Retail media networks (RMNs) are reshaping the retail landscape, and at STRATACACHE’s 2025’s What’s In Store for Retail Media Networks event, presented in partnership with NRF, Quentin George, Partner at McKinsey & Company, sat down with Omer Gajial, EVP and Chief Merchandising and Digital Officer at Albertsons, to discuss how retailers can transition from a merchant to a media mindset. Gajial shared insights from his career spanning Amazon, PepsiCo, and now Albertsons, highlighting how retailers can leverage data, technology, and omnichannel strategies to create value for brands and consumers alike.

Retailers as the New Media Powerhouses

Gajial emphasised that retailers today have an unparalleled understanding of customer behaviour. First-party data, enriched with third-party insights, allows retailers to construct comprehensive customer profiles. With 50 million households in Albertsons’ ecosystem alone, the opportunity for precise, high-impact advertising is immense.

He noted that retailers are uniquely positioned as both the point of conversion and the medium through which brands engage consumers. With frequent customer interactions (both in-store and online) retailers can personalize offers, influence purchasing decisions in real time and extend brand reach beyond traditional digital advertising.

Blurring the Lines Between Merchandising and Media

Retailers are no longer just distributors of products; they are media entities in their own right. Gajial described the shift as an evolution rather than a pivot. Historically, merchandising and media operated in silos, but the most effective retail strategies today align these functions to drive incremental value.

He pointed out that commerce media isn’t just about selling ads — it’s about creating a seamless bridge between supply and demand. By integrating data-driven insights with strategic media placements, retailers can deliver more relevant advertising while maximising sales impact.

The Power of In-Store Media

One of the most compelling aspects of the discussion was the role of in-store media in completing the retail media equation. Gajial sees in-store screens and digital displays as the missing link in the customer journey. At Albertsons, brands are already leveraging in-store media to execute day-parted campaigns — featuring different products at different times of the day based on shopping patterns.

With in-store media offering direct influence at the point of purchase, retailers can enhance brand engagement and improve conversion rates. As Gajial put it, “In-store media is the closest touchpoint to the sale, making it a critical piece of the retail media puzzle.”

AI-Powered Precision and Future Innovations

AI is playing an increasingly central role in optimising retail media strategies. Traditional advertising relied on broad audience segments, but AI enables dynamic, real-time audience creation and personalized content delivery. Gajial noted that Albertsons is already using AI to generate multiple creatives and match them intelligently to the right consumers at the right time.

He believes AI will drive efficiency, allowing brands to spend less while achieving higher returns. As machine learning models shift from look-back analysis to predictive analytics, retailers can refine their strategies to serve customers more effectively.

Looking Ahead: From Correlation to Causality

As retail media continues its rapid expansion — outpacing social media in growth rate — Gajial predicts a shift from correlation-based measurement to true causality. The industry’s next challenge is closing the loop between media exposure and purchase behaviour with even greater precision.

He also envisions retail media evolving beyond its current focus on performance marketing to play a larger role in brand building and category growth. One key step in this evolution? Strengthening the connection between TV screens and checkout counters, ensuring a seamless customer journey from awareness to conversion.

Final Thoughts

Retail media networks are not just an add-on to retail operations — they are becoming the core growth engine for modern retailers. By harnessing first-party data, integrating in-store and digital experiences, and leveraging AI-driven insights, retailers like Albertsons are transforming how brands connect with consumers.

For brands looking to maximise their impact, partnering with forward-thinking retailers who embrace this shift is crucial. As Gajial summarised, “Less friction for the customer, more value for the value chain.”

You can watch the full discussion here. 

What’s Next?

Retail media networks (RMNs) continue to redefine the marketing landscape, but as the industry evolves, so do the challenges. At STRATACACHES’s 2025 What’s In Store for Retail Media Networks event, presented in partnership with NRF, Andy Murray, Executive Chairman at Saatchi & Saatchi X, delivered a compelling session on how retailers and brands can reconcile the driving forces of retail media networks to accelerate their success. Here’s what we learned.

Retail Media: An Unstoppable Force

Murray opened with a bold assertion — retail media is an unstoppable force. While the hype cycle may have shifted toward AI, RMNs remain a dominant and growing channel. The University of Arkansas’ research on RMNs reinforces the promise:

• Retailers as media platforms generating high-margin revenue.
• First-party data enabling precise targeting and measurement.
• Closed-loop attribution connecting ad exposure to sales.
• Expansion into in-store digital signals to bridge the gap between online and offline commerce.

Bain estimates that by 2030, RMNs will account for 50% of total digital marketing spend (bain.com). With billions of dollars shifting into retail media, businesses must overcome key barriers to unlock its full potential.

The Challenges Stalling Progress

Despite its promise, the retail media journey remains complex. Murray identified several key challenges holding back momentum:

• Blurred lines between marketing and commerce: As every ad integrates commerce, organisations must redefine roles between CMOs, sales chiefs, and merchants.
• Lack of measurement standardisation: IAB standards exist, but legacy tech stacks often lead to slow adoption.
• Connecting digital retail media with in-store experiences: While expectations are high, operational execution remains difficult.
• Attribution and incrementality concerns: Brands hesitate to scale investment without clear proof of ROI.
• Inventory visibility challenges: Real-time product availability data often lags, making synchronization with media campaigns difficult.
• Balancing demand creation vs. demand capture: RMNs focus heavily on transactional lower-funnel tactics, but CMOs seek ways to create demand.

Shifting Mindsets to Accelerate Retail Media’s Future

To break through these barriers, Murray advocated for a multi-part shift in mindset, motivation and methodology:

1. From ‘Have to’ to ‘Want to’ Investing
   CMOs still view RMNs as an obligation rather than an opportunity. Instead of resisting change, leaders must proactively shape their approach rather than reactively adapting to external forces.
2. From Upskilling to Upleveling
   Rather than chasing technical mastery, organisations should focus on improving decision-making capabilities in an environment of uncertainty. Success requires embracing the unknown and making strategic choices that fit each brand’s unique context.
3. From Profit-Centric to Customer-Centric Innovation
   Too many retailers start with profitability goals instead of asking, How does this improve the customer experience? China’s e-commerce giants prioritise product, place, and time to enhance relevance, a model that U.S. retailers have yet to fully adopt.
4. From Future-Back to Baseline-Forward Strategy
   Traditional corporate innovation sets three-year goals and builds backward. Instead, Murray suggests focusing on current decision quality, iterating quarter-by-quarter, and refining based on real-world learning.
5. From Best Practices to ‘Best Practices in Use’
   Every organisation operates in a unique context. The goal shouldn’t be to copy industry best practices but to refine and embed what works within each business.

Breaking Down Silos to Drive Innovation

Murray argued that organizational silos — not technology — are the biggest barriers to progress. Companies must move from fragmented teams to a synchronous community that enables:

• C-level alignment on RMN strategy.
• Organisational design that rewards fast learning and deployment.
• R&D investment in RMN maturity, rather than premature optimization.
• Decentralized innovation, where local teams explore and test new ideas.
• Co-creation over collaboration, inviting retail partners to shape solutions rather than simply approving fully baked plans.

What’s Next for Retail Media?

Retail media is at an inflection point. While growth has plateaued due to organizational friction, the industry must push forward. Businesses that embrace a harmonized approach — aligning mindset, motivation and method — will move beyond the plateau and accelerate progress.

The future isn’t about if RMNs will succeed but how fast companies can adapt. For CMOs and retailers, the choice is clear: evolve or risk being left behind.

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