Europe:+32-2-535-7543
Asia: +65-6223-2436
Int'l: +1-860-674-8796
US: +1-866-353-3335
  • Japanese
  • Korean
  • Chinese
Cover Image

Private Label Credit Cards in the U.S., 9th Edition

For retailers, private label credit card platforms are increasingly essential for growth (and, sometimes, survival) as part of digital- and mobile-forward customer relationship and loyalty strategies. As tabulated in this report, private label card usage trends are positive, and our proprietary consumer survey research findings indicate that the cards can meaningfully influence in-store payment decisions, retail purchasing, and personal information sharing. Per our analysis of the retail card landscape, Victoria's Secret credit card and loyalty program exemplifies the movement to social marketing tactics, while New York & Company is upsetting the apple cart with a mobile app that can transact in-store payments. Technological advances will continue to drive retailer interest in private label card programs, as the movement to virtual private label cards housed within retailer mobile apps foretells the eventual demise of the physical card.

Private Label Credit Cards in the U.S., 9th Edition provides a wealth of actionable insight on trends shaping this resurgent industry sector. The competitive intelligence in this report specifically includes:

  • Assessing the leading private label credit cards from the following retailers: Best Buy, Express, GameStop, The Gap, J.C. Penney, Kirkland's, Kohl's, Lowe's, Sears, Shell, Target and Victoria's Secret-to gauge program differentiation and related features and benefits; rewards and loyalty program structure; and online/mobile positioning.
  • Tracking the industry shift to mobile and digital, including mobile credit applications, the central role of mobile apps, mobile payments, multi-tender loyalty programs and enhanced data analytics.
  • Assessing the degree to which a variety of private label credit card features and benefits would incentivize consumers to sign up for a new private label credit card and to use a private label credit card more often.
  • Analyzing consumer shopping behaviors; social media brand & product engagement; and relationship between store card use and retail purchasing & information sharing.
  • Assesses the impact store cards have on the type of payment used at the point of sale; receptivity to promotional marketing; and tendency to act on that marketing.
  • Estimating loans outstanding and purchase value for the U.S. private label credit card market by issuer for 2014, and a receivables and volume forecast for 2015-2017.
  • Analyzing the U.S. private label card programs operated by North America's leading financial institutions, including Alliance Data Systems, Citi Retail Services, Capital One, Synchrony Financial Services and Wells Fargo, including growth strategies, private label card purchase value and loans outstanding by retailer, number of retail partners.
  • Trending branded credit card and store card usage penetration, usage in past 30 days, and monthly usage frequency during 2004-2014, including demographic analysis for these metrics.

Table of Contents

Executive Summary

  • Report Scope
  • Market size and forecast
  • Trends & opportunities
  • Transitioning to a digital world
  • The card fades into the background
  • Private label retail card landscape
  • My Best Buy Credit Card differentiation: robust rewards; major omni-channel loyalty push
  • ExpressNext Credit Card Differentiation: hitting Millennials were they live
  • GameStop PowerUp Rewards Credit Card differentiation: aggressive loyalty platform
  • GapCard: steady as she goes
  • JCPenney Credit Card: strong incentive to spend now and return quickly
  • Kirkland's Credit Card: rewards program kicks it up a notch
  • My Kohl's Charge: easy to understand, simple
  • Lowe's Consumer Credit Card Differentiator: card customization
  • Sears Card differentiator: Strong loyalty program association; weak rewards
  • Shell Drive for Five Credit Card: part of a larger credit puzzle; straightforward pitch
  • Target REDcard: ongoing upfront discount and novel approach to mobile
  • Victoria's Secret The Angel Credit Card: targeting the customer and social media
  • Private label bank issuers
  • Alliance Data Systems
  • Capital One Financial
  • Citi Retail Services
  • Synchrony Financial Services
  • Wells Fargo
  • Private label non-bank issuers
  • Nordstrom
  • Signet Jewelers
  • Private label credit card usage trends
  • Trends over time
  • General-purpose and store credit card usage & usage in past 30 days
  • Demographic analysis
  • Private label credit card usage motivators
  • Influence on point of sale payment method & customer receptivity to promotions
  • Private label card signup & usage frequency influencers
  • Shopping frequency, shopping & social media attitudes
  • Men vs. women

Chapter 1: Overview

  • Major retailer benefits: usable data and customer loyalty
  • Major cardholder benefit: buying power

