DSN Retailing Today - Kmart to recognize Sears credit card programHOFFMAN ESTATES, ILL. -Attention Kmart shoppers: Sears credit cards are now being accepted at its sister division, Kmart stores.
Sears Holdings is offering Sears cards as replacements to most of the former holders of Kmart credit cards, which had approximately 75,000 customers. The company terminated Kmart's relationship with Household Bank, issuer of the private-label Kmart card, in May, and amended its agreement with Citibank, the provider of for all Sears cards.
Sears sold off its credit division to Citibank in July 2003, prior to its merger with Kmart. The deal, valued at approximately $6 billion, was meant to allow Sears more freedom to focus on its retail operations. Sears credit division contributed close to 60% of the retailer's earnings annually.
Sears Holdings announced in May that it had amended its agreement with Citibank and would be terminating Kmart's relationship with Household Bank (HSBC), which previously provided a private-label credit card program for Kmart.
According to the company, most former holders of the Kmart card will be receiving a new Sears card, issued by Citibank, valid at all Sears Holdings' franchise of stores.
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