Superdrug has launched a retail media network called Optimo.
Superdrug’s head of digital marketing, retail media & online brand Paul Stafford described the launch as a “huge piece of work” which involved the retailer’s parent company AS Watson Group teams in Hong Kong, Milan, Paris, Amsterdam and London.
Stafford – who announced the launch at Superdrug’s annual supplier conference – said it had been “an incredible journey to work on a project that is at the coalface of major industry change”.
It is understood the retailer will soon begin working with brands on their campaign briefs.
Superdrug rival Boots partnered with commerce marketing firm Threefold on its Boots Media Group service which launched in late 2021, giving brands the opportunity to tap the seven million active members of Boots’ Advantage Card loyalty scheme. They can also deliver campaigns in-store, across the retailer’s digital platforms, and on social media.
Several UK supermarkets have also launched retail media networks in recent years, where advertising sales offer margins as high as 80%, according to Boston Consulting Group, versus the less than 5% on grocery products.
Goldman Sachs forecasts the UK grocery retail media market value to hit £2bn by 2024.
Superdrug has been pursuing an omnichannel ‘offline plus online’ strategy which helped pre-tax profits shoot up by 71.7% to £77.8m in 2022, according to its latest results.
The retailer launched a third-party online marketplace in November last year, enabling hundreds of brands to sell thousands of new products on its website in the run-up to Christmas.
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