House of Fraser to offer rewards

House of Fraser is to introduce a reward scheme in the second half of this year.

The company is under serious financial pressure at the moment. Last month, it announced plans to axe 1,000 jobs as part of a restructure aimed at cost savings of about 10m a year. It also announced it was to shut three stores.

The group – which has 51 stores operating under 16 different names – is testing two scheme options. The more likely option is to reward directly FraserCard customers, who number over 1 million. Store by-store schemes are also under consideration.

FraserCard is a credit card, set up in 1983. House of Fraser says that about 850,000 card members are active purchasers.

House of Fraser marketing director Meg Gilmore says: “We would be foolish not to look at a reward scheme. People have become so used to them when shopping at petrol stations and supermarkets.”

The retail group is thought to be increasing its annual advertising budget from 6m to 8m. Gilmore says less than half of this will be spent on direct marketing.

The House of Fraser’s advertising agency is D’Arcy Masius Benton & Bowles and its main below-the-line agency is IMP.

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