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Will Gap’s new loyalty program bring meaningful rewards?

Written by George Anderson

Photo: Gap

Gap Inc.’s pilot of its Bright Rewards program has shown strong results in increasing transaction sizes in test stores. Now, the clothing retailer is going to see if early results at Banana Republic, Old Navy, Athleta and Gap brand stores in Atlanta, Dallas and California can be replicated as it rolls out Bright Rewards across its banners nationally. The rewards program, which surpassed five million members this month, was launched in 2017. Members can acquire points with every purchase which, in turn, tend to lead to further purchases. “Bright Rewards is exceeding our expectations and driving positive engagement with members more likely to shop more often, resulting in their spending as much as 20 percent more than non-members,” said Abinta Malik, head of loyalty at Gap Inc., in a statement. Ms. Malik said Gap was looking to distinguish its program from run-of-the-mill rewards offers that go beyond earnings points to make purchases. "Birthday treats, points for reviews and extended hours for loyalty events are all being considered as ways to make Bright even more rewarding,” she said. Gap is looking for the Bright Rewards program to help the company boost sales following a first quarter earnings report that saw same-store sales down four percent compared to a one percent rise during the same period last year. In February, Gap Inc. announced plans to spin off its Old Navy division into a separate publicly traded company while the rest of the banners would be grouped under another as yet unnamed corporation currently being referred to as NewCo.   

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