London Daily

Focus on the big picture.
Monday, Oct 26, 2026

Loyalty cards: How a big yellow label influences what we buy

Loyalty cards: How a big yellow label influences what we buy

Supermarket shoppers have long been on the lookout for yellow stickers placed on cut-price products at the end of the aisle that are approaching their best-before date.

Now the use of the big yellow label has extended to other in-store discounts - specifically lower prices targeted directly at loyalty card holders.

The colour is carefully chosen. It is supposedly warm and welcoming. And these deals, exclusive to loyalty card holders, mark a change in tactics by retailers.

Gone are the days when the Clubcard or Nectar card was used to build up points to redeem for a treat. Now they offer financially-stretched customers lower prices in the hope they do not shop elsewhere.

In return, cardholders give these businesses a deep insight into their spending preferences, and an opportunity to boost their profits.

Retailers are also exploring the potential of loyalty programmes to reward sustainability, and meet their eco targets.

Loyalty schemes have been around for decades


Loyalty points are nothing new. In the 1960s and 1970s, Green Shield Stamps were popular.

Shoppers filled books of stamps to exchange for gifts. Complete eight books and you could claim a new toaster. Fill 155 and a Lambretta scooter was yours.

The Tesco Clubcard took the idea to another level. The supermarket chain first introduced the Clubcard in 1995 and within a year, customers were spending 28% more in its stores.

Now, faced with the prospect of losing customers to the discounters Aldi and Lidl, and in light of the soaring cost of living, there has been a clear shift.

Tesco chief executive Ken Murphy, this week announcing annual profits of £1bn, said the business had "fundamentally repositioned" its discounting in recent times, including its Clubcard Prices system. The retailer claims 21 million UK households use a Clubcard.


On Tuesday, its rival Sainsbury's launched Nectar Prices - hundreds of lower-cost products for its 18 million cardholders. Outside of groceries, Boots recently said it was shifting the focus of its Advantage Card to day-to-day discounts on its own-brand products.

"It costs retailers a lot more to acquire a customer than it does to keep a customer," says consumer insight specialist Kate Hardcastle.

"So they are reminding you that if you are loyal, they are literally treating you differently as a customer. They want a narrative that they are the best and the cheapest."

In response, they hope shoppers with busy lives do not bother to shop around, and fill their baskets in one store as well as making impulse purchases of the products on offer.


Price comparison risk


The pitfall for shoppers is that these loyalty card discounts can make it more difficult to compare prices and work out value for money.

Ms Hardcastle and the consumer association Which? both highlight the difficulty some shoppers have in finding the unit price, rather than just the headline price. For example, what is the cost per 100g of the product, rather than the total price.

Ele Clark, retail editor at Which?, also points out that some of these rewards are unavailable in supermarkets' convenience stores, where those on low incomes and without a car may shop.

There is also the question of digital exclusion. As loyalty programmes migrate from physical cards to apps, then some people may miss out altogether.

The digital transformation still has a long way to go, according to Ms Hardcastle. The expansion of personalised discounts is one such area.

Retailers, if shoppers give them permission, will not only be able to track the store that shoppers are visiting, but even the aisle they are browsing.

That, and smartphone notifications, mean real-time reminders and rewards will soon be available for shoppers.


Rewards for the planet


The future, and indeed the present, use of loyalty programmes will not be focused entirely on price.

Annich McIntosh, managing editor of Loyalty Magazine, says that brands are using loyalty and membership to address customers' demands for sustainability.

The offers range from cosmetics companies providing refillable bottles, to customers collecting loyalty points that - when a target is hit - means the company cleans a beach.

Schemes in the travel sector may also reward more environmentally-friendly choices, shifting away from frequent flyer points.

Ms McIntosh says companies will also maintain a relationship with a customer after a sale, telling them how the product can eventually be recycled.

"This is about changing people's behaviour and making them feel good about it," she says.

The clear benefit for companies is that they can hit their sustainability goals and boost sales because loyal shoppers will return to the brand when they buy the next item.

