On Friday, COLLOQUY -- a collection of resources devoted to the global loyalty marketing industry -- unveiled its national Retail Loyalty Index, ranking Costco as U.S. consumers' choice for loyalty in the Grocery, Personal Care and Mass Merchant categories, and Macy's as the Department Store leader.

Consumers were asked to reflect on personal experiences with retailers at which they shopped most often in the previous three months. They rated on a 1-10 scale their loyalty to individual retailers, with 1 meaning "not loyal" and 10 meaning "very loyal." Survey respondents cited the following retailers frequently enough that they have earned the "COLLOQUY shout-out" as 2008's Most Loyal Retailers.

Across five geographical regions -- Northeast, Southeast, Midwest, Southwest and Northwest -- Costco was the national winner in the Grocery category. The warehouse club was the first choice of consumers in two regions, the Southwest and Southeast. Publix was a close runner-up and H-E-B followed.

Costco also was consumers' loyalty favorite among Personal Care retailers, winning three regions and placing in the top three in the other two. Wal-Mart was the runner-up in this category, suggesting that consumers are more price-conscious in this sector than others. The highest-rated stand-alone pharmacist in this category was Rite-Aid.

Of the department stores doing business in all five geographical regions, Macy's can claim the most loyal shoppers, with Wal-Mart finishing as a strong runner-up, and Target and JC Penney finishing in a tie. In the Mass Merchant category, the discount club Costco garnered most loyalty from bargain-hunters nationwide. Target was runner-up, followed by Wal-Mart.

Drawing a distinction between loyalty and frequency, the COLLOQUY Retail Loyalty Index shows that Wal-Mart is the dominant U.S. retailer for consumer shopping frequency. Consumers across all categories shop at Wal-Mart more than any other retailer. But Wal-Mart did not register equally high loyalty ratings from respondents to the COLLOQUY survey. While Wal-Mart's Everyday Low Price (EDLP) tactics have made it the world's number one retailer, other retailers who attempt to emulate Wal-Mart's success will find that the EDLP model of retailing comes at a cost.

"The survey results demonstrate that the traditional marketing mix has taken a back seat to a relentless focus on price," said Rick Ferguson, COLLOQUY's editorial director. "A marketing strategy focused solely on sale prices and promotions not only faces diminishing returns, but can also actually breed disloyal customers. Our research results demonstrate that retail marketers have an opportunity to shift their focus from EDLP toward loyalty drivers that build true customer engagement, larger transactions and improved margins."

Among the various retail categories, consumers are most loyal to grocery stores, where purchases are tied closely to home and family life. Shoppers attach emotional resonance to this category, despite the importance of low prices.

"A key trend to be discerned from this research is that loyal consumers recommend their favorite retailers," said COLLOQUY's managing partner Kelly Hlavinka. "One attribute of brand loyalty rose above all others, regardless of store category, specific retailer or demographic segment -- likelihood to recommend a retailer. This attribute more often than not had a strong correlation with consumer loyalty. There's a transition from the narrow focus on price. We're leaving the Age of Frequency and entering the Age of Loyalty."