Swedish fashion chain H&M will reintroduce delivery costs for small orders, even to membership card holders. This way, the company hopes to save on logistical expenses and repair the group's profitability.
Basic and plus members
The fashion giant has been reviewing its customer loyalty programme, the H&M Club, and divided it into two kinds of members: basic and plus. The distinction is made based on the number of points earned by the customer in the past year. Members can earn those points through purchases and reviews.
"For the plus level, deliveries will remain free for all purchases, but for the base level there will be a cap," said Samuel Holst, head of the H&M Club. "You will need to shop for a certain amount to get free delivery. Returns remain free for all."
The minimum amount you have to spend to be eligible for free delivery will not be the same in every country: in Germany, H&M's biggest market, the limit will be 25 euros. In Sweden it will be 22 euros and in the Netherlands 20 euros.
The H&M Club now exists in sixteen countries and is a major success. Last year, the membership doubled, reaching the 30 million mark. That milestone was reached by granting free deliveries and returns for every member. In the past quarter, another five million members joined up. It remains to be seen how the reintroduction of delivery costs will affect the growth of the loyalty programme.