Reward research reveals growing shopper loyalty fragmentation in UK grocery sector with discounters benefitting

Reward, a specialist in customer engagement and commerce media, has released new consumer spending insights revealing a continued decline in brand loyalty among UK grocery shoppers. 

Switching behaviour among UK grocery shoppers has accelerated since 2023, with June 2025 marking a new high - as 41% of consumers move away from their primary grocer. Discounters are benefitting most from this shift as shoppers manage their budgets, claiming a market share of 20% in June - higher than their 2025 average of 19.3%.

Meanwhile, cross-shopping is now the norm, with 80% of consumers using two or more grocers in June and the average shopper visiting  3.2 different grocers. These behaviours reflect the growing importance of price, availability, and perceived value in shaping grocery choices.

Key takeaways include:

• Top-up shopping dominates: In 2025, 67% of grocery transactions were smaller, frequent shops – up from 61.5% in 2019. The big weekly trolley shop is increasingly being replaced by "little and often" purchases that reflect immediate household needs.

• Online is embedded: Online grocery shopping accounted for 11.4% of spend in June, a figure that has remained stable post-pandemic, indicating online is now a standard channel for all types of shopping missions - not just a contingency.

• Value is more than price: While discounter grocers gain ground, full range grocers that invest in personalised loyalty schemes and convenient multi-channel experiences have maintained around 42% of market share since 2019. Consumers are weighing price alongside quality, convenience, and the benefits offered through loyalty.

Paul Jones, SVP Data & Insights at Reward, comments: “Our insights confirm a key trend that’s been building: loyalty isn’t dead - it’s evolving, and it must be earned. Grocers can no longer depend on routine habits; today’s shoppers are selective, value-driven, and quick to switch.”

“In this environment, deeply understanding customer behaviour and market dynamics is more critical than ever. Retailers that harness data driven personalisation and activate contextual spend insights through commerce media strategies will be best placed to drive meaningful engagement, long-term loyalty, and sustained growth in an increasingly complex landscape.”

2025 RTIH INNOVATION AWARDS

Grocery retail will be a key focus area at the 2025 RTIH Innovation Awards.

The awards, which are now open for entries, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.