Private-label brands are reshaping the retail landscape. Known for affordability and quality, these brands are thriving, driven by shifting consumer priorities and economic considerations. As private-label sales continue to rise, in-store retail media is emerging as a key tool for retailers to connect with shoppers, highlight their unique offerings, and drive engagement in both physical and digital environments.
How are private-label brands using retail media to grow? Let’s explore their success story, strategies, and real-world examples that demonstrate the power of in-store retail media.
Private-label brands saw record-breaking growth in 2024, reaching $271 billion in sales—a $9 billion increase from the previous year. This 3.9% growth far outpaced the 1% growth of national brands. Key categories driving this performance included:
By 2030, private-label sales are forecast to reach $462 billion, growing at nearly 6% annually. Key drivers include:
Retail media bridges the gap between brands and consumers. Retailers can effectively communicate their value by showcasing private-label products through dynamic in-store displays, endcaps, and personalized digital campaigns. Private-label products can position themselves as both cost-effective and high-quality solutions to modern consumer needs.
Modern shoppers value convenience, personalization, and clarity. Retail media—from loyalty app offers to data-driven promotions—allows retailers to elevate private-label visibility, ensuring these products meet customer expectations across both physical and digital channels.
Retailers must analyze purchasing trends and shopper demographics to craft targeted campaigns for private-label brands. Advanced analytics tools help refine these efforts, ensuring relevance and effectiveness.
Brands should emphasize unique selling points—whether sustainability, affordability, or innovative design. Effective campaigns use creative visuals and messages to make these differentiators stand out.
A seamless blend of in-store displays and digital promotions is critical. Endcaps, shelf-edge screens, and QR codes can guide shoppers from physical stores to enriched digital experiences, like detailed product descriptions or recipes. Using an interactive POP display like Tokinomo Visibubble allows you to provide a phygital experience.
Retail media networks like Walmart Connect and Kroger Precision Marketing enable brands to scale campaigns. These platforms offer tools to create personalized ads, measure performance, and optimize spending.
Campaigns should evolve based on performance metrics. Retailers can experiment with ad formats, messages, and platforms, iterating on strategies to ensure maximum ROI.
Expanding opportunities through innovation
The integration of AI and real-time analytics allows for hyper-personalized content delivery. Predictive models suggest products to consumers based on past behavior, ensuring a tailored experience. Companies that leverage advanced data analytics are 23 times more likely to acquire customers and 19 times more likely to be profitable compared to those that do not adopt artificial intelligence.
Omnichannel engagement
Retailers must embrace an omnichannel approach that unifies physical and digital shopping. Consistent branding and messaging across platforms simplify the path to purchase, enhancing customer satisfaction.
Building brand loyalty
Private-label brands can foster loyalty with exclusive rewards and offers. Retailers should invest in loyalty programs that focus on private-label purchases, creating long-term value for customers. Once loyal, 77% of customers are more likely to stay with the brand, and 70% are more likely to recommend the brand to others.
Looking ahead
Private-label brands are poised to dominate, fueled by affordability and innovation. Retail media will continue to bridge the gap between brands and consumers, delivering personalized, impactful campaigns that drive growth.
Private-label brands are experiencing a golden age, driven by their ability to combine quality and affordability. In-store retail media has proven invaluable in amplifying their presence, offering personalized and dynamic ways to connect with shoppers. Retailers who invest in innovative media strategies will not only keep pace with this evolution but will shape the future of retail.