Retailer Consumer Finance and Banking in Europe - · PDF fileRetailer Consumer Finance and Banking in Europe is a report, based on a survey of over 3,300 prominent retail brands in

Expertise in financial services Web: www.finaccord.com. E-mail: [email protected]

Retailer Consumer Finance and Banking in Europe

© Finaccord Ltd., 2013 1

Retailer Consumer Finance

and Banking in Europe Report prospectus

December 2013

http://www.finaccord.com/

mailto:[email protected]




Prospectus contents

What is the research?

What is the rationale?

What methodology has been used?

How do retailers surveyed break down?

Which specific retailing groups have been researched

What is the report structure?

What are the key features of the research?

How can the research be used?

How can the PartnerBASE™ be used?

Who can use the research?

What are some of the key findings?

What is the cost and format?

What other reports are available?

How can the research be purchased?

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What is the research?

Retailer Consumer Finance and Banking in Europe is a report, based on a survey of over 3,300

prominent retail brands in 33 countries, about the provision of consumer finance at the point of sale

by major retailers across Europe. Retailer initiatives in savings deposits, personal loans, mortgages

and international remittances are also considered.

Countries covered are Austria, Belgium, Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic,

Denmark, Estonia, Finland, France, Germany, Georgia, Greece, Hungary, Ireland, Italy, Latvia,

Lithuania, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia,

Spain, Sweden, Switzerland, Turkey, UK, and Ukraine.

In total, the research identifies over 760 consumer finance schemes and well over 100 product

initiatives in retailer banking, thereby providing a definitive analysis of retailer consumer finance and

banking in Europe that goes far beyond the scope of previous published research.

Moreover, the PartnerBASE™ dataset that accompanies the report details each of the many retailer

consumer finance and banking programs traced by Finaccord, specifying the operating models

used by retailers and the identities and ultimate holding companies of the ultimate product

providers in each case.






What is the rationale?

A number of factors, some of which are specific to consumer finance or banking and some to

retailing, provide the rationale for the development of this report. With reference to consumer

finance and banking, in particular, these factors include those which follow:

- the consumer credit markets of many countries are continuing to grow and retailers can take

advantage of this through setting up their own consumer finance schemes;

- in terms of the outright number of opportunities, retailing is one of the most important fields in

which providers of consumer finance can establish partnerships;

- retailer-branded banks can represent an attractive alternative to mainstream consumer banks in

markets in which banking sector consolidation has reduced the range of options available;

- the customer information gathered from consumer finance and banking products can be used to

cross-sell insurance and other services.

Furthermore, dynamics in the retailing market itself also give rise to increasing rationale both for

retailer consumer finance and banking and a comprehensive pan-European study on the subject.






What is the rationale? (continued)

Key developments in the retailing sector include:

- an improving environment for consumer lending, thereby encouraging retailers to develop their

own consumer finance schemes in order to capture a share of this market;

- retailer consolidation in both more and less developed markets which helps to produce national

champions with the branding, muscle and general profile needed to succeed in the consumer

finance and banking sectors in these countries;

- retailer growth in the less developed markets as an increasing proportion of consumers allocate

their expenditure to formal retailing concepts as opposed to informal street markets and the like;

- a mature environment for retailing in the more developed markets which signifies that retailers

need to investigate new means of achieving revenue growth which can include financial services, in

general, and consumer finance and banking, in particular;

- increasing internationalization which potentially paves the way for cross-border alliances between

retailers and mainstream banks as epitomized, for example, by the link between Carrefour and BNP

Paribas Personal Finance.






What methodology has been used?

The main research input into this study is Finaccord’s on-going investigation of the involvement in

financial services, in general, and consumer finance and banking, in particular, of over 3,300 major

retailing brands across 33 countries in Europe.

In the specific context of this report, the aim of the investigation is to gather top-level data concerning

the consumer finance and banking products offered by the organisations in question, the operating

models that they use and the providers with which they work in this context.

Naturally, given that there are literally millions of smaller retailers in total in the territories reviewed,

the majority with just a single outlet, Finaccord has sought to focus on the very largest entities that

are likely to be of most strategic interest to organisations involved in the consumer finance and

banking sectors. Indeed, the major retailers break down by category and by country as illustrated in

the graphics overleaf.






