National Post (National Edition)

Metro reaffirms Air Miles deal

- HOLLIE SHAW Financial Post hshaw@nationalpo­st.com

TORONTO • Metro Inc. has reaffirmed its commitment to the Air Miles program after a report implied the grocery chain might be looking to drop the loyalty program in Ontario. The Montreal-based grocery chain sent an email to Air Miles users in the province Wednesday saying that for close to 20 years it had “proudly sponsored” the program, which drew member ire last year after announcing and then cancelling a controvers­ial points-expiry policy.

The email came following remarks by Metro chief executive Eric La Fleche on Tuesday when was asked if the Air Miles backlash would prompt the retailer to start up an inhouse loyalty program in Ontario similar to the one it operates in Quebec (called “Metro et Moi”), rather than enter into another contract with Air Miles when it comes up for renewal. “It has been rocky this fall with Air Miles, no doubt about that,” La Fleche said in Montreal after Metro’s annual meeting. The outcry “is one more element that will go into the decision when the time comes,” he told The Canadian Press.

The retailer renewed a multi-year agreement with the loyalty provider in early 2015, but does not disclose when such contracts expire. At the time, Air Miles owner LoyaltyOne Co. noted Metro stores were the No. 1 destinatio­n for Air Miles cash redemption­s in the province.

Metro’s email on Wednesday said the retailer is “committed to putting our shoppers at the centre of everything that we do and will continue to partner with organizati­ons that help us bring value to our customers every day.”

Metro spokeswoma­n Marie-Claude Bacon said Thursday about the program’s renewal “that we consider all of our options, which is usual business practice when we are renewing, and we consider the needs of our customers,” she said.

“We realize the Air Miles brand is something that is sensitive right now,” she added, adding Metro was “disappoint­ed” Le Fleche’s comments were construed to suggest the retailer did not support the program.

Air Miles drew the ire of customers after it announced reward points collected before 2012 would disappear at the end of last year. In December, it scrapped the plan after the launch of a consumer class action and pending legislatio­n.

“There is uncertaint­y with provincial government­s proposing or considerin­g legislatio­n across Canada, so we have decided to cancel the expiry policy so that all collectors, regardless of location, can be confident that their balances will be protected,” Bryan Pearson, chief executive of LoyaltyOne, said in December. An Ontario law making it illegal for loyalty programs to let customer points expire without their permission went into effect later that month.

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