Sears stock rises amid $425M deal with Citi
If you’re using the Sears credit card to “shop your way,” you may find the discounts and deals are about to get better.
But the best deal of all will be for Sears’ parent company, which is about to get a muchneeded injection of $425 million due to the upgraded creditcard deal with Citi.
Sears Holdings, which has both the Sears and Kmart chains, announced Monday that it is extending and enhancing its deal with the bank for a Mastercard branded with the retailer’s Shop Your Way loyalty program.
The changes include improved card benefits, such as additional points for certain purchases, including eligible items at Sears and Kmart stores.
For Sears, which faces a financial crisis as its sales suffer, the deal provides fresh financial runway.
Citi is paying $425 million as part of the arrangement.
Sears’ stock soared 10.9% to $3.98 in pre-market trading as investors celebrated the sudden influx of cash, but it settled back later in the day to $3.63, up 1.1% and essentially unchanged from Friday.
To extend the new terms of the deal through Dec. 31, 2020, Sears gave up the right to purchase certain assets tied to the credit-card program.
“We’re extremely proud of our longstanding relationship with Citi and are excited that this best-in-class offer which rewards Shop Your Way members for activity in their daily lives is now an ongoing part of the value proposition for cardholders,” Sears CEO Edward Lampert said in a statement.
Shop Your Way Mastercard now includes 5% back in points on certain purchases at gas stations, 3% back on certain purchases at grocery stores and restaurants, 2% back on eligible items at Sears and Kmart and 1% on “other eligible purchases.”