How do retailers surveyed break down? (1)

Fashion, 699

BY TYPE BY DISTRIBUTION MODEL

Supermarket /

hypermarket, 490

Consumer

electronics,

564

DIY / furniture /

home, 459

Health and

beauty, 231

Speciality, 184

Fuel, 252

Department store /

variety, 200

Sporting goods, 131 Books and media, 104

Offline only, 1,455

Online only, 503

Mixed, 1,356






How do retailers surveyed break down? (2)

BY COUNTRY

UK, 316

Turkey, 231

Germany, 211

France, 197

Poland, 193

Italy, 173

Spain, 169

Russia, 166 Netherlands, 150 Sweden, 110

Belgium, 102

Switzerland, 101

Ireland, 89

Denmark, 87

Austria, 83

Finland, 76

Norway, 76

Portugal, 73

Hungary, 72 Romania, 64

Greece, 59 Georgia, 50

Czech Republic, 90

Others, 376

of which Ukraine, 50,

Lithuania, 46

Slovakia, 45

Serbia, 40

Croatia, 39

Bulgaria, 37

Slovenia, 36

Estonia, 32

Latvia, 30

Bosnia-Herzegovina, 21






Which specific retailing groups

have been researched?

Among the major retailing groups included in the research are:

3 Suisses

Agorà Network

Ahold

Aldi

Alliance Boots

Amazon

Arcadia

AS Watson

Aachen

AVIA International

Axel Johnson

Baltika Group

Bauhaus

Baumax

Bertelsmann

Bestseller

BP

C&A

Carrefour

Casino

CBA

Celesio

Colruyt

Conforama

Coop Norden

Certified

Dansk Supermarked

Dirty

Delhaize Group

Dixons Retail

dm-drogeriemarkt

E. Leclerc

EDEKA

El Corte Inglés

El Dorado

ENI

Eroski

Erector

Neurotics

Expert International

ExxonMobil

Fancy

Fressnapf

Gasport

Groupe Galeries Lafayette

Grupo Inditex

GUM

Harald Nyborg

Home Retail Group

House of Fraser

ICA

IKANO

IKI

Kering

Kesko

Kingfisher

Leroy Merlin

Les Mousquetaires (ITM)

Louis Delhaize

Lukoil

Marks & Spencer

Maus Frères

Mercator

Metro Group

Migros

Modelo Continente

MOL

Morrisons

OMV

OTTO

Oxylane

PKN Orlen

Rakuten

Rautakesko

Reitan

Resurs Group

REWE

Royal Dutch Shell

Schwarz Group

Sedmoi Continent

Shop Direct Group

SOK

Sonae

Spar (Austria)

Sports Direct

Staples

Statoil

Stockmann

Svyaznoy

Système U

Tchibo

Tengelmann

Tesco

Total

Toys R Us

Varner Gruppen

Vivarte

VP Market

X5

Zalando






What is the report structure?

0. Executive Summary: providing a concise evaluation of the principal findings of the report.

1. Introduction: offering rationale, description of methodology and other related notes.

2. Regional Overview: a pan-European overview of the activity of major retail brands in consumer

finance and banking. As well as a comparative analysis of operating models used in these areas,

this section also analyses the importance of providers owned by major financial groups such as

BNP Paribas, Crédit Agricole, Santander and Société Générale, plus comparatively recent market

entrants such as Klarna.

3. Austria: an in-depth analysis of the market for retailer consumer finance and banking in Austria.

Key partnerships are identified between major Austrian retail chains and providers of consumer

finance, and detailed commentary is also provided to describe the involvement of the same

universe of retailers in the field of banking products, namely savings deposits, personal loans,

mortgages and international remittances.

4 - 35: chapters for all other countries are structured along similar lines to that for Austria.

36. Appendix: this final section provides a comprehensive listing of retailers operating in the areas

of consumer finance or banking through captive or joint venture providers.






What are the key features of the research?

Key features of this report include:

• definitive coverage of the involvement in consumer finance and banking of over 3,300 major retail

brands in 33 countries across Europe;

• focus on over 760 consumer finance schemes: which providers of point-of-sale finance are strong

in which countries and with which retailers do they collaborate?

• comprehensive listing of retailers using captive or joint venture point-of-sale finance divisions or

subsidiaries for their consumer finance schemes;

• identification of well over 100 individual product initiatives in retailer banking including the split by

country, retailer category and retailer distribution model (i.e. offline-only, online-only and mixed);

• identification of numerous consumer finance and banking product providers with which major retail

chains co-operate including both long-established banking organisations and innovative new

entrants.






How can the research be used?

