Zale Corp. said in a statement today that it had “selected” Citibank to provide
its private-label credit card program for Zales, Zales Outlet, and Gordon’s
brands in the United States, effective Oct. 1.

The statement said the agreement is for a five-year term with automatic
renewals for successive two-year terms. It noted the new agreement replaces a
previous agreement with Citi, which was set to expire in March 2011.

The statement added that payment of the merchant fee differential, due Sept.
22, “will no longer be required.”

It also said the yearly minimum volume of net credit-card sales had been
“reduced from $600 million to $315 million.”

There had been doubt about whether the bank would renew the agreement with
Zale.

JCK