Thursday, October 21, 1999 Published at 23:52 GMT 00:52 UK
Business: The Company File
Loyalty cards losing appeal
Many shoppers say they would prefer lower prices
Supermarket loyalty cards are losing their appeal and may be ineffective at retaining shoppers, according to a report.
Loyalty cards were first launched in the UK by the supermarket chain Tesco.
The supermarket brought out their card in 1995 to encourage shoppers to return to their stores to build up points which would lead to discounts on certain items.
Most major retailers copied the idea, and by 1997 75% of all adults had signed up to at least one loyalty scheme.
But the study found there was mixed evidence that the cards really promote loyalty.
The supermarket chains Morrison's and Asda have a higher than average proportion of shoppers describing themselves as loyal - but they do not run such schemes.
The Company File Contents