What: While AI takes much of the light, retail media is still a paer of the business that retailers should look at.

Why it is important: Macy’s generated 160m$ of revenue from scratch in just 2 years.

Retail media is rapidly growing, with the UK market estimated at £4 billion in 2024. Successful implementation requires the right technology, dedicated teams, and board alignment.

Brands emphasize collaboration between commercial and marketing teams. PepsiCo's full-funnel approach integrating in-store and digital activations showed 65% higher revenue lifts.

Retail media could more than double grocery retailers' margins from 1.7% to 4.3% long-term. In-store opportunities are emerging through smart carts, screens, and other technologies to capture data and enable targeted messaging.

Challenges remain around data standardization and attribution. Brands seek partnerships with retailers to influence capabilities.

Long-term, major retailers could potentially pivot to become media/tech companies, using retail primarily as a data source. However, this carries risks of shifting focus away from serving shoppers.

Overall, retail media offers significant margin potential, especially in grocery, but requires overcoming obstacles in standardization and in-store implementation.

Coresight: a Retail Media Report