As household budgets tighten and shoppers become more selective, loyalty across UK retail is slipping, according to new research from Reward. Its data shows that just 61 per cent of shoppers returned to the same retailer in 2025, down from 65 per cent last year – a four-point decline that signals growing pressure on brand relationships.
Drawn from 1.4 billion anonymised transactions across 4,000 retailers, and published in Reward’s latest report “Lessons in Loyalty: Turning Festive Peaks into Year-Round Engagement”, the findings reflect the impact of constrained spending power. Essential spend now accounts for 58 per cent of household budgets, up from 48 per cent two years ago, leaving shoppers with less discretionary income and a sharper focus on value that feels personal and meaningful.
Paul Jones, SVP of Data & Insight at Reward, said: “Our data shows that consumers aren’t necessarily spending less – they’re spending smarter. In today’s environment, loyalty is no longer guaranteed by habit but earned through relevance and value. The brands that understand changing motivations and can personalise their engagement are the ones best placed to retain customers.”
As consumers grow more discerning, loyalty programmes have become one of the most effective levers for influencing spend and driving retention. During the Golden Quarter (October–December), reward engagement surges – with nearly a third (31 per cent) of all annual rewards earned and over a quarter (28 per cent) spent, representing a higher share typically seen across any other three-month period. Yet 56 per cent of festive shoppers don’t re-engage with brands in Q1, underlining the challenge of converting peak-season participation into lasting loyalty.
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