The grocery and retail landscape is undergoing a profound transformation. Once defined by in-store promotions and razor-thin margins, the industry is now embracing digital innovation at an unprecedented pace. As e-commerce surges—now accounting for 12-15% of grocery sales in many markets—grocers and retailers face a dual challenge: how to drive profitability in digital channels and how to create new, high-margin revenue streams. Enter retail media networks: a fast-growing opportunity that leverages first-party data and digital platforms to unlock new value for both retailers and their brand partners.
Traditionally, grocers and retailers relied on in-store displays, endcaps, and sampling to drive product discovery and incremental sales. However, the shift to online shopping has disrupted these tactics. Digital grocery journeys are often list-driven and repetitive, reducing the likelihood of impulse buys and new product trial. To bridge this gap, leading retailers are turning to retail media networks—digital advertising platforms built on their own e-commerce sites and apps, powered by rich first-party data.
This shift is not just about replacing lost in-store revenue; it’s about creating a new, high-margin business model that capitalizes on the unique data assets and customer relationships that grocers possess.
At the heart of retail media’s success is the ability to harness first-party data—information collected directly from shoppers across digital and physical touchpoints. Unlike third-party data, which is becoming less reliable in a cookieless future, first-party data is both accurate and privacy-compliant when managed responsibly.
Customer Data Platforms (CDPs) play a pivotal role in this ecosystem. By unifying data from online browsing, loyalty programs, in-store transactions, and more, CDPs create a 360-degree view of each shopper. This enables:
For example, a grocer can use AI-driven engines to suggest seasonal products (like Pumpkin Spice Oreos) to shoppers who have previously purchased similar items, recapturing the serendipity of in-store discovery in a digital context.
Retail media networks represent a significant new value pool for grocers and retailers. By opening their digital platforms to brand advertising, they can:
This model is already delivering results. Leading grocers have launched retail media platforms that allow brands to bid for sponsored placements, run targeted display ads, and access shopper insights—all within the retailer’s owned ecosystem. The result: a win-win for retailers (new revenue, improved margins) and brands (better targeting, higher conversion rates).
Successfully launching and scaling a retail media network requires more than just technology—it demands a strategic, data-driven approach. Publicis Sapient, in partnership with Salesforce, empowers grocers and retailers to:
As retailers monetize their data, maintaining shopper trust is paramount. Shoppers are willing to share data in exchange for clear value—such as personalized offers, relevant recommendations, and seamless experiences—but only if their privacy is respected. Publicis Sapient and Salesforce help clients:
By prioritizing trust, retailers can foster long-term loyalty while unlocking the full potential of their data assets.
Retail media networks are rapidly becoming a core pillar of digital grocery and retail strategy. As the industry continues to evolve, the ability to monetize first-party data, deliver personalized experiences, and create new revenue streams will separate the leaders from the laggards.
With deep expertise in digital transformation, data strategy, and Salesforce implementation, Publicis Sapient is uniquely positioned to help grocers and retailers build, operate, and scale successful retail media networks. The result: improved profitability, stronger brand partnerships, and a future-proof business model for the digital age.
Ready to unlock new revenue streams and transform your digital grocery experience? Connect with Publicis Sapient to learn how retail media networks can drive growth, profitability, and shopper loyalty in your business.