H&M has announced a significant adjustment to its loyalty program, requiring customers to reach a higher spending threshold to earn discounts. Previously, customers needed to accumulate 100 points to receive a £3 voucher, with each point earned for every £1 spent, equivalent to £100 spent for a £3 discount.
Starting from October 1, customers will now have to earn 150 points, equivalent to a £150 spend, to obtain the same £3 voucher. The retailer has been communicating this change to its customers via email, clarifying the revised requirements for Bonus Rewards.
According to an H&M spokesperson, the update in Bonus Rewards calculation is part of the company’s continuous efforts to enhance its membership program to better align with customer engagement and offer more rewarding benefits. Members will still earn points for every pound spent and receive additional rewards for completing their profiles, participating in garment recycling programs, and using their own bags for shopping. All previously earned points will remain valid, allowing members to unlock rewards both in-store and online.
Earlier this year, H&M discontinued its 25% birthday discount for members and the 10% discount for new sign-ups. Additionally, the cost of returning items by post has been increased from £1.99 to £2.9, while in-store returns remain free for customers.
Despite facing a 17% decline in operating profits to 5.91 billion Swedish krona (£455 million) for the second quarter up to May 31, H&M reported better-than-expected results. Overall operating profits fell by 22% to 7.1 billion Swedish krona (£547 million) in the first six months, with a 1% increase in net sales.
The company attributed the earnings impact to higher clothing costs due to currency fluctuations and continued investments in enhancing the customer experience. H&M’s CEO, Daniel Erver, emphasized the company’s focus on adapting to meet customer needs in challenging economic environments.
H&M Group, which includes brands like Monki and COS, closed 153 stores in the year leading up to May 31, bringing its total store count to 4,166 globally.