UK retailers are investing in AI and immersive store experiences to deepen customer loyalty. As 87% boost investment in loyalty, the focus is on tailored rewards, better checkouts, and immersive retail moments that drive lasting customer relationships.
Winning hearts isn’t just about price tags. It’s about crafting moments shoppers remember.
Across the UK, brands are reinventing how they connect, blending smart technology with inviting store spaces to spark loyalty that truly sticks. From tailored suggestions to memorable visits, it’s a thoughtful push to keep customers close.
That’s why a striking 87% of UK retailers are now investing in deeper loyalty and fresh ways to drive sales, according to the latest American Express report. And many are turning to AI to support the drive, while also opening more physical stores.
The Amex annual study of 500 senior executives from a range of UK retailers of all sizes, reveals “notably upbeat ambitions” with 82% aiming to grow their business this year, up 10% points on a year ago.
Dan Edelman, UK General Manager, Merchant Services at American Express, said, “UK retail’s super-power has always been how the sector adapts to evolving customer demands.”
Respondents see ramping up loyalty as integral to driving that momentum, with 45% planning to either launch or enhance an existing loyalty programme this year. This is in response to customer demand, with 64% of retailers believing customers now “expect” to be rewarded for shopping with them.
Retailers Turn to AI to Deepen Personalisation
The study also found that retailers are increasingly using AI to forge stronger customer connections and build long-term loyalty. Of the businesses already using the technology, 46% highlight improving customer experience as their main focus.
Leveraging Generative AI, such as conversational chatbots, topped the list for tech investment, while 43% said they are using Gen AI to enhance online product search, while the same percentage are using it to help resolve customer queries or complaints.
By contrast, last year’s study pointed to more cautious AI adoption, with just 14% applying the tech to improve the online customer experience.
The new report also highlighted that retailers are not just focused on digital engagement strategies. Some 38% stated that they are planning to open new stores in the coming year, with beauty and fashion among the top sectors planning bricks and mortar investment.
And their motivation? A massive 88% believe experiential retail is key to driving footfall and fostering deeper loyalty, including in-store events and augmented reality, “that allow shoppers to visualise products in their own environment.”
Payments Now a Strategic Differentiator
The study revealed that payments are also moving higher on the strategic agenda, with 74% of retailers surveyed agreeing that customers now have increased expectations when it comes to the checkout experience.
Some 60% believe they would generate higher sales if they offered more payment options, with 32% describing their current payment experience as ‘outdated’.
“From investment in AI-powered personalisation, richer rewards programmes and a broader menu of payment options, merchants are prioritising ways to build lasting customer relationships,” added Dan Edelman.
In the race to win loyalty, UK retailers aren’t just keeping up. They’re setting the pace. By blending AI’s intelligence with in-store emotion, and rethinking everything from payments to personalisation, they’re turning transactions into relationships.
The message is clear: loyalty today isn’t earned at checkout. It’s built across every moment that matters.
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