Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education



Front Page

World

UK

UK Politics

Business

Sci/Tech

Health

Education

Sport

Entertainment

Talking Point

In Depth

On Air

Archive
Feedback
Low Graphics
Help

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.


The BBC's John Moylan: "Loyalty cards do not deliver loyalty"
The study by market research company Mintel found that the number of people with loyalty cards has not increased in the past two years.


[ image: Asda has high customer loyalty but no card]
Asda has high customer loyalty but no card
Their research also found a third of people preferred low prices to points or other incentives.

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.





Advanced options | Search tips




Back to top | BBC News Home | BBC Homepage | ©


The Company File Contents


Relevant Stories

01 Oct 99 | The Company File
Fresh stores war erupts





Internet Links


Tesco

Sainsbury's

Asda

Mintel


The BBC is not responsible for the content of external internet sites.




In this section

Microsoft trial mediator welcomed

Vodafone takeover battle heats up

Christmas turkey strike vote

NatWest bid timetable frozen

France faces EU action over electricity

Pace enters US cable heartland

Mannesmann fights back

Storehouse splits up Mothercare and Bhs

The rapid rise of Vodafone

The hidden shopping bills

Europe's top net stock

Safeway faces cash demand probe

Mitchell intervenes to help shipyard

New factory creates 500 jobs

Drugs company announces 300 jobs

BT speeds internet access

ICL creates 1,000 UK jobs

National Power splits in two

NTT to slash workforce

Scoot links up with Vivendi

New freedom for Post Office

Insolvent firms to get breathing space

Airtours profits jump 12%

Freeserve shares surge

LVMH buys UK auction house

Rover - a car firm's troubles