Macy's launches next phase of Star Rewards program with new benefit for all shoppers, contest

Macy's is banking on building more loyal shoppers as part of its turnaround strategy.

Despite announcing last week the retailer would close approximately 125 stores and cut 2,000 jobs over the next three years, Macy’s officials said they are enhancing the Star Rewards program as part of their restoration plan.

The upgraded loyalty program rolls out Monday and gives all shoppers the chance to earn rewards on purchases, Macy’s shared exclusively with USA TODAY.

Rich Lennox, Macy’s chief customer officer, said Star Rewards has nearly 30 million members and has been a “huge hit” since it relaunched in October 2017 for credit card customers and then expanded to all customers in May 2018.

“With this next phase of the program, all customers will earn rewards on everything they buy ... and can redeem on anything they choose,” Lennox said in a statement, noting gift cards, services and fees are excluded. “In the simplest terms, it’s how we love our customers back.”

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To kick off the new phase dubbed Loyalty 3.0, Macy’s is holding a contest in its app through Feb. 23 where 50 Star Rewards members will each win 100,000 points, which is equal to $1,000. No purchase is necessary but to enter you need to be a member. Select stores also will hold events Feb. 15.

But giving shoppers the ability to earn rewards isn’t an altruistic move. Like other rewards programs, Macy’s has found shoppers who are more engaged spend more and shop more frequently.

Macy's CEO Jeff Gennette said Wednesday during the retailer's Investors Day that the business was “overly reliant on our best customers” and expanding the loyalty program would “increase the engagement with customers who shop with us only occasionally and to bring new customers into the brand.”

Similar to Target, Kohl’s, Nordstrom and J.C. Penney’s loyalty programs, credit card holders often get extra perks and can earn rewards on purchases faster than non-cardholders.

In October, Target took its free Target Circle loyalty program nationwide offering  shoppers 1% back on every purchase that they can redeem on a future Target trip. Shoppers who have a Target RedCard aren’t eligible to earn 1% when they pay with the store-branded card but continue to get 5% off purchases and can take advantage of the other Target Circle perks.

Prior to the upgrade, only Macy’s members on the top tier or platinum level earned a percentage of their purchases back as rewards.

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Macy’s Star Rewards: Loyalty 3.0

All Star Rewards members earn rewards on Macy’s purchases, excluding gift cards, services and fees. Learn more at www.macys.com/StarRewards. Here are the levels and the perks of the upgraded program:

• Bronze: Customers earn 1% back in rewards. All customers get benefits including “Star Money Bonus Days,” where they can earn bonus points toward Star Money even faster, perks and offers including extra savings or access to exclusive events, and a birthday surprise.
• Silver: Macy's credit card customers who spend up to $499 annually earn 2% back in rewards and get any day 25% off Star Pass coupons in addition to bronze benefits.
• Gold: Customers who spend $500 to $1,199 annually on a Macy's card receive all the bronze and silver benefits plus get 3% back in rewards, free shipping on all Macy’s purchases when they use the store credit card.
• Platinum: Spending $1,200 or more, customers get all the other benefits, plus get free shipping on all Macy's purchases and earn 5% back in rewards on all Macy's merchandise purchases in-store and online with no exclusions when they use a Macy's credit card.
• American Express: With an American Express Macy’s card, Platinum, Gold or Silver members earn 3% in rewards at restaurants, 2% at gas stations and supermarkets and 1% back everywhere else.

Follow USA TODAY reporter Kelly Tyko on Twitter: @KellyTyko