Retail News: Matalan to broaden loyalty programme

Matalan is adding to the benefits of its reward scheme in an overhaul it hopes will stem its haemorrhaging sales.

The discount retail chain is testing the scheme in its Scottish stores and plans to extend it to the rest of its 190-strong estate from next year.

The initiative follows disappointing results; last month it disclosed that sales fell 7.4% in the 26 weeks to 25 February, with clothing sales down 4.5% and homewares slipping 7%.

The scheme will offer consumers reward points for money spent, as well as in-store offers, prize draws and third-party affinity deals. The initiative it replaces provided only third-party offers through the post.

Matalan's highest-spending customers will be given a new card and key fobs to replace their existing cards, although the benefits of the scheme will be open to all card-holders.

The scheme is being implemented by below-the-line agency TDA, which will run a direct campaign for the national roll-out that will target Matalan's existing customers. The agency won the retailer's business last November.

The loyalty scheme is part of a wide-ranging plan to improve the company's performance. It has also earmarked some of its stores, such as its Wood Green branch in North London, as dedicated clearance outlets.

Following last month's poor sales results, there has been speculation that Matalan founder John Hargreaves, who owns 53% of the company, would take it private. The retailer has been valued at £900m.

Matalan is currently seeking its fourth chief executive in five years to replace John King, who announced in January that he was leaving.

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Oasis #springasmile digital campaign gets people doing good deeds
Coca-Cola: 'Don't approach bloggers with a fait accompli'
Tesco CMO Matt Atkinson: 'It is so important not to stereotype mothers'
McDonald's gives Ronald a new look ahead of global 'Fun times' social media push
In pictures: BrewDog opens first craft beer shop BottleDog for 'beer aficionados'
Facebook ad revenue leaps $1bn as it invests in targeting
Malteser or Maltesers? Mars takes Hershey trademark dispute to court
Apple Q2 profits top $10bn as iPhone sales soar
Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Tom of Finland's 'homoerotic' drawings made into stamps
Toyota achieves the impossible by calming angry Roman drivers
YouTube reveals user habits to appeal to 'older' marketers