Grocery retailers driving ~3.8% incremental sales growth with new data-driven loyalty programmes

Business Wire

a day ago

SYDNEY--(BUSINESS WIRE)--Grocery retailers deploying L's tactical loyalty campaigns see an average 3.8% like-for-like sales growth*, even as rising costs, global trade tensions and inflation put additional pressure on already slim margins. With tariffs and supply chain disruptions pushing up consumer prices, shoppers are prioritising value more than ever when it comes to where to shop, how often and why.
" Retailers are navigating a perfect storm of rising costs and disrupted shopper behaviour patterns triggered by cost-of-living concerns," says Sue Temple, General Manager of L - founders of loyalty Pacific. "In the search for value, 85% of Australian households now shop with multiple stores, driving store repertoires to all-time highs with 48% changing that store list from week to week.' **
As consumer spending habits turn toward value-driven purchasing, retailers must rethink their promotional strategies to differentiate their offerings and protect their bottom line whilst not compromising their long-term brand proposition. 'With Total Store Impact, we go beyond building campaigns – we're offering a proven, data-driven approach to growing sales today and building brand equity for tomorrow,' said Sue.
Data-Driven Tactical Loyalty: A Smarter Approach to Retail Growth
L's new data-driven model, Total Store Impact, strategically integrates tactical loyalty campaigns into the retailer's marketing mix, creating a continuous cycle of value for customers and growth for retailers. By incentivising visits through highly desirable and exclusive free rewards, shoppers are encouraged to return more frequently and spend more per trip. This short-term boost enables retailers to generate immediate revenue and reinvest in their operations, fuelling a positive productivity loop whilst also impacting shopper perceptions of value from their weekly shop.
What sets L's approach apart?
— Immediate Business Gains: Retailers implementing L's model have seen 3.8% average like-for-like sales growth – a direct impact on revenue and profitability.
— Sustained Brand Growth: By embedding emotional connection, brand alignment and sustained engagement strategies, retailers strengthen their long-term brand equity and reputation, ensuring sustainable growth.
— AI & Consumer Insights: By leveraging predictive analytics, L forecasts customer behaviour and optimises operations for retailers, ensuring seamless execution.
A Global View from the Centre of Retail
As the strategic partner for the world's leading retailers for more than 30 years, L brings unique insight into the challenges shaping the industry.
' Every retailer I speak with faces the same challenge: how do we protect margins while continuing to engage customers meaningfully? ' says Temple. ' The reality is that traditional promotions and price cuts are no longer enough and in Australia are being actively scrutinised by the regulatory bodies on matters of simplicity and transparency. Retailers need a data-driven, total-store strategy that enhances storewide performance, differentiates their brand and keeps customers coming back more often.'
With a newly launched website and an upcoming presence at the Consumer Goods Forum (CGF), L is doubling down on its mission to help retailers thrive. Visit www.L-founders.com to learn more.
Source:
*sales growth based on analysis of 43 campaigns across 28 retailers in 13 markets. Final number may vary per region.
** L - founders of loyalty customer survey May 2025 (517 respondents)
About L - founders of loyalty
L - founders of loyalty is the global leader in tactical loyalty campaigns for grocery retailers. With over 30 years of experience across 35 markets and five continents, L partners with 100+ leading grocery retailers, representing nearly €500B in annual sales and engaging over 60M customers worldwide.
At the core of their approach is Total Store Impact – a data-driven business model designed to optimise customer spending across the entire store assortment. By integrating behavioural insights, AI-driven analytics and precision-targeted incentives, L's campaigns boost sales productivity and improve profit margins in the short term, while strengthening brand equity and long-term business growth.
For more details, visit www.L-founders.com.