The Canadian Air Miles loyalty programme has added twenty new retail partners to its online shopping mall, bringing the total to 75 lifestyle, home decor, electronics, entertainment and fashion retailers.
The virtual mall allows consumers to conduct advanced product searches of over a million products. In 2003, the online shopping mall was created (originally as yourshops.ca) and launched in Canada as a new channel of growth for the Air Miles Reward programme.
Earning and burning
Open to all Canadians, AirMilesShops.ca enables members of the Air Miles reward programme to collect reward miles for their purchases. Consumers can collect 5 Air Miles for each purchase, plus 1 Air Mile for every Can$20 spent.
Air Miles reward miles can be redeemed for more than 800 different rewards, including travel, movie passes, entertainment attractions, and electronic goods.
The new retailers include Disney Shopping, Toys "R" Us Canada, Office Depot and HBC.com. These retailers join other online retailers such as Amazon.ca, chapters.indigo.ca, Dell.ca, Victoria's Secret, Apple Store Canada, Lands' End, and eBay.ca.
According to John Scullion, president of Alliance Data's Loyalty and Marketing Services division, "Alliance Data works with a number of these retailers and brands across multiple segments of our transaction, credit and marketing service businesses. The broadening of our business with these clients represents the potential for more expansive relationships with these brands in the future."
According to the 2005 E-commerce Market Study by JC Williams Group, 50% of Canadians shop online, and nearly 90% of those online shoppers are Air Miles collectors. And in September 2005, eMarketer predicted that retail e-commerce sales in Canada would grow by more than 20% per year over the following five years.