Top Stories
Over half of Britons say loyalty cards encourage them to buy a product – NIQ
Global Banking & Finance Review®
Company
LONDON (Reuters) – More than half of Britons felt encouraged to buy products because of discounts offered through store loyalty cards, a survey from market researcher NIQ showed on Tuesday, as shoppers hunt for deals during a cost-of-living crisis.
LONDON (Reuters) – More than half of Britons felt encouraged to buy products because of discounts offered through store loyalty cards, a survey from market researcher NIQ showed on Tuesday, as shoppers hunt for deals during a cost-of-living crisis.
UK consumers’ search for cut-price products continues, with headline inflation above 10% in February and the latest data from Kantar research company showing grocery prices surging by a record 17.5% last month.
According to NIQ, 54% of Britons said that loyalty card discounts were most likely to encourage them to buy a product. More than a third of them also picked a “special price discount” for loyalty card holders as a promotion bound to influence where they shop.
“Our recent survey indicates that during a period of high inflation, shoppers are looking for different ways to save money and loyalty card savings are a ‘win-win’ strategy as they reward both shoppers and retailers,” Mike Watkins, NIQ’s UK head of retailer and business insight, said in a statement.
“They give meaningful savings, shoppers prefer the immediacy of the discount and they are a promotional mechanic likely to influence where they shop,” he added.
NIQ did not have historical comparisons for the data since values were not uniform across retailers in recent years.
Grocery sales rose 11.5% in the four weeks to March 25 after a 11.1% rise in February, NIQ said in the statement.
Watkins also said supermarkets should get a boost from the upcoming Easter weekend, while an extra holiday for King Charles’ coronation in May in addition to the usual bank holidays that month is also expected to increase sales.
(Reporting by Muvija M; Editing by Tomasz Janowski)
A loyalty card is a card issued by a retailer to customers, allowing them to earn points or receive discounts on future purchases, encouraging repeat business.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is often measured by the Consumer Price Index (CPI).
A discount is a reduction in the price of a product or service, often used as a promotional strategy to attract customers and increase sales.
Grocery sales refer to the total revenue generated from the sale of food and household items in supermarkets and grocery stores.
A cost-of-living crisis occurs when the prices of essential goods and services rise significantly, making it difficult for households to afford basic necessities.
Explore more articles in the Top Stories category
