Are Loyalty Programmes Still “a Thing” in High-Fashion Retail? Understanding Generation Z’s Perspective

This study investigates the relevance and perception of loyalty programmes (LPs) among Generation Z (Gen Z) consumers in the high-fashion retail sector. While LPs are well-established tools for fostering customer retention, their effectiveness among Gen Z, a cohort characterized by digital fluency, a preference for authenticity, and distinct consumption values, remains underexplored. Given the high-fashion context, where exclusivity and identity are critical, this study examines the extent to which LPs resonate with this generation. Utilizing a qualitative methodology and with the help of thematic analysis, we reveal four key dimensions: drivers of high-fashion consumption, shopping preferences, customer loyalty patterns, and the utilitarian perspective of LPs. Findings reveal that Gen Z consumers prioritize quality and brand identity, favour online channels for convenience, and assess LPs through a pragmatic lens, emphasizing simplicity, transparency, and immediate rewards. Although emotional brand connections exist, they are secondary to tangible benefits. Tiered and experiential rewards are appreciated but rarely drive engagement. The findings suggest that LPs can retain strategic relevance if redesigned to reflect Gen Z's digital behaviours and demand for personalization. The study offers actionable insights for high-fashion retailers aiming to optimize LP design and communication strategies for this emerging consumer segment.