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Walmart is the largest retailer to rapidly scale its third-party sales platform, but a slew of others including Macy鈥檚, Kohl鈥檚, The Kroger Co., J.Crew, Michaels, and Lands鈥� End are leaning into the channel with varied approaches. Retail media's play with marketplaces. Retail media will continue to be the fastest-growing segment of digital advertising in the coming years.

We expect US retail media spending to grow 25.8% next year to $51.36 billion, although the bulk of those funds will be concentrated among a handful of retail media networks (Amazon, Walmart, Instacart, and eBay). This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing鈥攁 daily recap of top stories reshaping the retail industry.

With competitors like Walmart and Target making strides with their ecommerce businesses, Amazon can鈥檛 afford to drop the ball. This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing鈥攁 daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily. Are you a client? Click here to subscribe.

Walmart last year opened a dedicated pet services facility offering veterinary care and dog grooming in an Atlanta suburb. Not just retailers: Several other companies are also carving out niches in the growing market. Specialty food and treat products are ground zero for that enthusiasm.

In January, Walmart partnered with Unity to integrate commerce APIs into games and apps, allowing users to purchase physical goods within the virtual world. Zoom out: The metaverse鈥檚 growth will be fueled by a combination of social gaming, digital twin services, remote collaboration applications, and advancements in augmented and virtual reality hardware鈥嬧��.

Walmart, the largest online grocery retailer, has begun to expand alcohol delivery as restrictions ease and now offers it in 23 states. Lobbying efforts have succeeded in some states. A report from Motherboard found Amazon put forth an aggressive lobbying effort in 2020 to change the alcohol delivery laws in six states.

It's really getting into CTV, it's putting more screens in stores, which Walmart has a massive audience in stores. Just if you think of the Walmart store as a media channel, which it is, then it has a huge engaged audience. So I'm giving Walmart most likely to make it in media.

Okay, so pivoting from that absolutely massive 40% e-commerce share that Amazon has in the U.S., in a distant, distant second behind Amazon in terms of U.S. e-commerce share is Walmart at about 6%. Walmart is a power player, especially in grocery. Why should we be watching digital grocery in particular with Walmart, and what else does Walmart have going for it in terms of e-commerce? Blake Droesch:.

Walmart has made headlines for higher-income shoppers trading down on groceries. Another strong area is the Walmart+ program, which has grown among younger shoppers who may have less spending power. As of December 2022, 23% of respondents to an Insider Intelligence survey conducted by Bizrate Insights said they subscribed to Walmart+, up from 11% in June.

Retail media is on the rise this year, with Walmart and Instacart growing the fastest. While Amazon鈥檚 ad business is growing slower than other retail media networks, its revenues are higher at $34.59 billion in US ad revenues. Walmart will see a fraction of that at $3.16 billion. Instacart鈥檚 ad revenues will be even lower at $1.12 billion.

For example, when popular YouTuber MrBeast launched his snacking brand Feastables in 2022, products were available both D2C and through Walmart.

Walmart added this service for Walmart+ members at no extra charge. DoorDash is betting users will opt to pay a small fee for pickups rather than make a trip to drop off returns with UPS or FedEx. Transparency is critical. Costs and value to consumers need to be communicated clearly, especially when return policies are changing. Physical locations offer incentives for in-person returns.

Others, like Walmart, Walgreens, and Target, are focused on revamping stores to offer more convenience, both in-store and online.

The context: Since Toys R Us shuttered its stores in 2018, there hasn鈥檛 been a dominant toy retailer as sales in the category have largely been dispersed among mass merchants, including Amazon, Walmart, and Target.

Walmart and Instacart also contribute to retail media鈥檚 share of search ad spend, though their share is smaller. Why retail media search? Advertisers trust it. US advertisers will spend almost $30 billion on retail media search ads this year, and by 2027, that figure will be more than double.

Retailers such as Target and Walmart recently cautioned that consumers have pulled back on discretionary spending. The personal saving rate, the portion of after-tax income that consumers don鈥檛 spend, recently fell to its lowest level since 2008. Consumer sentiment remains near historic lows.

Walmart and Instacart are replicating this as they scale their retail media businesses. Streaming media leaders diversify into ads. Netflix recently made its much-anticipated foray into ad-supported content, promising targeting and scale in a TV-like environment. Spotify ads are beginning to scale as podcasts play an increased role in its ad business.

鈥淎尘补锄辞苍, Walmart, Target, and Kroger 鈥� everyone across this entire booming retail media space is posting incredibly strong advertising numbers. That is really driving so much of the incremental growth across our digital ad spend forecast,鈥� our analyst Peter Newman said on an episode of the 鈥淏ehind the Numbers: The Daily鈥� podcast.

The figures are largely in line with the trends major retailers like Costco and Walmart have noticed. Costco customers are growing more value-conscious, leading to lower sales for jewelry and expensive appliances, while Walmart shoppers are waiting for big sales events to purchase pricey items and buying less clothing and home goods.

Today's story is a March 29th story from Business Insider titled Walmart is rolling out a new perk to its $98 annual Walmart Plus membership, early access to a new Oreo flavor. The headline kind of says it all. The new flavor is called Blackout Cake and Walmart is pushing this as a sort of bonus perk to boost subscriptions. Sky, your review of this story in 60 seconds is? Blake Droesch:.

It鈥檚 also unclear how competitor events from Walmart and Target fared.

The biggest marketplace in terms of sales is Amazon (by a longshot), but eBay, Etsy, and Walmart are also important to the landscape. The takeaway: Marketplaces are important for both discovery and conversion during the holiday season. That means well-placed ads on Amazon, eBay, and other marketplaces could help drive sales. 2. Apparel and decor start selling earlier than consumer electronics.

In the US, the top most downloaded shopping apps of 2022 included Amazon (47 million downloads), Shein (40 million), Walmart (32 million), Fetch (23.2 million), and the Shop app (22.9 million), per Apptopia. 5. Banner ads give mobile shopping app marketers more bang for their buck.

But some retailers, like Walmart and Target, benefited by holding sales events before and after Prime Day. Penny pinching: Despite shoppers鈥� enthusiasm, it鈥檚 clear that consumers are still feeling financial pressure. Buy now, pay later (BNPL) usage surged during the event. Shoppers used BNPL for 6.5% of ecommerce orders placed on July 11 and 12, a 20% increase year-over-year, per Adobe.