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Target to suspend sale of credit card unit

January 19, 2012

One of the largest retailers in the country recently made headlines after announcing that it would be suspending talks to sell its credit card portfolio.

One of the largest retailers in the country recently made headlines after announcing that it would be suspending talks to sell its credit card portfolio.

Reuters reports that Target, which had been seeking to sell its portfolio of receivables since last January, will not continue the talks until later this year due to its financing issues with Chase. The stock market reacted negatively to the announcement, with the company’s shares falling by as much as 2.4 percent.

In an interview with the source, Deutsche Bank analyst Charles Grom said that the latest news was “another negative for the stock.” 

The national retailer has been trying to increase the incentives it gives shoppers who pick up the cards. In 2010, it offered those who signed up 5 percent discounts on all items and more recently gave free shipping to those using its REDcard.

In other retail credit card news, HSBC North America’s Card and Retail Business Services stated that it had reached a deal with Saks Fifth Avenue, Jordan’s Furniture and others to distribute merchant services cards.

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