Citigroup to acquire Sears Credit Card Business
Citigroup announced this afternoon that it is the successful bidder for the credit card business of Sears. This is a big deal -- moving Citigroup to 20% market share in credit cards and the clear leader in private label cards.
„This acquisition provides us with an opportunity to take a leadership position in the private label segment and solidify our current bankcard leadership position,‰ said Sanford I. Weill, Citigroup chairman and chief executive officer. „This relationship with Sears gives us unique access to a large distribution channel and customer base. We look forward to growing the value and profitability of this portfolio by applying our expertise. We have demonstrated our capability at integrating new businesses over the last few years and to add to our bottom line. This acquisition should be no different.‰ „This transaction creates significant growth opportunities for Citigroup in this segment of our business,‰ said Robert B. Willumstad, president of Citigroup and chairman and chief executive officer of Citigroup‚s Global Consumer Group. „Sears is a unique franchise as 60 percent of U.S. households are Sears customers, including a significant Hispanic customer base -- a key focus of our consumer business marketing efforts. Through over 2,700 Sears outlets across the U.S., we will have access to low cost, high volume customer acquisition points that currently add over four million credit card customers annually.‰Citigroup has provided a presentation with more background on the acquisition.
