GE reviews UK store card business

by Gill Montia

Story link: GE reviews UK store card business

General Electric Company (GE), the US conglomerate, is considering withdrawing from the UK store card market.

The business is operated by GE Money, which is undertaking a strategic review because of growing concerns about the level of consumer debt in the country.

GE’s UK store card business is estimated to have market share of over 50%, and a market value of around £1.5 billion.

Customers include major retailers such as Debenhams, Topshop, House of Fraser, Laura Ashley and Dorothy Perkins.

In the US, the group operates cards for companies such as Wal-Mart, Ikea and eBay.

However, it is currently seeking buyers or partners for its US business, which has been hit by the credit squeeze and falling consumer confidence.

GE has been heavily criticised in recent times for the high interest rates charged on its UK store cards, and the Competition Commission has now made it compulsory for all store cards charging above 25% APR to warn customers that they could find cheaper credit elsewhere.

The review of GE’s UK store card portfolio could result in a sale of the business.