Retail media vs the shopper experience

Retail media is shifting decisively into physical stores, but European grocers are taking divergent approaches, from minimalist, experience-led deployment to aggressive monetisation. The next phase of growth will be defined not by how much media retailers add, but how well they balance commercialisation with shopper trust and usability.

Why in-store retail media is so attractive

Retailers are uniquely positioned to monetise their stores as high-traffic environments rich in first-party data and close to the point of purchase. This proximity allows brands to influence decisions at the ‘last metre’ of the shopping journey, where conversion rates are highest.

At the same time, retail media can deliver significantly higher margins than traditional grocery retail, making it an increasingly important lever as European grocers contend with low growth and ongoing cost pressures.

Leading retailers in Germany have been taking steps to scale their retail media proposition, with Edeka launching a centralised national in-store retail media network and REWE building a comprehensive proposition through Retail Media Connect, its central media unit.

When retail media starts to create friction

Grocery shopping is typically a task-focused activity, particularly for larger or routine shops where speed and simplicity matter. Too many competing messages can create cognitive overload, making it harder for shoppers to process information and make decisions efficiently. What is intended as influence can quickly become friction.

There is also a risk that excessive media undermines trust. If shoppers perceive that product visibility is being driven more by paid placement than by relevance, quality or value, this can weaken confidence in the retailer.

Carrefour Poland’s hypermarkets have become an example of the shopper journey becoming overwhelmed by excessive retail media and competing brand messaging.

The measurement gap

One of the key challenges in scaling in-store retail media is measurement. Most retail media networks are well equipped to track campaign performance and media revenue, but fewer are measuring the broader impact on the shopper journey. Metrics such as ease of navigation, decision speed and overall satisfaction are harder to quantify but critical to long-term success.

Without this wider lens, there is a risk that retailers optimise for short-term media income at the expense of overall store performance. This imbalance may not be immediately visible, but over time it can affect shopper loyalty, basket size and frequency of visits.

What good execution looks like

Looking ahead, the most effective in-store retail media strategies are likely to be those that prioritise balance. Rather than maximising impressions, leading retailers will focus on delivering the right message at the right moment in a way that fits the context of the shop. This may mean fewer touchpoints, but with greater relevance and integration.

Execution will also need to vary by store format and mission. A convenience store, where speed is paramount, requires a very different approach from a large hypermarket where shoppers may be more open to browsing and discovery. Getting this context right will be key to unlocking value without creating friction.

Żabka in Poland utilises a range of digital screens around its convenience stores to quickly engage with shoppers, with touchpoints located in its Żappka loyalty app, on the outside of stores to capture passing footfall, above gondola ends to showcase latest promotions and on the self-checkouts to push products available in the checkout area.

Towards a more seamless future

Over time, retail media is likely to become more embedded within the shopping experience, rather than sitting alongside it. Advances in AI and data will enable more subtle, context-aware forms of engagement that feel less like advertising and more like decision support. Media will increasingly blend with pricing, promotions and loyalty, creating a more seamless and less intrusive experience.

Smart carts will likely play an important role in making the retail media experience more seamless, bridging the gap between physical and digital engagement. Equipped with screens, sensors and real-time connectivity, they allow retailers to deliver personalised, context-aware messaging directly to shoppers as they move through the store.

A critical balancing act

Retail media in-store represents one of the most significant growth opportunities in European grocery, but also one of the most delicate to execute. Stores are becoming media environments, yet they remain spaces designed for efficiency, clarity and trust.

Ultimately, the question is not how much media retailers can add, but how much the shopper is willing to accept. The retailers that succeed will be those that strike the right balance, recognising that in a physical store, the most effective media is not the most visible, but the most valuable to the shopper.