Zale Enters New U.S. Private Label Credit Card Program Deal With Alliance Data

(RTTNews) - Zale Corp. (ZLC) has reached a new, multi-year private label credit card program agreement with Alliance Data Systems Corp. (ADS), a provider of loyalty and marketing solutions. Pursuant to this, Alliance Data, through its Comenity Capital Bank or "CCB" unit, would provide private label credit cards to customers of Zale in the U.S. beginning no later than October 1, 2015, following the scheduled expiration of Zale's current U.S. private label credit card deal on September 30, 2015. Further, prior to October 1, 2015, CCB has the option to participate in certain special financing programs for Zale's customers in the U.S.

Upon the completion of program implementation in the first half of fiscal 2014, Zale would begin to receive benefit from Alliance Data's extensive marketing, analytical and technical services. For each of Zale's U.S. brands, Alliance Data would provide proven marketing and database capabilities, sophisticated analytics and a suite of omnichannel marketing tools designed to generate sales and extend brand affinity. Also, Alliance Data would provide a portfolio of innovative tablet and mobile marketing solutions for fine jewelry that are designed to optimize cardholder acquisition and retention. Furthermore, Zale would receive a commencement payment in July 2013 from CCB.

The agreement has an initial term through the later of the seventh anniversary of the Alliance Data program commencement date or October 1, 2022, and automatically renews for successive two-year periods after the initial term in the absence of written notice by either party of non-renewal. If certain performance metrics are achieved within the first three years of the program, Alliance Data has the option to extend the initial term by two years.