Shape What Britain Buys 2025: The Future of Retail Media

Tesco recently delivered its ‘Shape What Britain Buys 2025 event and Bicycle were one of the lucky agencies to attend. The provided an in-depth look at the evolving landscape of retail media in what is shaping up to big a huge year for brands, advertisers, and agencies maximise their retail media opportunities in the year ahead

1. Brands Bounce Back

National brands are making a comeback after inflation drove shoppers to cheaper private-label alternatives. Tesco reports 7.7 million more branded items purchased weekly in November 2024 versus last year.

While store brands offering 20-30% savings became popular during inflation, consumers are returning to trusted brands as economic pressures ease. To regain market share, national brands are highlighting their quality, innovation, and distinctive personalities. Retail media is playing a key role, with search volumes for Tesco's top 20 brands up 12% in 2024.

2. Smaller Brands, Bigger Impact

Over the past decade, non-leading brands have generated 75% of CPG growth, with Tesco witnessing this trend firsthand as smaller brands flourish through strategic advertising. These brands thrive by offering authenticity and addressing customer needs that larger competitors often miss. Their success stems from data-driven approaches that identify ideal customers and maximize limited budgets through tools like propensity modeling.

3. Convenience +: The Next Frontier

Retailers have adapted to changing shopping habits, with services like Tesco Whoosh offering rapid delivery.  While convenience stores like Tesco’s 2,000+ locations remain key for quick needs, Whoosh serves immediate, on-demand deliveries, particularly to younger and family audiences.  This presents a big opportunity for brands to attract new customers without competing with traditional store sales. As convenience shopping evolves, brands must ensure their products are accessible across all platforms both physical and digital.

4. Blended Shopping is Here to Stay

In 2024, online research is transforming shopping behavior. Tesco.com's 12% monthly traffic increase reveals a significant shift: three in five visitors now use the site to prepare for store visits. Two-thirds seek product inspiration, while over half compare promotions and prices.

Brands must adapt by developing an omnichannel strategy that seamlessly connects digital and physical shopping experiences. Creating a unified brand narrative through retail media is crucial for winning customer loyalty.

To succeed, brands must embrace an omnichannel strategy that influences consumers across both digital and physical touchpoints. Effectively leveraging retail media to create a cohesive brand narr

ative is essential for cultivating lasting customer loyalty.

5. Smarter Measurement for Smarter Investments

Increasing brand investments are propelling the development of sophisticated measurement tools for campaign effectiveness. Brands now prioritize advanced metrics such as incremental Return on Advertising Spend (iROAS), market penetration, new shopper acquisition, and cross-channel purchasing to precisely evaluate their retail media strategies.

6. Seamless Integration is the Future

Retail media has transcended digital commerce, becoming a strategic tool integrated across marketing functions: brand, shopper, and performance marketing. In 2025, brands of all sizes - from market leaders to emerging players - will leverage retail media insights to navigate and influence consumer purchasing decisions.