BJ's Wholesale Club Adopts Branded Credit Card Program
By Christine Kern, contributing writer
BJs will leverage Alliance Data’s loyalty and marketing programs in its new credit card program
BJ's Wholesale Club has announced a new partnership agreement with Alliance Data Systems Corporation , a leading global provider of data-driven marketing and loyalty solutions, signing a new long-term co-brand credit card services agreement. The BJ's credit program will convert to MasterCard.
Founded in 1984 and headquartered in Westborough, Mass., BJ's operates 202 membership club locations in 15 states in the eastern U.S., and offers an expansive collection of high quality, name brand products for home and business, including groceries, household products, and electronics.
"BJ's Wholesale Club is very excited to partner with Alliance Data and MasterCard on our new co-brand credit card program," said Laura Sen, president and CEO of BJ's Wholesale Club in a press release. "Leveraging Alliance Data's skillset in loyalty and marketing as well as MasterCard's expertise in technology and security, we are confident our new credit card program will provide a value proposition that is unparalleled in the warehouse club channel."
"BJ's is an innovator and leader in the warehouse club retail industry. We look forward to leveraging our advanced credit card marketing tools to help attract new cardholders to grow BJ's credit program, and increase loyalty among existing Members," said Melisa Miller, president of Alliance Data Retail Services. "In partnership with BJ's, we look forward to offering a new and improved value proposition to cardholders, as well as increased marketing channel access that will help BJ's increase its market share, using its vast knowledge of its customers' in-store behavior and Alliance Data's insights into out-of-store purchasing habits."
The agreement means that Alliance Data will launch a customized marketing and insights-driven co-brand credit card program for BJ's this fall. As part of the agreement, Alliance Data also plans to purchase BJ's existing portfolio of co-brand credit card accounts, allowing a smooth transition for current BJ's cardholders. The portfolio size will make it one of Alliance Data's largest.
The BJ's card portfolio will transition to MasterCard and can be used anywhere MasterCard is accepted across the globe. In the spring of 2015, the entire BJ's credit portfolio will be converted to chip-enabled MasterCard credit cards.
"MasterCard applauds BJ's for delivering not only an enhanced rewards platform, but also a more secure solution for its cardholders," said Chris McWilton, president North America, MasterCard. "This move puts them at the forefront of the shift to chip cards here in the U.S. and clearly demonstrates their commitment to delivering value to their Members."