Why 89% of retail brands still don't understand about loyalty

The retail market is under unprecedented pressure. Consumers are more critical than ever, choice is endless, and competition comes from every direction, from aggressive discounters to global platforms. In that context, the fight for attention and loyalty is relentless. Yet only a small group of players manage to perform strongly across the board: loyalty, differentiation, interaction, recommendation intent and indispensability.

Look at brands like Delhaize, Dirk van den Broek and Picnic. Their success doesn't come down to price or range, but to the way they combine a clear positioning with recognisability and genuine engagement.

I go to Delhaize myself from time to time, and to be honest, I find it outrageously expensive. But that only underlines the point. Their customers keep coming back, not despite the price, but perhaps precisely because of their strong brand promise around quality, calm and trust. People know they are paying more, yet they do so willingly, because the brand feels like a choice that aligns with their values.

That is the power of true loyalty. It has nothing to do with discounts or convenience, and everything to do with meaning and brand affinity.

The contrast with sectors such as fashion and home living is stark. Too often, a clear profile is missing. To consumers, these brands feel interchangeable, with little reason to stay loyal. Add to that the reality that e-commerce is now the default and international players dominate the market, and the urgency to build a distinctive brand story becomes impossible to ignore.

Loyalty doesn't come from loyalty cards or sharp pricing. The Retail Ranking shows that brands scoring highly on loyalty invest in emotional connection. Picnic consciously builds community through its tone of voice and personal service. Ekoplaza links loyalty to sustainability. For Rituals, through our Livewall label, we create digital brand experiences that attract more than 400,000 unique visitors. Online worlds people truly step into. Moments that linger.

The lesson is clear: customers don't want functional benefits alone. They want a brand that resonates, that they feel part of. Companies that understand this earn trust and build fans rather than customers.

A second hard conclusion follows: without differentiation, you don't exist. In a market where consumers can switch with a single click, mediocrity is fatal. Crisp puts radical transparency in the supply chain at the centre of its proposition. Action combines price leadership with a sense of discovery and surprise on every visit. HEMA cleverly uses recognisable icons like Takkie and Siepie to stand out. These choices work because they are sharp, distinctive and unapologetic.

For the rest of the market, the challenge is crystal clear. Having a shop and an app is no longer enough. You need to deliver a consistent, relevant and recognisable brand experience, from the shop floor to customer service.

My advice: dare to choose. Dare to polarise. Dare to tell a story that stands for something. Focus less on transactions, more on fans. In a market where only 11% are getting it right, there is still plenty of room for the other 89% to rise above mediocrity. But only if they dare to do so.