David Jones Ltd (ASX:DJS) has relaunched its American Express credit card, offering spending incentives in an attempt to boost earnings from financial services.
According to The Australian Financial Review the retailer's arrangement with American Express will expire in 2013 and the relaunch is hoped to improve card balances and the receivables base.
The paper reports DJ's customers will receive three points for every dollar spent in supermarkets and petrol stations, two points for every dollar spent in David Jones and one point for every dollar spent elsewhere.
General manager of financial services and marketing Damian Eales says in the AFR that through rewarding everyday spending, such as filling the car up with petrol, the retailer can increase the appeal of the credit card.
AFR says that credit cards generated almost 30 per cent of group earnings in 2004 and 2005 and 18 per cent in 2009 and 2010.
In September the retailer affirmed its guidance of a 5 to 10 per cent lift in earnings for the current fiscal year, advising the first seven weeks of trade had been in line with expectations.
David Jones earned $100.46 million in the six months to 23 January this year.
DJS Price at posting:
$4.85 Sentiment: None Disclosure: Held
