Progressive in Telecom communications deal
Supermarket group Progressive Enterprises and department store Farmers have signed telecommunications contracts with
Telecom expected to be worth a total of about $20 million over three years.
The contracts cover all access, voice, data, mobile-data and Internet services to Progressive and almost all services to
Farmers.
Both companies are owned by Australian conglomerate Foodland Associated Limited (FAL). Progressive commands about 45 per
cent of the New Zealand grocery market, operating the Foodtown, Woolworths, Countdown, Big Fresh and Price Chopper
brands. Farmers, the New Zealand-based department store operator and consumer finance and insurance business, operates
65 stores throughout New Zealand.
Woolworths, which was acquired by Progressive in June last year, was previously with TelstraClear, a winback for Telecom
worth about $450,000 a year.
Progressive General Manager Information Technology, John Donaldson, said Telecom was the only communications provider
that seemed willing or able to provide for all of Progressive’s needs.
“At the front end, we were looking for a provider that could consolidate our costs, offer consistency of service across
the group, and provide a one-stop-shop for all our communications and information needs.
“We expect them to be a proactive partner and provide us with real technological input, direction and support into the
future.”
Telecom account director Michael Gaunt says a key feature of the agreement with both groups was that Telecom will work
with them to create a technology and futures plan that sets out the path forward for all telecommunications services at
all sites.
“We are providing them with a robust, secure and fast national data network that will allow them to operate seamlessly
across all divisions. And we’ll work with them to provide future network growth and innovation.”