By Glossy sister site Modern Retail, the 2026 Modern Retail Index takes a deep look at the top retailers — from big-box stores to pharmacies to specialty retailers — and analyzes how they are recalibrating amid current industry challenges. Among other strategies described in the Index, many are retooling their loyalty programs.
According to Modern Retail’s analysis, 89% percent of indexed retailers currently have a loyalty program, up from 79% last year. Those percentages include both free and paid loyalty programs.
A March 2025 Salesforce survey similarly found that two-thirds of retailers offered loyalty programs, and another 29% planned to introduce one in the next 24 months. In the retail space, “brand loyalty is so critical to success,” Jen Jones, CMO at Commercetools, told Modern Retail in October 2025. She said that brand loyalty will become even more crucial as AI engines like ChatGPT become even more effective at facilitating purchases.
“I think brands that don’t invest in loyalty and don’t know their customer will have the same experience they did in the [early] Amazon days,” Jones said. “If Amazon could take over your customer, so can ChatGPT. But those that invest in loyalty and continue to rethink what loyalty means in this era will fare well.”
In an effort to appeal to its existing consumer base, Target offered a free year of its Target Circle 360 membership ($99 annually) to members of its free Target Circle loyalty program who met a minimum spend requirement between August and September 2025.
Brad Jashinsky, retail analyst at Gartner, said tying the deal to how much customers spend helps Target hone in on “shoppers that are going to actually take advantage of [Target Circle 360].” But, he pointed out that other retailers have made additions to their loyalty programs that go far beyond adjusting prices. “They are definitely behind, in terms of where Amazon and Walmart are in offering more of those ancillary products and services.”
Amazon and Walmart have added perks and third-party services to their paid membership programs, such as including Prime Video streaming with an Amazon Prime membership and giving Walmart+ members the choice of a Paramount+ or Peacock subscription.
Barnes & Noble and Lowe’s now offer more than one loyalty program. Barnes & Noble has both a free and a paid membership. The paid version provides benefits tailored to its most frequent shoppers, while the free version aims to convert occasional shoppers into returning customers.
Lowe’s launched its MyLowe’s Rewards loyalty program in 2024. The free membership is targeted at homeowners and includes benefits such as free shipping and DIY workshops. In February 2025, Lowe’s relaunched its MVPs Pro Rewards & Partnership Program as MyLowe’s Pro Rewards. It includes a different set of benefits aimed at professionals, including people authorized to buy on behalf of a business, with bulk discounts and volume savings, such as a 20% discount after spending more than $3,000 on paint.
“When we crafted these strategies, we had to take into account the unique needs of each of those customer bases and then find a simple way to deliver that value through one spine of loyalty that had discrete offerings for each customer,” Amanda Bailey, vp of customer marketing and loyalty at Lowe’s, told Modern Retail in March 2025.
Meanwhile, Macy’s stopped accepting enrollments for its paid membership program, Red Carpet by Macy’s, within the past year. The program provided perks such as extra reward points, free shipping and a dedicated concierge for returns, which differentiated it from Macy’s free loyalty program that follows a tiered system based on annual customer spending.
