Diversified Royalty Corp T.DIV

Air Miles losing a major account

[hawk35]

Sobeys partners with Scotiabank and Cineplex on Scene+ loyalty program, drops Air Miles
 
Grocery chain Sobeys’ parent company is shaking up Canada’s customer loyalty industry by joining Bank of Nova Scotia and Cineplex Inc.

Empire chief executive officer Michael Medline said in an interview that “customers will enjoy a more exciting, personalized relationship” with Sobeys, FreshCo, IGA and the chain’s other stores as the new loyalty program is rolled out over the next nine months. He said the shift to Scene+ gives Empire better access to customer data and “is one of the final elements of our transformation strategy at Empire,” which also included launching the Voil home delivery service.

Scene+ and Air Miles each have approximately 10 million clients, while PC Optimum has 18 million, according to company releases. Air Miles is owned by Nasdaq-listed Loyalty Ventures Inc.
Cineplex and Scotiabank co-founded the Scene+ program in 2007. When Top Gun: Maverick premiered at Cineplex theatres last week, 50 per cent of moviegoers used a Scene+ card when buying tickets and popcorn. CEO Ellis Jacob said: “Candidly, when we launched Scene+, we never imagined a loyalty program could grow this large, and now we’re taking it to new heights.”

As moviegoers return to theatres after pandemic-forced shutdowns, analyst Drew McReynolds at RBC Capital Markets said Cineplex is boosting attendance by “leveraging customer data to drive attendance and frequency” with Scene+ and other loyalty programs.

Scene+ currently offers travel rewards through Expedia and meals at restaurants owned by Recipe Unlimited. However, Scotiabank CEO Brian Porter said in an interview that the bank’s research showed customers put a premium on having the option of buying groceries with their loyalty program points. He said: “There’s over a 100-year history between Empire and Scotiabank and we are thrilled to build on that relationship by partnering on Scene+.”

Empire is earning a one-third ownership stake in Scene+ by contributing its customer base to the partnership, and Mr. Medline said no cash is changing hands in this transaction. Empire expects Scene+ to make a positive contribution to the retailer’s sales and profits by next year.
Stellarton, N.S.-based Empire plans to initially introduce the Scene+ card to customers in Atlantic Canada in August. The company will gradually roll out the program to the rest of Canada and expects to complete the launch by early 2023.

“Scene+ is on the cusp of a really tremendous evolution,” president Tracey Pearce said in a press release. Ms. Pearce, who joined Scene+ last month after serving as a senior executive at Bell Media, said: “We will offer Canadians an innovative loyalty offering powered by some of Canada’s strongest and most beloved brands.”

Canadians are among the world’s most frequent users of loyalty plans, according to research by KPMG, with 56 per cent of the population using a program at least once a week. The average Canadian belongs to five loyalty programs.

“A loyalty program is one lever in a company’s arsenal,” KPMG partner Kostya Polyakov said in a report. “Where it really matters is when the program helps you better understand your customers’ needs and expectations and provides you the information needed to drive tailored offers.”
Empire also plans to introduce Scene+ at its Lawtons drug chain and Western Canada liquor stores. In a report, analyst Irene Nattel at RBC Capital Markets said Empire has a long-term strategy to win market share from Loblaw, Metro and other grocery stores by increasing spending on e-commerce initiatives, including its loyalty program, and launching more discount outlets. “In our view, however, none of the incumbents will cede share easily,” she said.

[Tommy123]

This post has been removed in accordance with Community Policy

[Tommy123]

This post has been removed in accordance with Community Policy

[maypeters]

>> The Company expects that the primary impact of this development in 2022 will be on the number of AIR MILES reward miles issued, as Sobeys represented approximately 10% of Loyalty Ventures’ adjusted EBITDA in 2021.  some impact for sure but not anything that should affect the divvy I would think

[Tommy123]

This post has been removed in accordance with Community Policy

[maypeters]

Charles Horn, Chief Executive Officer commented, “Our long-time AIR MILES' Sponsor, Metro, remains committed to the AIR MILES coalition and will continue to welcome the millions of customers that shop and redeem in their stores where the AIR MILES Reward Program is offered—namely, Ontario, Canada’s most populous province. Metro intends to work closely with AIR MILES to continue to offer the

[Allah_says_BUY]

Metro really needs to get Air Miles into their Food Basics brand.  The one near me and others I've been to are always crowded and those are the kind of shoppers that love to receive free affinity points of some kind.

[Dadsaid2]

Agree 100%. Maybe losing Sobeys will kick their butt get them moving and get a bigger replacement like Basics. GLTA .....