Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

Retail Media Networks – Off the Beaten Track

by 
Lila Margalit
 on 
May 23, 2023
Retail Media Networks – Off the Beaten Track

Everybody’s talking about Retail Media Networks (RMNs) – advertising opportunities offered by retailers either online or in their brick-and-mortar stores. But while much of the attention is focused on major behemoths like Amazon, Walmart, and Target, smaller chains and even local retail treasures have much to gain by leveraging their fleets to help advertisers find new audiences. And though big consumer packaged goods (CPG) companies make natural advertising partners, non-endemic products and services (i.e. offerings unrelated to the store’s own merchandise) can also benefit from the retail media opportunity. 

We dove into the data to explore how location intelligence can help both retailers and potential advertising partners make the most of the retail media opportunity – off the beaten track. 

The Hidden Potential of Local Gems

Grocery stores have been among the pioneers of the fast-growing retail media landscape, with major players like Albertsons leading the way. Midsize chains like Sprouts Farmer’s Market have also jumped on the retail media bandwagon. But smaller brands with loyal and fast-growing customer bases are equally well-positioned to succeed in retail media. 

Erewhon Market, the high-end California grocery chain that reportedly inspired the Anarvin market in Netflix’s hit show You, is a case in point. With nine locations throughout the Golden State, and some of the most expensive grocery items in the country, Erewhon has emerged as a place to “see and be seen.” And with its emphasis on organic, local, and ethically-sourced products, Erewhon attracts customers willing to spend money for high-quality health food. 

The brand has experienced positive visit growth every single week since the start of the year, far outperforming the overall California grocery category. While some of this growth can be attributed to Erewhon’s expansion in recent years, visits per venue also increased by 40.3% between Q1 2022 and Q1 2023. These metrics point to a significant opportunity for Erewhon to leverage its footprint to facilitate the discovery of complementary local and even national chains by customers – especially on weekend afternoons, when the chain is at its busiest. 

Zooming in on Location-Level Visitor Profiles

Zooming in on the visitation patterns of specific Erewhon venues shows how location intelligence can be harnessed to refine retail media efforts. Data on two popular locations – in Beverly Hills and Santa Monica – shows that the demographic profile of the chain’s captured markets varies not just by location, but by day and time as well. (A captured market analyzes the census blocks in a venue’s trade area according to the actual visit share from each census block, and so reveals the demographic profiles of the population that visits the venue in practice).

Unsurprisingly, the median household incomes (HHIs) of visitors to the chain are significantly higher than that of the statewide median of $86K (according to STI Popstats data from 2022). But at both analyzed locations, weekday afternoons drew some of the more affluent crowds. Mornings, on the other hand, stood out as prime visitation times for shoppers from households with children. So, if Erewhon were to utilize these locations for advertising, it could allow partners to concentrate promotions for particularly high-end items on weekday afternoons, and advertise parent-friendly offerings in the mornings. 

Unconventional Partners

Smaller retailers are not the only ones who can benefit from tapping into the retail media trend – unconventional advertisers also stand to gain from in-store promotion. CPG companies advertising products in-store are often first in mind when considering brick-and-mortar retail media. But as H-E-B’s newest partnership with online home services directory Thumbtack illustrates, there are a myriad of ways to leverage a store fleet to introduce customers to relevant products and services. 

We’ve written about the continued success of H-E-B, the community-rooted, cult grocery store that continues to lead the Texas grocery market. In March, H-E-B teamed up with Thumbtack to provide its customers with easy access to local pet care providers, through branded displays where shoppers can scan QR codes to access Thumbtack’s listings. Several locations also offer shoppers discounted access to handymen, cleaners and other local professionals. 

To explore how location intelligence can be leveraged to fine-tune efforts like these, we analyzed the psychographic characteristics of the trade areas of three highly-visited H-E-B locations in the San Antonio-New Braunfels, TX CBSA. And as shown by the graph below, the shoppers’ profiles differed significantly across locations. While the captured markets of all three locations were over-indexed for Herbal Supplementers compared to the statewide average, the South Zarzamora stores boasted a significantly higher share of this segment than the other two venues. Gadget Lovers, on the other hand, were more likely to shop at H-E-B’s Bandera location – while dog lovers were more likely to frequent the Military Dr. location. 

Key Takeaways

Data sufficiency remains an important challenge for advertisers seeking to make the most of retail media. But location intelligence can offer advertisers and retailers alike the granular insights they need to formulate data-driven promotional strategies. The ability to analyze customer profiles and physical visitation patterns across chains, markets, sub-markets, and even individual venues opens up new opportunities for retailers to fully harness the advertising potential of their physical footprints, and for advertisers to find new ways to reach their customers. 

For more location intelligence insights, visit Placer.ai.

