Aimia signals strategy by adding Amazon as way to earn Aeroplan miles

Aeroplan parent company Aimia Inc. signalled its future strategy by announcing a partnership with online giant Amazon, that will offer members rewards for everyday shopping with the world’s largest retailer.

“This is very much in line with where you will see us heading, which is focused on everyday earn,” said Matt Hall, vice-president Aeroplan partnerships.

Amazon is a natural fit because of Amazon’s online presence and Canadians’ awareness of the company, he said in an interview.

“With Amazon we’ll now have the four biggest online retailers in Canada in Amazon, Apple, EBay and Costco.”

Aeroplan also has exclusive partnerships like Toyota and Home Hardware for bigger ticket purchases.

Aimia’s shares surged after the partnership was announced Monday.

They gained more than 19 per cent at $1.91 in afternoon trading on the Toronto Stock Exchange, paring some of last week’s losses after the company announced that members would no longer be able to earn miles at Esso gas stations starting June 1.

While Aeroplan members are more affluent and likely skew older than Amazon shoppers, Hall said they are increasingly changing their shopping habits by purchasing more online.

“We want to make sure our members continue to earn where they shop. So as shopping habits evolve we want to make sure we’re part of that story.”

Aimia said it is working on a promotion to earn more miles with existing partners and developing a strategy for how the program will change once the long-term partnership with Air Canada ends in 2020.

That includes moving to a model that is less reliant on exclusive contracts and more travel- and experience-centric.

The Amazon deal may offset some of the concerns about Aimia following the loss of the 14-year partnership with Imperial Oil Ltd.

But Hall said you can’t directly compare the two retail industries.