Synchrony and The Good Feet Store Extend Financing Partnership

Rhea-AI Summary

Synchrony (NYSE: SYF) announces a multi-year partnership renewal with The Good Feet Store, offering CareCredit health and wellness credit card as an in-store payment option. The partnership contributed to a 10% increase in average transaction total and a 35% increase in total number of transactions in 2023. 30% of The Good Feet Store's sales were from existing CareCredit cardholders.

Insights

Financial Analyst

The extension of Synchrony's partnership with The Good Feet Store underscores a strategic move to solidify consumer financing options in the retail space, particularly in health and wellness sectors. The reported 10% increase in average transaction total and a 35% increase in total number of transactions for The Good Feet Store, facilitated by the availability of CareCredit, indicates a significant impact on consumer spending behavior. This boost in sales metrics suggests that the availability of financing can serve as a strong incentive for customers to make higher-priced purchases they might otherwise defer.

Moreover, the fact that 30% of The Good Feet Store's sales were from existing CareCredit cardholders reflects a successful cross-utilization of Synchrony's financial products, which can lead to increased customer loyalty and repeat business. The financial synergy between retail and financing could be a blueprint for other retailers looking to enhance their sales strategies.

Market Research Analyst

The partnership between Synchrony and The Good Feet Store taps into a growing consumer trend towards health and wellness, particularly products that offer personalized benefits such as arch supports. The ability to finance these products in-store aligns with consumer preferences for flexible payment options and immediate purchase gratification. The strategic use of financing as a sales driver could influence other retailers to explore similar partnerships, especially as consumers increasingly prioritize health-related products but may be deterred by upfront costs.

From a market perspective, the integration of CareCredit as a payment option may also serve as a competitive differentiator for The Good Feet Store, potentially attracting a segment of consumers who value or require financing for their purchases. This could result in market share gains within the specialty retail segment focused on health and wellness.

Consumer Behavior Expert

The consumer behavior implications of Synchrony's CareCredit offering at The Good Feet Store locations are noteworthy. The option to finance purchases like arch supports, which are often seen as necessary for health and comfort, lowers the psychological and financial barriers to making such investments. This aligns with the concept of behavioral economics, where the perceived value of a product increases when associated with convenient purchasing options.

Additionally, the ease of credit approval and the impact-free prequalification process could encourage more spontaneous purchasing decisions, as consumers are assured that their credit score won't be affected. For retailers, understanding these consumer behavior patterns is critical for designing effective sales strategies that cater to the modern customer's desire for affordability, convenience and immediate satisfaction.

Synchrony's CareCredit Ensures The Good Feet Store Has the Support It Needs to Drive Sales and Provide Financing Options to Customers

STAMFORD, Conn., Jan. 10, 2024 /PRNewswire/ -- Synchrony (NYSE: SYF), a premier consumer financial services company, today announced a multi-year partnership renewal with The Good Feet Store, a market-leading manufacturer and retailer of premium, personally fitted arch supports. Under the expanded agreement, Synchrony's CareCredit health and wellness credit card will be offered as an in-store payment option at most of The Good Feet Store's more than 250 brick-and-mortar locations, enabling customers to finance arch support products for improved alignment and less pain.

The Good Feet Store first partnered with Synchrony in 2009 to drive business growth and offer new ways for its customers to finance arch support products. Since that time, the partnership has grown and in 2023 alone, the partnership with The Good Feet Store contributed to a 10% increase in its average transaction total, and a 35% increase in its total number of transactions. Additionally, 30% of The Good Feet Store's sales were from existing CareCredit cardholders.

"CareCredit's 35-plus years of retail finance and wellness experience is a great fit for The Good Feet Store and its customers," said Erin Gadhavi, SVP & GM, Wellness, Synchrony. "The CareCredit network includes a wide range of health and wellness providers and retailers, enabling customers to use our financial solutions for their health and wellness purchases as they seek to achieve and maintain a healthy, active lifestyle. This includes things like dental care, sleep products and the personalized arch support system at The Good Feet Stores."