You may be able to use this report and the PartnerBASE™ that accompanies it in one or more of

the following ways:

• gain rapid access to a unique pan-European source of intelligence covering virtually all significant

retail brands across an extremely wide range of geographies;

• appreciate how the prevalence of initiatives in retailer consumer finance and banking varies by

country, by retailer category and by retailer distribution model;

• monitor the activity of key national and international competitors in the retailer consumer finance

sector including the many European subsidiaries of BNP Paribas, Crédit Agricole, Klarna,

Santander and Société Générale;

• evaluate the potential for acquiring the existing consumer finance portfolios of retail groups by

purchasing equity stakes in captive finance entities or taking over internally-managed schemes;

• learn more about the growing number of retailer banks across Europe including Banque Casino,

Carrefour Banque, ICA Banken, IKANO Bank, Oney Banque Accord, Sainsbury's Bank and Tesco

Bank.





© Finaccord Ltd., 2013

Retailer Category Country Product typeProduct

offered?Operating model Partner(s) UHC(s) of partner(s)

Elkjøp Consumer electronics Norway Consumer finance Yes External partner Cresco Access DNB

Ellos Department store / variety Sweden Consumer finance Yes External partner Sofinco Crédit Agricole

El-Salg Consumer electronics Denmark Consumer finance Yes External partner Dan-Aktiv Crédit Agricole

Elvila DIY / furniture / home Romania Consumer finance Yes External partner BRD Finance Société Générale

Emmezeta DIY / furniture / home Croatia Consumer finance Yes External partner CrediFlex Société Générale

EP: Netshop Consumer electronics Germany Consumer finance Yes External partner Santander Consumer Bank Santander

13

How can the PartnerBASE™ be used?

Filter by type

of retailer

Choose operating model Identify product

providers

Look up

specific retailers Filter by

product type

Select country Identify ultimate

owners of partners






Who can use the research?

1. Consumer finance companies: this study is an up-to-date and comprehensive source of information

about retailer consumer finance in 33 countries and represents an indispensable guide to over 760

retail brands that operate consumer finance programs;

2. Banks and insurance companies: consumer finance schemes can form an effective basis either for

developing broader retailer banking operations or for marketing a range of insurance products to large

and well-defined groups of consumers;

3. Retailers: consumer finance programs represent an important activity for numerous retail brands in

Europe but how do they organise their involvement in this field and with which partner organisations

do they collaborate?

4. Providers of international remittance services: in addition to coverage of the mainstream banking

products of savings deposits, personal loans and mortgages, the research also identifies partnerships

between major retailers and providers of international remittance services;

5. Management consultancies: are you either assisting a retailer with the development of a consumer

finance or banking scheme or advising a bank or other lending institutions with respect to partnership

opportunities with major retail brands? This research will help you to evaluate the options in retailer

consumer finance and banking, saving time and effort on researching the subject yourself.






What are some of the key findings?

1. Retailers in two categories – namely, consumer electronics and DIY, furniture and

home products – are the most likely to have established schemes for consumer finance

Source: Finaccord PartnerBASE

10.6%

46.7%

31.5%

51.9%

7.4%

0.8%

4.3%

16.8%

21.4%

12.7%

32.4%

14.1%

28.7%

0% 20% 40% 60% 80% 100%

Books and media

Consumer electronics

Department store / variety

DIY / furniture / home

Fashion

Fuel

Health and beauty

Speciality

Sporting goods

Supermarket / hypermarket

Online only

Offline only

Mixed

% of major retail brands investigated with a consumer finance scheme






What are some of the key findings? (cont.)

2. Across the 33 countries, 23% of the major retailers surveyed have an arrangement for consumer

finance with almost 30% adhering to an operating model other than use of a single, external partner


0%

20%

40%

60%

80%

100%

Provision rate Operating model

(see legend)

