Is Sears Holdings’ Loyalty Program Helping or Hurting It?

Sears Holdings says its Shop Your Way rewards program is working — very well, in fact — but it hasn't been enough to push the retailer into the black. During the second quarter, the retailer, which operates Sears and Kmart, continued to offer traditional promotional discounts and spend on advertising, getting plenty of exposure from the popular "Ship My Pants" and "Big Gas Savings" ads. It also took a hit as more Shop Your Way members redeemed points. The retailer reported a $194 million loss during the second quarter as same-store sales fell 1.5 percent.