Citibank announced on Monday that it would pay Sears Holdings Corp. $425 million to extend a private label credit card arrangement with the struggling retailer.
In exchange for an extension until Dec. 31, 2020, Sears will no longer be able to purchase some assets that are tied to the program. The new “Shop Your Way” card will give customers additional points back on gas and grocery purchases, as well as on purchases made at Sears and Kmart stores.
“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,” Sears CEO Edward Lampert said in a statement.
The Hoffman Estates, Ill.-based company reported a 28 percent decrease in sales to $4.3 billion for the most recent earnings quarter. The stock was up 1.11 percent from the prior trading day to $3.63.
