Will retailers see more rewards from multi-banner loyalty programs?
Foot Locker Inc. and Ascena Retail Group are both launching loyalty programs that enable consumers to earn points across retailer banners.
Foot Locker unveiled the planned launch of its FLX program that “flexes with you” at its Investor Meeting in late March. Banners include Foot Locker, Kids Food Locker, Lady Foot Locker, Footaction, Champs and Eastbay.
“We are shifting away from loyalty being by individual banner focusing on discounts and we’re moving to one global program focusing on delivering awesome connected experiences and benefits,” said Jed Berger, Foot Locker’s chief marketing officer, North America, at the event.
The new membership program will run across all banners and “incentive our consumers to earn points across our entire portfolio and then spend those points in a central redemption center.”
FLX will also offer experiential benefits with its points, including early access to sneaker releases, banner gift cards, chances to enter sweepstakes to win prizes such as autographed shoes and donations to causes. Members in the tiered program also earn free shipping and access to events. The program will roll out globally in 2019.
Ascena Retail Group on April 2 launched ALL Rewards, which enables members to earn and redeem perks across its five banners: AnnTaylor, LOFT, Lou & Grey, Ann Taylor Factory and LOFT Outlet. The group likewise called out the flexibility the program will offer customers.
“We have a great ongoing dialogue with clients and associates and we know our client wants choices, convenience, fashion and the freedom to define her style, her way,” said Laura Jacobs, chief marketing officer, premium fashion segment, in a statement.
Gap over the last year has been testing its Bright program in California, Atlanta and Dallas-Fort Worth that enables members to earn points across its banners, although it recently announced plans to spin off Old Navy. TJX Cos. also has a rewards program extending across banners and Williams-Sonoma introduced a multi-banner program in 2016.
Generally, companies owning multiple banners — including Macy’s, Hudson’s Bay, Abercrombie & Fitch, L. Brands, Urban Outfitters, Ascena Retail Group and Walmart — have separate rewards programs for each banner.
- Foot Locker, Inc. Investor Day Presentation (Video) – Foot Locker
- Foot Locker, Inc. Investor Day Slides – Foot Locker
- Ascena Retail Group Launched Multi-Brand Loyalty – Ascena Retail Group
- Gap Bright – Gap Inc.
DISCUSSION QUESTIONS: Do you see more pros than cons for retailers in running a unified rewards program that serves multiple banners? Is the move more applicable to Foot Locker and Ascena Retail Group than others?