Newsletter

Related Articles

0:00
0:00
Close
KEY TRENDS TO WATCH
Declassified Intelligence Files Reveal British Security Services Monitored National Health Service Founder
British Government Launches Sweeping Regulatory Crackdown on High-Risk Cosmetic Procedures
Scottish National Party Demands Ban on Using Scottish Revenues to Fund English Nuclear Energy Projects
Mayor of London Initiates Landmark Pedestrianisation of Oxford Street to Revitalise Global Retail Hub
British Judges Granted Expanded Legal Powers to Punish Convicted Killers Who Refuse to Attend Sentencing
United Kingdom Poised to Miss Reduced International Aid Spending Targets Ahead of Fiscal Review
Surging Cocaine Consumption Drives Record Drug Fatalities and Rising Crime Rates Across Britain
Department of Health and Social Care Announces One Hundred and Forty Million Pound Boost for Urgent Care
British Services Sector Records Strongest Growth in Eight Months Despite Broader Economic Uncertainty
United Kingdom Retail Sales Suffer Unexpected Decline as Consumer Confidence Plummets
Greater Manchester Mayor Andy Burnham Urges National Debate on Restoring European Union Free Movement
Deep Cabinet Divisions Emerge Over Controversial Approval of North Sea Fossil Fuel Projects
United Kingdom Government Urges Citizens to Stockpile Essential Supplies in National Resilience Pivot
Storm Boelo Kills Two People and Cuts Power to Tens of Thousands Across Great Britain
Critical Software Flaw Forces Dozens of United Kingdom Government Services Offline Amid Mass Security Warnings
UK Consumer Confidence Tumbles Amid Rising Energy Costs and Global Commodity Price Pressures
North Sea Transition Authority Approves Production from Jackdaw Gas Field to Bolster Domestic Energy Security
Storm Boelo Leaves Tens of Thousands of Households Without Power Across Scotland and Northern Ireland
UK Government Launches National Be Ready Campaign Urging Households to Prepare Three Days of Emergency Supplies
Department for Environment Food and Rural Affairs Implements Stricter Water Quality Regulations for British Rivers
Welsh Government Launches Major Renewable Energy Initiative to Expand Offshore Wind Capacity Along the Coast
Northern Ireland Executive Reaches Final Agreement on Comprehensive Regional Infrastructure Modernization Plan
Office for National Statistics Reports Moderate Increase in British Retail Sales Driven by Autumn Discounts
Scottish First Minister Announces Emergency Housing Strategy to Tackle Severe Homelessness Across Urban Centers
Automotive Industry Leaders in the United Kingdom Urge Government Support for Electric Vehicle Manufacturing Transition
United Kingdom and European Union Initiate High-Level Negotiations on Post-Brexit Defense and Security Pact
National Health Service England Introduces Sweeping Digital Reforms to Reduce Hospital Waiting Lists Nationwide
Chancellor of the Exchequer Outlines Emergency Fiscal Measures to Address Local Government Funding Crises Across England
Bank of England Governor Warns of Persistent Inflation Pressures Impacting Interest Rate Decisions in the United Kingdom
UK Conservative Party Suspends Former Electoral Candidate Following Undercover Investigation
Actors and Writers Condemn British Anti Terror Legislation Targeting Activist Groups and Free Speech
Central Bank and Treasury Monitor Inflation Risks as International Monetary Fund Upgrades United Kingdom Growth Forecast
Storm Boelo Batters British Isles With Eighty Mile Per Hour Winds Causing Widespread Power Outages
British Intelligence Services and Technology Firms Partner to Counter Artificial Intelligence Enabled Cybersecurity Threats
UK Consumer Confidence Falls at Fastest Rate Since Brexit Vote as Cost of Living Intensifies
Chancellor John Healey Prepares Landmark Autumn Budget Focused on Devolution and Fiscal Rules
Northern Ireland Executive Ministers Reach Consensus on Shared Economic Development Priorities to Stimulate Regional Growth in Belfast
Department for Business and Trade Finalizes Conditional Support Package for Advanced Semiconductor Fabrication Facilities in Newport
Welsh Government Unveils Regional Industrial Development Strategy to Attract Green Energy Investment to South Wales Manufacturing Hubs
Foreign Secretary David Lammy Concludes Diplomatic Mission to European Capital Cities to Strengthen Post-Brexit Defense Cooperation
Department for Environment, Food and Rural Affairs Implements Stricter Regulatory Compliance Standards for Water Utilities Across England
Office for National Statistics Reports Moderate Wage Growth Stabilization and Resilient Employment Figures Across the United Kingdom
Scottish Government and Trade Union Representatives Reach Tentative Pay Agreement for Public Sector Transport Workers in Edinburgh
National Health Service England Announces Emergency Capital Funding Allocation to Reduce Winter Emergency Department Bottlenecks
Bank of England Monetary Policy Committee Signals Cautious Approach to Interest Rate Reductions Amid Persistent Inflation Pressures
British Prime Minister Keir Starmer and Treasury Officials Finalize Urgent Fiscal Adjustments Ahead of Upcoming National Budget
Tour de France Organizers Confirm Historic Grand Depart Featuring Edinburgh and Yorkshire Stages
National Cyber Security Centre Issues Urgent Alerts Following Global Security Vulnerability in Core Programming Software
Independent Energy Analysts Warn Great Britain Faces Highest Winter Power Tariffs in Europe
×