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Retail in the age of AI: Key takeaways from Shoptalk 2026
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What does the future of retail media hold?
Will we focus on further addressing identity resolution or find new ways to leverage predictive and generative AI? Will we harness the power of data clean rooms or focus on unifying our retail media networks to avoid fragmentation and wasted ad spend?
Instead of consulting a crystal ball, we turned to industry expert Bobby Watts, the SVP of AD Retail Media (the retail media arm of the grocery giant Ahold Delhaize), Digital Merchandising and Marketing, who sat down with Pamela Young, EVP, Epsilon Media Solutions at Publicis Groupe, to discuss creating a unified customer journey, the future of retail media and more.
Watch the full video to hear their predictions for what's next in retail media.
As far as Watts is concerned, the future of retail media is twofold—and the customer of tomorrow is at the center. It lies in better connecting with their customers and helping AD USA's major grocery store brands like Food Lion, Stop & Shop and Giant activate at scale by increasing consumer relevancy at a local level.
"For me, when we think about partnering with our advertisers, it's really about understanding that value of being locally relevant and then leveraging the full scale of AD USA through AD Retail Media," Watts says.
Beyond those two tenets, Watts also envisions a future where consumers use AI to compare prices at the basket level so they can find which store offers the best value for all the things they need, as opposed to searching for the best price for one-off items and potentially going to multiple stores.
For brands looking to stay ahead, Watts outlines three pillars of a strong retail media strategy:
When planning an effective retail media strategy, relevancy should be front and center. Beyond understanding the items a consumer might be interested in, it's important to take it a step further and think about what kinds of ads make sense in your geographical area.
For example in the winter, people in northern states like New York and Maine might be in the market for comfort food and pantry staples, while those in warmer locales might be open to lighter fare. Watts says it all comes down to putting the customer at the center.
“[We're rethinking] how we engage with consumers to connect that and tether that all the way through," Watts says.
Long gone are the days of siloed retail advertising strategies.
As Watts says, it's essential to avoid "advertising for the sake of advertising." He recommends thinking about retail media on a deeper level and making sure your omnichannel plan activates consistently across channels.
"We've continued to consolidate things across our retail media practice," Watts says. "It's not about whether I need to have my retail media program over here, my commercial activation program over here and my marketing program over there. It's really about how we make all of those things come together harmoniously to deliver the best-in-class customer experience."
He also explains AD USA's process when it comes to connecting marketing messages with content to nudge consumers along the journey as they engage with the channels they prefer.
Partnerships offer a clear path to retail media growth. Watts shares how AD USA has seen real value in strengthening its partnership with Epsilon and bringing a unified view to its advertisers.
"[We bring] measurement for in-store and online together to really help showcase the performance that we're seeing across the channels because the media itself has impact across both the in-store and online channels," Watts says. "When we partner with you, it's bringing that unified story to our partners, and we've seen great results when we do that."
You don't have to build and implement your future-proof retail media strategy alone.
With a partner like Epsilon, you can find the right balance of on- and off-site ads, unlock (or take better advantage of) an additional revenue stream and create a better shopping experience for your customers.
Learn more about how to create a retail media strategy that will connect the dots between your target market, the evolving customer journey and dynamic original content.
