David Jones customers like their Amex card
David Jones yesterday reported a rise of 10 per cent in commission revenue and a 7.5 per cent rise in EBIT profit from its credit card alliance with American Express. The department store chain said it earned commissions from Amex of $25.3 million in the half year to January 2011 and an EBIT of $22.8 million.
In commentary published with the results, David Jones said the David Jones American Express Card “obtained a material share of the new credit card account openings in the total market, since its launch in October 2008”. What material means, however, and how many cards this represents is not something DJ or American Express care to elaborate on.
Reserve Bank of Australia data shows an increase of around one million new credit cards, across the market, in the period since the launch of the co-brand Amex (which replaced the David Jones charge card.) In early 2008, David Jones had (or was rumoured to have) around 800,000 store card customers, half of them active.
Source: Banking Day