The Warehouse launching prepay mobile service

The Warehouse will launch a new prepay mobile phone offering later this month.

While the company is keeping details of the offering under wraps, it has revealed that Warehouse Mobile will be delivered in conjunction with 2degrees.

The budget prepay offering comes as the Red Sheds also debut a range of credit cards and house, car, contents, travel and health insurance products.

The company has been selling mobile phones for a number of years, with the company claiming to be the largest retailer of pre-paid phones, but the deal with 2degrees will see it launching its own services.

The company is expected to offer a small range of handset options with the service designed to be cheap and easy to use.

Earlier this week The Warehouse Group announced a 4.1% sales growth for the Warehouse stores in Q1 FY16, but noted it had experienced continued 'market challenges' in the communications, computing and gaming markets, along with the music and DVD categories.

Sister company Noel Leeming saw a 14.5% increase in sales for the same period, with TWG noting that cellular and wearables were leading the way for Noel Leeming growth.

Pricing for the plans will be announced when Warehouse Mobile launches on November 23.