Talking Shop - Overview of the Retail Finance Market Bharatbook added a new report on "Talking Shop: Overview of the Retail Finance Market" Provides insight into how the relationship between retailers and finance houses works and the motivations behind selling the products. Talking Shop: Overview of the Retail Finance Market The UK retail finance market has been in decline for many years. However, the recession has seen an improvement in gross lending in store installment credit and mail order. Lending levels were boosted by an increased non-standard population and the temporary VAT cut. However, store card lending continued to decline as consumers have moved to other credit products due to a high APR on the cards. ( http://www.bharatbook.com/detail.asp?id=140437&rt=Talking-Shop-Overview-of-the-Retail-FinanceMarket.html ) Scope of this research * Illustrates the performance of different retail finance products over the last 7 years in terms of gross lending and balances outstanding. * Provides insight into how the relationship between retailers and finance houses works and the motivations behind selling the products. * Provides performance forecasts for store cards, store installment credit and mail order finance over the next 5 years. Research and analysis highlights Consumers are moving away from store cards due to the negative publicity and higher APRs. There has been some movement towards other card products such as co-branded credit cards. Store card APRs are higher than other card products because the retailer exerts pressure on the finance house to accept as many applicants as possible. Store installment credit was boosted towards the end of 2009 as consumers brought forward their big ticket purchases. This was to take advantage of the lower rate of VAT before the return to 17.5% in January 2010. The margins made by retailers tend to be similar across finance houses as they usually go through a tendering situation with more than one finance house. This tendering situation squeezes the margin achieved by the finance house on the product as those holding it carry a greater risk of default. Key reasons to purchase this research * Enables lenders to measure their performance against the overall market in terms of gross lending and balances outstanding. * Provides important competitor data for store cards and mail order providers.
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