UK consumers value store loyalty over brands, research shows

Research has found that UK consumers are significantly more loyal to stores than to brands, with loyalty driven primarily by customer service and reward incentives.

The study, conducted by digital gifting platform Prezzee, surveyed 5,000 consumers across the UK to investigate the key factors influencing loyalty to both brands and retailers.

Results show that nearly half of British shoppers (47%) identify loyalty with retailers, whereas only a third (33%) consistently purchase the same brands. The tendency to remain faithful to stores over brands is most pronounced among those over the age of 55. In this age group, 50% report loyalty to specific retailers, compared to just 22% who display loyalty to brands. Among millennials, defined in the survey as individuals aged 25 to 34, this trend is reversed, with 47% demonstrating brand loyalty compared to 42% for stores.

The research further examined what undermines consumer loyalty. Customer service emerged as the most significant factor, with 54% of respondents citing poor service as a reason for diminished trust. Other notable contributors include a decline in product or service quality (46%), price increases (38%), and negative publicity (24%).

Loyalty also appears to differ depending on whether purchases are made in-store or online. The study found that only 6% of consumers feel more loyal to specific brands when shopping online, a phenomenon possibly influenced by the abundance of available choices and the emphasis on convenience. Among those who place value on convenience, free delivery (36%) was preferred over faster delivery (27%).

Conversely, in-person shopping has a more positive impact on loyalty for a substantial portion of the population. Nearly one third (32%) of British shoppers reported heightened brand loyalty when visiting physical stores. The ability to interact with products directly, receive personalised customer service and engage in a more sensory retail environment were all identified as contributing factors.

The research also explored which initiatives are most effective at incentivising ongoing loyalty. The three most popular schemes among consumers are reward points, immediate monetary offers (such as '£5 off when you spend £15'), and flat discount vouchers (such as '£10 off'). Other notable incentives include repeat purchase cards, free gifts and access to partner rewards.

James Malia, European President and Head of Growth at Prezzee, said: "Loyalty cannot be a one way street. If a consumer is going to stay with the same store or brand, they need to be rewarded and incentivised to do so. Convenience can take you so far, but these findings underscore the complex and evolving nature of consumer loyalty in the contemporary retail landscape.

"The message is clear: brands and retailers must balance competitive pricing with in-store experience and tailored rewards that go beyond a one-size-fits-all approach. Those who offer compelling reasons for customers to return – especially through store experiences – will be best positioned to foster lasting loyalty."

The findings are based on research conducted by Censuswide, which surveyed a nationally representative sample of UK consumers aged 16 and over between late February and early March 2025. The company reports adherence to established research principles and industry standards.