Carter’s, Inc. is relaunching its rewards program under a new name. The children’s apparel retailer told Digital Commerce 360 that Carter’s Rewards will replace My Rewarding Moments. The change is part of an evolving strategy for the brand, a spokesperson said via email.

“Understanding the financial challenges of shopping for little ones, Carter’s is introducing new tiers, better perks and even more benefits for members,” the spokesperson continued.

Carter’s ranks No. 83 in the Top 1000, Digital Commerce 360’s database of the largest North American online retailers. Digital Commerce 360 categorizes Carter’s as an Apparel & Accessories retailer. Carter’s, Inc. also owns and operates OshKosh.com and SkipHop.com.

Carter’s Rewards specifics

The new loyalty program comes with exclusive offers, early access to sales, and special access to deals through the Carter’s app, the retailer said.

Carter’s Rewards consists of three levels:

• Family: This tier is free to join and has no minimum spending requirement. For every dollar spent, members get one point in rewards. 100 points equal a $5 reward. This level entails a birthday gift, exclusive offers, app exclusives, and surprise points throughout the year.
• VIP: VIP members must spend at least $500 at Carter’s within a one-year period. They get two points for every $1 spent. In addition to all the perks of the Family tier, VIP members also get early access to sales.
• VIP+: This tier is only available to Carter’s credit card holders. VIP+ members have all the same rewards as VIP members, plus free shipping on all credit card purchases, a $10 off annual gift, select 3x points days, and more.

Members who join on April 3 will receive 4x points on all purchases in stores and online through April 8.

Importance of rewards for Carter’s

Rewards members are key to Carter’s business, the retailer said in a February earnings call with investors. Carter’s had “very high” participation in My Rewarding Moments prior to the relaunch, chief financial officer and chief operating officer Richard Westenberger said in the call. Members are responsible for nearly 90% of U.S. retail sales, he said.

Carter’s Rewards “will allow consumers to earn rewards faster and create greater differentiation and rewards for our best customers,” Westenberger noted. That will likely lead to higher online traffic and more frequent store visits, CEO Michael Casey said in the same call.

In 2023, Carter’s invested in personalized marketing and offers, and the new program is an extension of that investment. The retailer is using AI to tailor marketing based on the ages and genders of a consumer’s children, Casey said.

Tiered reward programs have become more popular among retailers, Neil Saunders, managing director of retail analysis firm Global Data, previously told Digital Commerce 360.

“Retailers want to give the best rewards to those who spend more so they can ensure their loyalty,” he said. “They also use tiers to encourage people to spend more so they can move to a higher tier and get better rewards or benefits.”

Other financial results

Carter’s reported net sales declined to $858 million from $912 million in its fiscal fourth quarter ended Dec. 30. Full-year net sales also declined, to $2.9 billion from $3.2 billion in 2022.

“We saw an improving trend in the demand for our brands in the final weeks of 2023,” Casey said in a statement. “Sales improved sequentially each month in the fourth quarter and drove higher-than-expected earnings.”

He added that unseasonably warm weather led to lower spending on outerwear and winter clothes, but then demand picked up early for spring clothing.

Ecommerce is one of the highest-margin parts of the business, but sales declined about 20% in 2023, Carter’s said. Conversion rate and average transaction value stayed steady year over year while traffic declined.

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