Retail media: the small store opportunity

The power of retail media in small stores

Our research into retail media shows that most market sizing endeavours avoid any attempt to factor in the value of in-store activations and analogue pre-store activations, e.g., mailings, and retailer’s magazines. But, for Co-op, the value of in-store activations is one area it believes which helps it stand out from the competition.

A study by Co-op Media Network, with Lumen Research, shows that retail media in convenience stores provides twice the visibility and generates three times the attention and four times the brand recall versus campaigns in larger stores.

Meanwhile, separate Co-op research, with Circana, showed that retail media’s impact may not just be store-specific benefiting that retailer alone. It can act as a broader advertising platform boosting sales in other retailers too. The study, on a campaign for a major beer brand, showed the investment generated a brand sales rise of 12% across Co-op stores. However, Circana found it also drove an additional 3% ‘halo’ uplift in non-Co-op stores nearby.

Where could retail media in small stores go next?

While it is clear current retail media creates good engagement with convenience store shoppers, solutions are expected to evolve further in the medium term.

Given that kiosks have always been a key focus in convenience store formats/layouts, retailers, particularly in the convenience and gas station sectors, have started rolling out smaller digital screens at the checkout to offer up branded, private label, and service messaging. Although at the end of many visits, the screens can remind shoppers about something they may forgotten or spotlight products near the checkout.

Elsewhere, convenience retailers are realising the power of their networks and how, with in-store radio, they can engage shoppers. For example, in the US, 7-Eleven is expanding its deployment of Gulp Radio programming to more than 12,000 stores by the end of 2025.

Once fully deployed, Gulp Radio will be one of North America's largest commercial radio networks, enabling advertisers to reach the chain's 13m daily shoppers. Through a partnership with Qsic, 7-Eleven more efficiently generates localised audio advertisements that reach target audiences during peak times. This is all backed by first-party data to measure the impact and determine revenue uplift.

Meanwhile, in Romania, leading snack brand, Chio, with convenience store operator Profi, and Footprints AI, achieved a 16x return on advertising spending through a retail media campaign. Deployed across multiple retail media channels (in-store, on-site, off-site), the campaign delivered advertising messages in a dynamic and hyper-personalised manner. It targeted consumers based on their consumption behaviours and geolocation, with communication delivered throughout the entire purchasing process, focusing on the moment of purchase. Given the retailer’s extensive store estate and proximity to shoppers, the campaign benefited from Profi’s convenience store model.

Retail media opportunities to grow with the Co-op

While its market share may be lower than other retailers Co-op is the second most visited grocer in the UK market, with some 11m unique monthly shoppers and 16m weekly transactions. Moreover, with stores in every UK postal district, it has an unmatched national presence. This, combined with its 2,300 stores operating some 9,000 digital screens, and the growing benefits of its membership programme, will mean that the retailer’s in-store retail media initiatives will continue to mature and engage a growing number of convenience store shoppers on an increasing number of occasions.

Join the Co-op leadership team at the Co-op Trade Briefing from IGD on 18^th September in Manchester to hear more about supplier activation, strategic partnerships and Co-op Brand, and how to achieve growth in your category with Co-op in the coming year.