| |
|
Friday, December 20, 2002
|
|
[gathered by Scott
Loftesness, 12/19/02]
Globe
and Mail: Big retailers bet on bank cards. Marina Strauss reports
on how big retailers in Canada are relying heavily on bank cards for
their profits.
At Toronto-based Hudson's Bay Co., which runs the Bay
and Zellers, most operating profit -- 94 per cent of it -- came from
card earnings last year, DBRS figures indicate. That's almost double the
44 per cent of HBC's total operating profit from card earnings in the
previous year, DBRS said. Meanwhile, Sears Canada Inc. saw 57.5 per cent
of its operating profit come from credit card earnings in 2001, up from
19.9 per cent a year earlier, DBRS said. At Toronto-based Canadian Tire
Corp. Ltd., 26.4 per cent of its operating profit came from credit card
earnings last year, up from 17.6 per cent in 2000.
West
Australian: Credit card slug looming. Gay McNamara reports on the
situation in Australia as merchants beginning January 1 are free to
surcharge credit card transactions.
The Reserve Bank estimates the service fees on credit
cards cost merchants about $1.5 billion a year, which is passed to
consumers through higher prices. Small retailers are the hardest hit,
paying an average 3 per cent to 3.5 per cent and some paying more than 4
per cent. But they were restricted from passing the cost to customers
under credit card scheme rules.
7:10:49 AM 
|
|
|
© Copyright 2006 Russ Savage.
Last update: 5/8/06; 9:00:09 PM.
|
|
|
