Alliance Data Systems Corporation (ADS), a leading global provider of data-driven marketing and loyalty solutions, has declared that its Canadian coalition loyalty business – LoyaltyOne – has inked a long-term agreement with Metro Inc.’s (MRU.TO) subsidiary Metro Ontario Inc. This deal will extend the partnership between LoyaltyOne and Metro Ontario Inc. for the Ontario market, except for Thunder Bay.
Following the announcement, shares of Alliance Data gained 3.5% to close at $289.55 per share on Friday.
Metro has the second largest grocery retail market share in Ontario and is among the first sponsors of the AIR MILES Reward Program since 1998. It is also the first Canadian grocer to launch AIR MILES Cash.
With annual sales of C$11 billion and operations in more than 600 food stores, Metro is a leader in the food and pharmaceutical sectors in Quebec and Ontario. The extended partnership with LoyaltyOne will help Metro customers to earn and redeem AIR MILES in stores in Ontario. Moreover Metro will continue to offer in-store promotions and personalized programs to its customers.
Additionally, LoyaltyOne announced an extension of the AIR MILES Reward Program with Empire Company Limited’s (EMP-A.TO) wholly owned subsidiary. The company will start issuing reward miles in 2015 at Sobeys, Sobeys Urban Fresh and Foodland stores across Ontario.
Sobeys will now become AIR MILES Reward Program's first national grocer to issue reward miles across the country. It has about 1,500 stores in 10 Canadian provinces.
The Sobeys expansion came in after the launch of the AIR MILES Reward Program in Sobeys Western Canadian banners including Sobeys, IGA, Thrifty Foods and Edgemont Market, and Sobeys Liquor, along with a continuance of the partnership with Safeway and Safeway Wine and Spirits stores.
In Nov 2014, AIR MILES Cash was launched in Safeway and Safeway Wine and Spirit stores. IGA, IGA extra, Marche Bonichoix, Les Marches Tradition and Rachelle-Bery continue to offer the AIR MILES reward program to their customers in Quebec. Moreover, customers continue to collect the reward miles at Sobeys, Foodland and Lawtons Drugs in Atlantic Canada.
In 2015, The Ontario Club Sobeys loyalty program and BMO Club Sobeys MasterCard will also be converted to the AIR MILES Reward Program.
The AIR MILES Reward Program is Canada's premier coalition loyalty program, with more than 10 million active Collector accounts which represent two-thirds of all Canadian households. The customers earn reward miles at hundreds of brand-name sponsors comprising retail and service locations. The AIR MILES reward miles can be redeemed for more than 1,200 different rewards, such as travel, movie passes, entertainment attractions and electronic merchandise.
Moreover, the AIR MILES Cash feature helps customers to instantly redeem the AIR MILES reward miles toward purchases made at the participating sponsors.
Currently, Alliance Data carries a Zacks Rank #3 (Hold).
Other Stocks To Consider
Better-ranked stocks in the business services sector include Green Dot Corporation (GDOT), WNS (Holdings) Ltd. (WNS) and Global Payments Inc. (GPN). While Green Dot and WNS (Holdings) sport a Zacks Rank #1 (Strong Buy), Global Payments holds Zacks Rank #2 (Buy).
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