In an industry fraught with challenges, Big Lots is taking a bold step to improve its online presence and strengthen customer loyalty. Announced on November 8, the retailer is rolling out a new rewards-enabled app designed for both current and prospective members of its Big Reward loyalty program. This innovative app is not just another digital tool; it represents Big Lots’ commitment to enhancing the shopping experience amid significant market transitions.

The new app offers several essential features that cater to the needs of today’s consumers. Users can access their in-store rewards seamlessly, monitor their earnings through a personalized dashboard, and manage their Big Lots credit card—all in one convenient location. Moreover, the app promises to deliver weekly exclusive deals, providing an added incentive for users to check in regularly.

This update coincides with a difficult year for the retailer, which saw it file for Chapter 11 bankruptcy in September 2024 as a means to facilitate its sale to Nexus Capital Management. Despite this struggle, the launch of the app signals a revitalized strategy aimed at capturing a more substantial share of the e-commerce market.

According to Digital Commerce 360, Big Lots is projected to achieve e-commerce sales of $389.36 million in 2024. Bruce Millard, the senior vice president of marketing and e-commerce at Big Lots, emphasized the app’s potential to create a more personalized shopping experience. “We aim to make it easier for our customers to access their rewards, stay informed about the best deals, and manage their profiles and credit cards all in one place,” he stated.

Data acquisition is another critical aspect of Big Lots’ strategy with this app. Jason Downie, CEO of the digital marketing firm Making Science, noted that the app provides a significant opportunity for the retailer to capture first-party data from its customers. Access to this data will allow Big Lots to gain insights into consumer behavior, enabling the company to make data-driven adjustments to its product offerings and marketing strategies.

Moreover, such adjustments could include optimizing inventory by highlighting popular items and targeting effective marketing strategies that resonate with consumers. Downie also suggests that the app could appeal to younger, digitally native audiences who prefer online shopping. Capturing this demographic is crucial, as they represent a shift in purchasing behavior that online retailers must adapt to in order to remain competitive.

Aron Bohlig, managing partner at ComCap, a boutique investment bank, expressed optimism about the app’s prospects. He highlighted the importance of rewards programs in attracting new customers and driving sales among existing ones. “Rewards programs are one of the best ways to bring additional consumers into a retailer’s customer base. It also drives additional sales to your best customers,” Bohlig remarked.

The introduction of the app represents more than just a technological upgrade for Big Lots; it demonstrates the retailer’s proactive approach to competing in a difficult market. Given the rapid changes in consumer behavior and the increasing demand for personalized shopping experiences, the timing of this launch appears well-conceived.

As digital shopping continues to grow, retailers like Big Lots must not only adapt but also innovate to survive. The new app aligns with broader industry trends where customer engagement and data utilization are key. Companies that successfully leverage technology to enhance the customer experience can cultivate more profound relationships with their users, extending beyond mere transactional interactions.

In summary, Big Lots’ new rewards app marks a significant step towards revitalizing its brand and boosting its online presence in a competitive market. By focusing on personalization and data collection, Big Lots aims to provide shoppers with valuable deals and rewards, potentially attracting new customer segments while retaining existing ones.