Iconic Canadian retailer Hudson’s Bay has overhauled its loyalty rewards program in a bid to attract and retain consumers amid a slump in store traffic.
The privately held Toronto-based department store chain said it hopes to capture more customers with an updated rewards program that includes a new app and personalized offerings.
The revised loyalty rewards program comes as consumers increasingly seek out competing discount retailers as they struggle with high inflation and elevated prices for clothing and other items.
Hudson’s Bay says its new rewards program will be structured around three tiers that shoppers can work their way through, earning more points at each level.
Shoppers start at the first tier, called the “Hudson’s Bay Rewards” level, which gives them one point for every dollar spent in stores or online at both Hudson’s Bay and Zellers.
Once they have spent $400 within a year, customers move up to the “Rewards Plus” level, giving them 1.5 points for every dollar spent.
The third and final level, “Rewards VIP,” kicks in at $1,200 of spending within a year and offers two points for every dollar spent.
Point redemptions can begin after 1,000 points have been accumulated, which grants $5 off and can be applied to taxes and shipping fees as well as to purchased items.
Consumers can also earn points through personalized offers delivered through the app and based on individual preferences.
Hudson's Bay's updated loyalty program comes as the company works to streamline its operations and build excitement around its stores and products.
In March of this year, Hudson’s Bay revived iconic discount retailer Zellers a decade after it closed most of its stores in Canada.
Today, Zellers can be found as pop-up shops within Hudson's Bay store locations, selling mostly housewares.
Hudson’s Bay has also fired more than 500 employees this year as the company manages what it has called “external pressures.”
Hudson’s Bay is privately held. Its stock does not trade on a public exchange.
