The research, from the report Lessons in Loyalty and based on analysis of data from 1.4 billion transactions across 4,000 retailers in the UK and insights from banking reward programmes, found that 61% of shoppers returned to the same retailer in 2025, down from 65% the year previous.

Essential spend was at 58% of household budgets, up from 48% in 2023, with the report saying that shoppers were focusing more on value that “feels personal and meaningful” as discretionary income falls.

While loyalty programmes generally gain increased popularity in the fourth quarter, Reward said that its analysis of  data from the past year showed that 56% of festive shoppers were not returning in the new year.

Paul Jones, senior vice-president of data and insight at Reward, said: “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.”