The Retail Service business of Alliance Data Systems Corporation (ADS) has signed a multi-year renewal agreement with Arhaus Furniture to carry on providing private label credit card services. This marks the second deal clinched by the company in the fourth quarter.
Cleveland-based retailer, Arhaus Furniture utilizes raw materials, fabrics, textures and designs that are unique, including reclaimed and recycled materials from sustainable sources, to provide exclusive furniture for home as well as office. By the end of 2014, it is expected to operate 53 stores across 19 states. Arhaus, which is the second fastest-growing furniture retailer, has also been ranked among the first 50 furniture retailers across the country by Future Today.
Arhaus Furniture has been Alliance Data’s client for more than 20 years. With this agreement the financial transactions services provider will aid Arhaus’ rapid growth while supporting its entry into new markets.
Moreover, Alliance Data will offer a full suite of credit and marketing services, which provides an array of adaptable financing and payment options for Arhaus’ Credit Card program. Additionally, in order to support Arhaus' plans to leverage mobile technology at the point-of-sale, including the launch of account acquisition via tablets in-store, Alliance Data will offer digital marketing solutions facility.
Further, the companies will work on introducing a loyalty program to suit the features and benefits of the credit program while driving long-term customer relationships as well as a multi-category spend with the brand.
At present, the Retail Service business at Alliance Data manages more than 135 private label and co-brand credit programs.
More and more financial transactions services providers are boosting their revenues by striking deals to provide solutions and improve their portfolios.
Last month, WEX Inc. (WEX) inked a long-term care contract with Sinclair Oil Corporation (Sinclair) to become the fleet card provider for Sinclair’s Fleet Track Card program.
Another payment processing solutions provider, Vantiv, Inc. (VNTV) has signed an agreement with MUFG Union Bank, N.A. to provide merchant services to their commercial & corporate relationships.
Currently, Alliance Data has a Zacks Rank #3 (Hold). A better–ranked stock in the same sector worth considering include Envestnet, Inc. (ENV) with a Zacks Rank #2 (Buy).
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