What: The retailer is expanding its advertising capabilities both online and in-store, positioning itself as a major player in the rapidly growing retail media industry.

Why it is important: Retail media is becoming a significant revenue stream for retailers, with U.S. spending expected to reach USD 54 billion in 2024, offering higher profit margins compared to traditional retail operations, making it a crucial area of growth and innovation for the industry.

Walmart is rapidly expanding its advertising business, Walmart Connect, as part of the burgeoning retail media industry. This sector is expected to reach USD 54bn in U.S. spending by 2024.The company's U.S. advertising business grew 30% last year, outpacing overall company growth. Walmart is leveraging its vast network of 4,600 stores and e-commerce platforms to offer advertisers unique opportunities. These include sponsored search results on its app and website, in-store advertising, and the ability to track purchases made days after ad exposure. The retailer is also expanding into new areas, such as its recent USD 2.3bn acquisition of Vizio, which will enhance its connected TV advertising capabilities. The move into advertising is part of Walmart's strategy to diversify revenue streams and compete with e-commerce rivals. It's also attracting higher-income customers and gaining market share in various categories. However, this shift may create new tensions with suppliers, who might feel pressured to buy ads to maintain shelf space. As retail media continues to grow, with forecasts of reaching USD 130bn in four years, Walmart is positioning itself as a major player in this lucrative and rapidly evolving market.

How Walmart became a force in a USD 54bn retail advertising industry