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.
Fitness at its Fittest: Staying Strong in 2023
Movie Theaters, Off-Price, and Home Improvement: May 2023 Recap
Placer.ai Mall Index - May 2023 Recap
What’s Working for Bath & Body Works?
Why Are Specialty Grocers Thriving in 2023?
The CAVA Craze: A Location Intelligence Perspective on the Mediterranean Marvel
How Will Primark’s US Expansion Impact Target?
All Eyes on Eyewear
Northwestern U.S. Grocery Dive
Return of the Lunch: Salad Chains Are Thriving
Retail Media Networks – Off the Beaten Track
Bet Your Bottom Dollar: Discount and Dollar Stores Drive Foot Traffic
Ulta & Lululemon: Discretionary Spending On The Up
The Score After Q1: Sporting Goods Chains
Who Uses NYC Airports: Biting Into The Big Apple’s Main Transport Hubs
Off Price: Strength in The Face of Retail Challenges
Visits Improve for Home Improvement
Walmart, Target & Wholesalers in Q1 2023 – The Return of Mission-Driven Shopping?
Department Store Roundup: Q1 2023
Placer.ai Office Index: April 2023 Recap
Placer.ai Mall Index, April 2023 – A Rebound on the Horizon?
How Will Bed Bath & Beyond’s Bankruptcy Impact the Retail Space?
Buffet Restaurants: Filling Up on Foot Traffic
Thrift Stores: Vintage Visits Drive New Age in Apparel
The Windy City: A Hub of Post-Pandemic Opportunity
Diving into Dining Traffic - Q1 2023
Bring On The Joe
A Dollar (or more) For Your Thoughts: Five Below and pOpshelf
Dining Out With The Cheesecake Factory
Retail Foot Traffic Recap – March 2023
Digging Into 2023: McDonald’s and Chipotle Update
Placer.ai Office Index: March 2023 Recap
How Did Key Retail Categories Perform in Q1 2023?
Northeastern USA Grocery Dive
Movie Theaters Storylines for 2023
Ollie's Bargain Outlet: Discounters are Evolving
Leveraging Brick-and-Mortar Retail in 2023
America’s Evolving Work Patterns: A Deep-Dive into New York and Chicago
Placer.ai Mall Index March 2023
Tuning Into Record Stores
Five Franchises To Watch in 2023
What’s Next For Domestic Tourism?
It’s Showtime! Movie Theaters in the Spotlight
5 Limited Time Offers (LTOs) Driving Restaurant Traffic
Department Store Deep-Dive: Belk
Regional Grocery Chains Staying Ahead of the Competition
Five Chains that Rightsized for Success
Unlocking the Potential of Offline Retail Media Networks
Dining Out With Darden
What’s in Store for Self-Storage?
Nike & lululemon Update: Strong Performance Amid Expansion Plans
Many Ways to Win: Midwest Grocery Deep Dive
Retail, Reinvented: The Rise of the Pop-Up Shop
Navigating a New Normal in Business Travel & Commutes
Placer.ai Office Index: February 2023 Recap
Retail Categories Staying Strong in Volatile Environment
Ulta Beauty: Poised for Success into 2023
Placer.ai Mall Index February 2023: Reasons for Continued Optimism
Catching Up With DICK’s & Hibbett
The Miami-Dade Arena: An Advertising Slam Dunk
Car Washes Revving Up Visits
Tuesday Morning and Sunrises in Home Furnishing
Dining & Valentine’s Day Recap
2023: The Year of the Discount Store
Aldi’s Success Highlights Growing Demand for Value Groceries
5 Retail & Service Categories Holding onto Pandemic Gains in 2023
Visitor Insights from Super Bowl 2023
2023 First Look: Home Improvement Update
How Are Target, Walmart, and Wholesale Clubs Faring in 2023?
Department Store Deep-Dive: Nordstrom
Off-Price: Taking Off in Uncertain Times
Checking in On Middle-Class Hubs
Who Attends the Super Bowl?
Placer.ai Office Index: January 2023 Recap
Focusing On Fitness: Q4 and January Recap
Placer.ai Mall Index: January 2023 – Returning Mall Normalcy?
Location Intelligence Insights Into Concert Attendance
Winning Dining Strategies for 2023
In-N-Out Burger: What to Expect as the Brand Moves East
Location Intelligence Breakdown: Coffee Caps-Off 2022
Digitally Native Brands Lean Into Brick & Mortar
Washington, D.C. Population Changes & Migration Trends
A Location Intelligence Perspective on Macy’s Rightsizing
Amazon-Powered Shopping: The Future of Brick-and-Mortar Grocery?
Cold Weather, Hot Visits: Diving into Winter Resorts
Wawa and 7-Eleven: Leaning Into the “Slurpee Effect”
2022 and Beyond: Catching Up With McDonald’s & Chipotle
Let’s Have Some Fun! Going Out Is In
Placer.ai’s Q4 2022 Quarterly Index
Placer.ai Adds Industry Executives to Leadership Team To Drive Company's Next Phase of Growth
5 Emerging Retail Formats: 2023’s Brick-and-Mortar Evolution
Grocery Update: Zooming in on the Lone Star State
2022 Office Recap: The Year of the TGIF Work Week
What Lies Ahead for Brick-and-Mortar Luxury in 2023
Placer.ai Mall Indexes: December 2022 Recap
Looking Back on 2022’s Holiday Shopping Season
Post-Pandemic Migration Trends in New York
Top Retailers for 2023
The Live Sports Advertising Opportunity
Domestic Migration to the Mountain States: Small Shifts with Big Implications