Store Loyalty: Its Impact on Retail Revenue. An Empirical Study of Purchasing Behavior in the UK

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Abstract
In this paper, we present some significant empirical findings about store loyalty and consumer spending in the United Kingdom across five retail sectors. Our findings are presented at two levels: Firstly, we compared loyalty levels across retail sectors in the UK and identified that home improvement stores generate the lowest levels of consumer loyalty. Secondly, by disaggregating the data by loyalty types, we found that, while loyal shoppers tend to have smaller monthly budgets than switchers, they spend double the amount in their “first choice” store. All our results highlight the importance of developing a corporate approach to managing customer loyalty in retailing.