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While Walmart鈥檚 US grocery ecommerce sales only represent 15.5% of the company鈥檚 total grocery sales, they will grow by double digits this year, reaching $39.91 billion and outpacing Albertsons Companies ($5.47 billion), Amazon ($35.46 billion), Target ($7.72 billion), and The Kroger Co. ($15.85 billion).

鈥淥ur role is to make customers feel special, every way that we can,鈥� said Jill Smith, vice president of media sales, Kroger Precision Marketing at 84.51掳. Smith spoke specifically of retail media, but the quest for personalized ads extends to social media and beyond.

Retail sales is the ultimate proof of advertising effectiveness, so we have a responsibility to be at Cannes,鈥� Cara Pratt, senior vice president of Kroger Precision Marketing, told Marketing Brew. Our take: Retail media networks are making themselves known at Cannes. Instacart announced a shoppable ads partnership with YouTube. Amazon Ads revealed a partnership with Omnicom Media Group.

It's 1986, so right in between you guys. 1986 in a Kroger near Atlanta. It worked a little different than self-checkout works today. Shoppers scanned and bagged their items and then they paid at a central cashier station according to a 1987 article from The Oklahoman that I read. Then Kroger VP Donald F.

Many retailers are ramping up their in-store media offerings to create an interactive, digital experience within the store, said Marsten, citing The Kroger Co.鈥檚 partnership with Cooler Screens and Walmart鈥檚 wall of TVs. 鈥淒igital is physically changing what the store looks like inside,鈥� she said. 鈥淐hanging what you鈥檙e going to be able to interact with, touch, feel.鈥�.

Today鈥檚 retail media networks fall into five categories: digital marketplaces or platforms (Amazon, Shopify, Etsy), mass merchandise or department stores (Walmart, Target, Macy鈥檚), category specialists (The Kroger Co., CVS, The Home Depot), commerce intermediaries (Uber, Instacart, Gopuff), and other commerce verticals (Expedia, Klarna, Marriott).

Pharmacy retailers CVS Health, Kroger Health, Walgreens, and Walmart have significantly boosted their in-store and virtual care services to include primary care, urgent care, and mental health services, among others. Online pharmacies like DiRx Health and Mark Cuban Cost Plus Drugs sell a wide range of generic medications for low, transparent prices. Pharmacy discount card programs are proliferating.

鈥淸Albertsons] have consistently shown that regardless of what happens with the potential merger with Kroger, they鈥檙e making strong moves to build their retail media empire鈥攁nd it鈥檚 not a flash in the pan,鈥� our analyst Jeremy Goldman said. 5. Amazon. Teaming up with GroupM, Amazon is developing shoppable content for its free ad-supported streaming TV channel on Prime Video and Freevee.

While its Kroger merger is still on hold, Albertsons is making other moves through a partnership with Rokt, an AI-based personalization tech that will allow non-endemic advertisers to target Albertsons consumers. The June announcement came around the same time that Albertsons Media Collective launched Collective TV, which integrates its retail media and CTV capacities.

The Kroger Co.鈥檚 smart cooler screens act as both in-store advertisements and a place for customers to learn more about products. Amazon is giving consumers a safer, easier way to checkout with biometric payment tech at Whole Foods Market. Follow the leader: Late last year, Nike opened its first US location for its Nike Rise concept.

And you know Walgreens as the pharmacy, you know Amazon for shipping you things in 30 seconds, you know Kroger for buying groceries.

Retailers like Walmart, Target, and The Kroger Co. and commerce intermediaries like Uber are building robust in-store and place-based ad networks powered by first-party consumer data and proximity to purchase. Almost half (46%) of buyers surveyed by the IAB in November 2022 were already running in-store DOOH ads, with about another third (31%) considering them. But measurement is a headwind.

Leading RMNs like Amazon, Walmart, Instacart, and The Kroger Co. are great for advertising programs targeted to category buyers who are most receptive to new brands. The smartest programs will deploy full-funnel marketing campaigns with product sampling as the last, best marketing touchpoint. These can be used to drive new product trials and traffic to D2C websites.

Following the lead of Snapchat (which partnered with The Kroger Co.), Pinterest (which partnered with Albertsons Companies), and TikTok (which partnered with Walmart Connect), Meta announced in late March that it would allow RMNs to extend their reach into its walled gardens, using Managed Partner Ads. And Pinterest has let Amazon into its garden.

But over time, major sellers like Walmart, Instacart, eBay, Target, and Kroger will carve out significant shares, pulling potential spending away from Amazon鈥攁nd Google. An economic downturn will not stop the party. Retail media networks get advertisers as close as possible to the bottom of the sales funnel, which is what ad buyers often prefer during recessions. To see the full forecast, click here.

Evolving consumer behavior and easing regulations are opening new pathways for long-term growth.

Smaller retailers are gaining share and reshaping the ecommerce landscape, but will they be able compete with giants like Amazon?

I would project that they will go to the Kroger website or to the Stop & Shop and order directly from them. They don't need to use that app to get their grocery. Sara Lebow:. Did you make the same argument when these apps were starting off as food delivery apps, that people already know their local Chinese food restaurant and they're not going to go to the app? Becky Shilling:.

If Amazon wants to compete with Walmart, The Kroger, and the other big grocery chains, it needs a banner with a large physical footprint that sells mainstream grocery products to a mainstream audience. Whole Foods has a larger retail footprint but caters to a smaller audience of health-conscious and affluent consumers. How does this affect our rating?

So Albertsons doesn't want the same exact videos that are going to be playing in Kroger. Max Willens:. Or on the New York Times' website or on BuzzFeed. That's what they don't want. Sara Lebow:. Yeah. I mean, related to what you were saying before, Max, we have omnichannel retail media ad spend in the US at 45 billion this year.

So of those companies, I pick Kroger because I think although it's not new, they have really helped facilitate this one click all the ingredients you need for a recipe in one shot. So I think if you think about conversion and removing friction and barriers, this is one of them.

It just is not going to be the Kroger grocery store. And that's kind of what Amazon has always wanted to have. Sara Lebow (16:28):. Okay. So putting you both on the spot here, I am going to ask you for a top line takeaway on store, store format revamps in 2024. Carina Perkins (16:38):.

So if you're not just in Amazon, but you're also in Walmart and you're also in Target's Roundel network, and you're also spending in Kroger, A, that just becomes difficult to manage, but it then gets really, really difficult when you sit down with all the data and go, "Okay, but which one of these is actually doing a better job? Right now I'm spending a million bucks at all of them.

It was around the time of the Albertsons Kroger merger news. I predicted that Walmart would buy Roku and they would buy Roku to really make a play, a big play into CTV, and that's what Walmart is doing here and they're doing it with a value oriented play. It's probably about a quarter of what they would have to spend to buy Roku. Becky Schilling:. Yeah. And it makes sense, right?