Chapter 2: Market Size and Forecast

  • Loans outstanding and purchase value by issuer
  • Table 2-1: U.S. Private Label Credit Card Loans Outstanding & Purchase Value, by Issuer, 2014
  • Private label issuer loan and purchase value trends
  • Table 2-2: U.S. Credit Card Loans Outstanding & Purchase Value: Synchrony Financial Services,Citi Retail Services & Alliance Data Systems, 2012-2014
  • Private label issuers' cobrand share
  • Table 2-3: U.S. Private Label & Co-brand Credit Card Loans Outstanding & Purchase Value: Alliance Data Systems, Citi Retail Services & Synchrony Financial Services, 2014
  • Private label cards market forecast
  • Post-recession private label usage rebound

Chapter 3: Trends & Opportunities

  • Transitioning to a digital world
  • Shift to mobile
  • What it all means
  • Mobile customer acquisition
  • Private label customer acquisition strengths
  • Adapting to mobile trend
  • For your best customers: A remote control to the entire brand
  • JCPenney & Sephora
  • Table 3-1: Share of JCPenney Online Traffic, by Device, 2012-2014
  • Location-based marketing is here
  • Alliance Data beating PayPal Beacon and Apple iBeacon to the punch?
  • Interactive in-store experiences
  • Shoe Carnival mobile app
  • Digital cards = mobile payments?
  • Alliance Data systems' take on virtual cards: no thanks, Apple
  • Macy's My Wallet
  • Does Samsung Pay have the edge over Apple Pay?
  • The card fades into the background
  • Building loyalty
  • Multi-tender loyalty programs
  • Case in point: My Best Buy loyalty program an omnichannel play fueled by Big Data
  • Alliance Data Systems exhibits CRM and loyalty program leadership
  • To co-brand or not to co-brand?

Chapter 4: Private Label Retail Card Landscape

  • My Best Buy Credit Card
  • Differentiation: robust rewards part of major omni-channel loyalty push
  • Rewards: the nuts and bolts
  • Program enhancements and changes
  • My Best Buy: Not just a change in name
  • Three tiers
  • Online and mobile
  • An omnichannel play fueled by Big Data
  • ExpressNext Credit Card
  • Differentiation: hitting Millennials were they live
  • Rewards
  • The name's the thing
  • The fine print
  • Online and mobile
  • Information is power
  • GameStop PowerUp Rewards Credit Card
  • Differentiation: bare-bones card; aggressive loyalty platform
  • Loyalty program: nuts and bolts
  • Scoring points works in real life, too
  • Basic Rewards or Pro Membership?
  • The weak spot: redeeming points
  • The marketing makes a mark
  • Online and mobile
  • GapCard
  • Differentiation
  • Solid signup and rewards mix
  • Spend $800 and get upgraded to Gap Silver
  • Online and mobile
  • JCPenney Credit Card
  • A rich mix of incentives and rewards
  • With a catch
  • Differentiator: strong incentive to spend now and return quickly
  • Tiered rewards
  • Online
  • Kirkland's Credit Card
  • Differentiation
  • Rewards made easy
  • Online and mobile
  • Spin To Win
  • My Kohl's Charge
  • Differentiation
  • Key incentive
  • More spending, more savings with the Most Valued Card
  • Yes2You Rewards
  • The fine print
  • Online and mobile
  • Lowe's Consumer Credit Card
  • No-interest financing at sign up
  • The fine print
  • Differentiator: card customization
  • Online and mobile
  • Rewards in Name Only
  • Sears Card
  • Differentiator: Strong loyalty program association
  • Shop Your Way Rewards
  • Table 4-1: Sears Card Shop Your Way Rewards
  • Table 4-2: Sears Card VIP Tiers
  • Online and mobile
  • Shell Drive for Five Credit Card
  • Differentiation
  • Rewards
  • Earning Points
  • Redeeming Fuel Rewards
  • The fine print
  • Online and mobile
  • Target REDcard
  • Differentiator
  • Everyday discounts emphasized
  • Charity in the name of marketing
  • Online and mobile
  • Cartwheel takes novel approach to mobile
  • Victoria's Secret Angel Credit Card
  • Differentiation
  • The nuts and bolts
  • Table 4-3: Adults Who Shopped at Victoria's Secret in Past Three Months & Past Four Weeks, by Demographic, 2014
  • Embracing social with a passion
  • Information is power

