Retailer Credit Cards: A Competitive Threat

Abstract

Following a discussion of the total United Kingdom market for plastic cards, detailed information is given about the number and nature of retailer credit cards (store cards) currently issued in the United Kingdom. Retailers in the USA and Italy are already competing with the traditional financial institutions in the market for financial services, and comment is made on their strategies and their results so far. Retailers in the United Kingdom are also moving into the provision of financial services and they are using their well developed in‐house credit card databases to help launch these new products. They are also examining ways to enhance the attractiveness of their credit card offerings, to differentiate them further from the MasterCard/Visa credit cards and hence compete more effectively with the banks in the provision of credit.