Woodman’s Markets, operator of “big box grocery stores” in the Midwest, aims to better exploit the revenue potential of retail media.
Janesville, Wis.-based Woodman’s has partnered with media software specialist Brandcrush to launch an omnichannel retail media portal. Using Brandcrush’s platform, the grocer streamlined the fragmented systems of its retail media business – including in-store, out-of-store and online assets – into a centralized, branded vendor media portal. white and self-service to manage and develop Sales media.
“Their proven technology consolidates all of our media opportunities for our vendors across our business to drive sales,” says Dustin Wales, marketing director at Woodman’s Markets, which operates 19 stores – most over 200,000 square feet. – in Wisconsin and Illinois. “This is an area we’ve wanted to expand for some time. Brandcrush gives us the tools to consolidate, manage and scale our media and create a professional portal that our vendors can use.”
Woodman’s runs a range of customer-facing media programs in-house and works with third-party vendors such as Shop-to-Cook. Together with the Brandcrush solution, the retailer solution facilitates customer marketing buying and selling in the retail media ecosystem, said Los Angeles-based Brandcrush.
“Independent U.S. grocery stores account for 33% of national sales and provide valuable, yet untapped, media channels for vendors to conduct brand-building initiatives and product trials,” according to Teresa Aprile, co-founder and CEO of Brandcrush.
“We empower retailers to own their entire media ecosystem. This includes all touchpoints where retailers reach shoppers on their buying journey, including in-store, where grocery sales account for more than 80% of total spend, both out-of-store and online,” he said. -she explains. “Our software solves this complexity of media channels, multiple fulfillment partners, internal teams and critical paths needed to reserve media and fulfill it efficiently. We are looking at the end-to-end solution for retailers, simplifying their process, so brands can have a consolidated view of their supplier investment across the entire retailer ecosystem.”
Customer data scientist dunnhumby, in a report published in June, said that last year marketers are expected to have increased their spending on retail websites and apps by 28% to 38 % in the United States, or approximately $31.49 billion spent on media retail alone. And dunnhumby noted that a “substantial amount” of that revenue comes from sales to consumer packaged goods (CPG) companies.
“The majority of grocery media revenue is generated by CPG brands, naturally keen to reach shoppers in every way possible throughout their retail journey,” dunnhumby observed in the study.
Retail media’s profit potential for grocers is high and could improve the bottom line, while helping to offset the cost of investing in omnichannel technology, stores and other initiatives.
“Grocery stores operate on incredibly thin margins, between 1% and 2% in most cases. Therefore, even the slightest change in the balance sheet can have a huge impact on profitability,” dunnhumby explained. “While rising costs have not driven the rise of retail media per se, they do help explain why it has started to look like a more compelling proposition for retailers over the past 24 months,” said added the data analytics company. . “As well as helping to drive sales and satisfaction through relevance and personalization, retail media can also deliver margins in the order of 80% – a dramatic shift in profitability from the model traditional grocery store.”
Brandcrush noted that its platform helps retailers transform their in-store and out-of-store media and online brand partnerships from outdated PDF packs and spreadsheet management into a scalable solution, as well as generate more media revenue through self-service media portals, outbound sales tools, intelligent inventory and workflow management solutions.
“We are confident that Brandcrush will help us grow our media program without having to immediately grow our team,” Wales commented. “Technologies like this help level the playing field for retail media. Our suppliers, including regional and local brands, can access a self-service media portal for real-time and easy access to opportunities. This benefits both SME brands and our major multinational suppliers. »
Aprile added, “Forward-thinking retailers like Woodman’s recognize that their suppliers need to align their in-store and online marketing efforts, and they are progressively taking steps to support their suppliers in these efforts.”