The Saks Fifth Avenue credit card portfolio is being transferred to Bread Financial, a tech-oriented financial services company.
Bread will operate the credit card program for all channels of the Saks and Saks Off 5th businesses.
In a statement Wednesday, the Columbus, Ohio-based Bread said it has a multiyear, multipayments product agreement with Saks. Bread also signed a definitive agreement to transition the existing Saks Fifth Avenue credit card portfolio from another issuer, Capital One. The transaction is expected to close in the third quarter of 2024, subject to customary closing conditions.
Along with its purchase of the Saks credit card portfolio, Bread will issue and support the existing Saks World Elite Mastercard credit card and the Saks credit card beginning in August.
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Card members can use their credit cards online and at all Saks Fifth Avenue and Saks Off 5th locations and earn two to six points per dollar spent using their credit card, based on the tier level. Saks World Elite Mastercard cardmembers can also earn two points per $1 on purchases outside of Saks Fifth Avenue and Saks Off 5th everywhere Mastercard is accepted. Points are redeemable for SaksFirst gift cards.
The deal comes at a time when credit card delinquencies have been on the rise nationally and as Saks is actively negotiating to take over the Neiman Marcus Group.
According to Bread, the deal will benefit customers by making it easier for them to learn about, sign up for and utilize their Saks credit card online, and in Saks and Off 5th stores and mobile apps because of Bread’s “robust digital capabilities.”
Bread also indicated that it will support Saks Fifth Avenue with marketing capabilities, “using extensive data and deep consumer insights to build highly targeted and integrated campaigns. These capabilities enable more meaningful customer engagement and loyalty throughout the customer’s shopping journey and in their channel of choice.”
Val Greer, executive vice president and chief commercial officer of Bread Financial, said the company will provide customers across Saks Fifth Avenue and Saks Off Fifth with “two credit card product offerings that can provide an elevated and personalized payment experience,” adding, “We are excited to share our cross-channel expertise across credit, loyalty, marketing and data insights with a renowned brand to deliver a compelling payments and rewards journey for its coveted customers.”
Emily Essner, chief marketing officer, Saks, added, “We look forward to working with Bread Financial to leverage its industry-leading capabilities to offer an elevated payment experience that is tailored to our customers across the Saks Fifth Avenue ecosystem. As a leading expert on the luxury consumer, we know that our customers expect elevated, personalized and easy experiences, particularly when shopping for fashion.”
Bread’s payment solutions include private label and co-brand credit cards and buy now, pay later products. Bread also offers cashback, savings and American Express services.
