dotz Collector Base Reaches 16 Million Members, More Than 18 Percent Increase Year-Over-Year; New Agreement Further Accelerates dotz National Growth Strategy
Alliance Data Systems Corporation (NYSE: ADS), a leading global provider of data-driven marketing and loyalty solutions, today announced that CBSM - Companhia Brasileira De Servicos De Marketing ("Dotz"), operator of Brazil's dotz loyalty program, in which LoyaltyOne holds a sizeable equity stake, has expanded into the metropolitan area of Rio de Janeiro, with a population of 6.3 million and the second-largest city in Brazil.
The dotz program operates in Belo Horizonte, Brasilia, Sao Paulo State Interior (Campinas), Fortaleza, Recife and Joao Pessoa,Santa Catarina, Sorocaba in Sao Paulo Interior, Goiania, Parana, Maceio and Vitoria. With the expansion into Rio de Janeiro, the program is operating in regions with an estimated population of more than 38 million.
In addition to the new market entry, dotz announced a multi-year, national agreement with Cencosud S.A, one ofLatin America's largest multi-brand retail conglomerates, with revenue of $15.48 billion (USD). Cencosud operates supermarkets, home improvement stores, shopping centers and department stores in Brazil, Argentina, Chile, Peru and Colombia. Today, Cencosud is the leading supermarket retailer in Brazil's northeast region and number three in the city of Rio de Janeiro.
Cencosud expects to issue dotz (points) to dotz coalition loyalty program members specifically at its Prezunic-branded supermarkets in Rio de Janeiro beginning in November 2015. Cencosud owns and operates more than 200 supermarkets and hypermarkets inBrazilincluding: Gbarbosa (in Sergipe, Alagoas and Bahia), Bretas (in Minas Gerais, Bahia and Goias), Perini (in Bahia), Mercantil Rodrigues (Bahia, Sergipe and Minas Gerais) and Prezunic (Rio de Janeiro). Details pertaining to potential brand roll-outs were not released.
The dotz coalition loyalty program is similar to the Canadian AIR MILES® Reward Program – consumers can join online or at multiple participating sponsor locations to collect points through the dotz coalition program. Consumers accumulate dotz points through everyday shopping, which can be redeemed for various rewards.
Dotz continues its growth trajectory, now with a collector base of more than 16 million consumers enrolled in the program, a more than 18 percent increase year-over-year.
"dotz's expansion into Rio de Janeiro marks a significant stage in the program's growth strategy," said Bryan Pearson, president of LoyaltyOne. "With more than 16 million members now collecting dotz throughout Brazil, the launch into the country's second-largest city, as well as the addition of a national grocer, should further accelerate the program's appeal to consumers. We anticipate this will open the door to further market growth opportunities with potential regional and national partners in high consumer-traffic regions."
"Our success growing dotz from its roots as a loyalty program with regional partners into a national coalition program inclusive of national bank and supermarket partners demonstrates our ability to enhance and evolve a program focused on delivering results to business partners and consumers alike," said Roberto Chade, President of Dotz. "We will continue to build upon our marketplace momentum to explore and deepen our reach across high-frequency consumer verticals and in new regions, as well as to expand our appeal to consumers across the country."
Brazil has the fifth-largest population in the world with more than 204 million citizens (versus approximately 35 million in Canada) and has the characteristics required to host a successful coalition loyalty program