Co-op has released research revealing how retail media is boosting its sales ‘fourfold’

The Co-op launched the UK’s first retail media network in the convenience sector earlier this year to reach new audiences and improve the relevancy of adverts for shoppers.

In partnership with market research company Circana, the research highlights a potential halo effect for brands’ overall awareness when they advertise in the Co-op’s stores, which can lead to “longer-term incremental sales uplifts” in other grocery stores in the surrounding area of up to four times the amount of immediate sales.

As the Co-op is a convenience retailer, the data further shows that its shoppers engage the most with other grocers when planning a bigger shop. The group said this provides convenience retail media with an “extra amplifier effect” on halo sales.

Circana uses complete market sales data to evaluate the sales impact of in-store marketing throughout the Co-op and other stores in the area.

One retail media campaign in the study involving a global beer brand generated a brand sales uplift of 12% in the Co-op stores and a further 3% in other stores.

The Co-op head of media network Dean Harris said: “The results from our research with Circana is clear: when brands activate campaigns with Co-op there is an immediate positive sales impact in our store but also within the surrounding area with retailers that we would typically class as our competitors. 

“As a retail media owner, our main goal for the brands that advertise with us is to generate sales, regardless of where that customer purchases the product.

“The analysis of the beer campaign shows that by influencing brand purchase decisions in other non-Co-op stores, the retail media activation is able to generate higher incremental sales by tapping into larger pack sizes available in supermarket stores.

“This halo-effect data is incredibly insightful and gives further confidence to talk to our clients about the power of retail media in the convenience setting.”