E*Trade is to open 20 instore branches at Target Stores across the US. The online financial services company has also signed an agreement to become the exclusive ATM network for all Target outlets nationwide.
Through the deal, E*Trade will significantly expanding the reach of its ATM network, installing more than 1000 E*Trade-branded units over the next two years. The firm currently operates cash machiness in 110 Target stores, and in 10,000 other independent locations nationwide.
E*Trade's plans to open instore branches in 20 additional SuperTarget outlets during the course of this year follows the success of a pilot zone first launched in September 2000 in Roswell, Georgia, says the firm. The 400 square foot stores are staffed by E*Trade sales and service representatives.
The move into the physical retailing space follows the recent opening by E*trade of its first high street super-store in Manhattan.
"In today's changing market environment, investors want to know that they have both electronic and physical access to information, products and services to meet their individual investment needs," says Mitchell Caplan, chief global banking and asset gathering officer of E*Trade Group. "E*Trade Access can deliver the convenience of a branded physical presence through a cost-effective ATM network that adds value for our customers, our company and our retail partners."
The move comes as E*Trade announced first quarter results to end March 2001, reporting net income from ongoing operations of $868,000, compared to a net loss from ongoing operations of $672,000, in the same quarter a year ago. The company reported net revenue of $330 million, down 21 percent from $417 million for the same period a year ago and losses of $7.2 million. E*Trade added 166,112 net new brokerage and banking accounts during the quarter, bringing its total accounts to over 3.7 million, up 41 percent compared to the 2.6 million accounts reported at the end of the same quarter a year ago.