Is Sears Holdings’ Loyalty Program Helping or Hurting It? http://bit.ly/18OgEpt
Sears Holdings says its Shop Your Way rewards program is working — very well in fact — but it hasn’t been enough to push the retailer into the black.
During the second quarter, the retailer, which operates Sears and Kmart, continued to offer traditional promotional discounts and spend on advertising, getting plenty of exposure from the popular, “Ship My Pants” and “Big Gas Savings” ads. It also took a hit as more Shop Your Way members redeemed points. The retailer reported a $194 million loss during the second quarter as same-store sales fell 1.5%.
Sears Holdings spokesman Chris Brathwaite said, over time, points and other Shop Your Way promotions will replace some traditional advertising programs. He declined to provide a specific time frame.
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