The situation: As Kroger plows ahead with plans to merge Albertsons, the grocer faces some clear challenges.
The opportunity: While groceries are a low-margin business, Kroger found success driving high-margin revenues via retail media. In fact, growing that revenue stream is one of the key rationales of its merger with Albertsons (a fact we discussed in-depth on a Reimagining Retail episode last November).
The big takeaway: While there may be speed bumps ahead, Kroger (and potentially a combined Kroger-Albertsons) have some built-in advantages of which it has yet to take full advantage.
Go further: Read our recent In-Store Retail Media 2023 for an in-depth look at why brands should consider physical stores the next major media channel.
First Published on Sep 8, 2023
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