Chapter 5: Private Label Bank Issuers

  • Alliance Data Systems
  • Competitive positioning
  • A private label card player . . .
  • . . . Disguised as a digital-forward loyalty and CRM expert-or it is the other way around?
  • Approaching $20 billion in purchase value
  • Retail partner momentum
  • Portfolio acquisitions
  • More than 125 private label credit card brand relationships
  • Table 5-1: Alliance Data Systems: Q1 2013 Private Label Credit Card Retailers
  • Key private label credit card retailer accounts
  • Ascena Retail Group, Inc.
  • Bon-Ton
  • HSN
  • J. Crew
  • PayPal Credit
  • Pier 1 Imports
  • Victoria's Secret propels L Brands to top purchase value and loans outstanding spot
  • Table 5-1: Alliance Data Systems, Purchase Value & Loans Outstanding by Major Retail Partner, 2014
  • Performance analysis
  • Robust volume, receivables and account growth
  • Cobrand share
  • Table 5-2: Alliance Data Systems Private Label Revenue, Volume, Receivables and Account Trends,2009-2014
  • A look inside Alliance Data's subsidiary banks
  • Table 5-3: Alliance Data Systems: Comenity Bank & Comenity Capital Bank Card Metrics, 2014(in millions of dollars)
  • Capital One Financial
  • Competitive positioning
  • Acquisitions and sales
  • Retail partnerships
  • Hudson's Bay
  • Kohl's
  • Neiman Marcus
  • Performance analysis
  • Table 5-4: Capital One Financial Corporation: U.S. Credit Card Purchase Value and Loans Outstanding, 2011-2014
  • Private label share
  • Table 5-5: Capital One Financial Corporation: U.S. Private Label Credit Card Purchase Value, Selected Programs, 2014
  • Citi Retail Services
  • Retailer partnerships
  • Table 5-6: Citi Retail Services Retail Private Label & Co-brand Partners, 2015
  • Signings and acquisitions
  • Key retailers
  • Best Buy
  • Macy's
  • Sears
  • Performance analysis
  • Table 5-7: Citibank North American Card Purchase Value & Loans Outstanding: Retail Services vs. Citi-Branded, 2010-2014
  • Spend and loans outstanding per account on the upswing
  • Cobrand share
  • Table 5-8: Citi Retail Services: Credit Card Purchase Value, Loans Outstanding and Open Accounts,2010-2014
  • Synchrony Financial Services
  • Overview
  • Table 5-9: Synchrony Financial Services Synchrony Financial Purchase value, Loan Receivables,Accounts and Revenue, by Segment, 2011-2014
  • Table 5-10: Synchrony Financial Services Purchase value, Loan Receivables, Accounts and Revenue,by Segment, Q1 2014 vs. Q1 2015
  • Payment Solutions
  • Payment Solutions partners
  • Major source of partner sales
  • Graph 5-1: Synchrony Financial Services: Payment Solutions Segment: Purchase value and Loan Receivables, by Retail Partner, 2014
  • Retail Card
  • Table 5-11: Synchrony Financial Services: Major Private Label/Co-brand Retail Partners, 2015
  • Partner movement and segment growth
  • Wins, renewals and losses
  • Growth strategies: grow private label share of partner sales & grow partners
  • Own-branded card on the way
  • Key private label credit card retailer accounts
  • Table 5-12: Synchrony Financial Credit Card Trust Loan Receivables & Account Share, 2015 (in millions of dollars and of accounts)
  • Walmart tops in Retail Card receivables
  • Table 5-13: Synchrony Financial Private Label Credit Card Receivables, by Retail Partner, 2015
  • Lowe's
  • PayPal
  • Performance analysis
  • Positive loan growth and account growth trends
  • Sizeable cobrand share
  • Table 5-14: Synchrony Financial Retail Card Purchase Value, Receivables & Partners, 2011-2014 & Q1 2014-2015
  • Synchrony Bank income, credit card loans and credit card lines outstanding
  • Table 5-15: Synchrony Bank Credit Card and Loan Metrics, 2014 (in millions of dollars)
  • Wells Fargo
  • Table 5-16: Wells Fargo Retail Private Label & Co-brand Partners, 2015

