PacSun sticks with Alliance

Pacific Sunwear of California Inc. (PacSun) has extended its nine-year private label credit card contract with Alliance Data Systems Corp.

PacSun’s private label credit card lets users earn points that can be redeemed for future purchases. It also provides members — mainly teens and young adults — with information on sales and promotions, largely through their monthly statements. Since 2000, Alliance has been providing PacSun with private label credit card services, including marketing services, account acquisition and activation, card issuance, statement generation and customer service.

“We stuck with Alliance because they continue to do a good job administering the program,” explained Gar Jackson, VP investor relations for PacSun. “Given that our target customers are teenagers, we don’t do a tremendous amount of credit card business, but they have done a great job.”

Jackson added that, although PacSun is considering additional opportunities for Alliance to work on, the renewed agreement primarily just extends the current work for another few years.

The PacSun branded credit card is part of a loyalty strategy that also includes a program called “PacLoot,” which rewards $25 gift cards to shoppers who spend $50 or more. Shoppers on the PacSun mailing list get e-mails alerting them to the semi-annual PacLoot program.

PacSun carries skate-, surf- and SoCal-inspired clothing and accessories designed for teens and young adults. The California-based retailer operates 932 stores and carries both branded and proprietary brands. PacSun reported $1.25 billion in sales for the 2008 fiscal year. Total company same-store sales were down 5% between 2007 and 2008.

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