Niche opportunity and high potentialIn addition to 4000 auto dealers in Canada, there are about 158,000 independent retail stores in Canada which have not been serviced by the large established loyalty programs.
The Ubika research paper in Nov 14, 2007 done for Futura, says the retail value of these independent retailers represent $200 billion in sales.
In addition, there are16,000 independent grocery stores in Canada. $10 billion in sales. Futura can cater to these, as these grocers have no loyalty programs.
Tight execution and availability of cash will be key the report says. High merchant interaction strategy can result in cost over-runs, but the potential is worth going after. It's a niche opportunity which can be successfully acquired with a good cost effective marketing strategy.
The above is Canada. In the US, the effect is multiplied. Success at home could pave the way for further expansion.
For a stock to be successful early on, even before siginficant revenues are realized, there has to be a sense of blue-sky potential. Not just oh-hum revenues, but wow. Futura could well fit this description. Time will tell.