Budget relief won’t guarantee supermarket loyalty as shoppers continue to hunt for value, warns Catalina UK
The Chancellor’s Budget measures to ease household energy and fuel costs may offer welcome relief for consumers, but supermarkets face a continuing battle to win their spending in the crucial run-up to Christmas, according to shopper intelligence specialist Catalina UK.
Following the Budget announcement, Catalina warns that financial relief will not automatically translate into greater supermarket loyalty, with new YouGov research showing how deeply value-seeking behaviours have become embedded in shopping habits.
The research, commissioned by Catalina UK, found one in three UK adults (34%) are using loyalty card discounts more often than a year ago, while 28% are spending more time searching for promotions and discounts and the same proportion are shopping across multiple supermarkets more often.
Despite this growing competition for shoppers’ spending, the findings reveal a significant opportunity for retailers to win loyalty through more relevant, personalised rewards.
Seven in ten adults (70%) say they would be more likely to shop at their supermarket of choice if it offered personalised rewards based on products they regularly buy, such as money-off coupons, bonus loyalty points or free products.
Simon Betts, UK Country Leader at Catalina, said: “The targeted relief announced in the Budget, from household energy support to holding fuel duties, gives families some much needed breathing space but years of cost-of-living pressures have fundamentally changed grocery shopping habits.
“Our research shows that 28% of UK adults are shopping across multiple supermarkets more frequently, demonstrating how comfortable consumers have become moving their spending wherever they find genuine value.
“The challenge for retailers and FMCG brands is ensuring any additional money in shoppers’ pockets finds its way into their aisles. That cannot mean simply throwing more discounts at customers. Retailers need to understand what people actually buy and offer relevant, personalised rewards that give them a genuine reason to return.”
The research also found that when shoppers were asked to choose the single most effective way of keeping them loyal to a supermarket, money-off coupons for products they regularly buy came out on top, selected by 29%.
With Black Friday and Christmas approaching, the findings highlight the challenge facing supermarkets as they compete for every basket during one of the most important trading periods of the year.
Betts added: “Temporary energy relief may put cash back into shoppers’ pockets this winter, but it won’t dictate where they spend it. Supermarkets still have to earn every single trip.”
