Alliance Data Systems Corporation (ADS), a leading global provider of data-driven marketing and loyalty solutions, has declared that its Canadian coalition loyalty business inked a long-term agreement with the country’s leading retail drugstore, Katz Group Canada Ltd.
Katz Group is an AIR MILES Reward Program sponsor since 1999 in Ontario. With this agreement, it will be able to issue AIR MILES reward miles in Manitoba, Saskatchewan, Alberta and British Columbia, and continue in Ontario under the banner Rexall, Rexall Pharma Plus and Pharma Plus from Oct 31, 2014.
Canada’s coalition loyalty program is AIR MILES Reward, which has more than 10 million operating Collector accounts representing two-thirds of the total Canadian households. The AIR MILES collectors can earn rewards at more than 100 leading brand-name sponsors, reflecting a large number of retail and service locations across the country. Moreover, they can also redeem the rewards for over 1,200 different rewards such as travel, movie passes, entertainment attractions and electronic merchandise. Another feature in AIR MILES, namely the AIR MILES Cash feature option, enables collectors to redeem their rewards instantly from the cash balance in-store toward the purchase made at the involved Sponsors.
Rexall, Rexall Pharma Plus and Pharma Plus have more than 450 locations across Central and Western Canada and are primarily focused to improve the country’s health conditions. Rexall in Canada has no federation with the Rexall business in the United States.
This agreement adds 167 stores in four western Canadian provinces to Rexall's existing 265 outlets in Ontario that issue AIR MILES reward miles. These AIR MILES are issued for purchases made, including prescription drugs, pharmaceutical and professional health services, over-the-counter drugs as well as a wide range of retail products pertaining to beauty and the household.
AIR MILES Collectors in Central and Western Canada will benefit from this agreement by earning AIR MILES reward miles on purchases made in-store and redeeming them when required, which includes AIR MILES Cash – the instant redemption feature of the program.
This agreement leads to expansion of AIR MILES' presence across Western Canada, along with major retailers like Rexall, which will help to increase the reward mile issuance.
Alliance Data currently carries a Zacks Rank #3 (Hold). Better-ranked stocks that are worth reckoning in the financial transaction services sector include Heartland Payment Systems, Inc. (HPY), Equifax Inc. (EFX) and Global Payments Inc. (GPN). While Heartland Payment Systems sports a Zacks Rank #1 (Strong Buy), Equifax and Global Payments hold a Zacks Rank #2 (Buy).
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