Private Label Credit Cards in the US, 12th Edition

Report Overview

Private Label Credit Cards in the U.S., 12th Edition
This report covers the U.S. market for private-label credit cards (PLCCs), including store cards, with an emphasis on retail credit card program features and benefits analysis, retail card strategies, and growth trends. More specifically, the report:

• Analyzes the impact of COVID-19 on the retail sector and the private-label credit card market.
• Provides an analysis of large retailer strategies to innovate/stay above water during COVID-19's window of unprecedented stress on the retail economy.
• Outlines the going-forward strategies of top private-label credit card issuers. Those issuers are Alliance Data Systems, Citi Retail Services, Capital One, Synchrony Financial Services, TD Bank, and Wells Fargo.
• Conducts an in-depth analysis of seven private-label credit card programs from within the context of the retailer’s loyalty program and its results. Program analysis of American Eagle, Forever 21, Kohl’s, Macy’s, Target, and Victoria’s Secret are included. Each profile includes survey-based analysis of customer demographics.
• Assesses consumer use of private-label credit cards segmented by retailer type, including the type of card they use most frequently, and which features and benefits would entice private-label credit cardholders to use this purchasing method more frequently.

Loans outstanding and purchase value estimates for the U.S. private-label credit card (PLCC) market are provided for 2019 and 2020, and loans outstanding and purchase value forecasts are provided for 2021-2022.

Packaged Facts’ survey data from February/March 2021 show that 55% of adults have private-label credit cards, with 44% (or 80% of cardholders) having used them in the last 30 days.

Among credit cardholders overall, therefore, three-fourths have private-label credit cards. The most widely held private-label credit cards by retailer type—with each of these card types attracting roughly half of private-label cardholders overall—are department stores (28% of adults), discount stores (27%), and club stores (25%), followed clothing stores or pure-play Internet stores such as Amazon (each at 24%).

For more insights into this dynamic market, see the comprehensive new report by Packaged Facts titled Private Label Credit Cards in the U.S., 12th Edition, which covers market size and growth, top private-label credit card issuers, selected private-label credit card and loyalty programs, and private label usage trends.  

Report Methodology

The information contained in this report was obtained from primary and secondary research. Primary research included a Packaged Facts February/March 2021 national consumer survey with a sample of 2,000 U.S. adults (age 18+), with the sample in aggregate being census representative on the primary demographic measures of age, gender, geographic region, race/ethnicity, and household income. The discussion of store card usage patterns and demographics also draws on Fall 2020 release MRI National Consumer Study data, with field dates through November 2020.

Market estimates draw on multiple sources, including:

• company annual and quarterly filings
• FDIC Reports of Condition and Income (also known as Call Report data)
• credit card trusts (asset-backed securities backed by credit card loans held by financial institutions)
• Federal Reserve data