WaMu Opening 250 New Retail Sites in 2005

For more retail coverage, click GlobeSt.com/RETAIL.

SEATTLE-Washington Mutual Inc. is in the process of opening 250 new retail banking branches this year, which would match last year’s effort. The locally based bank holding company says it has signed, or is finalizing, leases that will expand its nationwide network of bank branches from 1,940 to 2,190 by the end of this year. Half of the new stores will be split almost evenly between New York, Florida and California.A company source tells GlobeSt.com that branches average about 3,750 sf and generally take less than one year from lease signing to open for business. The cost to build out the branches is typically less than $1 million, according to the source.Each of the new stores will adhere to the retailing design concept the company first rolled out in 2000 when it entered the Las Vegas Market and has since used to open more than 750 new stores. Last year, WaMu obtained a patent for its design–the first patent issued in the country to describe a full-service branch concept–which describes the retail sites as being “transformed into a more retail-like environment…in sharp contrast to traditional bank branches.” According to the patent’s description, embodiments of the invention include the teller towers, which remove the traditional barrier of a teller line in an attempt to allow easier interaction between the teller and the customer. Also described were the circular or oval layout, the concierge desk where customers are greeted and guided to the appropriate service area and a kids’ play area included in many of the company’s stores. Further noted was the access to online banking and bank employees who are hired for their high sales aptitude in order to cross-sell the company’s financial products.In addition to 45 new stores in Florida and 40 new stores in both New York and California, Texas and Illinois will each see 20 new stores while New Jersey, Colorado and Georgia will each see 10 new stores. Through new stores and the remodeling of existing locations, about half of WaMu’s retail locations now adhere to the new concept, according to the source.Last week, WaMu announced fourth quarter 2004 net income of $668 million, or 76 cents per diluted share versus $842 million, or 93 cents per diluted share for the same period in the previous year. The company also announced 2004 annual net income of nearly $2.9 billion, or $3.26 per diluted share compared to nearly $3.9 billion or $4.21 per diluted share in 2003. For the year, the difference in net income from 2003 reflects not only a reversal of reserves for loan and lease losses, but also lower securities gains and lower home loan mortgage banking income, reflecting a steep decline in national mortgage originations.