Sobeys has joined forces with Scotiabank and Cineplex to bring customers a new approach to loyalty rewards.Andrew Vaughan/The Canadian Press
The parent company of the Sobeys supermarket chain is revolutionizing Canada’s customer loyalty industry by joining Bank of Nova Scotia and Cineplex Inc. CGX-T as co-owner of Scene+ rewards and exiting the Air Miles program.
Empire Co. Ltd. EMP-AT, owner of a nationwide network of grocery stores and drug stores, is taking a stake in Scene+ as part of a strategy to strengthen ties with shoppers and better compete with rivals such as industry leader PC Optimum, owned by Loblaw Co. Ltd. LT As an Air Miles customer, Empire currently shares its rewards program with other retailers, including supermarket chain Metro Inc. MRU-T
Empire CEO Michael Medline said in an interview that “customers will enjoy a more exciting and personalized relationship” with Sobeys, FreshCo, IGA and the other chain stores as the new loyalty program rolls out over the next nine months. He said the move 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 the launch of the Voilà home delivery service.
Scene+ and Air Miles each have about 10 million customers, while PC Optimum has 18 million, according to company filings. Air Miles is owned by Loyalty Ventures Inc., which is listed on Nasdaq.
Cineplex and Scotiabank co-founded the Scene+ program in 2007. When Top Gun: Maverick opening in Cineplex theaters last week, 50 percent of moviegoers used a Scene+ card when purchasing tickets and popcorn. CEO Ellis Jacob said, “Frankly, when we launched Scene+, we never imagined a loyalty program could grow this big, and now we’re taking it to new heights.”
As moviegoers return to theaters after pandemic-forced closures, RBC Capital Markets analyst Drew McReynolds said Cineplex is increasing attendance “by leveraging customer data to drive attendance and frequency” with Scene+. and other loyalty programs.
Scene+ currently offers travel rewards through Expedia and dining at restaurants owned by Recipe Unlimited. However, Scotiabank CEO Brian Porter said in an interview that the bank’s research showed that customers value more having the option to buy groceries with points from its loyalty program. He said: “There is more than 100 years of history between Empire and Scotiabank and we are delighted 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 Medline said there is no cash changing hands in this transaction. Empire expects Scene+ to make a positive contribution to the retailer’s sales and profits for the coming year.
Stellarton, NS-based Empire plans to initially introduce the Scene+ card to customers in Atlantic Canada in August. The company will gradually roll out the program in the rest of Canada and expects to complete the rollout in early 2023.
“Scene+ is on the cusp of a really tremendous evolution,” said President Tracey Pearce 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 offer powered by some of Canada’s strongest and most loved brands.”
Canadians are among the most frequent users of loyalty plans in the world, according to research by KPMG, with 56 percent of the population using a program at least once a week. The average Canadian belongs to five loyalty programs.
“A loyalty program is a lever in a company’s arsenal,” Kostya Polyakov, a partner at KPMG, said in a report. “What really matters is when the program helps you better understand your customers’ needs and expectations and gives you the information you need to generate personalized offers.”
Empire also plans to introduce Scene+ in its Lawtons pharmacy chain and in liquor stores in Western Canada. In a report, RBC Capital Markets analyst Irene Nattel said Empire has a long-term strategy to gain market share from Loblaw, Metro and other grocers by increasing spending on e-commerce initiatives, including its loyalty program, and launching more discount stores. . “However, in our opinion, none of the holders will give up shares easily,” she said.
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Reference-www.theglobeandmail.com