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Five Strategies to Unlock the Potential of Retail Media Networks

Five Strategies to Unlock the Potential of Retail Media Networks

The Challenge

The Outcome

Five Strategies to Unlock the Potential of Retail Media Networks
White Paper
Feb 27, 2023

Five Strategies to Unlock the Potential of Retail Media Networks

Retail media networks are taking the advertising world by storm. We dove into the data to see how retailers and advertisers can leverage foot traffic analytics to win at the retail media game.

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The TikTok Generation Reshapes the Face of Beauty

Since March 2021, the beauty industry has been on a consistent upward trajectory. While a health and wellness focus helped drive strength early in the pandemic, as the masks came off and people started getting dressed up again, Americans were given another reason to stock up on beauty supplies. And much of this shopping took place offline. While virtual try-ons can help shoppers choose the right products, nothing beats browsing the make-up counter and sampling new colors and scents in-store. Indeed, even as inflation put a damper on shopping sprees, consumers continued to flock to chains like Ulta Beauty and Sephora, eager to splurge on discretionary items that didn’t break the bank and made them feel good. Other self-care categories, like fitness, also experienced an uptick as the pandemic began to subside.

Since March 2021, the beauty industry has been on a consistent upward trajectory. While a health and wellness focus helped drive strength early in the pandemic, as the masks came off and people started getting dressed up again, Americans were given another reason to stock up on beauty supplies. And much of this shopping took place offline. While virtual try-ons can help shoppers choose the right products, nothing beats browsing the make-up counter and sampling new colors and scents in-store. Indeed, even as inflation put a damper on shopping sprees, consumers continued to flock to chains like Ulta Beauty and Sephora, eager to splurge on discretionary items that didn’t break the bank and made them feel good. Other self-care categories, like fitness, also experienced an uptick as the pandemic began to subside.

Year-Over-Two-Year Change in Visits to Shopping Malls

Compared to both 2019 and 2021, visits to beauty industry venues have increased significantly. Throughout 2022, foot traffic remained between 13.4% and 30.9% higher than it was three years prior. And even though 2021 saw particularly strong performance from March onwards, visits in 2022 were also up year over year. This increase in foot traffic was driven, in part, by moves by leading retailers like Ulta Beauty and Sephora to expand their fleets to keep up with growing demand.

The TikTok Generation Reshapes the Face of Beauty

Since March 2021, the beauty industry has been on a consistent upward trajectory. While a health and wellness focus helped drive strength early in the pandemic, as the masks came off and people started getting dressed up again, Americans were given another reason to stock up on beauty supplies. And much of this shopping took place offline. While virtual try-ons can help shoppers choose the right products, nothing beats browsing the make-up counter and sampling new colors and scents in-store. Indeed, even as inflation put a damper on shopping sprees, consumers continued to flock to chains like Ulta Beauty and Sephora, eager to splurge on discretionary items that didn’t break the bank and made them feel good. Other self-care categories, like fitness, also experienced an uptick as the pandemic began to subside.

Another headline

Compared to both 2019 and 2021, visits to beauty industry venues have increased significantly. Throughout 2022, foot traffic remained between 13.4% and 30.9% higher than it was three years prior. And even though 2021 saw particularly strong performance from March onwards, visits in 2022 were also up year over year. This increase in foot traffic was driven, in part, by moves by leading retailers like Ulta Beauty and Sephora to expand their fleets to keep up with growing demand.

Year-Over-Two-Year Change in Visits to Shopping Malls

Compared to both 2019 and 2021, visits to beauty industry venues have increased significantly. Throughout 2022, foot traffic remained between 13.4% and 30.9% higher than it was three years prior. And even though 2021 saw particularly strong performance from March onwards, visits in 2022 were also up year over year. This increase in foot traffic was driven, in part, by moves by leading retailers like Ulta Beauty and Sephora to expand their fleets to keep up with growing demand.

Since March 2021, the beauty industry has been on a consistent upward trajectory. While a health and wellness focus helped drive strength early in the pandemic, as the masks came off and people started getting dressed up again, Americans were given another reason to stock up on beauty supplies. And much of this shopping took place offline. While virtual try-ons can help shoppers choose the right products, nothing beats browsing the make-up counter and sampling new colors and scents in-store. Indeed, even as inflation put a damper on shopping sprees, consumers continued to flock to chains like Ulta Beauty and Sephora, eager to splurge on discretionary items that didn’t break the bank and made them feel good. Other self-care categories, like fitness, also experienced an uptick as the pandemic began to subside.

The strength of these brands is even more impressive when compared to the recent performance of the wider QSR and fast casual dining categories.

Since March 2021, the beauty industry has been on a consistent upward trajectory. While a health and wellness focus helped drive strength early in the pandemic, as the masks came off and people started getting dressed up again, Americans were given another reason to stock up on beauty supplies. And much of this shopping took place offline. While virtual try-ons can help shoppers choose the right products, nothing beats browsing the make-up counter and sampling new colors and scents in-store. Indeed, even as inflation put a damper on shopping sprees, consumers continued to flock to chains like Ulta Beauty and Sephora, eager to splurge on discretionary items that didn’t break the bank and made them feel good. Other self-care categories, like fitness, also experienced an uptick as the pandemic began to subside.

Another headline

Since March 2021, the beauty industry has been on a consistent upward trajectory. While a health and wellness focus helped drive strength early in the pandemic, as the masks came off and people started getting dressed up again, Americans were given another reason to stock up on beauty supplies. And much of this shopping took place offline. While virtual try-ons can help shoppers choose the right products, nothing beats browsing the make-up counter and sampling new colors and scents in-store. Indeed, even as inflation put a damper on shopping sprees, consumers continued to flock to chains like Ulta Beauty and Sephora, eager to splurge on discretionary items that didn’t break the bank and made them feel good. Other self-care categories, like fitness, also experienced an uptick as the pandemic began to subside.

Another headline, longer one with more text

Compared to both 2019 and 2021, visits to beauty industry venues have increased significantly. Throughout 2022, foot traffic remained between 13.4% and 30.9% higher than it was three years prior. Compared to both 2019 and 2021, visits to beauty industry venues have increased significantly. Throughout 2022, foot traffic remained between 13.4% and 30.9% higher than it was three years prior. Compared to both 2019 and 2021, visits to beauty industry venues have increased significantly.

Key Takeaways

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