Consumers in the US and UK are open to sharing their transactional data, but only if they receive a clear benefit, according to new research from Dunnhumby, a global data analytics firm that works with grocery retailers and food brands.
Retail media, such as store apps and loyalty programs, presents opportunities for retailers and CPG companies looking to capture consumer dollars. Ninety-one percent of US and UK survey respondents said they are comfortable having their data captured under the condition that they receive more personalized and relevant ads, according to Dunnhumby.
Seven out of 10 shoppers said they are more likely to trust personalized ads, while only a quarter said they trust generic advertising, according to Dunnhumby’s consumer study Retail Media: technology, trust and retail experiences reshaping shopper decisions.
“Today’s world is filled with marketing messages, so it’s vital retailers and brands break through the noise with deep shopper loyalty and quality engagements – to build trust, create the best shopper experience – and ultimately grow their business,” said Michael Schuh, head of retail media at Dunnhumby.
Advertisers might have a tougher time breaking through to Brits, though, according to a 2025 YouGov report that shows 57% of survey respondents agree with the statement “personalized advertisements creep me out.”
“More than one in four Brits agree that personalized advertising is helpful for discovering new products that they may want to buy (28%). This increases to 48% among the Gen Z cohort,” according to YouGov.
Personalization is the new norm
While some consumers might be skeptical of personalization in sales, Dunnhumby’s shopper survey found that many have come to expect it.
Platforms like Netflix and Spotify, which capture consumer habits and use the data to make suggestions, have normalized personalization.
“While that has helped to ease any concerns about intrusiveness, it’s raised expectations, too,” according to the report. “Just as viewers and listeners want to quickly get to the content they’re interested in, shoppers expect retailers to personalize in a way that reflects their reality.”
The survey found that more than two-thirds of respondents (69%) said they trust personalized product suggestions based on their past purchases. That dropped to 55% for recommendations based on promotions and discounts.
Less than a third (30%) trust suggestions based on what “people like me” tend to buy, while 24% trust suggestions based on general trends.
“Simply, shoppers show a clear preference for targeting that feels grounded in their own behaviors – testament to the inherent value of retailer data when building trust in personalization at scale,” Dunnhumby said.
Precision is key in personalization
Retailers may need to work to earn consumers’ trust, as less than half (42%) of survey respondents aged 18 to 54 said they are extremely or very comfortable sharing their shopping information in exchange for more personalized offers, Dunnhumby found.
Only 8% said they’re not at all comfortable with sharing their shopping data, which Dunnhumby said shows “it’s no longer a matter of whether they should (share data), but what they’ll get in return.”
About 55% of survey respondents said price and discounts are the main driver. Roughly 42% count relevance to their interests as a factor driving their purchase of a particular item in the grocery store.
“Precision matters, as well. Half of shoppers (49%) say it’s important that the offers and suggestions they receive are based on accurate and up-to-date information. In short: Shoppers will share their data, but they expect it to be used well,” Dunnhumby noted. “When retailers get this right, the commercial impact is clear.”
The report found that 59% of shoppers are more likely to buy from retailers that deliver highly personalized suggestions, adding, “The evidence is irrefutable: Personalization done right drives loyalty.”
Technology winners and losers
Grocery retailers are launching new tech initiatives from loyalty programs to agentic AI, but some innovations are more welcomed than others by consumers.
Personalized pricing in retail media, or offers that target individuals based on their shopping habits, received the largest approval from survey respondents at 64%. A mere one in five respondents were opposed to the idea.
Another 56% approved of in-store screens offering deals, followed by mobile notifications for relevant offers nearby (55%), tailored health suggestions (54%), scan-and-go apps that offer suggestions while shopping (53%), predictive suggestions (52%) and personalized product bundles (51%).
Artificial intelligence-assisted shopping still has some work to do to win over consumers, Dunnhumby found. Nearly half (49%) opposed fully agentic AI shopping.
Another 44% rejected wearable devices that give personalized shopping alerts, followed by chatbots providing personalized support and AI-curated discovery, both of which were rejected by 40% of survey respondents.
“Enthusiasm does seem to dim when people feel that tech is taking too much ownership over their basket, however. Agentic shopping, for instance, excites 29% of people – but almost half describe it as intrusive or unnecessary,” Dunnhumby said. “This could be down to a lack of understanding and regular use, and suggests there is a need for educating shoppers on the benefits to them to allow trust to grow.”
