Sears Holdings and Citi are extending its relationship related to co-branded and private label credit card offers that will include a long-term marketing deal related to the Shop Your Way Mastercard rewards program.
In conjunction with the extension of the agreement, Citi will pay Sears $425 million ($400 million of which has been received) upon entry into the amendment. The shared economics of the program will remain substantially consistent with the existing agreement through December 31, 2020, and will be performance-based thereafter, the two companies said.
The updated program will provide cardholders with percent-off purchases at Sears and Kmart, gas stations and grocery stores.
“The extension provides for strong long-term economic value for both Citi and Sears,” said Craig Vallorano, head of Citi Retail Services.
Edward Lampert, Sears Holdings chairman and CEO, said Sears Holdings saw a strong volume of card issuances in 2017 and that the company is looking to build on that momentum this year.