Saks Inc., which operates Saks Fifth Avenue, said Thursday that it will offer a new cobranded MasterCard credit card issued by HSBC Holdings PLC to holders of the luxury retailer's private-label cards.
It will be the first World Elite MasterCard aimed at consumers earning more than $250,000. Holders will receive their reward in the form of gift cards that can be used at Saks stores. They will earn up to 6% on purchases made with the card at Saks stores and 1% on all other purchases on it and pay no annual fee.
Saks sold its private-label card portfolio to HSBC in 2003. The cobranded card was two years in the making, Steve Sadove, the chief executive of Saks, said Thursday in an interview. He said his company considered partnering with Visa U.S.A. and American Express Co. before going with MasterCard because of "its bundle of rewards," including travel benefits such as access to airport lounges.
Mr. Sadove said that half of Saks shoppers are "loyal customers" and that 45% of the company's $2.7 billion of sales last year was done on its private-label card.
He said the New York company wanted to launch a cobranded general-purpose card because its affluent customers are "reward-driven" and often travel internationally, and the card will let them earn more points.
