H&M is revamping its loyalty program, requiring customers to spend more to earn discounts. Previously, shoppers needed 100 points to receive a £3 voucher, earning one point for every £1 spent, translating to a £100 spend for the discount. Starting October 1, customers will have to accumulate 150 points, equivalent to £150 spent, to obtain the same £3 voucher. H&M has notified customers of these changes via email.
In a statement, an H&M spokesperson explained that the adjustment in Bonus Rewards calculation aims to enhance the program to better suit customer engagement and offer more relevant benefits. Members will still receive points for every pound spent, additional rewards for profile completion, recycling unwanted garments, and using reusable bags. Existing points will remain valid, allowing members to access rewards both in-store and online.
Earlier this year, H&M discontinued the 25% birthday discount for members and the 10% sign-up discount. Additionally, the cost of returning items by post increased from £1.99 to £2.9, while in-store returns remain free. Despite a 17% decline in operating profits to 5.91 billion Swedish krona (£455 million) for the second quarter, H&M performed better than expected. Overall, operating profits dropped by 22% to 7.1 billion Swedish krona (£547 million) in the first half of the year, with a 1% rise in net sales.
H&M attributed the profit decrease to higher clothing costs due to currency fluctuations and investments in improving customer value. CEO Daniel Erver emphasized the company’s adaptability to meet evolving customer needs amidst economic uncertainties. The H&M Group, encompassing brands like Monki and COS, closed 153 stores by May 31, reducing its global footprint to 4,166 outlets.
