PARSIPPANY, N.J. -- Avis Rent A Car System Inc. and Sears, Roebuck
and Co. announced a marketing agreement making Avis the exclusive
rental car provider for Sears store locations and Sears
cardholders.
Avis said the agreement is a "natural" extension of an existing
10-year relationship with Sears to serve as its corporate rental
car supplier.
With the new agreement, Avis replaces Budget Rent A Car as
Sears' exclusive rental car provider after Budget's contract with
the retail giant expired.
A spokesman for Avis said the new agreement is unrelated to
plans by Cendant, Avis' parent, to acquire Budget. "The agreement
came up for review, and Avis was one of the bidders," the spokesman
said.
The spokesman said the agreement represented a "significant
volume of business for Avis."
"When you take into account the revenue that will be generated
through the Sears locations and the revenue derived from Sears
cardholders and employees, you could say it is a
multimillion-dollar agreement," the spokesman said.
Under the agreement, all Sears car rental locations will be
converted to Avis Rent A Car operations. As many as 45 Avis
locations are expected to open at Sears facilities by the end of
January 2003, with at least 100 more to follow over the next three
to five years.
In addition, Avis immediately becomes the only car rental
company to accept the Sears card, currently held by more than 30
million Sears customers.
Avis also will provide Sears cardholders with special discounts
and promotions, and Sears customers will be able to book Avis cars
through the Sears.com Web site.
In a statement, Michael Collins, Avis' executive vice president
of operations, said the agreement will help Avis expand in the
suburban, off-airport market.