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Industry News

Loyalty programs paying off for retailers

There are signs that retailers’ reward programs are paying off, as they strive to compete with such online initiatives as Amazon Prime, Bloomberg reports. Teen retailer Hollister’s 8 percent same-store sales growth last quarter is being partially attributed to its Club Cali rewards perks. U.S. consumers have signed up for 3.8 billion customer loyalty programs — up from 3.3 billion in 2015 — and nearly half of these are run by retail chains.

Hollister’s Club Cali, which now has 8 million members, brings more than just additional sales to the retailer, points out CEO Fran Horowitz. It also generates a lot of useful data. “Our loyalty club continues to provide a wealth of insight,” she said during a conference call Friday.

 “Competition is very stiff,” Gabriella Santaniello, founder of retail research firm A Line Partners, told Bloomberg. “They need to offer something to the customer that keeps them coming back to your store.”

By Edmund Mander

Director, Editor-In-Chief/SCT

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