Chapter 6: Private Label Non-Bank Issuers

  • In-House Programs: Nearing Extinction
  • Nordstrom
  • Nordstrom Rewards
  • Big changes
  • Multi-tender program launch
  • Portfolio sale?
  • Program metrics
  • Revenue growth trends
  • A prime portfolio, with more prime borrowers
  • Saving on interchange
  • And making money on interchange
  • Private label receivables lag cobrand but are growing at higher rate
  • Card program charge volume nears $10 billion, most of which occurs in-house
  • Table 6-1: Nordstrom Credit Card Metrics Analysis, 2010-2014
  • Nordstrom FSB income, loan and unused credit line analysis
  • Table 6-2: Nordstrom FSB Net Income and Credit Card Interest & Noninterest Income, 2014(in millions of dollars)
  • Signet Jewelers
  • Table 6-3: Sterling Jewelers U.S. Credit Program Metrics, 2011-2015

Chapter 7: Private Label Credit Card Usage Trends

  • Introduction
  • Credit card usage trends over time
  • Percentage of credit card users on the upswing
  • Department store card usage growth outstrips branded credit card usage growth
  • Figure 7-1: Credit Card, Branded Credit Card & Department Store Card Usage Penetration, 2004-2014
  • Active department store card rebound much stronger than general-purpose card increase
  • Figure 7-2: Credit Card Usage Past 30 Days: General-Purpose Cards vs. Department Store Cards,2004-2014
  • Table 7-1: Credit Card Usage Past 30 Days: General-Purpose Cards vs. Department Store Cards,2004-2014
  • But usage frequency among active general-purpose cared users leads department store cards
  • Table 7-2: Credit Card Usage Frequency Share, Department Store Cards vs. General-Purpose Cards,2004-2014
  • General-purpose and store credit card usage & usage in past 30 days
  • Store card engagement trails branded counterparts
  • Table 7-3: General-Purpose & Store Card Usage, Active Usage & Engagement Rate, 2014
  • Demographic analysis
  • Women continue to drive private label credit card use
  • Table 7-4: General-Purpose & Store Credit Card Usage & Active Usage, by Demographic, 2014
  • Women dominate higher-frequency monthly store card use
  • Table 7-5: General-Purpose & Store Card Monthly Usage Frequency, by Demographic, 2014

Chapter 8: Private Label Credit Card Usage Motivators

  • Store credit card used most often: payment preferences at retailer
  • Store credit card is preferred method of payment
  • Figure 8-1: Store Card Used the Most: Forms of Payment Used at Store Retailer, 2015
  • Preferences by demographic
  • Table 8-1: Store Card Used the Most: Forms of Payment Used at Store Retailer, by Demographic, 2015
  • Store credit card influence on shopping frequency
  • Table 8-2: Store Card User Tendency to Shop More Often at Retailer, by Demographic, 2015
  • Views on receiving promotional information from store credit card merchant
  • Table 8-3: Store Card User Views on Receiving Promotional Information from Retailer, by Demographic, 2015
  • Acting on receipt of promotional information from store credit card merchant
  • Table 8-4: Store Card User Tendency to Act on Receipt of Promotional Information from Retailer,by Demographic, 2015
  • Private label card signup & usage frequency influencers
  • Motivator roundup
  • Points & everyday discounts most prevalent signup influencers
  • Interest rate teasers also relevant
  • Special savings days trump other savings promotions
  • Motivators more likely to influence sign up than increased usage
  • Table 8-5: Private Label Credit Card Motivators to Apply for Card & Use Card More Often: Users & Active Users, 2015
  • Gender rules
  • Table 8-6: Private Label Credit Card Usage Motivators: Non-Active Users, by Gender, 2015
  • Age
  • Table 8-7: Private Label Credit Card Usage Motivators: Non-Active Users, by Age, 2015
  • HH income
  • Table 8-8: Private Label Credit Card Usage Motivators: Non-Active Users, by HH Income, 2015

Chapter 9: Shopping Frequency, Shopping & Social Media Attitudes

  • Shopping frequency, shopping & social media attitudes
  • Men vs. women
  • Women are core department store shoppers and purchasers
  • And more engaged with brands and products on social media
  • Table 9-1: Shopping Frequency and Shopping & Social Media Attitudes, by Gender, 2014
  • Female store card usage correlation to retail purchasing and information sharing
  • Table 9-2: Shopping Frequency and Shopping & Social Media Attitudes Among Female Store Credit Card Users, 2014

Appendix

  • Methodology
  • Consumer survey methodology
  • Market size and forecast
  • Report table interpretation
  • Terms and definitions
Show More
Pricing
Back to Top