• Scope and Methodology
  • Scope of Report
  • Report Methodology
  
  
• Introduction
  • Private-Label Card Basics
  • Private-Label Card Benefits
  • Third-Party Issuers Dominate Market
  
  
• The Market
  • Market to Top $131 Billion in 2010
  • Figure 1-1: Projected U.S. Market for Private-Label Credit Cards, 2005-2010 (in billions of dollars)
  • Mature Market Has Capacity for Surprise
  • Leaders Find Innovative Ways to Drive Growth
  • Lower Tiers Remain Focused on Smaller, Specialty Retailers
  
  
• The Marketers
  • Top Private-Label Issuers Control Most of the Market
  • Figure 1-2: Market Share of Top Marketers of Private-Label Retail Cards: 2005 (percent)
  • The Leading Payment Processors
  • Overlapping Roles of Issuers, Acquirers, Processors
  • The Leading Oil Company Card Programs
  • Competition for Private Label on Many Levels
  • Consolidation Drives Market
  • Strategic Partnerships Remain Essential
  • Shifts in Basic Private-Label Marketing
  
  
• The Consumer
  • 18% Penetration Level for Department Store Cards
  • Table 1-1: Household Penetration Rates for Selected Credit Card Classifications: Have or Use, Used in Last Year, and Used in Last Month, 2005 (U.S. households)
  • 73% Frequent Usage Level for Gasoline Cards
  • Older Households, Heavier Users
  • Clothing/Specialty Cardholders Are Most Avid Shoppers
  
  
• Looking Ahead
  • Third-Party Issuers Dominate: Now What?
  • Smaller Merchants, Larger Issuers
  • Reaching Ethnic Populations
  • Table 1-2: Purchasing Power of U.S. Minorities: 1990, 2000, 2005, and 2010 (in billions of dollars)
  • New Applications of Technology

Chapter 2: Introduction

• Private-Label Card Overview
  • Scope of Report
  • Private-Label Card Basics
  • Private-Label Card Benefits
  • Third-Party Issuers Dominate Market
  
  
• Private-Label Risks, Rewards, and Innovation
  • Changes in Credit Good News for Retail Card Issuers
  • Major Issuers Focus on CRM, Co-Branding, Rewards
  • Consolidation Nears Its Limit
  • Expanding Online Ventures
  • Other New Technology
  
  
• The Regulatory Environment
  • Repercussions of Anti-Trust Rulings
  • Merchants Pushing for More
  • Selected Class Action Suits
  • EFT, Acquirers, and Consolidation

Chapter 3: The Market

• Market Size and Composition
  • Note on Methodology
  • Market Approaches $106 Billion in 2005
  • Figure 3-1: U.S. Market for Private-Label Credit Cards, 2001 vs. 2005 (in billions of dollars)
  • Table 3-1: U.S. Market for Private-Label Credit Cards, 2001-2005 (in billions of dollars)
  • Private-Label About 15% of Total Card Market
  • Proprietary Cards Generate Low Volume But Big Transactions
  
  
• Factors to Market Growth
  • Mature Market Has Capacity for Surprise
  • Leaders Find Innovative Ways to Drive Growth
  • Building Credit, Building Loyalty
  • Change in Terms, Pace of Portfolio Acquisitions
  • Lower Tiers Remain Focused on Smaller, Specialty Retailers
  • Room to Grow in Online Purchasing
  • Competing with Debit
  • Trickle-Down Effects of Bankruptcy Law Reform
  • Buying Power of Minority Populations Continues to Skyrocket
  • New Products, Promotions, and Possibilities
  
  
• Projected Market Growth
  • Market to Top $130 Billion in 2010
  • Figure 3-2: Projected U.S. Market for Private-Label Credit Cards, 2005-2010 (in billions of dollars)
  • Table 3-2: Projected U.S. Market for Private-Label Credit Cards, 2005-2010 (in billions of dollars)

Chapter 4: The Marketers

• Overview
  • Increasing Rate of Consolidation
  • The Leading Payment Processors
  • Overlapping Roles of Issuers, Acquirers, Processors
  • The Leading Oil Company Card Programs
  • Table 4-1: U.S. Private-Label Credit Card Market: Selected Marketers and Brands
  
  
• Marketer Shares
  • Top Private-Label Issuers Control Most of the Market
  • Figure 4-1a: Market Share of Top Marketers of Private-Label Retail Cards: 2001 (percent)
  • Figure 4-1b: Market Share of Top Marketers of Private-Label Retail Cards: 2005 (percent)
  • Table 4-2: Top Marketers of Private-Label Retail Cards: Estimated Receivables and Market Share, 2001, 2003, and 2005 (in millions of dollars)
  • Room to Grow, But Not to Move
  
