Sears gets financial boost to upgrade its credit card

5/21/2018
Sears Holdings is upping the rewards for its credit card holders.

Citi and Sears Holdings on Monday announced a long-term extension of their 15-year co-brand and private label credit card relationship along with enhancements to the Shop Your Way Mastercard rewards program. In conjunction with the agreement, Citi will pay Sears $425 million ($400 million of which has been received).

Sears said its cardholders will now enjoy benefits every day that previously were only available on a promotional basis. These include:

•Five percent back in points on eligible purchases made at gas stations;
•Three percent back in points on eligible purchases at grocery stores and restaurants; [5% and 3% back on the first $10,000 of combined eligible purchases made annually on gas, groceries and restaurants and 1% thereafter];
•Two percent back in points on eligible purchases made at Sears and Kmart; and
•One precent in points on all other eligible purchases.

Points can be redeemed on purchases ranging from everyday household consumables sold at Kmart to larger items such as kitchen appliances sold by Sears or towards a pair of glasses at Sears Optical. There is no minimum redemption threshold and no need for certificates or gift cards – members can see their points online or on their Shop Your Way app and redeem them towards purchases in store or online.

“The Shop Your Way Mastercard is a cornerstone of the Shop Your Way engagement platform which provides generous rewards, partnerships and experiences. said Edward S. Lampert, chairman & CEO of Sears Holdings. “We saw a strong volume of card issuances in 2017 and we look forward to building on that momentum as the power of the Shop Your Way platform allows us to personalize experiences and make life easier and more rewarding for every cardholder.”

To extend the new terms of the deal through Dec. 31, 2020, Sears gave up the right to purchase certain assets tied to the credit card program.

 
X
This ad will auto-close in 10 seconds