gourdie says a number of the employees working on Ferrit have been
involved from launch and have valuable new media and online expertise.

“Our priority will be to capitalise on these people’s skills wherever
possible through redeployment to other parts of Telecom.”

Telecom continues to be an active player in the development of online
content and applications in New Zealand through activity and partnerships
such as Yahoo!Xtra, Telecom Business Hub and Xero and in the coming months
will have other developments in the content area as it launches its new 3G
network.