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Private-Label Credit Cards in the U.S., 6th Edition


Attention: There is an updated edition available for this report.

This 6th edition of Private Label Credit Cards in the U.S. continues the story told in Packaged Facts’ September 2006 analysis of this market. It examines the complex relationship between banks, which are severely restricting their consumer lending; retailers, which want to get their cards into as many hands as possible; and American consumers, who may have changed their shopping habits forever—or until the latter part of 2009, when Packaged Facts expects spending to rally.

Packaged Facts estimates growth in private-label credit cards at 3.3% in 2007, bringing the market to nearly $114 billion in receivables. The 2004-2005 period saw a rally during which the acquisition blitz was in full swing and the leading third-party issuers were making substantial investments in marketing, new product development, and customer relations management for their new retail portfolios. However, receivables for private-label credit cards are expected to decline by 3.5%, or $4 billion, for a total of $109.7 billion in 2008 receivables.

Market trends and features that continue to be, or have become, major forces in the private-label segment of the credit card market include:

  • The acquisition blitz: Third-party issuers have been acquiring retailers’ card portfolios, and at the beginning of 2008, only four major retailer holdouts remained. By the end of 2008, there may be just two leading retailers still managing their card programs in-house.

  • Co-branding: More retailers than ever have signed on to offer store cards that can also be used elsewhere. Co-branded cards do not generate the kind of loyalty to a specific retailer that traditional private-label cards do, and the retailer inevitably loses some sales to competitors. However, the bundled-in rewards programs require cardholders to return to the sponsoring retailer to claim their free merchandise.

  • Household penetration rates are fairly low and usage rates even lower. The good news is that active private label credit cardholders are extremely enthusiastic shoppers.

  • Apathy toward high-tech payment options. Card-specific technology is not expected to play a major role in the retail card market in the foreseeable future.

But there have also been notable shifts in the market since 2006. New to this edition:

The retail industry is reeling from the bumpy economic environment, with almost 6,000 store closings predicted for 2008. GE Money put its private label business up for sale, but there have been no takers, as financial institutions are in no position to take on more risk in the form of shoppers who are increasingly unable to pay their bills.

Meanwhile, with practically no major portfolios left to acquire, issuers are trying to grow their businesses by focusing on customer relations management. In fact, this strategy is highly recommended by analysts in a recessionary environment. However, many retailers are reportedly dissatisfied by issuers’ services in this arena and may even seek to reclaim their card assets.

Exploding debit card use has hurt the credit card industry in general, and in an uncertain economy consumers may be even more reluctant to incur unnecessary debt from discretionary purchases like clothing. However, retailers (Wal-Mart, supermarkets) selling everyday items like groceries may feel the squeeze a bit less.

Credit card companies have long been under fire from consumer advocates for usurious interest rates, but many are now turning their attention to the APRs imposed by store cards. In 2008, Consumer Reports, creditcards.com, and a New York legislator have launched investigations or otherwise advised consumers to stay away from proprietary credit cards.

The forecast for private label is more bleak than sunny, but online shopping, rewards programs, improved customer service, stimulating usage by under-targeted consumer groups can all contribute to growth. Issuers willing to take on more accounts can also expand their businesses by courting smaller retailers that don’t currently offer store cards.

Read an excerpt from this report below.

Report Methodology

The information contained in this report is based on primary research including interviews with financial institutions that issue private-label credit cards, retailers fielding private-label card programs, and marketing firms that administer loyalty programs for retailers, as well as comprehensive secondary research. The latter includes articles appearing in financial, marketing, and trade publications, government resources, independent financial reports, product advertising, independent blogs, and company literature, corporate websites, and consumer websites. Statistics on market revenues and marketer share are based on an evaluation of all available information on market sales and trends, including data for the top private-label retail card issuers from SEC company filings, public statements from corporate executives, and trends and figures reported by the trade press.

Packaged Facts’ analysis of consumer behavior and demographics derives from the Simmons Market Research Bureau’s (New York, NY) Winter 2008 adult consumer survey, which is based on approximately 25,000 respondents age 18 or over, and BIGresearch’s (Worthington, OH) Consumer Intentions and Actions data, which are based on online monthly surveys of over 8,000 U.S. adults.


