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Source: Co-op

The results highlighted the importance of brand advertising in the convenience channel, it said

Brand advertising in Co-op stores is having a “ripple effect” on sales growth in surrounding supermarkets, according to new research by the convenience retailer.

In partnership with Circana, a tech firm that studies the sales impact of in-store marketing activity, Co-op found that boosting brand awareness through its in-store advertising was also driving incremental sales in nearby non-Co-op stores.

One of the retail media campaigns reviewed in the study for a global beer business generated a 12% brand sales increase in Co-op stores, but also drove a 3% uplift in surrounding supermarkets.

However, the latter amounted to four times higher than the sales increase seen in Co-op stores because of the larger pack sizes available and volume of stores that were evaluated, Circana noted.

The Co-op said the results highlighted the importance of brand advertising in the convenience channel and why it was effective.

It explained that due to the compact nature of convenience stores, it increased the likelihood of shoppers discovering ads, such as within a five-aisle convenience store compared with a 15-aisle supermarket.

Co-op added that because convenience trips were often unplanned with no shopping list, shoppers were more receptive to advertising messages to help complete their shopping mission quicker.

The new research comes as Co-op launched a retail media network earlier this year to boost advertising opportunities for brands. Dubbed the Co-op Media Network, it aims to help brands “strategically connect” their goods and services to interested Co-op shoppers in store and online.

It brings together Co-op’s in-house team and its long-term agency partner SMG – the largest operator of retail media networks in the UK – under one recognisable brand.

“The results from our research with Circana is clear, when brands activate campaigns with Co-op there is an immediate positive sales impact in our store but also within the surrounding area with retailers that we would typically class as our competitors,” said Dean Harris, head of Co-op Media Network.

“As a retail media owner, our main goal for the brands that advertise with us is to generate sales regardless of where that customer purchases the product.

“The analysis of the beer campaign shows that by influencing brand purchase decisions in other non-Co-op stores, the retail media activation is able to generate higher incremental sales by tapping into larger pack sizes available in supermarket stores.

“This halo effect data is incredibly insightful and gives further confidence to talk to our clients about the power of retail media in the convenience setting.”

Circana Mark Hurst, EMEA head of retail media at Circana, added: “As the advertising industry continues to expand traditional retail media inventory and accelerate digital and addressable channels and privacy regulations limit traditional measurement methods, retailers are increasingly in need of more agile and accurate ways to measure campaign performance across channels and tactics.

“Being able to analyse media lift through a range of sales-based measurement approaches including test & learn, tactical comparisons and mid-campaign analysis, results in faster and more cost-effective decision making, enabling retailers like the Co-op to demonstrate brand impact and how it drives incremental value.”