Sears, Kmart offer Christmas Club card to help shoppers budget

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Sears and Kmart are encouraging shoppers to start saving for the holidays early with a Christmas Club card program.

Here’s how it works: Pick up a card at any Sears or Kmart store (or online at www.sears.com/christmasclub or www.kmart.com/christmasclub) and add money to it just like a gift card. You’ll receive a 3% reward, up to a $100 value, based on the balance on your card on Nov. 14.

The card is free and must be activated by Oct. 31 to be eligible for the 3% reward. You’ll need a minimum balance of $5 to use your card.

Executives at Sears Holdings, parent to Sears and Kmart, are hoping the program will give the company a leg up on its competitors during the holiday season, which is expected to be weak again as consumers scrimp on presents for family and friends. It could also help shoppers who don’t want to rely on credit cards to finance their gifts.

Shoppers “want more ways to provide the very best holiday they can, and they want to do that in a responsible way,” Susan Ehrlich, the company’s president of financial services, said in a statement. “When they save ahead with the Christmas Club card from Sears and Kmart, our customers can really enjoy the holidays without the worry of having to deal with an expensive bill later.”

The card is reminiscent of old-fashioned Christmas club accounts, which were once a banking fixture.

“It’s a very common-sense, smart idea that we’ve been able to bring into the 21st century with some technology and customer insight,” said Tom Aiello, a spokesman for the Hoffman Estates, Ill., company.

The Christmas Club program is the latest move the retailer has taken during the economic downturn to help consumers budget. Last year, Sears stores brought back layaway after not offering the program for years.

-- Andrea Chang