Sainsbury’s decision to halve its Nectar points, restrictions on energy suppliers, and the loss of Nectar Italia’s main contract has wiped out C$31.6m (£15m) in revenue from Aimia’s EMEA region, as the company restructures in a bid to save C$20m (£9.8m) a year.
According to the Canadian firm’s latest results, the fall was attributable to a C$19.6m (£9.6m) decline in the sale of loyalty units at Nectar Italia and a C$12.0m (£5.9m) drop in the UK.
Nectar UK points issued decreased 6.9% in the quarter compared to the same period in the previous year due to Sainsbury’s move and Ofgem’s decision to restrict the use of loyalty schemes in the energy sector.
Meanwhile, Nectar Italia is still reeling from losing its main retail partner, supermarket chain Auchan.
The move coincides with Aimia restructuring under three divisions. From January 2016, the changes are designed to simplify Aimia’s structure and deliver C$20m (£9.8m) in annual savings, starting in 2016:
Global Loyalty Solutions will bring together the Aimia Loyalty and Smart Button platform-based proprietary strategy and solutions businesses and be headed by Shailesh Baidwan, currently regional president, APAC.
International Coalitions will include European coalitions and any future international coalitions, as well as the Middle East business and continued investment in the Shopper Insights & Communications business. It will be headed by Jan-Pieter Lips, currently president of the EMEA region.
Americas Coalitions will focus on innovation and investment in its core Aeroplan coalition and any future coalitions in the Americas, as well as our non-platform based work for customers in the Americas. It will be run by Vince Timpano, currently president and chief executive in Canada.
The company maintains all other executive committee roles will remain unchanged, although it is not known whether the restructure will lead to the loss of any jobs in other roles.
Aimia group chief executive Rupert Duchesne said: “The changes we are making to how we operate our business are a natural progression from the success we’ve had since becoming a global company.
“With the achievements we made in the last few years strengthening each of our businesses, we are positioning ourselves to simplify, focus and grow in our core lines of business.”
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