Credit Card Changes Effecting Sales

In a recent report from comScore, Inc. it was found that once a consumer lost confidence in a card that 55% used it less, 27% no longer used it, and 12% closed the account.

What has caused this? Though a series of both government regulations and economic factors the credit card industry has reacted by making a series of changes to their credit card terms and conditions.

“This past year has been very volatile in the credit card industry, both for issuers and consumers,” said Kevin Levitt, comScore vice president. “With the economic environment and regulatory mandates prompting issuers to make product adjustments, an already financially-sensitive consumer is responding with dissatisfaction and an increasingly negative perception of their card issuer. Understanding the current sentiment and common concerns among consumers will be critical to success over the next year”

Some of the changes that have taken place included increased APR/interest rates, reduced credit limits, or additional fees. Consumers have reacted to this by changing their spending habits or even defecting from the brand.

A Sign of Some Recovery?

With the unemployment rate at around 10% it is hard to believe that work is out there. However the

Labor Department is reporting that the retail sector by 321,700 jobs in November despite the weakest sales in 35 years according to some reports. That is a 37% increase over last year.

“Holiday hiring is definitely stronger than a year ago, but it remains clear that retailers are still reluctant to hire,” said John A. Challenger, CEO of Challenger, Gray & Christmas. “Even if we see total holiday retail gains of 400,000 to 450,000 this year, it would be well short of the 714,000 seasonal jobs added on average between 1999 and 2007. Even in 2001, in the wake of the September 11th terrorist attacks, the retail sector added more than 585,000 extra workers in the final three months of the year.”

Still any improvement in hiring is better that nothing.

Ebay’s Fourth Quarter Revenue

Ebay posted its fourth-quarter revenue of $2.4 billon. This shows a 16% increase over the same period last year.

“We delivered a strong fourth quarter with double-digit revenue growth driven by exceptional performance at PayPal and turnaround progress and momentum in our core Ebay business,” said Ebay resident and CEO John Donahoe. “PayPal significantly expanded its presence globally and, for the first time, processed more than $20 billion in total payment volume in a quarter. Gross merchandise volume and sold items accelerated for the third consecutive quarter. We are starting 2010 with significant progress against our three-year growth strategies for PayPal and Ebay and a clear focus on our priorities going forward.” Read more

Who Is Top In Customer Service?

The fifth annual NRF Foundation/American Express Customers’s Choice survey is out and L.L. Bean has been ranked number one for customer service for the third year in a row. Read more

New Markets in 2010

Consumer spending is stabilizing. This means it is time for retailers and priviate-equity firms to look for ways to grow their companies. Instead of opening new locations in exisiting markets the trend that’s appearing is adding brands and expanding into new markets.

“Everyone is looking for some type of brand,” said Philip Green, owner of Arcadia Group. “Running a one- brand business is not the place to be.”

Although many companies are looking to expand they are doing so more cautiously and looking ar potiential targets more carefully. Read more

A Sign of Some Recovery?

With the unemployment rate at around 10% it is hard to believe that work is out there. However the

Labor Department is reporting that the retail sector by 321,700 jobs in November despite the weakest sales in 35 years according to some reports. That is a 37% increase over last year.

“Holiday hiring is definitely stronger than a year ago, but it remains clear that retailers are still reluctant to hire,” said John A. Challenger, CEO of Challenger, Gray & Christmas. “Even if we see total holiday retail gains of 400,000 to 450,000 this year, it would be well short of the 714,000 seasonal jobs added on average between 1999 and 2007. Even in 2001, in the wake of the September 11th terrorist attacks, the retail sector added more than 585,000 extra workers in the final three months of the year.”

Still any improvement in hiring is better that nothing.