Co-op has revealed that in-store retail media also boosts sales in surrounding grocery stores, with an increase of as much as four times the original sales conversion.
Research from the convenience retailer – conducted in partnership with Circana – revealed there is a positive halo effect for a brand’s overall awareness when it advertises in Co-op stores.
The data showed that the longer-term incremental sales uplifts in other stores can be as much as four times the amount of immediate sales. Uniquely, the analysis measures the full impact of a brand’s in-store marketing spend, looking at sales activity from within Co-op’s own stores as well as surrounding grocers.
One of the retail media campaigns reviewed within the study – a global beer brand – generated a brand sales uplift of 12% in Co-op stores, as well as a further 3% uplift elsewhere.
“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,” said head of Co-op Media Network, Dean Harris.
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“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 uplift comes because convenience is a core channel for top-up shops and is typically used in addition to a bigger, weekly or fortnightly shop. Data also shows that Co-op shoppers engage the most with other grocers, giving it an extra amplifier effect on those halo sales.
Harris continued: “The analysis of the beer campaign shows that by influencing brand purchase decisions in other non-Coop 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.”
The Co-op Media Network is UK’s first retail media network in the convenience sector. It brings together Co-op’s in-house team and long-term agency, SMG – which is the largest operator of retail media networks in the UK.
