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

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

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. Whereas incentives were once retailers’ primary promotional tool, partnering with Visa and MasterCard gives customers access to the card associations’ rewards programs.
  
  
  
  
  
• 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. Alliance Data, too, is looking for buyers. 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.

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.

Chapter 1: 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 1-1: U.S. Market for Private-Label Credit Cards, 2003-2007 (in billions of dollars and percent change)

Figure 1-1: U.S. Market for Private-Label Credit Cards, 2003-2007 (in billions of dollars)

Market Factors

Drop in consumer spending drags down GDP

Table 1-2: Real Gross Domestic Product and Related Measures, 2005-3Q 2008 (percent change from previous period)

Figure 1-2: Real Personal Consumption Expenditures, 2006-3Q 2008 (percent change)

171 banks with combined assets of $116 billion are classified as ``problem`` institutions

Figure 1-3: Earnings, FDIC-Insured Financial Institutions, 3Q 2008 (in billions of dollars)

Figure 1-4: Charge-Offs, FDIC-Insured Financial Institutions, 3Q 2008 (in billions of dollars)

Consumer confidence crumbles

Figure 1-5: Consumer Confidence Index, September 2007-November 2008

Credit card debt swells by $50 billion in one year

Figure 1-6: Revolving Consumer Credit Outstanding, September 2003- September 2008 (in millions of dollars) Source: Federal Reserve, Packaged Facts

Personal bankruptcies could top 1.1 million in 2008

Table 1-3: 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 resilience of U.S. economy

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 1-4: Projected U.S. Market for Private-Label Credit Cards, 2008-2012 (in billions of dollars and percent change)

Figure 1-7: Projected U.S. Market for Private-Label Credit Cards, 2007-2012 (in billions of dollars)

The Marketers

Consolidation reaches saturation point

Table 1-5: 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

Figure 1-8: Top Marketers of Private-Label Retail Cards, Estimated Market Share, 2007 (percent)

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

Figure 1-9: Card Use in the Past 30 Days: Selected Credit Card Classifications, 2008 (U.S. adults who have credit cards)

Usage rates for all private-label credit cards are on the decline

Figure 1-10: Change in Number of U.S. Adults Using Credit Cards in the Last Year, by Card Classification, Spring 2004 vs. Winter 2008 (percentage)

Usage rates of store cards increase with age

Figure 1-11: 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

More than 25% of whites and Asians use private-label credit cards

Higher-income households use private-label credit cards more regularly

Figure 1-12: Indices for Use of Credit Cards in the Last Year: Selected Credit Card Classifications, by Income of Consumer, 2008 (U.S. adults)

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

Chapter 2: Highlights

Chapter 2: 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 2-1: 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 co-branding

Table 2-2: Selected Features and Benefits of Private-Label Credit Cards

Table 2-3: Selected Features and Benefits of Co-branded Credit Cards

Industry Trends

Seismic shift to third-party issuance

Table 2-4: Top Issuers of Private-Label Retail Cards, Estimated Receivables and Market Share, 2001, 2003, 2005, and 2007 (in millions of dollars and percent)

Former and Current Issuers, Selected Retailers

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 2-5: Glossary of Financial and Banking Terms

3: Highlights

Chapter 3: The Market

Market Size and Composition

Note on methodology

A $114 billion market in 2007 is squeezed by the credit crunch of 2008

Table 3-1: U.S. Market for Private-Label Credit Cards, 2003-2007 (in billions of dollars)

Figure 3-1: 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 3-2: Penetration and Usage Rates: Selected Credit Card Classifications, 2008 (percent of U.S. adults)

Table 3-3: Percentage of Overall Cardholders Who Use Cards Yearly and Monthly: Selected Credit Card Classifications, 2008 (U.S. adults who have a credit card)

Figure 3-2: Card Use in the Past 30 Days: Selected Credit Card Classifications, 2008 (U.S. adults who have credit cards)

Usage rates for all private-label credit cards are on the decline

Table 3-4: Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, Spring 2004-Winter 2008 (percentage of U.S. adults)

Table 3-5: Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, Spring 2004-Winter 2008 (number of U.S. adults, in thousands)

Figure 3-3: Number of U.S. Adults Using Credit Cards in the Last Year, by Card Classification, Spring 2004 vs. Winter 2008 (percent change)

Are debit cards a threat?