Market Insights: A Selection From The Report


Citi and GE Money switch places

While most receivables in the private-label credit card market have been concentrated in the hands of the same few issuers for some time, some of their market shares have shifted over the past few years. Packaged Facts estimates that Citi Commerce Solutions accounted for more than $40 billion of receivables in 2005, or almost two-fifths of the total market, making it the top issuer. GE Money claimed nearly $30 billion, or more than one-fourth of receivables, in 2005, and $36 billion, approximately one-third of receivables, in 2007.

GE Money's usurpation of Citi's position as the number-one issuer is in large part a function of their portfolios of portfolios. GE's properties are smaller, more agile, and more diversified, with discount, department, specialty, home improvement, and sporting goods stores among them. In comparison, Citi's great acquisition coups, Macy's, Inc. and Sears Holdings, are mature, sprawling entities strangled by convention, bureaucracy, and, increasingly, irrelevance.

Citi took over the private-label operations of Home Depot, the number-two retailer in the nation and the world's largest home improvement chain, in 2002. But when the air started leaking out of the housing bubble, remodeling projects no longer seemed like a prudent investment for homeowners, which may also have contributed to Citi's drop in sales and share. GE Money's blue-chip account, meanwhile, is Wal-Mart, which flourishes in an economic downturn compared to other retailers, both because of its rock-bottom prices and because of its breadth of merchandise incorporating both essentials and discretionary purchases. GE's 2005 introduction of the co-branded Wal-Mart Discover card has also boosted the bank's relative position in the private-label arena.

In the News


Credit Crunch of 2008 Squeezes $114 Billion Private-Label Credit Card Market

New York, January 12, 2009 - Approximately 73 million American adults, or one in three, own private-label credit cards. But tough economic times are squeezing the private-label credit card market, which in 2007 grew only 3% to nearly $114 billion in receivables, notes market research publisher Packaged Facts in the all-new report, Private-Label Credit Cards in the U.S., 6th Edition. Packaged Facts estimates that receivables for the market declined by almost 4% in 2008 for a total of $109 billion. Growth in 2009 is projected to be just one-half of one percent.

In 2007, only 11 private-label credit card issuers had receivables greater than $100 million, down from 17 in 2004 and 27 in 2001. Further, only three banks had receivables of more than $10 billion in 2007. This massive concentration at the top of the list is the result of years of ongoing acquisitions and consolidation in the industry, leaving the top three private-label credit card issuers in control of roughly three-quarters of total private-label receivables.

Resuscitating the industry seems to lay firmly with American consumers and their spending habits. “Resurgence in the private-label credit card market, and the American economy overall, will be linked to consumer optimism,” says Tatjana Meerman, Publisher of Packaged Facts. “But whether this will mean a return to simpler lifestyles and more disciplined spending, notable in the resurgence of layaway plans, or whether it will mean a return to lackadaisical consumerism is unknown. The consensus seems to be that the former is more likely.”

Private-Label Credit Cards in the U.S., 6th Edition examines the market for private-label credit cards, its vulnerabilities, its opportunities, and its future within the context of the global economic meltdown. The report also examines the complex relationship between banks, which are severely restricting their consumer lending; retailers, which want to get their cards into as many hands as possible; and American consumers, who may have changed their shopping habits forever.

About Packaged Facts - Packaged Facts, a division of Market Research Group, publishes market intelligence on a wide range of consumer industries, including consumer goods and retailing, foods and beverages, demographics, pet, and financial products. Packaged Facts also offers a full range of custom research services.

 

