The best loyalty schemes in the UK according to the Retail Loyalty Index 2026

Key takeaways:

Loyalty has become one of the most important growth levers in UK retail.

As acquisition costs rise and competition intensifies, retaining and growing existing customers matters more than ever. Retail loyalty programmes influence frequency, spend and long-term revenue stability, so investment is continuing to increase across the sector.

Yet despite that focus, there hasn’t been a consistent way to benchmark loyalty performance across the market. Retailers can measure participation levels and redemption rates within their own schemes, but comparing performance category-wide – or understanding what genuinely drives continued shopping behaviour – hasn’t been straightforward.

That’s why we built the Retail Loyalty Index 2026. The Index benchmarks 51 leading UK loyalty schemes based on a survey of 2,200 consumers. It doesn’t just rank programmes. It measures loyalty performance in a way that connects directly to customer retention and continued shopping intent.

What are the best loyalty schemes in the UK?

According to the UK Retail Loyalty Index 2026, the strongest performing UK loyalty schemes are:

1. Tesco
2. Leon
3. Pret
4. Wickes
5. Hamleys

What stands out immediately is the mix of sectors represented. Grocery, QSR, Coffee, DIY and Specialty categories all appear in the top five. That range reinforces an important point: high-performing customer loyalty schemes are not confined to one type of retail model. Performance depends on how well the programme aligns with customer expectations within its category:

• Tesco performs strongly on continued shopping intent and perceived generosity. Customers consistently describe the programme as flexible and rewarding, with redemption options that feel relevant to everyday shopping. Its strength lies in delivering consistent value at scale.
• Leon and Pret demonstrate how clarity and personalisation drive engagement in high-frequency environments. When value is visible and easy to access, participation becomes habitual. In QSR loyalty programmes, simplicity and recognition carry significant weight.
• Wickes shows how loyalty can succeed in a considered purchase category. A clear 10% loyalty discount provides predictable value without unnecessary complexity. In retail categories where purchases are less frequent but higher value, this kind of clarity builds customer confidence and supports retention.
• Hamleys stands out for emotional connection. Customers consistently reference trust and transparency, particularly around communication and data handling. That perception shapes loyalty performance just as much as the reward structure itself.

Across all five programmes, the common thread is clear value and reduced friction. Customers understand what they’re getting and feel the value exchange is fair.

The link between loyalty performance and customer retention and revenue.

One of the most significant findings from the Retail Loyalty Index is the measurable relationship between loyalty performance and consumers’ future purchasing behaviour. The research shows that for every one point increase in Retail Loyalty Index (RLI) score, customer intent to continue shopping increases by 7–8%.

This is not a marginal uplift. It represents a meaningful shift in forward behaviour. In commercial terms, that directly supports customer retention, purchase frequency and long-term revenue stability.

For retailers under pressure to demonstrate the value of their customer loyalty strategy, this relationship reframes the conversation. Loyalty isn’t simply an engagement tool or a marketing initiative. It’s a measurable commercial lever tied to continued shopping intent. In a market where sustainable growth is getting harder to achieve, the connection between loyalty performance and future revenue becomes strategically significant.

Why emotional loyalty matters in retail loyalty programmes.

Clear financial value is essential in any customer loyalty scheme. Customers need to understand what they’re receiving and why it justifies their participation. However, financial incentives alone do not explain why some loyalty programmes outperform others.

The strongest performing UK loyalty schemes demonstrate that trust and recognition play a critical role. Hamleys performs strongly not because it offers the richest reward mechanics, but because customers perceive the programme as fair and transparent. Leon’s performance reflects something similar; members consistently report feeling recognised, reinforcing continued engagement.

Customers do not repeatedly engage with retail loyalty programmes solely because they’ve calculated the reward value. They return because the experience feels worthwhile and dependable, meaning loyalty performance is shaped by both the value offered and the confidence customers have in the relationship.

Download the Retail Loyalty Index.

If you’re reviewing your customer retention strategy or evaluating the performance of your retail loyalty programme, the full report offers deeper analysis and the context needed to make informed decisions.