Dive Brief:

• Kohl’s outperformed Macy’s in the third quarter, thanks in part to its buy online, pick up in-store and “Yes2You” loyalty programs. 
• The new loyalty program already boasts more than 34 million members, giving Kohl’s the data necessary to drive promotions and purchases. 
• Combined with data from Kohl’s credit card, Yes2You has so far allowed the company to connect 80% of purchases to shoppers who have bought from stores before. 

Dive Insight:

The industry is watching Kohl’s to see if it can maintain its positive momentum through the holidays, bucking the overall downward trend for large department store chains. The season is responsible for as much as a third of Kohl’s annual revenues, and with the help of its new Yes2You loyalty program, the chain is coming off a good third quarter.

Yes2You has so far signed up 34 million members, and Kohl’s is using the data culled from it and its store-brand credit cards to serve shoppers more relevant promotions. So far, the company has been able to connect 80% of purchases to shoppers who have bought from Kohl’s before—numbers never before seen from department stores.

Kohl’s launched its initiative to become “America’s most engaging retailer” with Yes2You starting in 2014, attempting to make local stores relevant to their strongest customers. So far, the loyalty initiative and other omnichannel strategies including a BOPUS program seem to be pushing the needle in the right direction, with third-quarter sales up 1.2% to $4.43 billion.