Fortnum & Mason will launch a loyalty scheme in 2025, as the 318-year-old grocer seeks to build on stellar annual and Christmas results.
CEO Tom Athron said the new online and in-store membership programme would capitalise on a “desire for a sense of belonging” from Fortnum’s “best” customers.
Athron stopped short of providing full detail of the proposition, which is still being fleshed out. However, he confirmed to The Grocer that it was planned to launch before the end of the summer.
Rather than mimic a supermarket loyalty scheme, the new Fortnum & Mason membership scheme would look to create the sense of a “club”, with members getting perks like priority access to Fortnum’s events and services.
“It’s not about discounts or member pricing or anything like that. It’s much more elevated,” Athron said. “Our customers are saying to us that they want to be recognised and acknowledged – we’re looking for the right mechanism to do that.”
The loyalty plans come as part of a broader strategy to make Fortnum’s a “destination for gifting and occasions” throughout the year, rather than at seasonal peaks like Christmas.
Fortnum’s launched a trio of subscription delivery services for tea and biscuits in July 2024, and has been expanding its still relatively nascent e-commerce business since its rapid growth during the coronavirus pandemic.
Combined, the new schemes would improve Fortnum & Mason access to shopper data, it said.
“One of the things we’re trying to do through this is get a better sense of who our customers are, particularly in store,” Athron said.
Fortnum & Mason investment in ‘retail theatre’ paying off
Fortnum’s announced the plans alongside the publication of its 2024 annual results and Christmas sales on 14 January.
It was a solid year for the ‘royal’ grocer, with turnover up 9% to £228m in the 12 months to 4 July. Pre-tax profits grew 24% to £9m. Christmas sales, which are not included in the annual results, were also strong. Festive food sales grew 17%. Volumes grew around 14%.
The growth was almost entirely driven through stores, after Fortnum’s limited online orders as a result of teething issues at its new distrbution hub in Corby, which opened following an expansion and reorganisation of its supply chain last year. Web sales were down 7% as a result, but the retailer had seen strong demand, Athron said.
Sales at its three satellite stores at St Pancras Station, The Royal Exchange and Heathrow Terminal Five, meanwhile, were each up 20%, with footfall up 11% across its stores on the previous year. Even the Queen popped into the ‘royal grocer’ for some last-minute Christmas shopping at its Piccadilly flagship before the big day.
“We’re seeing, when you provide a unique, distinctive experience, with an element of theatre you cannot find anywhere else, store retail does incredibly well,” Athron said. “This demonstrates our confidence in the future of our physical space.”
Read more: Fortnum & Mason’s Tom Athron wants the grocer to remain relevant – but not through cutting prices
The immediate future will see Fortnum’s make its “biggest single investment” into its Piccadilly flagship store for two decades, with the installation of a double helix staircase. The aim is to improve the flow of the store, enabling more shoppers to pass through its doors. It is expected to take around nine months to complete.
Fortnum’s is also looking to expand its store footprint in “a controlled, limited way”.
This would most likely be in the form of pop-up shops, like one recently launched at Heathrow Terminal Four, with the US being one area of focus.
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