Brand relationships are being put to the test in the run up to Peak Trading, as loyalty dips -4 percentage points year-on-year, according to the latest data from customer engagement company, Reward.

Analysis of 1.4billion transactions across 4,000 retailers in its ‘Lessons in Loyalty’ report showed that 61% of consumers re-purchased from the same retailer in 2025, a four point dip from 2024 (65%).

Squeezed consumers shop smarter

Squeezed household incomes and constrained spending power were among the main reasons attributed to increasing levels of brand switching. Essential spend now accounts for 58% of household budgets – a +10 percentage point rise compared to 2023.

“Consumers aren’t necessarily spending less – they’re spending smarter,” said Paul Jones, SVP of Data & Insight at Reward. “Loyalty is no longer [a] guaranteed habit but [it is] earned through relevance and value.”

He added brands need to lean into personalisation, based on an understanding of these changing consumer dynamics, in order to retain shoppers.

Price consistency becomes a non-negotiable for loyalty

Separate research from Pricer also points to the impact of price-sensitivity and cost vigilance on loyalty, with cross-channel pricing consistency increasingly becoming a yardstick of brand trust as well as a driver of repeat purchase behaviour.

Almost eight in ten consumers (79%) in its poll say that price consistency now directly impacts their loyalty, while a further 78% expect in-store and online prices to be the same.

“Price integrity has become a hygiene factor,” said Finn Wikander, Chief Product Officer at Pricer. “Retailers who fail to unify prices and promotions across channels are actively pushing their customers to competitors.”

“Shoppers are seeking both value and fairness. They’ll hunt for deals, but they still expect retailers to keep pricing predictable and transparent,” Wikander added.

Loyalty beyond Peak

As consumers grow more discerning and display savvier shopping habits, loyalty programmes have become an effective lever for influencing spend – but, the challenge isn’t customer acquisition, rather one of retention, says Reward’s data.

Its insights show that during the Golden Quarter, reward and loyalty scheme engagement surges; the period accounts for 31% of all annual rewards earned and 28% of points spent.

However, over half (56%) of shoppers won’t re-engage with brands in Q1, underlining the challenge of converting peak-season participation into lasting longer-term loyalty.