Menomonee Falls, Wis. — Kohl’s Department Stores had a tough third quarter that included a 20% drop in profits, but the retailer reportedly sees its loyalty program and mobile wallet as important competitive assets. According to the Wall Street Journal, a 300-store pilot program of the new Kohl’s loyalty program garnered 10 million enrollees, and another 10 million shoppers have joined since the program went nationwide in October.
Tests have shown that loyalty customers make two additional store visit per year with average incremental spend of $80. In addition, Kohl’s sees it mobile wallet, which allows customers to have access to rewards and redeem rewards points at checkout, as well as automatically track points usage and savings, as a competitive advantage. Kohl’s is a member of the Merchant Customer Exchange (MCX), which offers a rival mobile payment system to Apple Pay.
In the future, Kohl’s may link its loyalty and payment systems, using proprietary technology. The company also has redesigned its website and mobile apps, rolled out Oracle inventory and pricing applications, and is piloting a new POS system. Kohl’s is piloting a “buy online, pick-up in store” service, as well.