Mobile retail app Shopkick on Tuesday announced its software drove more than $100 million worth of in-store purchases in 2011.

According to company chiefs, consumers armed with Shopkick enabled smartphones spent $110 million at participating retailers over the last 12 months, the location based app's first full year of operation. The news comes after Shopkick, which rewards shoppers with virtual points or 'kicks' for entering stores, announced last week it had acquired more than 3 million users.

Some mobile services drive people out of stores, not into stores, with online comparison shopping that turn stores into 'showrooms.' Shopkick does the opposite, said Cyriac Roeding, CEO of shopkick.

Roeding said that Shopkick is a 'win-win' for participating retailers, with increased footfall and spending as users interact with products and view offers beamed to their smartphones as they shop in-store.

Shopkick drives people into stores by rewarding them with things they love just for visiting, he added. That helped drive $110 million in revenue with shopkick partners - last year alone.

Shopkick uses GPS and store-based scanners to track consumer's smartphones, rewarding them with 'kicks' as they enter any of the 4,000 participating Best Buy, Old Navy, Target or Macy's stores throughout the U.S. Users are also given bonus kicks for scanning barcodes on specially selected items at more than 250,000 stores nationwide.

The app, one of several location-based shopping services, has been hailed by retail experts as a possible solution to declinig retail sales.

According to the company, Shopkick has recorded more than 5 million walk-ins at participating stores, with users so far viewing more than 1 billion in-app deals and scanning 10 million items.

Last year, Shopkick entered a lucrative partnership deal with Visa, offering cardholders the opportunity to claim kicks for paying with their card at Shopkick compliant retailers.

The Buy and Collect offer is available at stores such as  Toys 'R' Us, Old Navy, Wet Seal, American Eagle.