What’s in Store for Retail Media Networks saw Mark Williamson, who is leading Costco’s retail media efforts, join EMARKETER Principal Analyst Sarah Marzano on stage to discuss how the membership-based retailer is entering the in-store retail media space — strategically, deliberately and in a way that aligns with its core values.
One of the biggest challenges in retail media is integrating it into existing retail structures. Williamson acknowledged the tension between traditional retail merchant teams and media teams, and how success requires shifting mindsets. “A media publishing mindset is required to win,” he noted, but added that each retailer must find its own way to adopt this approach.
For Costco, this means ensuring its retail media strategy aligns with the company’s fundamental business model. Unlike other retailers that may look to established RMNs like Amazon or Walmart for a blueprint, Williamson made it clear that Costco will chart its own course. “If it doesn’t build upon what is core to the Costco business, it will ultimately fail,” he said.
A major differentiator for Costco is its robust private label brand, Kirkland Signature, which sometimes competes directly with national brands — the very advertisers that retail media networks seek to attract. Williamson acknowledged the tension but sees an opportunity to strike a balance.
“Kirkland Signature exists to reinforce the value of membership,” he explained, adding that Costco’s retail media offering must work in tandem with, rather than against, that mission. Retail media can provide national brands with a way to compete effectively within Costco’s ecosystem while ensuring that the overall shopping experience remains aligned with Costco’s brand identity.
One of Costco’s greatest strengths in launching a retail media network is its deep understanding of its members. Unlike traditional retailers that must rely on fragmented data, Costco’s membership model provides a wealth of first-party data on shopper behaviour.
This creates an opportunity to deliver highly personalised and relevant advertising. However, Williamson emphasised that Costco will approach data usage with caution. “The data exists, it’s there — but how do we responsibly use it in a way that strengthens our relationship with our members?” he said. The priority is maintaining trust and ensuring that advertising efforts enhance the shopping experience rather than disrupt it.
One of the hottest topics in retail media is bringing it into physical stores, but for Costco, that move won’t happen overnight. “We have a lot of work to do in order to prepare ourselves for any kind of innovation in the in-store space,” Williamson said.
With its no-frills, warehouse-style shopping experience, Costco must be careful about how and where it introduces retail media. While digital signage and app-based experiences could provide opportunities, Williamson stressed that any in-store activation must be “incredibly appropriate for the environment.”
Many retailers have already launched retail media networks, but Costco is taking its time. While there are obvious challenges to being a late entrant, Williamson pointed to a key advantage: organisational patience and discipline.
Instead of rushing to market, Costco can learn from the successes and failures of others, implementing best practices while avoiding common pitfalls. The company is also launching at a time when technology is more advanced, allowing it to build a modern, scalable retail media infrastructure without the legacy tech debt that some early adopters now face.
As retail media networks continue to evolve, Costco is proving that a one-size-fits-all approach doesn’t work. By prioritising member value, carefully integrating media into its retail ecosystem, and taking a long-term view, Costco is setting itself up for sustainable success in this space.
Williamson summed it up best: “If Costco gave into peer pressure, we probably would have done this 10 years ago.” Instead, the company is moving forward with a strategy that stays true to its brand, ensuring that retail media is a natural extension of what makes Costco unique.
You can watch the full conversation here.
