By Dan Edelman, UK general manager, merchant services, American Express
Brand strength has long been one of retail’s most valuable assets. But in 2026, it is no longer enough.
The latest American Express Spending Spotlight research shows that only a fifth (21%) of consumers say brand reputation strongly influences their purchasing decisions. Meanwhile, almost three-quarters (72%) say they are not concerned about owning popular, branded products, and just 39% prioritise a positive brand reputation over price.
For UK retailers, this signals a structural shift. While brand power still differentiates, it no longer guarantees repeat spend.
The empowered, intentional consumer
Today’s shoppers are not simply price sensitive – they are savvy value optimisers. AI comparison tools, cashback platforms and personalised promotions have permanently reset expectations. Consumers can benchmark prices instantly, surface alternative options in seconds and identify offers with minimal effort. As a result, shopping has become more intentional.
Our research shows that nearly half (44%) of consumers have been actively searching for deals and promotions out of habit for several years, with a further 17% adopting this behaviour over the past year and planning to continue with it. In parallel, 42% say discounts and offers strongly influence whether they buy – more than double the proportion who prioritise brand reputation.
This behaviour is not cyclical. It reflects a more deliberate approach to spending.
Not a race to the bottom
Crucially, however, this is not a story of consumers abandoning quality in favour of the cheapest option. Sixty per cent say they are willing to pay more for a quality product, and almost half (46%) would choose a brand known for excellent customer service even at a higher price point.
The implication for retailers is significant: savvy shopping does not automatically equate to margin erosion.
Consumers want quality and a top-notch experience, but they also want to spend smartly and know they are being rewarded for that spend. The retailers that succeed will be those that reconcile these two priorities, rather than viewing them as opposing forces.
Reframing loyalty
Too often, loyalty programmes are treated as promotional mechanics. In reality, they should be viewed as commercial infrastructure – shaping frequency, share of wallet and long-term customer lifetime value.
Consumer behaviour reinforces this – our research found that nearly two thirds (61%) of consumers plan in advance to shop at retailers that offer loyalty schemes. For them, loyalty is not an afterthought; it is actively shaping how and where they choose to spend.
Well-designed and effective programmes allow retailers to provide value without defaulting to blanket discounting. They create opportunities for targeted rewards, personalised engagement and data-driven insight – reinforcing brand equity while protecting margin.
In an environment where acquisition costs are rising and brand switching is commonplace, this ability to influence planned spend is a powerful lever.
From transactions to deeper relationships
Through our Amex Offers programme, we see how data-led, personalised offers can shift customer perceptions and behaviour. When rewards feel relevant rather than generic, customers interpret them as recognition – not promotion.
American Express operates a closed-loop network – meaning we manage the relationships with both merchants and consumers – enabling us to understand spend patterns across different categories and channels. With Amex Offers, this insight allows retailers to reach engaged, high-spending Cardmembers with targeted offers that drive incremental sales and measurable return on investment.
Retailers face no shortage of pressures in 2026: cost control, margin management, digital competition and evolving consumer expectations chief among them.
Brand power remains important, but it must now be complemented by structured, data-led loyalty strategies that reward savvy shoppers. In an increasingly value-conscious environment, that combination of premium positioning and intelligent reward strategy is what offers competitive advantage.
The question is no longer whether to invest in loyalty, it is how it becomes strategically embedded into the broader growth model. Retailers that treat loyalty as infrastructure rather than incentive will be best placed to strengthen relationships and drive sustainable spend in the period ahead.
