Retail media in supermarkets has moved from buzzword to business model. In 2025, it is transforming not only how brands advertise but how supermarkets operate — turning every store aisle into a monetized channel, and every shopper journey into a data asset. Most FMCG brands aren’t ready. And those who wait? They’ll fall behind fast.
What Exactly Is Retail Media in Supermarkets?
Retail media is advertising inside a retailer’s own ecosystem. Once digital-only, it now spans the physical store. The new frontier is in-store digital screens, loyalty app integrations, smart shelf technology, and checkout media.
Imagine this:
- A shopper walks past a frozen aisle.
- A screen detects basket history and flashes a personalized ad for a ready meal.
- The shopper scans the app and gets an instant coupon.
This isn’t futuristic. It’s happening now in Tesco, Carrefour, Walmart, and Sainsbury’s.
Retail media is the modern-day version of eye-level shelf space — only smarter, dynamic, and trackable.
Why It Matters More Than Ever
The numbers are loud: retail media globally will top $122 billion by 2026. Supermarkets are now building media networks, not just stocking shelves. The reasons are clear:
- Margin compression is real — and ad revenue offsets it.
- Online-style targeting is now expected in-store.
- Brand loyalty is fragile — visibility drives conversion.
- Retailers want control — owning the media means owning the message.
This shift is as structural as e-commerce was a decade ago. Brands that don’t embed retail media into their strategy will simply get outpaced.
Inside the New Store-as-Media Model
Let’s break down how the model works:
1. Tesco Media & Insight
- Built around Clubcard data
- Segments customers by behavior
- Allows real-time digital signage targeting in Tesco Express and hypermarkets
2. Carrefour Links
- Mixes loyalty data with in-store traffic heatmaps
- Connects suppliers to promotional tools across markets (France, Spain, Italy)
3. Albertsons Media Collective
- Gives CPG brands performance dashboards
- Connects in-store engagement with ecommerce
4. Sainsbury’s Nectar 360
- Lets brands serve promotions based on app behavior
- Fully connected to till data
Each of these platforms lets brands:
- Pay for placement
- A/B test creative messaging
- Retarget based on store behavior
- Access reporting with e-commerce-level precision
Not Just for Big Brands
You don’t need Unilever’s budget to participate. Challenger brands and startups are using:
- Programmatic in-store ads in specific regions
- Loyalty app integrations to launch new products
- Shared category promotions to reduce costs
Retail media is an equalizer. What matters isn’t size — it’s speed, targeting, and creativity.
How to Build a Winning Retail Media Strategy
FMCG and private label brands need to shift their internal thinking. Here’s where to begin:
- Get media teams talking to sales teams — retail media isn’t a trade spend add-on; it’s a core visibility channel.
- Create platform-specific content — a screen in Sainsbury’s is not a banner ad.
- Negotiate media access into retail contracts — don’t wait to be invited.
- Test and optimize — build the same performance loop you use for Google Ads.
- Partner with retail media agencies — they know the formats, tools, and buyer expectations.
What’s Actually Working in 2025?
Examples from the ground:
- In Portugal, Continente is running in-aisle motion-triggered ads for snacks during football matches.
- In Germany, REWE is piloting smart trolleys that display targeted offers as shoppers move.
- In the US, Kroger’s in-store screens change offers based on local weather.
- In France, Monoprix runs app-exclusive ad campaigns tied to local store promos.
This is real, this is measurable, and this is mainstream.
What’s Next: The Evolution Continues
Expect to see:
- AI-driven planogram changes in real time based on media ROI
- Personalized screens at entry points that change by shopper segment
- Unified dashboards across retailer networks
- Retailer-branded DSPs (demand-side platforms) for brands to self-manage campaigns
Media and retail are converging fast. Brands that don’t build agile teams around this will find themselves negotiating from behind.
Final Take: Invisibility Is the Enemy
Retail media isn’t an add-on. It’s the new foundation of shopper marketing. If you’re not visible where decisions happen — you’re invisible.
Supermarkets now decide which products to show, when, and to whom. In 2025, this is the game. And it’s already live.
