The sports retail industry is undergoing a period of rapid change, shaped by new trends and challenges. David Tews, former Head of International Marketing at Hervis, shared exclusive insights into Hervis’s strategy with us on the “hello again” podcast.
He reveals how a major player like Hervis is dealing with the current changes, what role digital customer loyalty and the Hervis app, developed in-house, play in this context, and how the company is operating successfully despite the current challenging market environment.
Hervis in the Sports Retail Industry: Figures and Positioning
Hervis is a well-known name in the sports retail sector: How large are you exactly and what makes Hervis so special?
David Tews: „Hervis is a sports retailer with approximately 250 stores in five countries and annual revenue of about 500 million euros. What sets us apart is that we are a directly managed company—unlike many of our competitors, which are organized as cooperatives.”.
“This definitely results in short decision-making processes in some areas, and we can implement key decisions quickly. We’ve been in the market for 55 years now, and in recent years we’ve deliberately positioned ourselves outside the discount segment in order to elevate the brand’s image."
Challenges in the Sports Retail Industry: Inflation, Travel Trends, and Market Consolidation
The sports retail sector is currently experiencing turbulent times. Where do you see the biggest challenges right now and how have you adapted your strategy?
David Tews: „The market is facing major challenges right now. During the pandemic, there was a veritable boom in the sports retail sector, as many people took up outdoor sports. Now we’re really feeling the shift toward the travel industry. People are investing more in vacations again instead of in new sports gear.”.
This leads to a certain degree of saturation and market consolidation. We need to examine our locations very carefully, including in terms of price points. “The whole issue of inflation, energy costs, and interest rates has meant that people have less money to spend and are thinking very carefully about what they spend it on.”
Customer Behavior at Hervis: Purchase Frequency and Shopping Cart
Speaking of customer behavior: How often does an Hervis customer visit on average, and what does the typical shopping cart look like?
David Tews: „In Austria, this is something special because we also include the bicycle retail sector, which naturally increases the average basket size. But if we set that aside, a customer who makes a purchase comes to us three to seven times a year.
Many shop two to three times a year, since these are often seasonal purchases. Our peak sales months, with the highest average basket sizes, are in the winter—specifically November, December, and January—since items like ski jackets are naturally more expensive than a pair of athletic pants in the summer. On average, shopping carts in the sports retail sector range between 80 and 160 euros.“
| Key figure | Value at Hervis |
|---|---|
| Stores | about 250 in 5 countries |
| Annual Revenue | approx. 500 million euros |
| Frequency of purchases per customer per year | 2–7 times (excluding bicycle sales) |
| Average Shopping Cart | 80–160 € |
| Revenue Share from Loyalty Program | high double-digit percentage range |
| Level of Digital Adoption Among Club Members | 100 % (1.3 million members) |
Nowadays, I send a weekly message to customers through the app. Of course, that wasn't possible on this scale back then.
David Tews, Head of International Marketing at Hervis
From a Card System to an App: The Digital Transformation of the Hervis Sports Club
You have been running the Hervis Sports Club for over 20 years and recently switched from a card-based system to an app. What was the reason for this step and how did the conversion go?
David Tews: „The Hervis Sports Club is absolutely essential for us. We generate high double-digit revenue—that is, over 20 %—through our loyalty program. Two and a half years ago, we made a complete switch to the app. The main reason was digitalization. We no longer wanted to produce and mail plastic cards because that incurred high costs.
We've also updated our rewards program: Previously, cashback was available only after reaching a certain minimum spending threshold. Now , customers earn points starting with their very first euro, which they can redeem at any time. This is a major advantage and makes our communication much faster.
The transition was a huge step and also involved some risk, since we canceled our subscription to the old system. But we believed in the club and knew that our customers were loyal. We notified all of our customers and helped them switch to the app.
The staff at our branches received comprehensive training, and we launched an international campaign. The results are impressive: 100 % of our 1.3 million club members are now digital. Only about 25 % have enabled push notifications, but email is a very strong channel for us.“
Conclusion: Digitalization as a Competitive Advantage
Hervis demonstrates how an established sporting goods retailer can focus on customer loyalty even during economically challenging times: through a systematic transition from a card system to an app, a fair points system that starts with the very first euro, and a club digitization rate of 100 %. The result is a loyalty program that generates a high double-digit percentage of total revenue and demonstrates that digital customer loyalty is sustainable even during turbulent market conditions.
FAQ: Frequently Asked Questions About Hervis and Digital Customer Loyalty in the Sports Retail Industry
How big is Hervis as a sporting goods retailer?
Hervis operates approximately 250 stores in five countries and generates annual revenue of about 500 million euros. As a directly managed company, Hervis differs from many of its cooperatively organized competitors in the sporting goods retail sector.
On average, how often do Hervis customers make a purchase?
Excluding bicycle sales, a customer visits Hervis about three to seven times a year; many make two or three purchases. The average shopping cart total ranges from 80 to 160 euros, and is particularly high during the winter months.
Why did Hervis switch from a card system to an app?
The main reason was digitization: Hervis no longer wanted to produce and mail expensive plastic cards. At the same time, the rewards program was made fairer, since customers can now earn points starting with their very first euro, rather than having to reach a minimum spending threshold to receive cashback.
To what extent has the Hervis Sports Club been digitized?
100 % of the 1.3 million club members now use the digital app. About 25 % of them have also enabled push notifications, while email remains a particularly strong communication channel.
What percentage of Hervis's revenue comes from the loyalty program?
The Hervis Sports Club accounts for a high double-digit percentage—that is, over 20 %—of total revenue. This makes the program one of the most important components of Hervis’s overall business strategy.
