Everyday points best loyalty promotion
Toronto – New research from loyalty currency management provider Points shows that offering points and miles for everyday purchases is the most effective means of driving consumer loyalty. Points surveyed more than 1,500 loyalty program members from across North America and found that 83% earn points and miles on everyday purchases.
This mean more shoppers earn points on everyday purchases than any other way of earning loyalty program currency. In addition, 79% of consumers surveyed agree that a store offering points/miles would make them more likely to return, and 48% would switch stores to earn points/miles.
Cabela’s expands credit facility
Sidney, Neb. – Cabela’s Inc. has signed an amended credit facility with a consortium of financial institutions led by U.S. Bank. This $775 million, five-year credit facility expands and extends Cabela’s existing $415 million, five-year agreement signed in 2011.
In addition, the facility may be increased to $800 million subject to certain terms and conditions.
“The amended facility provides us with long-term financing flexibility as we continue to expand our retail store footprint, increase brand loyalty through the operations of Cabela’s Club, focus on our omnichannel strategy and increase our market share,” said Tommy Miller, CEO of Cabela’s.
Barnes & Noble to spin off Nook business; misses on loss
New York – Barnes & Noble Inc. plans to spin off its Nook e-reader unit as a separately traded public company from its retail operation by the end of the first quarter of fiscal 2016. The retailer made this decision as its consolidated net loss for the fourth quarter of fiscal 2014 shrank from $114.8 million to $36.7 million, missing Wall Street estimates.
“We have determined that these businesses will have the best chance of optimizing shareholder value if they are capitalized and operated separately,” said Michael P. Huseby, Barnes & Noble’s CEO. “We fully expect that our retail and Nook Media businesses will continue to have long-term, successful business relationships with each other after separation.”
During the fourth quarter, Barnes & Noble reported a 3.5% year-over-year increase in revenue to $1.32 billion, from $1.28 billion. However, revenue in the Nook segment declined 22.3% while revenue in the retail and college segments grew, likely influencing the decision to spin off Nook. Nook sales in the fourth quarter only totaled $25 million. Same-store sales dropped 4.1%, with negative impact from declining same-store Nook sales.
For the fiscal year, net loss dropped to $47.3 million from $153.8 million. Sales dropped 7% to $6.38 billion from $6.84 billion. Same-store sales dropped 5.8%. Barnes & Noble expects continued declining same-store sales during fiscal 2015.
Barnes & Noble has engaged Guggenheim Securities LLC as financial advisers and Cravath, Swaine & Moore LLP as legal counsel for its Nook spinoff. The company said it cannot guarantee the separation will occur by the stated deadline and that customary conditions and approvals will apply.