This report presents a case study examining the effectiveness of customer loyalty and rewards schemes, specifically focusing on Tesco. The introduction highlights the increasing importance of customer satisfaction and loyalty in the competitive retail market. The report aims to assess the efficacy of Tesco's loyalty programs, evaluating their impact on customer retention and business performance. It explores the concepts of consumer loyalty and rewards schemes, their significance for Tesco, and the benefits derived from them. The literature review synthesizes various academic perspectives on customer loyalty, reward schemes, and their impact on business outcomes. The research methodology section outlines the descriptive research design, inductive approach, and interpretivism philosophy employed. Data collection relies on secondary sources, with thematic analysis used to analyze the gathered information. The report anticipates that Tesco and other retail firms can improve customer retention and gain a competitive advantage through loyalty programs. The expected outcomes include increased customer loyalty, repeat purchases, and enhanced business performance. The report concludes by suggesting recommendations for enhancing Tesco's customer loyalty and rewards schemes, offering insights for both academics and industry professionals.