Maximising retail impact in convenience

Retail media – although there is much still left to do in terms of standardisation of definition and measurement – has become a mainstay of retailer strategy and performance and a key component of brands’ broader marketing endeavours. While online retail media is very much a mature practice and retail media in big stores – with the luxury of space – is settling into an established repertoire of touchpoints, perhaps the next vanguard of retail media proliferation will occur in the convenience channel.

Although c-stores have a distinct limitation in terms of space to play with, they nevertheless represent a rich canvas in terms of established, embryonic and future touchpoints that could enable brand marketers in certain categories (probably those traditionally referred to as ‘impulse’) a sizeable opportunity to impact shopper sentiment and behaviour close to the point of purchase. Shoppers are open to influence in all retail channels, but this is thought to be even more the case in c-stores where many product choices are undecided and where missions like food-to-go or meal-for-tonight leave plenty of scope for inspiration and impact.  

In many markets, convenience is set to continue a relatively robust growth trajectory – often only outpaced by discount and online – and with demographic trends set to favour the proximity channel, brands should be reassessing the opportunities to invest in convenience retail media to help achieve their commercial objectives. There have been plenty of case studies from the likes of the Co-op and 7-Eleven on the efficacy of retail media in smaller stores, and it’s also worth remembering the Co-op analysis that it can positively impact commercial performance in nearby larger format stores too.  

In terms of the established and emergent touchpoints available to brands, there really is no shortage of potential.       

Aisle takeovers: we’ve seen a couple of these and they can work quite well. A combination of outsized floor graphic, wobblers and overhead signage, their impact can be substantial and they seem well suited to activities like contests and NPD launches. 

Digital screens: there are various iterations of these out in the wild, including front-window screens, digital six-sheets outside the store, general instore screens, queue-zone screens, gondola-end screens and screens behind the customer service desk or on the tobacco gantry. Those outside the store can work well if they are visible to shoppers entering the store and we’ve also seen general screens and gondola-end screens that have some genuine impact – particularly if used in proximity to the products in question. The jury’s out on screens closer to the checkout: good for brand awareness but a little too late to close the deal?  

Audio: 7-Eleven swears by in-store radio and it does seem to be an effective tool, particularly as it can be highly contextualised in terms of location, weather and day-of-week / time-of-day. Definitely one to consider with retailers that offer it.

Branded bays: clearly, the scope for ‘perm kit’ branded bays is limited in the smaller store environment, but we’ve seen them in One Stop, Tesco Express, Sainsbury’s Local and a few forecourt stores. A potential boost for brand visibility, but they offer little in terms of call to action.

ESLs: as the next generation of electronic shelf labels come to market, the scope to offer branded and animated activations enters the realms of possibility. Not for everyone, but seems to work well in confectionery, snacking and BWS. 

Digitised shelf-edges: taking shelf-edge activation a stage further, we’ve encountered some hugely impactful examples of shelf-edge screens that have reportedly delivered some substantial sales uplifts. Also good for retailers to use for generic value and loyalty messaging.

Wraps: more affordable than the tokenistic and indulgent large store wraps that we’ve witnessed, using a c-stores windows as a brand billboard can work well in high visibility locations – not only for boosting mental availability for shoppers but also for general brand awareness.

Robots: probably a long-way off in terms of mass viability and deployment, robots nonetheless represent a longer-term opportunity. Multipurpose robot colleagues are already having an impact in Japanese convenience.

Our next report on retail media is coming soon, so keep any eye out for our view on why we need a retail media reset.