What: An increasing number of voices advocate for retailers to embrace retail media networks.

Why it is important: While many experts insist on the margins that can be generated through retail media, one must also keep in mind the many organisational changes that are needed to implement such operations at the core of the department store’s business model.

Retail media networks are a rapidly growing industry, with major retailers such as Walgreens, CVS, Lowe's and Albertsons all operating their own networks. According to a report by GroupM, retail media is now a $100 billion industry worldwide and accounts for 18% of all digital ad spend.

With 85% of all retail sales in the US still taking place in-store, the opportunity for in-store retail media is enormous but largely untapped. Brands are looking for new ways to reach consumers using first-party data and retail media networks offer a more considerate, relevant and effective type of digital advertising. 80% of advertisers are planning to increase their retail media spend over the next 12 months.

Retail media is also beneficial for retailers, with gross profit margins for the business being 70-90%. In-store retail media offers the opportunity to reach consumers with a tailored message at the point of purchase and with a live salesperson nearby.

To make in-store retail media work effectively, it must be valuable to consumers, tying targeted advertising to personalized service. This can be achieved through interactive displays in-store that allows consumers to enter preferences, discover products and sign-up for loyalty rewards. This creates a virtuous loop across the retail media ecosystem, and benefits brands, retailers and consumers, providing better product matches and more relevant offers. However, implementing in-store retail media is not easy and requires a well-thought-out strategy.

Retail media in real life: stores are the next big retail media channel