  • Executive Summary
    • Scope of Report
      • Report Methodology
    • Overview: 2006 vs. 2008
      • Ongoing trends: acquisition, co-branding, unmotivated customers
      • Significant changes: the economy, the economy, the economy
      • Benefits and drawbacks of store cards
    • The Market
      • A $114 billion market in 2007 is squeezed by the credit crunch
        • Table U.S. Market for Private-Label Credit Cards, 2003-2007 (in billions of dollars and percent change)
    • Market Factors
      • Drop in consumer spending drags down GDP
        • Table Real Gross Domestic Product and Related Measures, 2005-3Q 2008 (percent change from previous period)
    • Consumer confidence crumbles
      • Credit card debt swells by $50 billion in one year
      • Personal bankruptcies could top 1.1 million in 2008
        • Table Number of U.S. Business and Non-business Bankruptcy Filings, 12 Months Ended June 2007 vs. 2008 (percent change)
    • Projected Market Growth
      • Congressional Budget Office expects significant declines, but also cites
      • Easing gas prices a boon to store traffic
      • Private-label credit card market will drop in 2008, rally in 2010, and approach $123 billion in 2012
        • Table Projected U.S. Market for Private-Label Credit Cards, 2008-2012 (in billions of dollars and percent change)
    • The Marketers
      • Consolidation reaches saturation point
        • Table Top Issuers of Private-Label Retail Cards, Estimated Receivables and Market Share, 2001, 2003, 2005, and 2007 (in millions of dollars)
    • Marketer Shares
      • Citi and GE Money switch places
      • HSBC remains solidly in third place
    • The Competitive Situation
      • Retailers should rethink their rewards systems
    • The Retail Situation
      • Mergers and acquisitions dilute retailers' brand identity
      • Aggressive price promotions spur sales, but erode profits
    • The Competitors
      • Delinquencies and charge-offs decimate profits
    • The Private-Label Cardholder
      • Nearly 73 million American adults, or one in three, have a private-label credit card...
      • ...but just one in four uses it
      • Usage rates for all private-label credit cards are on the decline
      • Usage rates of store cards increase with age
      • Twice as many women use private-label credit cards
      • More than 25% of whites and Asians use private-label credit cards
      • Higher-income households use private-label credit cards more regularly
      • Consumers who use store cards are exceptionally fond of shopping
      • Clothing/specialty store card users are significantly more likely to plan shopping trips online...
    • Looking Ahead: Trends and Opportunities
      • Customer service critical in current circumstances
      • Older, richer, smaller households index high for monthly usage of store cards
      • Clothing/specialty store cardholders are enthusiastic shoppers
      • Asian consumers may be a particularly profitable prospect
      • Maximize online store card use
      • Revive layaway
    • Recognize American optimism
  • Highlights
  • Introduction
    • Scope of Report
    • Overview: 2006 vs. 2008
      • Ongoing trends: acquisition, co-branding, unmotivated customers
      • Significant changes: the economy, the economy, the economy
    • Private-Label Card Basics
      • Benefits of store cards for consumers: special treatment
      • Drawbacks of store cards for consumers: cash outlay
        • Table Selected Retailer Credit Card Rates in New York City, 2008 (percent)
      • Private-label card benefits for retailers: customer loyalty
      • Benefits of private-label credit cards for financial institutions brings us to cobranding
        • Table Selected Features and Benefits of Private-Label Credit Cards
        • Table Selected Features and Benefits of Co-branded Credit Cards
    • Industry Trends
      • Seismic shift to third-party issuance
        • Table Top Issuers of Private-Label Retail Cards, Estimated Receivables and Market Share, 2001, 2003, 2005, and 2007 (in millions of dollars and percent)
      • Issuers implement stricter standards for credit approval
    • The Regulatory Environment
      • Congressman warns stores are "fleecing shoppers"
    • Credit Card Bill of Rights Act aims to eradicate "abusive lending practices"
      • Bipartisan support for proposed Credit Card Fair Fee Act
        • Table Glossary of Financial and Banking Terms
  • Highlights
  • The Market
    • Market Size and Composition
      • Note on methodology
      • A $114 billion market in 2007 is squeezed by the credit crunch of 2008
        • Table U.S. Market for Private-Label Credit Cards, 2003-2007 (in billions of dollars)
      • 2008 Market Estimate
    • Market Factors
    • Market Factor: Payment Preferences
      • One in three American adults has a private-label credit card, but just one in four uses it
        • Table Penetration and Usage Rates: Selected Credit Card Classifications, 2008 (percent of U.S. adults)
        • Table Percentage of Overall Cardholders Who Use Cards Yearly and Monthly: Selected Credit Card Classifications, 2008 (U.S. adults who have a credit card)
      • Usage rates for all private-label credit cards are on the decline
        • Table Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, Spring 2004-Winter 2008 (percentage of U.S. adults)
        • Table Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, Spring 2004-Winter 2008 (number of U.S. adults, in thousands)