Consumers looking for a flexible way to pay for their personalized arch support system can apply at The Good Feet Store locations or on any smart device, starting with a check to see if they prequalify for the CareCredit credit card in real time, with no impact to their credit score. A credit decision is given in minutes and if approved, customers can use their account to purchase the products they want or need right away. Existing CareCredit cardholders can also use their cards for purchases at The Good Feet Store locations.

"At The Good Feet Store, we're passionate about helping people move towards the life they love, two feet at a time, free from the limitations of pain or discomfort," stated Doug Zarkin, Chief Brand Officer of Good Feet Holdings, LLC. "We recognize that foot, knee, hip, and back pain affects individuals across all walks of life. It's incredibly rewarding to collaborate with Synchrony, as this partnership allows us to extend more flexible financing options to our customers, helping them access the pain relief they need to enjoy a better quality of life."

"Every day, we aspire to improve the quality of more people's lives with our highly effective solutions," added Joe Herlihy, Chief Operating Officer & Chief Legal Officer. "Consumer financing through Synchrony, a trusted and long-standing partner, is critical for our brand and business, because it enables more customers to access our solutions through flexible financing options. We are pleased to have renewed our partnership with Synchrony to offer CareCredit, because it means that more people will be able to find relief for foot, knee, hip, and back pain at The Good Feet Store."

To learn more about CareCredit, please visit: www.carecredit.com. For more information on The Good Feet Store and Good Feet Arch Supports, visit www.goodfeet.com.

About Synchrony
Synchrony (NYSE: SYF) is a premier consumer financial services company delivering one of the industry's most complete digitally enabled product suites. Our experience, expertise, and scale encompass a broad spectrum of industries, including digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet, and more. We have an established and diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations, and healthcare service providers, which we refer to as our "partners." We connect our partners and consumers through our dynamic financial ecosystem and provide them with a diverse set of financing solutions and innovative digital capabilities to address their specific needs and deliver seamless, omnichannel experiences. We offer the right financing products to customers in their channel of choice. For more information, visit www.synchrony.com and Twitter: @Synchrony.

About The Good Feet Store 
Founded in 1992, The Good Feet Store is the market-leading manufacturer and retailer of premium, personally fitted arch supports, with 250 retail locations in the U.S. and abroad. Engineered for comfort and pain relief in more than 400 styles and sizes, Good Feet Arch Supports are personally fitted to the precise needs and preferences of its customers and are backed by a Manufacturer's Lifetime Limited Warranty. The Good Feet Store operates with an end-to-end approach to maximize performance and ensure consistent quality standards. Good Feet Arch Supports are manufactured in a state-of-the-art facility in Carlsbad, California, and supplied exclusively to its retail locations. Each Good Feet Store location is staffed with well-trained Good Feet Arch Support Specialists who provide customers with a no-obligation, free, personalized fitting. To learn more about The Good Feet Store and Good Feet Arch Supports, and to see Good Feet Store reviews from actual customers, visit www.goodfeet.com.

Contacts:

Michelle Blaya Romero
Synchrony
Michelle.Romero@syf.com

Maddie Darling
The Good Feet Store
mdarling@allpointspr.com

 

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SOURCE Synchrony

FAQ

What is the partnership renewal announced by Synchrony (NYSE: SYF)?

Synchrony announced a multi-year partnership renewal with The Good Feet Store, offering CareCredit health and wellness credit card as an in-store payment option.

How did the partnership contribute to The Good Feet Store's business growth in 2023?

The partnership contributed to a 10% increase in average transaction total and a 35% increase in total number of transactions in 2023. 30% of The Good Feet Store's sales were from existing CareCredit cardholders.

What are the benefits of the partnership for customers of The Good Feet Store?

Customers can finance arch support products for improved alignment and less pain using the CareCredit health and wellness credit card as an in-store payment option.

How can customers apply for the CareCredit credit card at The Good Feet Store?

Customers can apply at The Good Feet Store locations or on any smart device, starting with a check to see if they prequalify for the CareCredit credit card in real time, with no impact to their credit score.