(Toronto) Hudson’s Bay hopes to pique customer interest with a revamped loyalty program that includes a new app and personalized offers.

The Toronto-headquartered department store chain announced Tuesday that changes to its rewards offering are intended to refresh the program to better meet current shopping habits.

“Hudson’s Bay was among the first companies to offer a loyalty program in Canada, and since then consumer habits, prioritization of purchases and expectations for these types of programs have continued to change. said Kevin Parry, Vice President, Credit and Loyalty, Hudson’s Bay, in a statement.

He adds that the company wanted to improve its rewards program.

This program comes against a backdrop of persistently high inflation, which is increasingly prompting consumers to seek out bargains.

The rewards program will be built around three levels that customers can climb, earning more points and faster with each step.

Shoppers start with the Hudson’s Bay Rewards tier, which gives them one point for every dollar spent in-store or online at Hudson’s Bay and Zellers, as well as using their Hudson’s Bay Mastercard. Hudson.

When they’ve spent $400 in a year, they upgrade to the Rewards Plus tier, which gives them 1.5 points for every $1 spent. The last level, VIP Rewards, is accessible from $1200 of purchases in the year and offers two points for each dollar spent.

Points can be redeemed from 1000 points, which qualifies for a $5 discount and can be applied to taxes and shipping, as well as the item itself.

In addition to purchases, customers can earn points through personalized in-app offers based on individual preferences, shopping habits, and “missions” completed by the user.

An assignment might ask a buyer, for example, to create a head-to-toe ensemble from a Hudson’s Bay item.

There will also be bonus events where shoppers can earn double or extra points by shopping on certain days or redeeming fewer points for a higher discount.

Tandy Thomas, a professor at Queen’s University in Kingston, Ont., calls the increasing levels of rewards and missions of the new loyalty program a “great idea” as consumers are “incredibly price sensitive right now.” .

Both of these bring fun to the brand, which she says is much needed.

“It’s a very fixed brand. Consumer perception hasn’t changed much throughout their lifetime,” she said.

“If you need a new set of dishes, this might be where you go. If you want a quirky new dinnerware set, that’s not where you’re going, so anything they can do to show that their brand and offerings are more engaging and exciting…will be good for them. »

Overhauls of rewards programs such as this are becoming more common as banks and retailers increasingly look for ways to boost sales and membership bases to weather the current economic turmoil. Data on when and how people spend is also valuable for businesses.

Cineplex, Scotiabank and Empire Company Limited revamped the Scene program last year, and BMO Financial Group purchased Air Miles in Canada last June.

At the beginning of August, the Royal Bank of Canada extended its Avion program to all Canadians, regardless of banking institution, and, to attract registrations, offered members an exclusive package of tickets for upcoming concerts. of Taylor Swift in Toronto.

The revamp of Hudson’s Bay’s loyalty program comes as the company works on several initiatives to streamline operations and build excitement around its offerings.

In recent years, it has introduced a new collection of Forever 21, added boutiques for outdoor retailer MEC in select stores and partnered with baby gear startup Rebelstork for a resale program brand.

Arguably the most publicized change came in March, when discount chain Zellers was relaunched, ten years after most of its stores closed. The return of Zellers has taken the form of pop-up shops in Hudson’s Bay stores, which sell a mix of housewares and other private label products and rival some products that can be found at IKEA. and Walmart.

However, the company also laid off around 250 employees in January and another 250 in May. The job cuts are intended to help the company cope with “significant outside pressures,” the company said in January.