      • Are debit cards a threat?
        • Table U.S. Market for Debit Cards, Purchase Volume, 2003-2007 (in millions of dollars and percent change)
    • Market Factor: The Economy
      • Drop in consumer spending drags down GDP
        • Table Real Gross Domestic Product and Related Measures, 2005-3Q 2008 (percent change from previous period)
        • Table Contributions to Percent Change in Real Gross Domestic Product, 2005-3Q 2008 (percent change)
      • 171 banks with combined assets of $116 billion are classified as "problem" institutions
    • Market Factor: Consumers' Experiences and Sentiment
      • Consumer confidence crumbles
      • Jobless rate climbs to 6.5%
      • Credit card debt swells by $50 billion in one year
        • Table Revolving Consumer Credit Outstanding, September 2007 vs. September 2008 (in millions of dollars)
      • Delinquencies, charge-off rates on credit cards remain high
        • Table Quarterly Charge-Off And Delinquency Rates For Consumer Credit Card Loans, 2004-3Q-2008 (percent)
      • Personal bankruptcies could top 1.1 million in 2008
        • Table Number of U.S. Business and Non-business Bankruptcy Filings, 12 Months Ended June 2007 vs. 2008
        • Table Number of Non-business Chapter 7 Bankruptcy Filings, 2Q 2007-2Q 2008
    • Projected Market Growth
      • Congressional Budget Office expects significant declines, but also cites resilience of U.S. economy
        • Table Economic Outlook, Projections and Forecast, 2008-2013 (in billions of dollars and percent change)
      • Professional economic forecasters anticipate a couple of rough quarters
      • Holiday 2008 sorely challenges retailers, but also reveals consumer tendencies and opportunities
        • Table Holiday 2008 Forecasts (percent)
      • Easing gas prices a boon to store traffic
      • Packaged Facts' Projection: Private-label credit card market declines in 2008, rallies in 2010, approaches $123 billion in 2012
        • Table Projected U.S. Market for Private-Label Credit Cards, 2008-2012 (in billions of dollars and percent change) Year Receivables Percent Change
  • Highlights
    • Table Leading Third-party Card Issuers and Selected Retail Accounts, 2008
  • The Marketers
    • Overview
      • Consolidation reaches saturation point
        • Table Top Issuers of Private-Label Retail Cards, Estimated Receivables and Market Share, 2001, 2003, 2005, and 2007 (in millions of dollars and percent)
    • Marketer Shares
      • Citi and GE Money switch places
      • HSBC remains solidly in third place
        • Table Top Marketers of Private-Label Retail Cards, Estimated Receivables and Market Share, 2003, 2005, and 2007 (in millions of dollars and percent)
    • The Competitive Situation
      • Private-label credit cards compete with numerous other payment options
      • Retailers should rethink their rewards systems
        • Table Features, Benefits, and Terms of Selected Store Cards Issued by Citibank
    • The Retail Situation
      • Mergers and acquisitions dilute retailers' brand identity
        • Table Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, Spring 2004-Winter 2008 (percentage of U.S. adults)
        • Table Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, Spring 2004-Winter 2008 (number of U.S. adults, in thousands)
      • Target's "best of both worlds" sends mixed message
      • Aggressive price promotions spur sales, but erode profits
    • Competitive Outlook
  • Highlights
  • Competitor Profiles
    • Competitor Profile: GE Money (General Electric Co.)
      • GE pulls ahead of Citi to top position
      • GE struggles to keep its financial footing in challenging environment
      • No takers for $36 billion portfolio
      • GE shifts focus overseas
      • New accounts and account extensions
        • Table GE Money, Selected Private-Label Credit Card Agreements, 2008
    • Competitor Profile: Citi Retail Services (Citigroup, Inc.)
      • Citi invokes parent company's might as competitive advantage
      • Delinquencies and charge-offs decimate profits
      • Home Depot negotiates advantageous deal with Citi
      • Rising middle class in emerging countries a source of growth
        • Table Citigroup, Selected International Card Initiatives, 2008
    • Competitor Profile: HSBC Retail Services (HSBC Bank USA)
      • HSBC maintains third place, but still trails at a distance
      • Quarterly losses reverse previous year's profits
      • Neiman Marcus sues HSBC for threatening to tamper with cardholder accounts in the face of losses
    • Competitor Profile: JPMorgan Chase & Co.
      • Chase more than doubles market share in two years
      • Charge-offs could continue to escalate
      • Chase configures innovative deals for retail portfolio acquisitions
    • Competitor Profile: Alliance Data (traded on NYSE as ADS: Alliance Data Systems Corp.)
      • Delivers loyalty and marketing programs using transaction data
      • 2007 revenue up 15%, private-label growth seen for 2009
      • "Born from retail"
      • Blackstone Group backs out of planned acquisition, citing logistics, costs
        • Table Alliance Data, Selected Private-Label Credit Card Agreements, 2008
    • Competitor Profile: Target Financial Services (Target Corp.)
      • Target delivers design at a discount in a clean, well-lighted space
      • Unable to "inspire" shoppers
  • Highlights
  • The Consumer
    • Methodology
