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Retail media’s next era: 5 trends from Shoptalk 2025 (and what to do about them)

By The Drum, Editorial

The Drum

May 27, 2025 | 5 min read

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Here are five trends shaping the future of retail media – and the actions marketers need to take now.

Retail media is booming, but it’s also fragmenting, evolving and heading into uncharted territory. At Shoptalk 2025, we saw sparks of something bigger: a shift from media strategy to business strategy.

1. AI is the new battleground

Trend: Everyone’s got an AI demo, but behind the glitz lies a growing power struggle: who controls the intelligence behind your ad spend? Platform-native AI tools are increasingly steering campaigns in ways that don’t always align with brand goals. At Shoptalk, Infillion’s general manager, Jeremy Woodlee, warned that AI is quickly becoming the new operating system for media – and if advertisers don’t claim it, platforms will own it by default.

Action: Start investing in your own AI agents – tools that live outside the platform and work off your first-party data. They should be composable, brand-led and designed to orchestrate media on your terms.

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2. Retail media is redefining what media means

Trend: It’s not just about ads any more – retailers are acting like media companies and media companies are watching their backs. Albertsons Media Collective’s VP of media and measurement, Liz Roche, says the next evolution could involve acquiring traditional media players. Retailers are integrating media, measurement, promos and loyalty into a single flywheel and starting to blur the line between commerce and content. Meanwhile, Jenny Holleran, vice-president of Kroger Precision Marketing, makes the case that retail media isn’t really media at all – it’s something deeper, closer to business transformation.

Action: Stop thinking of retail media as just a media buy. Think partnerships, not placements. Bring creative, commerce, R&D and measurement to the same table to unlock full-funnel value.

3. Agentic AI is here – and it’s getting personal

Trend: We’re moving from generative AI to agentic AI – systems that act on behalf of the shopper, not just generate content. From Wayfair’s AI design assistant to Kroger’s behavior-detecting algorithms, this next wave of automation is more predictive, more responsive and increasingly autonomous. Reddit’s CMO, Roxy Young, put it best: “You can’t have artificial intelligence without actual intelligence.”

Action: Focus on AI that does, not just says. Use agentic systems to build responsive journeys across channels – from product recommendations to campaign sequencing to predictive demand modeling.

4. The physical store is your secret weapon

Trend: While everyone talks digital, brands such as Primark are doubling down on in-store – and winning. Primark doesn’t sell online in the US. No bogofs. No coupons. Just a powerful combination of price, product and physical experience. Kevin Tulip, president of Primark USA, shared how its store-first model is thriving because, in 2025, experience is the strategy.

Action: Rethink physical retail as a media moment. Every store touchpoint – lighting, layout, localized merchandising – can amplify online engagement, brand trust and loyalty.

5. Retail is entering its golden age – if you’re ready

Trend: Forget the doomscrolling. Retail isn’t dying, it’s being reborn as a networked, AI-powered, omnichannel engine of connection. Capgemini’s global retail lead, Lindsey Mazza, says we’re in the middle of the most profound industrial revolution in history – one where stores become sensors, data becomes dialogue and every shopper helps shape what comes next. But with retail media margins reaching 70%–90%, the pressure to get it right is rising fast.

Action: Don’t just adapt to change, drive it. Build systems that respond in real time, integrate media with operations and turn data into value at every step of the journey.

Shoptalk 2025 made one thing clear: retail media can’t stay in its silo. It’s now a driver of everything from product development to creative strategy. The winners? They’re not just showing up with bigger budgets. They’re showing up with smarter systems, sharper insights and AI that actually works for them.

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