More than half of shoppers in the UK feel encouraged to buy products because of discounts offered through store loyalty cards, a survey from market researcher NIQ has shown, as they 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 showing grocery prices surging by a record 17.5% last month.
According to NIQ, 54% of shoppers said that loyalty card discounts were most likely to encourage them to buy a product.
A 'Win-Win' Strategy
"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 provide 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 25 March 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.
He commented, "Sales should rally this week for Easter (against pre-Easter week last year), and sales at grocery retailers could top £3 billion this week, achieving growth in excess of 20%, which will be welcome news for retailers."
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