Why retail media is facing a backlash

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The retail media revolution is upon us – but some suppliers are feeling pressure to pay for it without enjoying measurable returns. Is a ‘win-win’ really achievable?

According to supermarkets, it’s a “real opportunity” that allows brands to connect directly with consumers. For suppliers, it’s a “dressed-up listing fee” demanded by “gorillas with calculators”.

Retail media is emerging as a fierce battleground in the grocery industry, and it’s rapidly gaining momentum. On-site spend alone is due to be worth £8.6bn in the UK by 2030, according to Advertising Association/Warc data. That’s being fuelled by the retailers, which are launching ever more innovative forms of media – from digital screens to in-store robots. They’re selling the opportunities to suppliers as a win-win, especially when combined with their level of customer insight.

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