Alliance Renews Orchard Brands Deal - Analyst Blog

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The Retail Service business of Alliance Data Systems Corporation ( ADS ) inked a long-term renewal agreement with Orchard Brands to continue providing private label credit card services to the latter.

Concurrently, the deal encompasses the extension of services to other 9 brands - Appleseed's, The Tog Shop, Draper's & Damon's, Sahalie, Gold Violin, WinterSilks, Norm Thompson Outfitters, LinenSource and Solutions. Presently, Alliance Data provides services to four brands - Blair, Haband, Old Pueblo Traders, and Bedford Fair.

Headquartered in Beverly, Mass., Orchard Brands is a leading multi-channel retailer of apparel and home products catering to customers above the age of 50 years.

As per the agreement, Alliance Data will design marketing driven credit card program service that will award customers based on their transaction amount. Moreover, the 'VIP across all brands' customers can use their reward credit cards for all brands of Orchard Brands. The program will go live by September this year.

While these programs add value for customers, the company benefits to gain from customer loyalty.

This is the fourth long-term agreement in the second quarter of 2013 under Alliance's Private Label Services and Credit segment. Recently, in the beginning of June, Alliance Data inked a long-term deal to provide private label credit card services for El Dorado Furniture. We believe that winning new deals along with the renewal of the existing ones will continue to help The Private Label Services and Credit segment continue deliver robust numbers.

Alliance Data currently carries a Zacks Rank #3 (Hold). Among other financial transaction service providers, Vantiv, Inc . ( VNTV ) carrying a Zacks Rank #1 (Strong Buy) and Fidelity National Information Services, Inc . ( FIS ) and Official Payments Holdings, Inc .  ( OPAY ) carrying a Zacks Rank #2 (Buy) are worth considering.



ALLIANCE DATA (ADS): Free Stock Analysis Report

FIDELITY NAT IN (FIS): Free Stock Analysis Report

OFFICIAL PAYMNT (OPAY): Get Free Report

VANTIV INC-A (VNTV): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ADS , FIS , OPAY , VNTV

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