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

NEW YORK, NY, Jan 12 (MARKET WIRE) --
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.

For further information visit:
http://www.packagedfacts.com/Private-Label-Credit-1607848/.

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. For more information contact Jenn
Tekin at (240) 747-3015 or jtekin@marketresearch.com.

Contact:
Jenn Tekin
Packagedfacts.com
(240) 747-3015
jtekin@marketresearch.com

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