Undisclosed

Other

Internal

Joint venture partner

Captive partner

Multiple external partners

External partner







3. When its point-of-sale finance partnerships are viewed in weighted terms,

Barclays Partner Finance seems likely to be the leading provider in the UK

Hitachi Capital (UK), 24.6%

Barclays Partner

Finance, 23.2%

Creation Financial Services (LaSer

UK), 11.6%

V12 Retail Finance, 10.1%

IKANO Bank, 8.7%

Shop Direct Finance

Company, 7.2%

Freedom Finance, 4.3%

Moneyway, 2.9%

Pay4Later, 2.9%

other, 4.3%

UNWEIGHTED SHARE OF PARTNERSHIPS

Barclays Partner

Finance, 20.0%

Shop Direct Finance

Company, 17.2%

Hitachi Capital (UK), 15.1%

Creation Financial Services (LaSer

UK), 14.6%

V12 Retail Finance, 9.4%

IKANO Bank, 7.1%

Moneyway, 3.7%

Pay4Later, 3.6%

Redcats Finance, 3.0%

other, 6.4%

WEIGHTED SHARE OF PARTNERSHIPS








4. Key findings from the executive summary include:

• Sweden hosts the retailers most likely to offer consumer finance with a provision rate of 46.4%,

followed by Poland at 46.1% and Germany at 43.6%;

• finance providers owned wholly or in part by BNP Paribas hold the most partnerships in this field

across Europe, with 161 different retail brands using one of its subsidiaries or joint ventures,

including the 66 retailers sourcing consumer finance from subsidiaries of LaSer Group, its joint

venture with Galeries Lafayette;

• 153 different entities are reported as non-internal partners of retail brands for consumer finance

schemes identified - many of these are entities in which the retail brands have no ownership stake

although a total of 25 different captive and joint venture providers are visible in consumer finance,

with 25 also active in retailer banking, and with some overlap between these two groups;

• at 7.8% of supermarket and hypermarket brands researched, this is the retailer category that is

most likely to be involved in mainstream banking, followed by department stores and variety

retailers, at 7.5%.






What is the cost and format?

Retailer Consumer Finance and Banking in Europe is available as a standard PDF document. The

PartnerBASE™ that accompanies it at no further charge is in Excel format. Costs for this research

set and selected other comparable, international titles are as follows:

* For UK-based clients, VAT at the prevailing rate will be added to the basic price. Costs quoted are for a single site user licence only. For

a corporate user licence, please see the final slide for further details. Invoices can be paid in EUR or USD, at the prevailing exchange rate,

if preferred. For acquisition of multiple reports, please contact Finaccord - discounts may be available.

Retailer Consumer Finance and Banking in Europe GBP 1,295

Global Retailer Consumer Finance and Banking GBP 2,495

Global Retailer Insurance and Assistance GBP 2,495

Global Retailer Online Payment Acceptance GBP 3,495

Global Retailer Payment, Gift and Loyalty Cards GBP 3,495

Retailer Consumer Finance and Banking in the Asia-Pacific Region GBP 995

Retailer Consumer Finance and Banking in North and Latin America GBP 995

Retailer Insurance and Assistance in the Asia-Pacific Region GBP 995

Retailer Insurance and Assistance in Europe GBP 1,295

Retailer Insurance and Assistance in North and Latin America GBP 995

Retailer Online Payment Acceptance in the Asia-Pacific Region GBP 1,295

Retailer Online Payment Acceptance in Europe GBP 1,995

Retailer Online Payment Acceptance in North and Latin America GBP 1,295

Retailer Payment, Gift and Loyalty Cards in Europe GBP 1,995

Retailer Payment, Gift and Loyalty Cards in the Asia-Pacific Region GBP 1,295

Retailer Payment, Gift and Loyalty Cards in North and Latin America GBP 1,295






What other reports are available?

Australia GBP 795 France GBP 795 Malaysia GBP 795 South Korea GBP 795

Brazil GBP 795 Germany GBP 795 Mexico GBP 795 Spain GBP 795

Canada GBP 795 India GBP 795 Poland GBP 795 Turkey GBP 795

Chile GBP 795 Italy GBP 795 Russia GBP 795 UK GBP 795

China GBP 795 Japan GBP 795 South Africa GBP 795 USA GBP 795

Retailer Payments, Banking, Insurance and Assistance in...

A variety of country-specific reports and associated PartnerBASE™ datasets about retailer

payments, banking, insurance and assistance are also available from Finaccord, as listed below.

These are based in part upon the same research programs as the multi-country titles but focus

instead on particular countries.

* The same notes apply here as on the previous page






How can the research be purchased?

Simple. Just go to the relevant area of the Finaccord web site available at

http://www.finaccord.com/order_global_rfsr.htm and fill in the online order form, clearly indicating:

• report required

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Please allow up to one working day for the delivery of electronic copy by e-mail.

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4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered

VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers.



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Documents

Retailer Consumer Finance and Banking in Europe - · PDF fileRetailer Consumer Finance and Banking in Europe is a report, based on a survey of over 3,300 prominent retail brands in