H&M is implementing a significant alteration to its loyalty program, requiring customers to increase their spending to qualify for discounts. Previously, customers needed to accumulate 100 points to receive a £3 voucher, with each point earned for every £1 spent, totaling £100 for the voucher. However, starting October 1, customers will now have to earn 150 points, equivalent to spending £150, to obtain the £3 voucher. H&M has notified shoppers of these adjustments via email.
In a statement, an H&M representative explained that the adjustment to Bonus Rewards calculation aims to enhance the program’s relevance and rewards for customers. Members will still benefit from earning points for every pound spent, additional rewards for profile completion, garment recycling, and using reusable bags while shopping. Existing points will remain valid, enabling members to unlock rewards both in-store and online.
Earlier this year, H&M discontinued the 25% birthday discount for members and the 10% discount for new sign-ups. Additionally, the cost of returning items by post has increased from £1.99 to £2.9 per parcel, but 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 reported better-than-expected results. Operating profits for the first six months decreased by 22% to 7.1 billion Swedish krona (£547 million) with a 1% rise in net sales.
The company attributed earnings challenges to increased clothing costs due to a strong dollar, investments in customer offerings, and providing better value for customers. CEO Daniel Erver emphasized the company’s commitment to adapting to meet customer needs amid economic uncertainties. The H&M Group, including brands like Monki and COS, closed 153 stores in the past year, resulting in 4,166 stores globally.