All the branches are outside of the Society’s core North-East heartland and have become increasingly unviable due to falling customer usage.
The closing branches have become increasingly under used by customers, and this trend is likely to continue over the longer term. It has therefore become difficult to justify keeping them open. The ongoing costs of maintaining them can only have a detrimental impact on the ability of the Society to continue to provide its members with best products and service.
Staff recruitment has also been very difficult in the closing branches. Average staff turnover in the affected branches is twice that of the North-East heartland. This is due primarily to low job satisfaction resulting from the low volume of work. Staff in the closing branches conduct 39 transactions on average per week, accounting for just 14% of the total branch-based customer transactions.
Newcastle now aim to focus on our heartland branches and non core business.
The Society fully expects to be able to make further announcements of major new contracts in the near future.
The branches closing are located in Edinburgh, Paisley, Ayr, Falkirk, Manchester, Workington, Preston, Leeds, Bradford, Hull, Huddersfield, Leicester, Peterborough, Newton Stewart, Kendal, Berwick, Sheffield, Nottingham and Doncaster. The areas surrounding the branches are well populated with other financial services providers so if the customers feel unable to conduct their business through direct channels (phone, internet, post) they will be able to find other branch services.
Robert Hollinshead, CEO of Newcastle Building Society, commented: “Announcing the closure of a number of branches across the country has been a difficult decision, and we regret deeply any inconvenience to customers. However, the business reasons for the branch closures are compelling. I know some customers will be upset at this move, but it is best for the society as a whole. The Society will be concentrating on branches in its North East heartland where branch usage is high and the brand offers a competitive advantage. There are no plans to make further closures.”
