Wesfarmers is looking to turn their stores into prime advertising real estate, or “retail media” as they call it.
👉 Background: Wesfarmers is the retail behemoth behind Bunnings, Officeworks and Priceline, Kmart, Target, Catch and many more.
👉 What happened: Wesfarmers is always looking for new ways to generate revenue. So now they're looking to turn their stores into prime advertising real estate, or “retail media” as they call it. The idea is to use its proprietary data to target shoppers in-store with ads. Think: digital billboards or in-store radio ads.
👉 What else: In fact, Bunnings already generates around $150 million per year from this advertising, and soon, Officeworks and Priceline will join the party too.
💡Retail media is the newest shiny tool in the retail shed, and it’s becoming a serious revenue stream.
💡It’s all about using data to target shoppers where they shop. Right now in Australia, Chemist Warehouse is the leader of the retail media game. In fact, it now generates more than $600 million a year through its retail media — or 20% of its total revenue.
💡This is just the beginning for retail media in Australia. In fact, it’s currently worth around $1.6 billion per year but it’s expected to grow to $2.8 billion by 2027, according to Morgan Stanley.
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