The stock of Alliance Data Systems Corporation (NYSE:ADS) closed at $222.02 gaining 0.11% in yesterday’s trading session. Precima, which happens to be part of this company’s ADS LoyaltyOne business a few weeks ago, proceeded to ink a new long-term agreement with Loblaw Companies Limited. In case everything moves according to plan, this deal might just be what Alliance Data requires to boost its service portfolio.
Details regarding the new agreement have been clearly spelt out. Precima will be collaborating with Loblaw in a bid to develop a single access retail analytics portal. That will move a long way towards helping clients understand customer, merchandising and marketing insights better with regards to pharmacy and grocery retail. Sources indicate the latest platform might be unveiled in 2018.
The latest transaction has come about with numerous benefits and the first one is that it will make it easier for Precima to offer substantial data that will offer support to marketing and merchandising strategy development.
The other aim will be to aid promotional effectiveness, supplier alliance, assortment decisions, and consultation across the company’s retail network. Strengthening the partnership between Loblaw and Precima is one of the things that the new deal will be geared toward. It came into being in June 2014.
If all moves according to plan, the association with Loblaw might help towards the creation of a robust collaboration of loyalty, analytics and retail industry expertise. It could in turn result in improved profitability, higher sales as well as enhanced customer loyalty.
The firm hopes that clients will find the new portal useful in helping to access data more easily. This data will be useful in helping the company provide product assortment and services to its wide array of customers thus translating into a smoother and more hassle-free shopping experience.
The company’s spokesperson opined, “The latest transaction will add stimulus to Alliance Data’s service portfolio, raising its performance level to deliver better operating results and accelerate the company’s overall growth in the end.”
