Harvey Nicks looks to loyalty to bring back customers

Harvey Nichols is aiming to bring back its upmarket customer base with a major overhaul of its loyalty scheme in a move which will see the retailer offer instant rewards, with a range of personalised benefits and an increased cash back offer for members.

Customers can collect points by both shopping or dining with Harvey Nichols, using an app, and these points can then be converted into cash rewards, which are redeemable at any time.

The retailer has eight stores in the UK and Ireland, including its flagship in London’s Knightsbridge, and six overseas. In a bizarre move, the former scheme, which was called Rewards by Harvey Nichols, has ceased operation and is succeeded by the new programme, called Harvey Nichols Rewards.

Rewards members can also choose from up to 14 personalised benefits, which include 15% off fashion vouchers, pamper hampers, OXO dining experiences and free delivery.

There are five levels of membership, based on how much shoppers spend at Harvey Nichols, with level 1 shoppers spending up to £499 a year and level 5 shoppers spending more than £10,000.

The level of points and number of benefits received jumps for the higher level of membership with level 1 members earning one point per one pound spend and one benefit while level 5 members receiving five points and five benefits. Members also receive birthday gifts and and early access passes.

Harvey Nichols has had a torrid two years since the Covid pandemic struck. The retailer was forced to shut its stores for nearly eight months in the year to March 27 and recorded total sales of £121m during the period, down from £222m pre-pandemic.

Losses, meanwhile, widened from £15.5m to £38.6m following ongoing Covid restrictions and uncertainty across December.

Harvey Nichols saw losses widen to £38.6m in the year to the end of March, from £15.5m the year before. Since then, its long-term owner – Hong Kong-based tycoon Dickson Poon – has pumped £26m into the business; it has also secured a new loan worth £35m and has another £5m to draw from.