LOB Private Label Credit Card

About LOB

LOB offers high quality apparel collections that are inspired by global fashion trends.

With design offices in North America and Europe, LOB is able to capitalize on trends as they happen and translate them to their customers in Mexico and Central America.Stores receive new styles everyday ensuring that customers make frequent visits to the stores to “see what is new.”

With more than 30 years in the retail fashion business and more than 85 stores in the best shopping centers of Mexico and Central America, LOB continually rewards its customers with the best in “chic & trendy.”

Country: Mexico
Category: Apparel
Stores: 86
Private Label Credit launch: 12.2007


Case Study: LOB private label credit program



Business Objectives

In 2007, LOB was looking for a cost effective way to drive customer loyalty, strengthen brand awareness and increase sales. In addition, LOB needed to extend credit to a segment of their market that either didn’t qualify for a costly bank card or couldn’t spend as much as at LOB as they would like. LOB turned to Karum to create their Private Label Credit Card and Gift Card program. By offering a private label card, LOB was looking to increase higher average tickets and increased customer count. Similarly, LOB was looking to gain competitive advantage in the market with the financial benefits of managing their own accounts receivable portfolio.


Karum Involvement

Karum offered LOB a convenient, reliable and cost efficient way for LOB to increase customer loyalty and to drive sales through the issuing of private label credit and gift cards. In 2007, Karum assessed LOB’s market and existing sales strategies and collaboratively determined that LOB was an excellent candidate for private label credit. With its trendy fashions, pumping in-store music and lounge-like atmosphere, customers of LOB enjoy an unencumbered shopping experience. To this end, Karum worked with LOB on streamlining the application process so that customers can complete basic personal  information in store, but not require them to gather all of it so as to deter from their shopping. Karum’s credit center employees complete the application when it is convenient for the LOB customer. In this way, and with Karum handling all of the card application, scoring, processing, embossing, delivery and authorization, LOB is left to do what it does best - merchandising.

In June 2007, LOB announced the availability of the LOB Credit Card. Test marketed through in-store promoters, signs and counter-displays to a sub-section of its 86 nationwide stores in Mexico, LOB saw instant uptake by its customers. After 12 months of steady growth in both the number of approved applications and sales, LOB has rolled out its card program to 75% of its stores and plans to complete the entire nationwide deployment by Q1 2009. Since launch, LOB estimates that 53% of its monthly non-cash sales are coming from customers using their private label credit card.


Through the marketing of the LOB private label credit card, LOB was able to increase its registered customer database by 800. Through the development of the LOB credit card program, LOB now has new and unique ways to interact with their customers including special card-holder in-store events and promotions. As a result, LOB is seeing their private label credit card customers spend 300% more on average than cash customers in 2008. Similarly, during a 0% interest promotion in Q4 targeted to LOB card holders,  LOB experienced a 50% growth in sales.

"We recognized a great opportunity to provide excellent variety of products, unparalleled service and accessible credit solutions for our customers," said Piero Agnesi, Director General for LOB, “Karum provides a one-stop solution to help us process applications, track spending, provide customer service and assist in collections."