Dive Brief:

• Lids Sports Group has released a new mobile app showcasing a revamped loyalty program focused on rewarding shoppers with exclusive deals and experiences, according to a press release. The app is available for iOS and Android devices. 
• Members of the loyalty program, called Access Pass, can use the app to track points and rewards, interact with the licensed sports merchandise retailer's social channels and receive in-app offers. The app can also be customized to monitor merchandise from customers' favorite teams and brands. 
• Access Pass is replacing Lids' previous loyalty program Lids Club. Existing Lids Club members can join Access Pass now or once their Lids Club membership expires. Members of the Access Pass program get 10 points for every dollar spent. Once they reach 1,000 points, members receive a $10 reward toward their next purchase. Lids' retail network contains roughly 1,300 mall, airport, street level and factory outlet locations nationwide.

Dive Insight:

At a time in which the retail industry is being battered, Lids has been a rare bright spot. During its parent company Genesco's fiscal year 2017, described as a turnaround year for Lids, the retailer's sales were up 4%. Same-store sales growth continued in the most recent quarter, with Lids' registering an 8% uptick.

Still, Lids hasn’t been a stellar all-around performer. Its direct sales inched forward 2% last fiscal year, trailing far behind the sales leap experienced in e-commerce generally. In the U.S., online revenues jumped 15.6% in 2016 from the year before. Addressing its digital weakness, Lids unveiled a social media command center called Lids Press Box last year at its headquarters in Indianapolis. But the enhanced app is the latest effort on that digital front. The app enters a retail app landscape that isn’t chock-full of success stories.

Shoppers haven't shown much interest in retailers' branded apps. A survey by inMarket showed a measly 8% of smartphone owners use their apps. Linking apps to rewards and frequently rolling out new offers within them, as Lids emphasized it will do, can improve app performance.

Lids is releasing its app along with a redo of its loyalty program. Per FierceRetail, the former loyalty program concentrated on discounts and didn't dole out rewards. The program re-do comes as Genesco pronounced a key initiative is to strengthen customer relationships.

Loyalty programs are huge business drivers at retailers that effectively leverage them. Members of Ultamate, the loyalty program at Ulta Beaty account for 80% of the beauty specialty retailer’s sales, for instance. As it looks to counter poor mall traffic patterns, a beefed-up loyalty program at Lids could provide a crucial boost to its business — and the app is a way to gather customer insights, and further engage loyalty members to possibly spur store visits and sales.