Table 3-6: 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 3-7: Real Gross Domestic Product and Related Measures, 2005-3Q 2008 (percent change from previous period)

Table 3-8: Contributions to Percent Change in Real Gross Domestic Product, 2005-3Q 2008 (percent change)

Figure 3-4: Real Personal Consumption Expenditures, 2006-3Q 2008 (percent change)

171 banks with combined assets of $116 billion are classified as ``problem`` institutions

Figure 3-5: Earnings, FDIC-Insured Financial Institutions, 3Q 2008 (in billions of dollars)

Figure 3-6: Charge-Offs, FDIC-Insured Financial Institutions, 3Q 2008 (in billions of dollars)

Figure 3-7: Total Assets of Failed FDIC-Insured Commercial Banks, 1988-3Q 2008 (in billions of dollars)

Figure 3-8: Troubled Loans, FDIC-Insured Financial Institutions, 2006-3Q 2008 (in billions of dollars)

Market Factor: Consumers' Experiences and Sentiment

Consumer confidence crumbles

Figure 3-9: Consumer Confidence Index, September 2007-November 2008 Jobless rate climbs to 6.5%

Figure 3-10: U.S. Unemployed, October 2007-October 2008 (number in millions)

Figure 3-11: U.S. Unemployment Rates, October 2007-October 2008 (percent)

Credit card debt swells by $50 billion in one year

Table 3-9: Revolving Consumer Credit Outstanding, September 2007 vs. September 2008 (in millions of dollars)

Figure 3-12: Revolving Consumer Credit Outstanding, September 2003- September 2008 (in millions of dollars)

Delinquencies, charge-off rates on credit cards remain high

Table 3-10: Quarterly Charge-Off And Delinquency Rates For Consumer Credit Card Loans, 2004-3Q-2008 (percent)

Figure 3-13: 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 3-11: Number of U.S. Business and Non-business Bankruptcy Filings, 12 Months Ended June 2007 vs. 2008

Table 3-12: 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 3-13: Economic Outlook, Projections and Forecast, 2008-2013 (in billions of dollars and percent change)

Professional economic forecasters anticipate a couple of rough quarters

Figure 3-14: Quarterly Probability of Decline in Real GDP, 4Q 1968-2008 Holiday 2008 sorely challenges retailers, but also reveals consumer tendencies and opportunities

Table 3-14: Holiday 2008 Forecasts (percent) Easing gas prices a boon to store traffic

Figure 3-15: U.S. Gasoline and Diesel Fuel Prices, December 2006-07 vs. December 2007-08

Packaged Facts' Projection: Private-label credit card market declines in 2008, rallies in 2010, approaches $123 billion in 2012

Table 3-15: Projected U.S. Market for Private-Label Credit Cards, 2008-2012 (in billions of dollars and percent change)

Figure 3-16: Projected U.S. Market for Private-Label Credit Cards, 2007-2012 (in billions of dollars)

Chapter 4: Highlights

Table 4-1: Leading Third-party Card Issuers and Selected Retail Accounts, 2008

Chapter 4: The Marketers

Overview

Consolidation reaches saturation point

Table 4-2: 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 4-3: Top Marketers of Private-Label Retail Cards, Estimated Receivables and Market Share, 2003, 2005, and 2007 (in millions of dollars and percent)

Figure 4-1: Top Marketers of Private-Label Retail Cards, Estimated Market Share, 2003, 2005, and 2007 (in millions of dollars)

Figure 4-2: Top Marketers of Private-Label Retail Cards, Estimated Market Share, 2007 (percent)

The Competitive Situation

Private-label credit cards compete with numerous other payment options

Retailers should rethink their rewards systems

Table 4-:4 Features, Benefits, and Terms of Selected Store Cards Issued by Citibank

The Retail Situation

Mergers and acquisitions dilute retailers' brand identity

Table 4-5: Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, Spring 2004-Winter 2008 (percentage of U.S. adults)

Table 4-6: 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

Chapter 5: Highlights

Chapter 5: 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 5-1: 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 5-2: 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 5-3: 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

Chapter 6: Highlights

Chapter 6: The Consumer

Methodology

The Private-Label Cardholder: Introduction

Nearly 73 million American adults, or one in three, have a private-label credit card

Table 6-1: Penetration and Usage Rates: Selected Credit Card

Classifications, 2008 (U.S. adults)

More than 70% of gas cardholders use their cards monthly

Table 6-2: Percentage of Overall Cardholders Who Use Cards Yearly and Monthly: Selected Credit Card Classifications, 2008 (U.S. adults who have a credit card)

Figure 6-1: Card Use in the Past 30 Days: Selected Credit Card

Classifications, 2008 (U.S. adults who have credit cards)

Usage rates for all private-label credit cards are on the decline

Table 6-3: Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, Spring 2004-Winter 2008 (percentage of U.S. adults)

Table 6-4: Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, Spring 2004-Winter 2008 (number of U.S. adults, in thousands)

Figure 6-2: Change in Number of U.S. Adults Using Credit Cards in the Last Year, by Card Classification, Spring 2004 vs. Winter 2008 (percentage)

Consumer Focus: Cardholder Demographics

Usage rates of store cards increase with age

Table 6-5: 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 6-6: Indices for Use of Selected Credit Card Classifications in Last Year, By Age of Consumer, 2008 (U.S. Adults)

Figure 6-3: 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 6-7: Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, by Gender of Consumer, 2008 (percent of U.S. adults)

