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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
