The Co-operative has today announced the launch of a new Christmas savings scheme, offering enhanced protection for customer deposits .
Peace of mind for customers
The Co-operative has been working closely with representatives of the Farepak Victims Committee (set up after the 2006 collapse of the Christmas club) to offer customers who buy savings stamps throughout the year protection in what is an uncertain retail environment. Customers who choose to save with The Co-operative will have their money transferred into a trust account, managed by an independent trustee which will provide protection for the funds.
A new standard
Martyn Wates, deputy chief executive of The Co-operative commented "As the UK's biggest consumer-owned business, and a trusted and responsible community retailer, I'm pleased that we have been able to respond to the Farepak Victims Committee's request for a trust fund, and I believe this initiative will give our customers extra peace of mind, setting a new standard for other business to follow".
Although this is not a revolutionary scheme, with the likes of Morrisons and Tesco offering similar savings options, it is the first to guarantee customers money in a retail environment where the collapse of firms has left customers out of pocket. The move to guarantee savings should help the retailer build trust amongst its shoppers, incentivise regular visits to stores, and also demonstrate the values of the business.
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