  
• The Competitive Situation
  • Competition for Private Label on Many Levels
  • Consolidation Drives Market
  • Strategic Partnerships Remain Essential
  • In-House Control Losing Appeal—Again
  
  
• Marketing Trends
  • Shifts in Basic Private-Label Marketing
  • The Co-Branding Question: Ask Again Later
  • Rewards Programs Expected, But in What Form?
  • Flexibility Still Key, For Consumers and Businesses
  • Technology Boosts Brand, Card Awareness
  • Advertising Trends

Chapter 5: Competitor Profiles

• Competitor Profile: Alliance Data (Alliance Data Systems Corp.)
  • Corporate Overview
  • Steady Growth in Partners and Services
  • New Experiments in Co-Branding
  
  
• Competitor Profile: Citi Commerce Solutions (Citigroup, Inc.)
  • Corporate Overview
  • Federated Deal Brings Massive Gains
  • Gasoline Card Leader
  • Old Tactics Still Predominate
  • Tops in Hispanic Outreach
  
  
• Competitor Profile:
• First Data Commercial Services (First Data Corp.)
  • Corporate Overview
  • Major Deals with Citi, GE, Discover
  
  
• Competitor Profile: GE Money (General Electric Co.)
  • Corporate Overview
  • Acquisitions, Partnerships, and New Products
  • Innovation in Online Payments
  • IKEA Tests New Technology
  
  
• Competitor Profile:
• HSBC Retail Services (HSBC North America, Inc.)
  • Corporate Overview
  • Neiman Purchase Boosts Private-Label Prestige
  • Opportunity for Growth in Consolidating Market
  
  
• Competitor Profile: J.P. Morgan Chase & Co.
  • Major Bank, Minor in Market
  
  
• Competitor Profile:
• Shoppers Charge Accounts Co. (Hudson United Bancorp)
  • Corporate Overview
  • Full Service for Smaller Operations
  • Expanding Services
  
  
• Competitor Profile: Target Financial Services (Target Corp.)
  • Corporate Overview
  • New Formats, New Opportunities
  • Pioneer with New Technology
  
  
• Competitor Profile: Total System Services, Inc.
  • Corporate Overview
  • Mixed Results in 2006

Chapter 6: The Consumer

• The Private-Label Cardholder: Introduction
  • Simmons Market Research Bureau Data
  • 18% Penetration Level for Department Store Cards
  • Table 6-1: Household Penetration Rates for Selected Credit Card Classifications: Have or Use, Used in Last Year, and Used in Last Month, 2005 (U.S. households)
  • 73% Frequent Usage Level for Gasoline Cards
  • Figure 6-1: Percentage of Overall Card Users Who Use Cards Monthly: Selected Credit Card Classifications, 2005 (U.S. households)
  • Private-Label Household Penetration Holds Steady
  • Table 6-2: Household Penetration Rates for Selected Credit Card Classifications: By Use in Last Year, 2003-2005 (U.S. households)
  
  
• Consumer Focus: Overview of Demographics
  • Older Households, Heavier Users
  • Women Lead in Private-Label Card Use
  • Minorities Far Below Norm for Most Card Categories
  • Broad Geographic Distribution for Card Use
  • Upscale Skew for Specialty Stores
  • Skew to Two-Person Households
  • Table 6-3a: Indices for Use of Selected Credit Card Classifications in Last Year: By Adult Age Bracket, 2005 (U.S. households)
  • Table 6-3b: Indices for Use of Selected Credit Card Classifications in Last Year: By Adult Age Bracket, 2005 (U.S. households)
  • Table 6-4: Indices for Use of Selected Credit Card Classifications in Last Year: By Gender, 2005 (U.S. households)
  • Table 6-5: Indices for Use of Selected Credit Card Classifications in Last Year: By Race/Ethnicity, 2005 (U.S. households)
  • Table 6-6a: Indices for Use of Selected Credit Card Classifications in Last Year: By Region, 2005 (U.S. households)
  • Table 6-6b: Indices for Use of Selected Credit Card Classifications in Last Year: By Region, 2005 (U.S. households)
  • Table 6-7a: Indices for Use of Selected Credit Card Classifications in Last Year: By Household Income Bracket (in Thousands), 2005 (U.S. households)
  • Table 6-7b: Indices for Use of Selected Credit Card Classifications in Last Year: By Household Income Bracket (in Thousands), 2005 (U.S. households)
  • Table 6-8: Indices for Use of Selected Credit Card Classifications in Last Year: By Household Size, 2005 (U.S. households)
  
