The retailer has already received a payment of $400 million. Shop Your Way is the Sears membership program that serves as the basis for the retailer’s transformation into an asset-light business model.
Sears’ chairman and chief executive officer Edward S. Lampert blogged on the Sears site, “We are extremely proud of our long-standing relationship with Citi and this extension is an indication of their confidence in our transformation.”
The deal upgrades the percentage of points back that users receive, which can be redeemed on purchases at the company’s nameplates, Kmart and domestic Sears stores, as well as at shopyourway.com. The points can also be redeemed with points earned through Shop Your Way partners such as Uber, Avis Budget Group, Synapse and FuboTV.
Craig Vallorano, head of Citi Retail Services, said, “Consistent with other top-of-wallet credit cards, more than 70 percent of customer spend on our Citi-Sears general purpose cards occurs at merchants beyond Sears, so this enhanced rewards structure is designed to deliver strong value for Shop Your Way card customers, as well.”
The 15-year co-branding agreement shares the same base terms as originally agreed to through Dec. 31, 2020, but becomes performance-based thereafter. Sears and Citi introduced the program in November 2016.
According to Lampert’s blog, “We saw strong volume of card issuances. We have awarded tens of millions of points to members on everyday purchases on everything from gas to groceries to dining. And we’ll continue to do so.”
The ceo said the program helps members save time and money every day. “It’s about creating a more personalized, convenient and rewarding shopping experience — both in our stores, online and through our growing network of Shop Your Way partners,” Lampert said.