Superdrug is set to become the latest UK entrant into the retail media market with the imminent launch of the Optimo platform, which looks set to include numerous brands owned by parent company AS Watson Group.
The scheme will join the likes of Tesco, Sainsbury’s, Asda, Boots and Morrisons to take on the might of Amazon and Alibaba for a slice of the $128.2bn (£104.8bn) sector.
Plans for the launch were revealed at the firm’s annual supplier conference last week, according to a LinkedIn post by the Superdrug head of digital marketing, retail media and online brand Paul Stafford.
While details are thin on the ground, it would appear to be a global collaboration between Superdrug’s parent company AS Watson Group, as well as business units across Hong Kong, Milan, Paris, Amsterdam and London.
Stafford added: “From a personal point of view, it’s been an incredible journey to work on a project that is at the coal face of major industry change. I can’t wait now to start working with our suppliers to deliver on their briefs.”
Superdrug is also overhauling its loyalty scheme as part of plans to make it a digital-first programme in a move the retailer insists will boost its customer experience strategy.
AS Watson also owns Savers and The Perfume Shop in the UK, as well as Watsons, Drogas, Kruidvat, ICI Oaris XL, ParknShop, Great Food Hall and Watson’s Wine in international markets.
WARC Media’s latest Global Ad Trends report, published last week, forecast that global retail media spend will reach $128.2bn (£104.8bn) this year, and $141.7bn (£115.8bn) in 2024, putting it on track to overtake linear TV as the third-largest channel by spend within a few years.
“Retail Media’s Path to Consolidation” predicted that Amazon will supplant Alibaba as the world’s largest retail media owner by ad revenue this year.
Between them, the two businesses earned an estimated $80bn in advertising revenue in 2022, equivalent to more than two thirds (68.3%) of global retail media investment.
Amazon occupies more than four fifths (87.8%) of the market outside of China, according to WARC estimates, and is forecast to earn $45.4bn in ad revenue this year, up 20.4% year-on-year.
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