What happens to a retail store’s customer loyalty program when it is sold?

Start with what the program actually is. It may be a software account in the seller’s name, a paper stamp card, or a simple spreadsheet of phone numbers. Ask who owns the member data, what members agreed to when they signed up, and whether that consent allows the list to move to a new owner. Your lawyer can tell you what applies to privacy and transfers.

Then look at the promises outstanding. Unredeemed points, free-item rewards and birthday offers are all obligations a buyer may have to honour to keep goodwill. Ask for a current statement of what members hold, and ask how the seller’s books treat it. Your accountant can tell you how to reflect it in the price discussion.

Finally, decide whether you want the program at all. Check how many members still shop, whether the rewards cost more than they bring back, and whether the system can be transferred or must be rebuilt. If you plan to change the terms, think about how you will tell members, and whether regulars will see the change as a loss. Keeping the program steady through the first season is often the calmer choice.

Key takeaways

• Ask who owns the member data and whether it may legally move to you.
• Get a statement of points and rewards members hold today.
• Decide early whether to keep, change or close the program.
• Plan how you will tell members about any change to the terms.