As household budgets tighten and shoppers become more selective, loyalty across UK retail is slipping. New data from Reward, the global leader in Customer Engagement and Commerce Media, shows that just 61% of shoppers returned to the same retailer in 2025, down from 65% last year – a four-point decline that signals growing pressure on brand relationships.
- Returning shoppers down 4-points YOY
- A third (31%) of all annual rewards earned in Golden Quarter (October–December)
- Over a quarter (28%) of all annual rewards earned in Golden Quarter
- 56% of festive shoppers don’t re-engage with brands in Q1
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% of household budgets, up from 48% two years ago, leaving shoppers with less discretionary income and a sharper focus on value that feels personal and meaningful.
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.
– Paul Jones, SVP of Data & Insight, Reward
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%) of all annual rewards earned and over a quarter (28%) spent, representing a higher share typically seen across any other three-month period. Yet 56% of festive shoppers don’t re-engage with brands in Q1, underlining the challenge of converting peak-season participation into lasting loyalty.
Reward’s analysis highlights how commerce media – linking retail and banking ecosystems through reward-led engagement – is becoming a key growth driver. By combining deep transactional insight with real-time activation, brands can influence where, when, and how consumers spend.
Commerce media is changing the loyalty landscape. It connects retailers and banks around a single, data-driven view of the customer – enabling brands to act with precision and relevance. The winners of the 2025 Golden Quarter will be those that move fastest to activate insight, deliver personalised value at scale, and use reward-led engagement to build loyalty that lasts long after the festive season.
– Paul Jones, SVP of Data & Insight, Reward
