To add to Gary in his response to 355F1, (YMMV,) but from talking to reps and the experiences of others in this thread & on various blogs, you can only convert your card amongst Sears card products that Citi manages. The brand-managed division is different than the regular Citi division, and this blocks conversions with regular citi cards of any sort. The active cards in the Sears card arena that you can convert amongst is (by my understanding) - the Sears store (only) card, the Sears Platinum Mastercard, the Sears SYW Mastercard, and the Sears TY Mastercard. If you look at the sears website, you'll see graphics for 3 of the 4 cards. The credit card frontpage shows the black SYW card, the little credit card bit at the very bottom shows a graphic for 2 cards - the black SYW card is on top, and underneath is the grey Sears Platinum mastercard, and lastly, if you click apply, it will show you the blue Sears store card. The Platinum card is just a basic credit card - I don't know of a way to apply for it directly, I actually ended up with it by having my sears store card converted. As others have indicated, you probably can PC to the TY card - but not from the Sears store-only card based on what I've been told by a rep.

Edit - If you have the Sears Platinum card, it appears like you may be able to enroll in either one from their website. Top right - I Want To - drop down has options for both the Thank You program and the SYW program to enroll for me. I have no idea if it will trigger a new card or not - this is interesting. There also appears to be 2 different Sears TY cards in reviewing the linked T&C for the programs - one that just earns 1 TY point everywhere, and one (Select) that earns 1 TY point everywhere and 2 TY points at Sears, Kmart, supermarkets, drugstores, and gas stations. Does anyone reading this have the Select, was product changed to it, or know anything about it?

No idea on how it would count against anything. I suppose I should call to ask, I've been wanting to convert it to a TY card, but never got around to doing so.

I suspect Citi is prepared for a Sears failure. They probably wouldn't hand over $400ish million to keep the business without some protection clauses, especially when Sears decline and bankruptcy has all but been guaranteed for far longer than this most recent renegotiation's timeline. In fact, I wouldnt be surprised if the recent card conversion they did to turn the regular sears store cards into mastercards was them taking advance action to help reduce a large backlog of conversion work happening in the event of a bankruptcy terminating the contract in some way.