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Alliance Data's LoyaltyOne Business Announces Brazilian Loyalty Program Expansion Into Two New Markets; New Regional Supermarket Agreement Also Signed

Stocks in this article: ADS

DALLAS , Sept. 19, 2013  /PRNewswire/ -- Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, announced that CBSM - Companhia Brasileira De Servicos De Marketing ("Dotz"), operator of Brazil's dotz loyalty program ( www.dotz.com.br), in which LoyaltyOne holds a sizeable equity stake, has expanded into two new markets in Brazil's southern region.  The two markets include the State of Santa Catarina and the city of Curitiba (in the State of Parana), both strategically important regions for the rapidly expanding loyalty program that has grown from less than half a million members in 2010 to approximately 8 million members to-date. 

(Logo: http://photos.prnewswire.com/prnh/20051024/ADSLOGO )

This expansion marks a substantial growth period for dotz as it launches into southern Brazil with the unveiling of its sixth and seventh operating markets. Its growth into the State of Santa Catarina, including its capital city Florianpolis extends the dotz brand to a population of 6 million, and another 2 million Brazilians with its launch in Curitiba. dotz now operates in seven consumer concentrated markets in Brazil, including, Belo Horizonte, Brasilia, Sao Paulo State Interior (Campinas), Fortaleza, Recife, Santa Catarina and Curitiba, with an estimated total population of 26 million Brazilian consumers.

In addition to the program's regional expansion, dotz also announced the signing of a new regional partnership with Angeloni, a major chain of supermarkets in the southern Brazilian region, and one of Brazil's top-10 supermarkets and 500 largest companies. Family-owned and with 23 outlets, Angeloni joins national sponsors Banco do Brasil, one of Brazil's largest national banks; Ale, one of the nation's largest gasoline station chains; Bob's, a national fast food restaurant chain; Pague Menos, a leading national Brazilian drug store chain; and Magazine Luiza, a specialty electronic retailer as anchors in the coalition loyalty program.

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 on their dotz collector cards. Consumers accumulate dotz points through everyday shopping at a growing number of national and regional sponsors in Brazil which can be redeemed for various rewards.

"Dotz' advance in key geographic regions coupled with its focused efforts to identify and sign new national and regional partners that appeal to its expanding membership of 8 million consumers is core to its long-term, sustainable growth strategy," said Bryan Pearson, president of LoyaltyOne. "The expansion of the program into two heavily populated areas of Brazil's southern regions with strong presence of national program anchor partners, sets itself up well for further growth in three key metrics – markets, partners issuing dotz and program membership -  by year-end and beyond."

"We continue to receive considerable interest in the program from both current and potential business partners with expansion interest and consumers who want to earn and redeem more dotz," said Roberto Chade, president of Dotz. "With a strong presence in seven markets, a fast-growing roster of business partners issuing dotz and a rapidly expanding membership base, we anticipate further regional expansions and membership enrollment to reach 10 million consumers by the end of the fiscal year."

Brazil has the fifth-largest population in the world with more than 190 million citizens (versus approximately 35 million in Canada) and has the characteristics required to host a successful coalition loyalty program.



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