“Gorillas with calculators.”
That was the killer description of retail media sales teams, delivered by an anonymous source last month. The source – a supplier who sells across many of the major mults – was increasingly frustrated by what he saw as “demands” rather than genuine sales pitches.
“The uncomfortable truth is that many suppliers privately regard retail media as a dressed-up listing fee,” he argued.
His complaint kickstarted The Grocer’s latest investigation into retail media. As it turned out, not everyone was so happy to be vocal in their thoughts.
On questioning, the mere mention of retail media provoked a visible reaction among some suppliers. Eyerolls, frustrated sighs and colourful accounts of pressurised sales tactics came through thick and fast. However, few of those more vehement detractors were willing for those thoughts to be published – even on an anonymised basis – for fear of commercial repercussions.
It was a clear indication of the imbalance of power at play.
Gradually though, a picture started to emerge, through both named and unnamed sources, across independent consultants and suppliers. It was clear that retail media was being sold without evidence of any clear return on investment or tangible benefit to the brand.
It’s a frustrating situation for suppliers. But arguably, these sales tactics aren’t delivering the best results for retailers either.
Retail media: room to improve
In the latest Advantage Group annual survey, where retailers scored suppliers on key competencies, retail media was cited as an ”area for improvement”.
Retailers want brands to think about the opportunities in a strategic way, and if done properly this could be a win for both parties. After all, when done well, retail media can deliver meaningful impact right at the point of purchase. It can also promote a far deeper understanding of who your customers are.
The problem is, those benefits are rarely communicated by sales teams.
In emails sent to suppliers and seen by The Grocer, prices for various retail media packages were thrown out with seemingly little concern for what the suppliers were really trying to achieve. Returns were rarely mentioned, and strategy was notably absent.
So unless retailers change their way of selling, those eyerolls and frustrated sighs are only likely to persist. And all those widely touted opportunities of retail media will continue to largely go untapped.
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