Download the Co-op Media Network/ Lumen Research white paper that Dean references in this episode here.

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Co-op Media Network: A Different Kind of Retailer

Co-op is unique because it operates as a cooperative, not a publicly traded company. That means it’s accountable to its 6.3 million members rather than shareholders. As Dean explained, this structure allows Co-op to balance commercial objectives with ethical considerations, ensuring that its advertising and data usage benefit members as well as brands.

Co-op’s retail media network launched just over a year ago, building on years of advertising experience. The focus? Helping FMCG brands connect with shoppers across Co-op’s 2,500 stores, digital channels, and loyalty programme. What makes Co-op different is its convenience-first approach, a positioning that comes with its own challenges and advantages.

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Why Convenience Retail Media Works

Unlike big supermarkets, Co-op stores are smaller and embedded in communities—close to homes, train stations, and universities. This means:

High frequency – Many shoppers visit multiple times a week rather than doing a single big shop.

Shorter purchase cycles – Ads can influence purchasing decisions within hours rather than days or weeks.

Greater visibility – Smaller stores mean fewer aisles and less clutter, increasing ad exposure.

Dean highlighted how Co-op’s store layouts naturally drive discovery and impulse purchases, making in-store advertising a powerful tool for brands.

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The Power of Attention in Retail Media

One of the most fascinating parts of our conversation was Co-op’s research with Lumen Research, which used eye-tracking technology to measure attention in convenience stores versus larger supermarkets. The results were impressive:

Twice the ad visibility in convenience stores.

Three times the attention (people looked at ads for longer).

Four times higher brand recall compared to larger-format stores.

These findings suggest that in-store advertising isn’t just about driving last-minute purchases—it can build brand equity, just like traditional media. When you consider that Co-op stores are highly frequented, those repeated exposures add up, reinforcing mental availability for brands over time.

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Retail Media: Brand or Performance?

Historically, retail media has been viewed as a performance channel, driving immediate conversions at the point of sale. But as Dean pointed out, context matters. When you see an ad in a supermarket or convenience store, you’re in buying mode, which makes that exposure more impactful.

Dean also mentioned the importance of breaking down silos within brands. Too often, shopper marketing teams control in-store ads, while brand teams focus on traditional media. The reality is that in-store media delivers both branding and performance outcomes, and it should be viewed as an integrated part of the media mix.

The Missing Piece: Retail Media’s Impact Beyond the Store

Perhaps the biggest revelation from our conversation was Co-op’s research with analytics firm Sakana. It found that in-store ads don’t just boost sales in Co-op stores—they also increase purchases in other retailers like Tesco, Asda, and Morrisons.

One study showed that a beer campaign in Co-op stores delivered a 16% uplift in sales within Co-op, but also drove a 3% increase in rival supermarkets. When aggregated, those indirect sales quadrupled the campaign’s total impact. This challenges the traditional view of in-store media as a closed-loop channel—it turns out, it’s influencing consumer behaviour well beyond the point of exposure.

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The Future of Retail Media

I asked Dean to do a quick SWOT analysis of retail media, and here’s what he highlighted:

Strengths: First-party data, purchase intent signals, and strong reach & frequency.

Weaknesses: Lack of standardised measurement across different retailers.

Opportunities: AI-driven media planning and better integration with traditional advertising.

Threats: Over-commercialisation—too much advertising could damage the shopping experience.

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What’s Next?

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If you’re reading this on the day of release, Dean and I are heading to MAD//UpNorth, where he’ll be discussing these insights live on stage. Co-op’s research proves that retail media is more than just trade marketing—it’s a powerful branding channel. The next step for brands and retailers is to embrace that reality and optimise how they use it.

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#retailmedia #advertising #marketing #media