Debenhams puts first credit card on national trial

by Mark Kleinman,, Marketing 19-Sep-03, 07:00

LONDON - Debenhams is to enter the credit card market next month, backed by the launch of a reward currency that it insists will have no impact on its relationship with the Nectar scheme.

The department store group, which last week agreed a £1.66bn takeover deal with private equity vehicle Baroness Retail, will trial the credit card by writing to 150,000 existing storecard holders and promoting it in 10 stores around the UK. In order to increase take-up of the card, Debenhams has created a loyalty currency, Debenhams Points, which will be offered on any purchase made with the card.

The decision has been prompted by Barclaycard's exclusive agreement with Loyalty Management UK to offer Nectar points on credit card transactions.

Dave Coates, Debenhams financial services and internal communications director, denied there would be any issue of customer confusion over Nectar. "We see the schemes as working together rather than in conflict," he said. He added that points would be exchangeable for Debenhams vouchers, but said the exact reward mechanic had yet to be finalised.

The trial comes hot on the heels of the Office of Fair Trading's decision to investigate storecards' interest rates.

Debenhams, whose storecard is operated by GE Finance, charges an APR of 29.9%. The Debenhams MasterCard will charge 16.9%.

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