Citizens Bank has an exclusive contract for the opening of new in-store branches with Stop & Shop’s Massachusetts and Rhode Island locations.

In a time-starved world, consumers are in demand for one-stop shopping – and nothing says “one-stop shopping” to a frazzled customer like the opportunity to make a bank deposit one aisle over from the produce section of the grocery store.

In very few places can one purchase fresh fish, browse through personal hygiene products and check the rate on a 30-year fixed loan – but at Stop & Shop, Shaw’s and Hannaford supermarkets, shoppers can get everything they want in the same building.

In-store supermarket bank branches are becoming more accessible as banks sign agreements with supermarkets throughout New England in an effort to attract bank customers with the idea of convenience and one-stop shopping atmosphere.

“We love in-store banking because it’s a win-win-win for everyone – the grocer, the customer and the bank,” said Maria Tedesco, executive vice president for in-store banking at Citizens Bank. “For the customer, it’s a seven-day banking convenience and not just ATM usage. They can check [certificate of deposit] rates, make deposits and withdrawals and talk to a loan officer. For the grocer, it helps solidify the shopping relationship for the customer. For Citizens, in-store banking gives us a huge lobby to bank in. We go out in the aisles and talk to perspective customers, and we have visible signs.”

Citizens Bank has an exclusive contract with Stop & Shop’s Massachusetts and Rhode Island locations, which Tedesco said helps the both the bank and the grocer retain customers.

Tedesco said customers might shop for groceries in multiple locations, but if they have a banking relationship, they might shop more often in one particular supermarket.

“We have a fast-growing number of branches and this is key to acquiring growth and new relationships with customers,” said Tedesco. “It’s about building relationships – we don’t attack people in the aisles, but we do see these customers more than once a week. Customers usually shop twice a week so we say ‘hello,’ and we know we are going to see them again and when they have a banking need, we are right there for them.”

Because of its exclusive contract with Stop & Shop, Citizens is closing the branches it has in Shaw’s locations as its lease comes to term.

Melodie Jackson, senior vice president and director of public affairs at Citizens said, “We were in a few Shaw’s and we are closing those because of our exclusive contract with Stop & Shop, and as the leases have come up with Shaw’s we’ve shut them down instead of renewing our lease because of our contract with Stop & Shop.”

According to a report sent out by the state Division of Banks, Citizens Bank asked for permission to close eight branch offices within Shaw’s Supermarkets located in Cambridge, Medford, East Falmouth, Fairhaven, Fall River, North Attleboro, Plymouth and Quincy.

‘Mixed Picture’

But Shaw’s is not completely getting out of the banking business – Banknorth and Eastern Bank both have branches in Shaw’s Supermarkets.

Banknorth started its supermarket banking branches in the early 1990s, said Brian Arsenault, spokesman for Banknorth, who added that the bank now has 30 branches in Shaw’s and Hannaford supermarkets. But unlike the reaction of Citizens, Banknorth has received mixed emotions from consumers.

“It’s been a real mixed picture. We opened in-store branches in 1993 … but some did not do well and others have done quite well and the customer is happy,” said Arsenault.

Arsenault said the bank has not been able to pinpoint one particular factor that dictates the success of each branch.

“If the numbers aren’t doing well, we close it down,” he said. “You don’t want to take too big a bet on it because in New England, the typical bank remains the more popular choice of banking. Internet banking is absolutely vital but it’s only used by 15 percent of customers and if we didn’t offer that, we’d lose those customers.”

Arsenault said Banknorth does not see supermarket banking as a “big moneymaker, but more of a convenience,” and the bank will continue to look at the in-store branch options on a spot basis.

Meanwhile, Shaw’s is seeing additional business with the help of Eastern Bank’s in-store branches.

While Eastern only has five supermarket branches on the North and South shores, Mark Primeau, executive vice president for consumer banking at Eastern, said in-store branches are a benefit to everyone.

“We believe it’s a benefit to the consumer because a vast majority of people have to go to the supermarket on a weekly basis to feed their family, and in a time-starved world, it’s nice to have other amenities at the supermarket,” said Primeau. “It’s clearly a win-win for everyone. The bank presents itself to a large number of people on a daily basis in a captive manner, which allows us to attract a larger number of clients. The supermarket has another source of revenue in the amount of rent from the bank and from the consumer’s point it view – it’s a benefit for the convenience.”

Primeau said Eastern Bank is committed to the five in-store branches it has now, but the bank is looking to increase the number of its in-store locations.

“These branches are open seven days a week, so it adds to the customer service aspect. We continue to evaluate opportunities and options in this regard, but any bank faces the problem that most of the sites large enough to support a branch are already spoken for,” said Primeau.

As a competitive tactic, Primeau said Eastern Bank has branches that it keeps open on “supermarket hours” in high-traffic areas in an effort to draw consumers, such as the Eastern location in Danvers near the Danvers Mall.

“We have freestanding branches open seven days a week in areas that lend themselves to high-consumer traffic, but supermarket branches are a more natural fit. We are committed to the business, but the big stumbling block is the lack of appropriate opportunity to get into good supermarket locations,” said Primeau.

But overall, bankers agreed that in-store banking is a clear winning solution for consumers on the go.