    • The Private-Label Cardholder: Introduction
      • Nearly 73 million American adults, or one in three, have a private-label credit card...
      • ...but just one in four uses it
        • Table Penetration and Usage Rates: Selected Credit Card Classifications, 2008 (U.S. adults)
      • More than 70% of gas cardholders use their cards monthly
        • Table Percentage of Overall Cardholders Who Use Cards Yearly and Monthly: Selected Credit Card Classifications, 2008 (U.S. adults who have a credit card)
      • Usage rates for all private-label credit cards are on the decline
        • Table Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, Spring 2004-Winter 2008 (percentage of U.S. adults)
        • Table Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, Spring 2004-Winter 2008 (number of U.S. adults, in thousands)
    • Consumer Focus: Cardholder Demographics
      • Usage rates of store cards increase with age
        • Table Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, by Age of Consumer, 2008 (percentage of U.S. adults)
      • Consumers over the age of 44 use department store cards at more than 20% the average rate
        • Table Indices for Use of Selected Credit Card Classifications in Last Year, By Age of Consumer, 2008 (U.S. Adults)
      • Twice as many women use private-label credit cards
        • Table Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, by Gender of Consumer, 2008 (percent of U.S. adults)
        • Table Indices for Use of Credit Cards in the Last Year: Selected Credit Card Classifications, by Gender of Consumer, 2008 (U.S. Adults)
      • More than 25% of whites and Asians use private-label credit cards
        • Table Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, By Race/Ethnicity of Consumer, 2008 (U.S. adults)
      • Whites use store cards at rates significantly above the norm
        • Table Indices for Use of Credit Cards in the Last Year: Selected Credit Card Classifications, By Race/Ethnicity of Consumer, 2008 (U.S. Adults)
      • Northeasterners are more vigorous users of store cards, but less so when it comes to JCPenney
        • Table Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, by Region of Consumer, 2008 (percent of U.S. adults)
        • Table Indices of Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, by Region of Consumer, 2008 (U.S. adults)
        • Table Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, by Income of Consumer, 2008 (percent of U.S. adults)
      • Clothing/specialty stores particularly favored by consumers with household
        • Table Indices for Use of Credit Cards in the Last Year: Selected Credit Card Classifications, by Income of Consumer, 2008 (U.S. adults)
      • Smaller households are more frequent users of store cards
        • Table Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, by Household Size, 2008 (U.S. adults)
      • In 3-person households, use of store cards drops precipitously
        • Table Indices for Use of Selected Credit Card Classifications in Last Year, By Household Size, 2008 (U.S. Adults)
      • Discussion: Exceptionally heavy users
        • Table Indices for Use of Any Credit Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)
        • Table Indices for Use of Any Private-Label Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)
        • Table Indices for Use of Any Private-Label Credit Card, Excluding Gas, in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)
        • Table Indices for Use of Any Department Store Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)
        • Table Indices for Use of Sears or JCPenney Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)
        • Table Indices for Use of Other Department Store Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)
        • Table Indices for Use of Sears Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)
        • Table Indices for Use of JCPenney Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)
        • Table Indices for Use of Gas Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)
        • Table Indices for Use of Clothing/Specialty Store Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)
    • Consumer Focus: Cardholder Payment Preferences
      • Use of store cards flat for purchases of clothing, groceries, drug store items, and gas
        • Table Payment Option Used Most Often, by Retail Category, 2003, 2005, and 2008 (percent)
        • Table Demographic Characteristics of Respondents Who Use Store Credit Cards Most Often, by Retail Category, 2008 (percent)
      • One in 10 shoppers uses store cards for holiday gift purchases
        • Table Credit Card Used for Holiday Gift Purchases, December 2004-December 2007 (percent)
    • Consumer Focus: Cardholder Attitudes
      • Holders some of store cards are decidedly disinclined to pay cash
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Often Prefer To Pay Cash For The Things I Buy," 2008 (U.S. adults)
      • Department store cardholders consider themselves to be careful stewards of their money
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I'm Careful With My Money," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I'm No Good At Saving Money," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Tend To Spend Money Without Thinking," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Don't Like The Idea Of Being In Debt," 2008 (U.S. adults)
      • Consumers who use store cards are exceptionally fond of shopping
