"Store closures will hurt private label and co-branded credit card performance," according to new report from Moody's. The top 5 players account for 79% of U.S. private-label balances: Synchrony Financial (SYF +1.1%), Citigroup (C +1.1%), Alliance Data Systems (ADS +0.8%), Capital One (COF +1.9%), and Wells Fargo (WFC +2.2%).
The store-closing trend will put upward pressure on private label charge-offs, says Moody's, as some customers will lose access to geographically convenient stores.
Co-branded cards will see similar effects, though to la lesser degree.
Among that group of five, only SFY and ADS rely heavily on that business. Citi and Capital One get only a high single-digit percentage of earnings from private label and co-branded cards; with Wells Fargo getting even more modest numbers.
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