Bed Bath & Beyond may be ditching its coupons in exchange for a loyalty program.
The home retailer is testing “Beyond+”—a beta of an invitation-only membership service that offers a 20% discount on all purchases as well as free shipping.
According to the Wall Street Journal, the program aims to generate new revenue, boost customer loyalty, and improve its margins, while helping it better compete with Amazon’s (AMZN) Prime membership program.
Originally, the 20%-off coupons that Bed Bath & Beyond customers know and love were used to get them in the door. But in recent quarters, profits have declined, and the company is blaming the dip on the wide-spread coupon usage, according to the Journal. In its most recent quarter, earnings slid 17% as sales slowed.
The new Beyond+ loyalty program is the company’s attempt to move away from promotions and discounts that snowballed after the recession, the Journal reports.
Although customers who opt in to the Beyond+ program would have to pay a yearly fee of $29, the Journal notes, the membership program could help the store move away from coupons while still allowing customers who are used to taking 20% off their purchase to do so.
But Bed Bath & Beyond says it will keep its coupon policy consistent. “We continue to believe that the … coupons are an important benefit we provide to our customers,” a spokesperson told Coins2Day in an email.
