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Dallas Zale Corp. announced that it has selected Citibank (South Dakota), N.A.) to provide the private label credit-card program for the retailer’s Zales Outlet and Gordon’s brands in the United States, effective Oct. 1.
The agreement is for a term of five years with automatic renewals for successive two-year terms and replaces the company’s agreement with Citi, which was scheduled to expire in March 2011. In connection with the agreement, payment of the merchant fee differential, due Sept. 22, will no longer be required.
Under the new agreement, the yearly minimum volume of net credit-card sales has been reduced from $600 million to $315 million. Additionally, Citi will provide financial support of Zale’s marketing activities during the initial five-year term of the contract.