ANALYSIS What retailers can learn about the power of in-store from Co-op-Lumen study

Image © Co-op

Research from the Co-op, UK’s leading convenience retailer’s media network, in partnership with Lumen Research, an eye-tracking technology company and expert in consumer attention, shows the power of advertising instore and the potential of retail media as a brand-building marketing channel in comparison to traditional media.

Co-op is one of the world’s largest consumer co-operatives with interests across food, funerals, insurance and legal services. The Co-op operates almost 2,400 food stores, employs almost 60,000 people, and has an annual turnover of over £11billion.

Lumen Research is an eye-tracking technology company that helps advertisers understand how consumers view advertising across online and offline media. 

The Co-Op Media team hypothesised that due to Co-op’s smaller store sizes, formats and high shopper frequency, advertising messages within convenience stores would be seen and recalled by more people, more often. Furthermore, in a convenience store, the presence of mixed category aisles leads to customers encountering a wide variety of advertisements within the same space.

The study

For the test group, the Lumen Research methodology involved a nationally representative sample of 60 shoppers was recruited and assigned a 10-to-15- minute shopping mission in both large and small format stores, with 30 shoppers in each store.

Shoppers navigating either a small or large Co-op store, on a BBQ shopping mission – engaged with a mixture of categories from protein, produce, frozen, ambient and BWS – while wearing unobtrusive eye-tracking glasses. These devices monitored what the shoppers were viewing, the duration of their gaze and retinal movements.

This approach provided precise insights into what the shoppers were observing and offered an understanding of which advertisements were within their peripheral vision. It also assessed viewability and opportunities to see, indicating instances where advertisements could have been seen without direct focus. Upon leaving the stores, shoppers were tested on brand recall and completed brand choice surveys.

 A control group was set-up consisting of 301 respondents, closely matching the test sample in key demographics. They were asked to browse news articles with advertisements, though not featuring the same brands as those displayed in-store and then completed the same online survey as the in-store group.

Results from the study indicated that larger stores do generate brand-building with shoppers. However, when comparing smaller Co-op stores to larger-format stores, attention and recall were significantly enhanced in the convenience setting. The data revealed that a shopper who walks into a convenience store has twice the visibility of the advertising, triple the attention and quadruple brand recall compared to a large store.

Why smaller stores drive stronger brand impact

Shoppers in smaller stores often make multiple trips per week and revisit aisles during a single visit. Findings from the study show that in-store media in smaller convenience stores leads to significantly higher engagement than in larger stores because

  • Twice the opportunity to see ads – Shoppers pass by the same ads more often due to the way they move through a compact space.
  • Three times the attention – People spend more time looking at branded materials in small stores than in large stores.
  • Four times brand recall – The frequency of exposure makes it easier for people to remember the brand later.

Branded In-store media builds more than volume

The data from Lumen and Co-Op challenges the notion that in-store media cannot contribute to brand recall at levels comparable to major advertising channels, such as out-of-home advertising:

  • Time spent viewing in-store media is comparable to social media and out-of-home advertising.
  • Small store media ranks just behind online video in terms of brand recall.
  • Branded in-store media improves recall by up to 7% and increases purchase consideration by 2-4%.

These results suggest that in-store retail media should be treated as part of a long-term brand-building strategy rather than just a way to prompt last-minute purchases.

What can Retail Media Advertisers Learn from the study

1. Invest more in small-format store advertising
Shoppers in small stores engage with ads more frequently and for longer periods. Brands could prioritise in-store placements in these settings to make a lasting impression and reinforce brand messages across multiple visits.

2. Connect in-store media to a broader marketing strategy
Branded in-store materials should always be aligned with other marketing goals. Using the same creative elements across in-store, digital, and out-of-home campaigns reinforces distinctive brands assets.

3. Improve placement and creative execution

  • Keep messaging simple and direct to make an impression quickly.
  • Position branded materials where shoppers naturally pause, such as at checkout or along main aisles.
  • Use a mix of digital and static in-store media to increase exposure and engagement throughout the shopping trip.

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