Alliance Data Systems Corporation (ADS) inked a long-term deal with Premier Designs Inc. in order to offer private label credit services to the latter.
Irving, Texas based Premier Designs, through independent distributors referred as “jewelers,” markets their jewelry across the United States and Puerto Rico.
Per the agreement, Alliance Data will acquire Premier Designs’ present records of private label credit card accounts for an undisclosed amount. The purchase is expected to close in the second quarter of 2012. However, the existing jewelers will not be offered credit card services by Alliance Data till the transaction closes.
Alliance Data will offer private label credit card services for jewelers, a card program through which they can purchase jewelry for display and also work on the orders received at the Home Shows.
The company will also offer loyalty-related incentives, including a point-per-dollar reward program with an option by which jewelers can redeem the points for buying the displayed samples at lower prices. The company also intends to implement other rewards which will enhance cardholders’ value for using the Premier Designs private label card as their preferred mode of payment.
In 2011, the Private Label Services and Credit segment revenue registered a 7% growth. We expect this transaction to help the company generate additional revenue and help the segment to continue delivering robust growth going forward.
Also, the jewelers will avail the financing power as well as reward program, which in turn will motivate them to grow their business.
Headquartered in Dallas, Texas, Alliance Data Systems Corporation, together with its subsidiaries, provides data-driven and transaction-based marketing and customer loyalty solutions primarily in the United States and Canada. It competes with Discover Financial Services (DFS).
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