The Works has decided to end its ‘Together Rewards’ loyalty scheme at the end of March. The scheme gave its customers five points for every £1 spent, and members will have until 29 June to redeem any vouchers they collected.
In order to combat high inflation, a cost-of-living crisis and a rising minimum wage, The Works decided to end its loyalty scheme to maintain value across its ranges. Its chief executive Gavin Peck said: “This was not an easy decision and we understand this will be disappointing news to our customers that use the scheme, but we have done so in order to maintain fantastic value across our ranges.”
Mintel comment:
“While naturally many customers may be disappointed in this move, the statement from The Works clearly lays out the reasons for this decision, with a trade off having to be made between protecting prices or operating the scheme. The reality is that operating a loyalty scheme at the value-end of the market is difficult, and why so many choose to not engage in the market, and for those at the end of the market defending base-price perception is critical.
As highlighted by Mintel’sCustomer Loyalty in Retailing – UK, 2023, finding lower prices being offered elsewhere is the number one reason why shoppers will change retailer. At an end of the market where loyalty schemes are rare and price rules all, while a difficult choice on paper this will likely be the correct one for The Works.”
