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

• Press Release
• Source: Packaged Facts
• On 2:34 pm EST, Monday January 12, 2009

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

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.

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     Packagedfacts.com
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     jtekin@marketresearch.com