Private Label Consumer Credit Card Program

12 Months Ended

Jan. 29, 2022

Private Label Consumer Credit Card Program

ShopHQ Private Label Consumer Credit Card Program

(7)  Private Label Consumer Credit Card Program

The Company has a private label consumer credit card program (the “Program”). The Program is made available to all qualified consumers in the entertainment and consumer brands to finance purchases and provides benefits including instant purchase credits, free or reduced shipping promotions throughout the year and promotional low-interest financing on qualifying purchases. Use of this credit card enhances customer loyalty, reduces total credit card expense and reduces the Company’s overall bad debt exposure since the credit card issuing bank bears the risk of loss on the credit card transactions except those in the Company’s ValuePay installment payment program. In April 2021, the Company extended the Program through August 2022 by entering into a Private Label Consumer Credit Card Program Agreement Amendment with Synchrony Financial, the issuing bank for the Program. Approximately 19%, 19% and 21% of entertainment and consumer brands reporting segment customer purchases were paid for using our private label consumer credit card during fiscal 2021, 2020 and 2019.