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Really Enjoy Any Kind Of Shopping," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Go Shopping Frequently," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Only Go Shopping To Buy Something I Really Need," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "When Shopping, I Get What I Want And Leave," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "When I Shop I Visit A Variety Of Stores," 2008 (U.S. adults)
      • Cardholders do not consider shopping a social occasion
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Prefer To Shop With My Friends," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Prefer To Shop With My Family," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "When Shopping With Others, I Prefer Splitting Up," 2008 (U.S. adults)
      • Clothing/specialty store card users are significantly more likely to plan shopping trips online...
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Use The Internet To Help Plan Shopping Trips," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I'm Usually Willing To Shop New Stores," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Usually Am The First Among My Friends To Shop At A New Store," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Will Travel Up To An Hour Or More To Shop At Favorite Store," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Prefer To Buy Products From Specialty Stores," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Prefer Shopping At Specialty Stores Because They Tend To Carry The Best Brands," 2008 (U.S. adults)
      • Users of department store cards prefer to buy domestically produced merchandise
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Buy Goods Produced By My Own Country When I Can," 2008 (U.S. adults)
      • Store cardholders are conflicted over the lure of the price tag
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I'm Drawn To Specific Stores; Don't Shop By Sales," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Head Right To The Clearance Rack When I Enter A Store," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Will Travel An Hour Or More To Factory Outlet Stores," 2008 (U.S. adults)
      • Store cardholders can be both methodical and impulse shoppers
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Prefer To Buy Things On The Spur Of The Moment," 2008 (U.S. adults)
        • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Tend To Spend Long Periods Of Time In Store Browsing," 2008 (U.S. adults)
  • Highlights
  • Looking Ahead: Trends and Opportunities
    • Customer service critical in current circumstances
      • Are third parties up to the task?
      • Banks should "think like retailers"…
      • …But they're thinking like banks
    • Target for Best ROI
      • Older, richer, smaller households index high for monthly usage of store cards
        • Table Indices for Use of Selected Credit Card Classifications in the Last Month, by Persons Aged 45-54, 2008 (U.S. Adults)
        • Table Indices for Use of Selected Credit Card Classifications in the Last Month, by Persons Aged 55-64, 2008 (U.S. Adults)
        • Table Indices for Use of Selected Credit Card Classifications in the Last Month, by Persons Aged 65+, 2008 (U.S. Adults)
        • Table Indices for Use of Selected Credit Card Classifications in the Last Month, by Women, 2008 (U.S. Adults)
        • Table Indices for Use of Selected Credit Card Classifications in the Last Month, by Whites, 2008 (U.S. Adults)
        • Table Indices for Use of Selected Credit Card Classifications in the Last Month, by Residents of the Northeast, 2008 (U.S. Adults)
        • Table Indices for Use of Selected Credit Card Classifications in the Last Month, by Households with Incomes of $75,000-$99,999, 2008 (U.S. Adults)
        • Table Indices for Use of Selected Credit Card Classifications in the Last Month, by Households with Incomes of $100,000-$149,999, 2008 (U.S. Adults)
        • Table Indices for Use of Selected Credit Card Classifications in the Last Month, by Households with Incomes of $150,000+, 2008 (U.S. Adults)
        • Table Indices for Use of Selected Credit Card Classifications in the Last Month, by One-Person Households, 2008 (U.S. Adults)
        • Table Indices for Use of Selected Credit Card Classifications in the Last Month, by Two-Person Households, 2008 (U.S. Adults)
      • Clothing/specialty store cardholders are enthusiastic shoppers
        • Table Indices for Agreement with Selected Statements on Attitudes Toward Shopping, 2008 (U.S. adults who have a clothing/specialty store credit card) Statement Index
      • Does the specialty store shopper represent an under-exploited opportunity?
      • Asian consumers may be a particularly profitable prospect
        • Table Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, By Race/Ethnicity of Consumer, 2008 (percent of U.S. adults)
        • Table Indices for Use of Credit Cards in the Last Year: Selected Credit Card Classifications, By Race/Ethnicity of Consumer, 2008 (U.S. Adults)
    • Maximize Online Store Card Use
      • Table Indices by Private-Label Credit Card Classification for Agreement with Statement: "I Use The Internet To Help Plan Shopping Trips," 2008 (U.S. adults)
    • Revive Layaway
    • Promote Merchandise Over Gift Cards
    • Recognize American Optimism
  • Addresses of Selected Marketers

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