Coldwater Creek, the women's retailer based in Sandpoint, has signed a new credit card deal worth $25 million.
The retailer signed a multi-year agreement July 26 with Alliance Data Systems Corp., a loyalty program and marketing company, to expand Coldwater Creek's co-branded credit card and launch a new Coldwater Creek credit card.
Alliance Data Systems paid Coldwater Creek $11.5 million to buy the retailer's existing co-branded credit card portfolio from Chase Bank. Alliance Data Systems will pay Coldwater Creek another $11.5 million when it closes that purchase with Chase and $2 million when it launches the new credit card, according to company filings with the Securities and Exchange Commission.
Coldwater Creek "will also be entitled to future payments after ADS begins issuing credit cards ... for revenue-sharing based on a percentage of credit card sales, certain new credit card accounts opened and activated and profit-sharing based on certain profitability measures," the company said in SEC filings.
They plan to start issuing the credit cards by March 1.
Coldwater Creek plans to use more data, technologies and tools to court customers in ways that are more relevant to them, attract customers to stores and strengthen the company's brand.
As part of the agreement, Alliance Data Systems will provide customer service and some marketing to Coldwater Creek's credit card customers.
"We are excited to partner with Alliance Data to leverage their expertise in delivering industry-leading credit and loyalty-based marketing programs to strengthen our customer relationships and drive sales," said Jill Dean, president and CEO of Coldwater Creek. "Expanding our loyalty program is a key priority for our company, and we believe that the best way to strengthen brand loyalty and provide an improved shopping experience across all of our channels, is to offer our customers a choice of credit card options, both of which will be fully integrated with our rewards program."