L to R: Paul Morrisroe, Senior Account Executive; Eric Brackmann, Senior Director of Commerce Media; John Reiss, Senior Account Executive; Nate Young, Senior Account Executive

 

Koddi’s retail media experts are back from Groceryshop 2022, with lots of new insights to share. Over 4,000 of grocery’s top brands and executives converged at Mandalay Bay in Las Vegas to discuss consumer behaviors, explore new products and the latest technologies, and analyze business trends.

For the ever-evolving grocery industry, the digital revolution is only gaining momentum. Here are a few of our team’s key learnings from this year’s Groceryshop.

 

Building fulfillment capabilities that can scale and cost less will drive growth in 2023 and beyond.

• Most groceries are seeing between 20-30% of orders start through a digital channel (and this percentage continues to grow – although at a slightly slower rate – despite macro headwinds).
• The challenge here is that a good chunk of these orders are not profitable – especially those fulfilled through a third party partner.
• The growth of micro and robo fulfillment options are expected to help drive both scale and cost less than traditional methods, making all digital orders profitable orders.
  

 

Most grocers are building private retail media networks to drive new revenue and better serve omnichannel customer needs.

• The profitability gap described above is also being closed via media. In fact, retailers like Amazon drive over 2/3 of their profitability from ads.
• Retailers are also building private networks to better protect customer data and deliver more holistic and native ads experiences.
• If you’re a grocer and you don’t have a retail media program yet, it’s time to build one.
  

 

The industry is prioritizing creating new experiences that make consumers’ lives easier and drive product discovery.

• Fully integrated digital experiences that focus on making shopping easier and more efficient (like saved lists, recommended meals, trip planning and auto reorder) are becoming more popular.
  
• In addition, the in-store experience is becoming a true destination (aka “retail theater”) connected to the digital path to purchase.
• Innovators in the space are connecting retail media to these experiences.
  

 

New tools are driving significant growth in retail media.

• According to Boston Consulting Group, the retail media industry (as a subset of Commerce Media) will exceed $100B by 2026.
• Adoption of enterprise retail media management solutions (like Skai, Pacvue, and Momentum Commerce) is accelerating among CPGs.
• Lack of compelling evolution is degrading the value of public retail media networks – some CPGs and retailers see these partnerships as an extra –and minimally effective– step.
  

 

Interested in learning how you can apply these retail media learnings to your grocery business? Koddi’s team of experts would love to connect and exchange ideas.

Koddi helps retailers build their media business through a private retail media network, giving retailers complete ownership and control, a custom go-to-market strategy, and full program support. By building a customized retail media network on the foundation of their first-party data, retailers strengthen relationships with their suppliers and drive incremental revenue to achieve their key objectives faster. The company’s award-winning SaaS platform provides a robust network for brands to connect with consumers and drive more revenue. With the Koddi platform, marketers can fuel their growth and harness real-time intelligence to drive informed decision-making across their marketing and media activities.

Contact Koddi today to unleash your company’s retail media potential.