Friday, October 24, 1997

Bank opens branch at Albertson's

By DOUG WILLIAMSON / Business Editor

First State Bank is putting some of its future in a bag.

A grocery bag, that is.

The local bank has opened its first supermarket branch in the Albertson's on Buffalo Gap Road, and plans as many as three others here and in Odessa.

"Response to the supermarket banking concept has been exceptional nationwide," said Bryan Stephenson, CEO of Independent Bankshares, parent of First State. "Our move into the Albertson's Inc., grocery store will open new opportunities for expanded service and market share."

Abilenians were first exposed to grocery-store banking a couple of years ago when First National Bank opened a branch in H.E.B.

First State officials spent a couple of years exploring the possibilities, and earlier this year struck a deal with Albertson's. The bank will open a branch in an Odessa Albertson's Monday, and another in the next 6-8 months at another Albertson's in Odessa. A fourth location, in the Albertson's on South 14th Street, is possible, but the deal is not firm, yet.

Stephenson said consumers are looking to do as much as they can in one spot. By giving them "a one-stop shop for grocery shopping and banking, we will better serve our customers," he said. "Everybody doesn't have to come downtown to do their banking, but everybody does have to go to the store to do their shopping."

The bank was looking for a couple of more locations, and the in-store branch was an economical way to meet that need and customer needs, he said. Stephenson estimated the cost of constructing and opening a branch in a grocery store is about 20 percent of what it would be to build and open a free-standing location.

Grocery stores help banks by providing high customer traffic. A bank helps a store by bringing in some additional customers. Stephenson said he has seen statistics that indicate a 2- to 3-percent rise in traffic when a bank branch opens in a supermarket.

He termed the project a success already.

"It is successful because we are providing our customers a benefit," Stephenson said. "Hopefully we will pick up some new customers, but the extra convenience we are giving our present customers has made this successful. The in-store branch should not be looked at as a profit center."

The branch offers full banking services, except for safe deposit boxes. It is open Monday-Friday from 10 a.m.-7 p.m. and Saturday from 10 a.m.-5 p.m. Five people work at the Albertson's branch, 4450 Buffalo Gap Road.