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The Executive Summary: U.S. Market for Private Label Credit Cards, 5th Edition

Packaged Facts’ Executive Summaries provide a comprehensive overview of the contents contained in our full-length market intelligence reports.

Containing a snapshot of the overall market analysis, each Executive Summary provides a description of the scope and methodology used in the report; chapter overviews complete with statistical data; a sampling of charts and graphs when applicable; a brief look at the trends shaping the market; and projected future growth or demise of each market sector with relevant sales figures.

The report from which this Executive Summary is compiled is for Private Label Credit Cards in the U.S. , and the full study abstract is as follows:
In a few short years, the private-label credit card market has seen a near total shift in the control of card portfolios; with very few exceptions, retailers have given up on in-house control, and have unloaded their private-label programs on third-party issuers. After a string of enormous acquisitions, including the 2005-06 purchase of the receivables of the newly merged Federated and May Department Stores, Citi Commerce dwarfs the rest. Yet second-tier players GE Money, HSBC, and Alliance Data have also made notable acquisitions and expansions—and even J.P. Morgan Chase & Co., barely on the radar in 2004, essentially doubled its receivables with the 2006 acquisition of Kohl’s retail card program.

By themselves, none of these deals have increased the overall size of the market, but they have freed retailers to focus on their core businesses, to explore ways to attract cardholders, and to experiment with more ambitious reward and loyalty programs. At the same time, most of the third-party bank issuers have increased their investment in behind-the-scenes services for their retail card partners, offering more assistance with everything from marketing and advertising to rewards administration and customer service. As a result, the market has exceeded earlier growth predictions, with surprising gains in 2004 and 2005 and continued growth in store for the near future.

Private Label Credit Cards in the U.S. focuses on the $106 billion private-label credit card industry, covering cards issued directly by retailers as well as cards issued by third parties, with some discussion of oil & gas cards managed by third-party issuers. The report examines ongoing trends in the private-label market—including rapid consolidation among market leaders, the seemingly inevitable decline of proprietary card programs, and the private-label market’s embrace of trends and tactics made popular in the general-purpose segment, especially co-branded cards and rewards programs. It also explores the state of private-label card marketing and advertising, the influence of card processors on the retail card market, and the impact of new technology on private-label card account generation and administration. Also included are detailed company profiles of the leading bankcard associations and card issuers—including Citi Commerce Solutions, GE Money, HSBC, Alliance Data, and J.P. Morgan Chase & Co.—as well as a survey of the demographics, shopping habits, and consumer attitudes of private-label credit card holders.

Please Note: Due to the brevity and/or nature of the content posted, there is no table of contents available for this report.

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