Alliance Data Systems Corp.
Alliance Data Systems Corp.
Sector: Consumer
Description
Alliance Data System provides data-driven loyalty, marketing, and payment solutions to consumer-based industries.
The company provides its services through two business segments: LoyaltyOne and Card Services.
LoyaltyOne Segment
This segment provides united and loyalty programs for short-time tenures. In addition, it also provides loyalty services such as customer analytics, loyalty consulting, mobile solutions and creative services. The firm caters to various petroleum retailers, grocers, drug stores, financial services providers and specialty retailers.
Card Services Unit
This segment provides a wide range of services, including risk management solutions, receivables funding, underwriting, remittance processing, account origination, transaction processing, customer care services, collections, and other activities related to the marketing of the private label and co-brand credit programs on behalf of the company.
The solutions provider sold off its third business segment Epsilon Segment in 2019. The former segment provided end-to-end and integrated marketing solutions.
Alliance Data System claims to own and operate approximately 160 co-brand credit card and private label programs.
Its client base comprises approximately 900 consumer-based businesses and well-known brands such as:
• Caesars Entertainment
• Signet
• Albert Heijn
• Victoria's Secret
• Ulta
• IKEA
• Sephora
• Shell Canada Products
• Amex Bank of Canada
• Sobeys Inc
• Bank of Montreal
• Rewe
Alliance Data System owns and operates Canada's most recognized loyalty program, the AIR MILES program, and BrandLoyalty.
Operations in the United States contributes maximum to the total revenue, the company claims.
The Ohio-based company was founded in December 1996 following a merger between different entities, i.e. the credit card processing unit of J.C. Penney's and the credit card business of The Limited.
The Alliance Data Card Services also maintains two different banks, namely World Financial Network National Bank and World Financial Capital Bank and manages fundings and receivables of various credit programs. The two banks were rebranded in 2012 and now operates as Comenity Bank and Comenity Capital Bank. The company operates through various local and international subsidiaries.
Peers
NKE
Nike, Inc.
KDP
Keurig Dr Pepper Inc
FMX
Fomento Econmico Mexicano SAB de CV
MSGS
Madison Square Garden Sports Corp
PGR
The Progressive Corp
GIL
Gildan Activewear Inc
CHD
Church Dwight Company Inc
DECK
Deckers Outdoor Corp
MKC
MCCORMICK & COMPANY INC
ACM
AECOM
TAL
Tal Education Group
CIB
Bancolombia SA