The Canadian Loyalty business of Alliance Data Systems Corporation (ADS) inked a multi-year agreement with Irving Oil, whereby the latter will issue AIR MILES reward miles.
Saint John, New Brunswick-based Irving Oil operates Canada's largest refinery, 8 distribution terminals, a fleet of delivery trucks and over 900 retail locations across Eastern Canada and the United States. It provides services to wholesale, home heating, commercial as well as retail customers.
Irving Oil will offer AIR MILES reward miles on purchase of transportation fuels, automotive products, car and truck washes, convenience store products and home comfort products from around 300 stores in Canada's four Atlantic provinces – New Brunswick, Prince Edward Island, Nova Scotia, and Newfoundland and Labrador
Customers will receive 1 reward mile on purchasing 20 liters of transportation fuel in a single transaction and 1 reward mile for every $20 spent in a single transaction for buying products and car and truck washes. Further, 1 reward mile for every 30 liters of heating oil or propane sold in a single transaction and 1 reward mile for every gigajoule of natural gas sold in a single transaction will be earned by AIR MILES Collectors. Subsequently, AIR MILES reward miles can be redeemed for more than 1,200 different rewards, including travel, movie passes, entertainment attractions and electronic merchandise.
With more than 60% of the Canadian household collecting reward miles, the AIR MILES Reward Program has positioned itself as Canada's premier coalition loyalty program.
With this liaison, while Alliance Data will gain exposure to new regions eventually leading to growth, Irving Oil will be able to better serve its customers by offering them reward miles.
In the last reported quarter, AIR MILES’ reward miles at Alliance Data issued decreased 3% year over year. We expect that such deals will help Alliance Data bounce back on to the growth trajectory again.
Previously, in the first quarter, the Canadian loyalty business of Alliance Data had signed a new multi-year agreement with Staples Canada Inc., Amex Bank of Canada, General Motors of Canada Limited and Bank of Montreal (BMO)
Alliance Data currently carries a Zacks Rank #3 (Hold). Among other financial transaction service providers, Vantiv, Inc. (VNTV) carrying a Zacks Rank #1 (Strong Buy) and Official Payments Holdings Inc. (OPAY) carrying a Zacks Rank #2 (Buy) are worth noting.
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