Fashion brand Matalan is overhauling its loyalty programme and revamping its mobile app under its business transformation.

The business plans to replace its “Matalan Me Rewards” scheme with a more targeted initiative, Retail Week reported.

Speaking to the publication, Matalan chief product, brand and commercial officer Sarah Welsh said: “We are evolving a loyalty programme that speaks more deeply to the customer around the areas that she wants the most, rather than discount alone, and we will have a new loyalty proposition in the new year.”

“Many of us as retailers have been caught in the trap of discounted loyalty programmes, and what we’ve recognised from what our customers are telling us is while incentive to purchase is valuable, it can’t be driven through discount alone.”

Matalan is currently collecting data from shoppers to help shape the new loyalty scheme, the executive explained.

The clothing and homewares specialist is also refreshing its mobile app.

Welsh said: “We can see that our customers using the app are more engaged and shop more frequently, but we want to enhance that experience, so the native app’s a really exciting investment that will come in the new year.”

Additionally, the company is seeking to revamp a “significant” number of shops, after transforming 30 stores this year following a £25m investment into its physical stores.

The news comes after Matalan unveiled a series of senior hires on 6 October, as it sought to deepen its expertise across buying and design, trading and merchandising, customer and loyalty, and e-commerce.

The appointments are set to support the group’s delivery of everyday style, quality and value for customers, according to Matalan.

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