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RAPAPORT... The Zale Corporation signed a new, multi-year private-label credit card program agreement with Alliance Data Systems Corporation. Under the terms of the agreement, Alliance Data, through its Comenity Capital Bank (CCB) subsidiary, will provide private-label credit cards to customers of Zale in the U.S., beginning no later than October 1, 2015, following the scheduled expiration of Zale’s current U.S. private-label credit card agreement on September 30, 2015. In addition, and prior to October 1, 2015, CCB has the option to participate in certain special financing programs for Zale’s U.S. customers. Following the completion of program implementation during the first half of fiscal 2014, Zale will begin to receive marketing, analytical and technical services from Alliance Data. For each of Zale’s U.S. brands, Alliance Data will provide marketing and database capabilities, analytics and a suite of omnichannel marketing tools designed to generate sales and extend brand affinity. Alliance Data will also provide a portfolio of tablet and mobile marketing solutions for fine jewelry that are designed to optimize cardholder acquisition and retention. In addition, Zale will receive a commencement payment in July 2013 from CCB. “We are very pleased to begin our partnership with Alliance Data,” said Matt Appel, the chief administrative officer of Zale Corporation. “We selected Alliance Data for its extensive and highly regarded marketing tools and analytics, retail expertise, technology solutions and customer service. We will receive near-term benefits from these capabilities as well as significant economic benefits from this relationship over the life of the contract.”
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