Of the 33.5 million citizens of Canada, more than 5 million belong to a loyalty rewards program operated by a single bookstore chain. That level of market penetration results from a unique package of benefits that responds to the challenges of the digital revolution that's transforming the book-buying market.

Indigo Books & Music is Canada's largest bookstore chain, with 97 superstores and 132 small-format stores. In a crowded retail space, Indigo’s differentiating factor is careful attention to a classic....

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