Host: Paul McIntyre, Editor-At-Large

Not all retailers are victims of scale.

North America is pouring billions of dollars into retail media, largely sponsored search and digital screens, making giants like Amazon, Kroger and Walmart richer and other retailers chasing scraps.

But luxury department store chain Holt Renfrew has carved out a higher-end niche in Canada, and its physical-plus-digital approach is pulling in new advertisers like Mercedes, as well as taking a larger share of endemic advertiser budgets as they bid to build brand and drive performance in a single hit.

Demand for both physical and digital inventory is running hot, helped partly by Holt Renfrew’s retail media operation three years ago moving to its own P&L under trade marketing boss, Ashlee Nickel – whose 16 years at the firm also span merchandise, buying and vendor marketing.

It means she speaks the merchandise team’s language as well as that of brands selling through the store.

That’s critical to avoid “conflict”, says Sonder’s Jonathan Hopkins.

“Media has been used as merch’s sweetie jar for decades, and that entrenched behaviour doesn't change overnight.” He argues retailers will increasingly struggle with their retail media ambitions unless they “create a cross-functional team with people from merch, marketing, finance, media,” all pulling in the same direction. Even then, he says, “give and take” is a pre-requisite. “Pick your battles would be my recommendation.”

Since the shift from top line co-op to standalone, Holt Renfrew’s profitable media revenue has changed how every program is priced, packaged, and pitched to vendors. In all, it’s packing 245 distinct media formats, all evaluated by Sonder.

It will soon have another – but given Holt Renfrew’s store environment makes even Apple’s look cluttered, a design challenge looms as the retailer mulls how to roll out a screen network that doesn’t damage that aesthetic.

Sonder’s Angus Frazer isn’t worried – subtlety is key, he says. “Retail media is not an excuse to ignore CX. Done well, it's an opportunity to improve CX and deliver on broader business objectives.” I.e. “highly profitable commercialisation”.

Trade marketing boss Nickel is now hunting more of them – in places where few retailers have thought to monetise. She’s already added in-store beauty carts and cafe menu takeovers to the inventory stack, and has brands queuing up for its in-store Montreal F1 Grand Prix weekend experience – and Holt Renfrew doesn’t even have an official partnership.

“One of the biggest opportunities in the space right now is looking beyond the obvious,” says Nickel. “When you start thinking differently about the retail environment, there are often opportunities that don't fit within a traditional media place.”

Outside of physical environments – and despite huge digital retail media spend, many are overlooking powerful channels – particularly email, say Sonder’s Frazer and Hopkins, leaving easy money on the table.