  
• Consumer Focus: Cardholder Attitudes
  • Clothing/Specialty Cardholders Are Most Avid Shoppers
  • Other Store Card Users Less Extreme in Habits
  • Store and Sale Preferences Vary by Card Category
  • Shopping in Groups
  • Table 6-9: Indices by Credit Card Classification for Agreement with Statement: "I Really Enjoy Any Kind Of Shopping," 2005 (U.S. adults)
  • Table 6-10: Indices by Credit Card Classification for Agreement with Statement: "I Go Shopping Frequently," 2005 (U.S. adults)
  • Table 6-11: Indices by Credit Card Classification for Agreement with Statement: "I Will Travel Up To An Hour Or More To Shop At Favorite Store," 2005 (U.S. adults)
  • Table 6-12: Indices by Credit Card Classification for Agreement with Statement: "I Will Travel An Hour Or More To Factory Outlet Stores," 2005 (U.S. adults)
  • Table 6-13: Indices by Credit Card Classification for Agreement with Statement: "I Prefer To Buy Things On The Spur Of The Moment," 2005 (U.S. adults)
  • Table 6-14: Indices by Credit Card Classification for Agreement with Statement: "I Tend To Spend Long Periods Of Time In Store Browsing," 2005 (U.S. adults)
  • Table 6-15: Indices by Credit Card Classification for Agreement with Statement: "I’m Usually Willing To Shop New Stores," 2005 (U.S. adults)
  • Table 6-16: Indices by Credit Card Classification for Agreement with Statement: "I Use The Internet To Help Plan Shopping Trips," 2005 (U.S. adults)
  • Table 6-17: Indices by Credit Card Classification for Agreement with Statement: "I Usually Am The First Among My Friends To Shop At A New Store," 2005 (U.S. adults)
  • Table 6-18: Indices by Credit Card Classification for Agreement with Statement: "I Buy Goods Produced By My Own Country When I Can," 2005 (U.S. adults)
  • Table 6-19: Indices by Credit Card Classification for Agreement with Statement: "I Only Go Shopping To Buy Something I Really Need," 2005 (U.S. adults)
  • Table 6-20: Indices by Credit Card Classification for Agreement with Statement: "When Shopping, I Get What I Want And Leave," 2005 (U.S. adults)
  • Table 6-21: Indices by Credit Card Classification for Agreement with Statement: "When I Shop I Visit A Variety Of Stores," 2005 (U.S. adults)
  • Table 6-22: Indices by Credit Card Classification for Agreement with Statement: "I Prefer To Buy Products From Specialty Stores," 2005 (U.S. adults)
  • Table 6-23: Indices by Credit Card Classification for Agreement with Statement: "I Prefer Shopping At Specialty Stores Because They Tend To Carry The Best Brands," 2005 (U.S. adults)
  • Table 6-24: Indices by Credit Card Classification for Agreement with Statement: "I Head Right To The Clearance Rack When I Enter A Store," 2005 (U.S. adults)
  • Table 6-25: Indices by Credit Card Classification for Agreement with Statement: "I’m Drawn To Specific Stores; Don’t Shop By Sales," 2005 (U.S. adults)
  • Table 6-26: Indices by Credit Card Classification for Agreement with Statement: "I Prefer To Shop With My Friends," 2005 (U.S. adults)
  • Table 6-27: Indices by Credit Card Classification for Agreement with Statement: "I Prefer To Shop With My Family," 2005 (U.S. adults)
  • Table 6-28: Indices by Credit Card Classification for Agreement with Statement: "When Shopping With Others, I Prefer Splitting Up," 2005 (U.S. adults)

Chapter 7: Looking Ahead

• Trends and Opportunities
  • Third-Party Issuers Dominate: Now What?
  • Customer Relationship Management
  • Focus on Rewards and Co-branding
  • Smaller Merchants, Larger Issuers
  • Reaching New Populations
  • Minorities
  • Table 7-1: Purchasing Power of U.S. Minorities: 1990, 2000, 2005, and 2010 (in billions of dollars)
  • Consumers With Poor Credit
  • Table 7-2: U.S. Bankruptcy Filings, 2002-2006 (number)
  • New Applications of Technology

Appendix: Addresses of Selected Marketers