The Retail Service business of Alliance Data Systems Corporation (ADS - Free Report) inked a long-term renewal agreement with Orchard Brands to continue providing private label credit card services to the latter.
Concurrently, the deal encompasses the extension of services to other 9 brands - Appleseed's, The Tog Shop, Draper's & Damon's, Sahalie, Gold Violin, WinterSilks, Norm Thompson Outfitters, LinenSource and Solutions. Presently, Alliance Data provides services to four brands - Blair, Haband, Old Pueblo Traders, and Bedford Fair.
Headquartered in Beverly, Mass., Orchard Brands is a leading multi-channel retailer of apparel and home products catering to customers above the age of 50 years.
As per the agreement, Alliance Data will design marketing driven credit card program service that will award customers based on their transaction amount. Moreover, the ‘VIP across all brands’ customers can use their reward credit cards for all brands of Orchard Brands. The program will go live by September this year.
While these programs add value for customers, the company benefits to gain from customer loyalty.
This is the fourth long-term agreement in the second quarter of 2013 under Alliance’s Private Label Services and Credit segment. Recently, in the beginning of June, Alliance Data inked a long-term deal to provide private label credit card services for El Dorado Furniture. We believe that winning new deals along with the renewal of the existing ones will continue to help The Private Label Services and Credit segment continue deliver robust numbers.
Alliance Data currently carries a Zacks Rank #3 (Hold). Among other financial transaction service providers, Vantiv, Inc. (VNTV - Free Report) carrying a Zacks Rank #1 (Strong Buy) and Fidelity National Information Services, Inc. (FIS - Free Report) and Official Payments Holdings, Inc. carrying a Zacks Rank #2 (Buy) are worth considering.