Table 6-8: 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 6-9: 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 6-10: 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 6-11: Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, by Region of Consumer, 2008 (percent of U.S. adults)

Table 6-12: Indices of Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, by Region of Consumer, 2008 (U.S. adults)

Table 6-13: 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 incomes of $75,000+

Table 6-14: Indices for Use of Credit Cards in the Last Year: Selected Credit Card Classifications, by Income of Consumer, 2008 (U.S. adults)

Figure 6-4: 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 6-15: 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 6-16: Indices for Use of Selected Credit Card Classifications in Last Year, By Household Size, 2008 (U.S. Adults)

Discussion: Exceptionally heavy users

Table 6-17: Indices for Use of Any Credit Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)

Table 6-18: Indices for Use of Any Private-Label Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)

Table 6-19: Indices for Use of Any Private-Label Credit Card, Excluding Gas, in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)

Table 6-20: Indices for Use of Any Department Store Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)

Table 6-21: Indices for Use of Sears or JCPenney Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)

Table 6-22: Indices for Use of Other Department Store Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)

Table 6-23: Indices for Use of Sears Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)

Table 6-24: Indices for Use of JCPenney Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)

Table 6-25: Indices for Use of Gas Card in Last Month, Select Demographic Characteristics, 2008 (U.S. Adults)

Table 6-26: 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 6-27: Payment Option Used Most Often, by Retail Category, 2003, 2005, and 2008 (percent)

Table 6-28: 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 6-29: 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 6-30: 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 6-31: Indices by Private-Label Credit Card Classification for Agreement with Statement: “I’m Careful With My Money,`` 2008 (U.S. adults)

Table 6-32: Indices by Private-Label Credit Card Classification for Agreement with Statement: “I’m No Good At Saving Money,`` 2008 (U.S. adults)

Table 6-33: Indices by Private-Label Credit Card Classification for Agreement with Statement: “I Tend To Spend Money Without Thinking,`` 2008 (U.S. adults)

Table 6-34: 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 6-35: Indices by Private-Label Credit Card Classification for Agreement with Statement: “I Really Enjoy Any Kind Of Shopping,” 2008 (U.S. adults)

Table 6-36: Indices by Private-Label Credit Card Classification for Agreement with Statement: “I Go Shopping Frequently,” 2008 (U.S. adults)

Table 6-37: 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 6-38: 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 6-39: 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 6-40: Indices by Private-Label Credit Card Classification for Agreement with Statement: “I Prefer To Shop With My Friends,” 2008 (U.S. adults)

Table 6-41: Indices by Private-Label Credit Card Classification for Agreement with Statement: “I Prefer To Shop With My Family,” 2008 (U.S. adults)

Table 6-42: 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 6-43: 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 6-44: Indices by Private-Label Credit Card Classification for Agreement with Statement: “I’m Usually Willing To Shop New Stores,” 2008 (U.S. adults)

Table 6-45: 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 6-46: 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 6-47: Indices by Private-Label Credit Card Classification for Agreement with Statement: “I Prefer To Buy Products From Specialty Stores,” 2008 (U.S. adults)

Table 6-48: 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 6-49: 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 6-50: 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 6-51: 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 6-52: 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 6-53: 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 6-54: 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)

Chapter 7: Highlights

Chapter 7: 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 7-1: Indices for Use of Selected Credit Card Classifications in the Last Month, by Persons Aged 45-54, 2008 (U.S. Adults)

Table 7-2: Indices for Use of Selected Credit Card Classifications in the Last Month, by Persons Aged 55-64, 2008 (U.S. Adults)

Table 7-3: Indices for Use of Selected Credit Card Classifications in the Last Month, by Persons Aged 65+, 2008 (U.S. Adults)

Table 7-4: Indices for Use of Selected Credit Card Classifications in the Last Month, by Women, 2008 (U.S. Adults)

Table 7-5: Indices for Use of Selected Credit Card Classifications in the Last Month, by Whites, 2008 (U.S. Adults)

Table 7-6: Indices for Use of Selected Credit Card Classifications in the Last Month, by Residents of the Northeast, 2008 (U.S. Adults)

Table 7-7: 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 7-8: 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 7-9: Indices for Use of Selected Credit Card Classifications in the Last Month, by Households with Incomes of $150,000+, 2008 (U.S. Adults)

Table 7-10: Indices for Use of Selected Credit Card Classifications in the Last Month, by One-Person Households, 2008 (U.S. Adults)

Table 7-11: 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 7-12: Indices for Agreement with Selected Statements on Attitudes Toward Shopping, 2008 (U.S. adults who have a clothing/specialty store credit card)

Does the specialty store shopper represent an under-exploited opportunity?

Asian consumers may be a particularly profitable prospect

Table 7-13: Usage of Credit Cards in the Last Year: Selected Credit Card Classifications, By Race/Ethnicity of Consumer, 2008 (percent of U.S. adults)

Table 7-14: 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 7-15: 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

Appendix: Addresses of Selected Marketers