Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced it has signed a long-term contract expansion and extension with Tween Brands, Inc. (NYSE: TWB).
Headquartered in New Albany, Ohio, Tween Brands, Inc. is one of the largest tween specialty retailers in the world targeting female consumers (ages 7-14 years) through contemporary, fashion-forward clothing and accessories. In 2009, Tween Brands converted its Limited Too branded stores to its Justice brand, which sells tween clothing and accessories with a value-based focus. Total 2008 fiscal sales were nearly $1 billion.
Since 1996, Alliance Data has provided multi-channel private label credit card services for Limited Too. With this expanded agreement, Alliance Data will continue to provide private label services to these stores, which have now been converted to Justice, as well as to Justice's existing stores. The new Justice-branded private label card program was launched to support Justice's expansion, now totaling over 900 stores, and included converting Limited Too cardholders to the new Justice card. The Justice card can be used at its website shopjustice.com and Justice's "catazine."
The private label credit card services Alliance Data provides include account acquisition and activation; receivables funding; card authorization; private label credit card issuance; statement generation; remittance processing; customer service functions; and marketing services. While the Justice brand caters to 7-14-year-old girls, the credit card program is granted to parents of Justice customers.
As a part of the card-marketing strategy, Alliance Data will apply advanced analytics and develop customer segmentation strategies to improve cardholder acquisition and retention. These efforts will allow Justice to intelligently target customers based on their past purchase behaviors and preferences -- enabling Justice to more effectively introduce and engage customers to the Justice brand and drive sales across all sales channels.
"We value our long-term relationship with Alliance Data and how they helped us to grow our Limited Too business," said Mike Rayden, chairman and chief executive officer, Tween Brands, Inc. "We are pleased to expand this relationship to include our Justice brand. Recognizing our cardholders are some of our best customers, we view our private label credit card program as an integral part of our marketing strategy, and it will play a critical role in helping Limited Too cardholders embrace the Justice brand."
"Tween Brands has made a significant change in their brand strategy by evolving to the single, highly engaging Justice brand," said Ivan Szeftel, president of Retail Services for Alliance Data. "We're confident that with our experience, proven marketing and credit services, and unique consumer insight, the Justice private label card will be equally dynamic as the Justice brand and a valuable tool to drive sales and customer loyalty."