Loblaw Advance’s Pratyush Kumar on the rise of retail media in Canada

Retail media is on the rise in Canada — and the country’s largest food retailer is leading the charge.

According to eMarketer, retail media is the fastest-growing digital ad channel in the country: One in five digital ad dollars will go to the channel this year, double what it was five years ago.

EMarketer attributes that growth partly to a surge of inventory as off-site and in-store retail media gain traction, with local retailers like Loblaw investing in their own retail media networks.

The opportunity was a focal point of Forward ’25 in Toronto last week. Hosted by The Trade Desk, the event brought together Canadian marketers to discuss the rise of the premium internet.

The Current talked to Pratyush Kumar, GM and head of ad products at Loblaw Advance, the company’s retail media arm, about retail media’s growth in the region, in-store retail media and more.

This interview has been edited for length and clarity.

What are your main priorities right now at Loblaw Advance?

We need to be the first channel for every CMO when they have a new problem to solve. We want to be considered the first choice for almost everything that a marketer wants to deliver on, and we strongly believe that we have that capability. We want to be the most trusted advisers by providing precision-driven marketing, which clearly shows the return on every dollar you’re spending. That’s the question that every CMO is asking — or what every CFO is asking the CMO.

Zooming out, why is retail media gaining ground in Canada?

Until recently, the market was mostly dominated by non-Canadian players. We are an answer that’s truly a Canadian company serving Canadians every day. We have the most granular level of audience insights; we know our audience the best.

For any retail media business to be able to successfully deliver results, scale is important — reach and scale, but at the same time, precision and insights.

We are able to do that seamlessly. Every second that we’re talking, someone is making a transaction at a Loblaw store — those are the signals we generate in terms of transactions that customers have with us in store, that’s the amount of data we generate. And because we have a loyalty program, we can go a little deeper in terms of understanding customer behavior.

Advertisers want value for their dollar, and retail media is the answer. And we do it with precision and with transparency.

But transparency isn’t only about how the ad is performing, it’s about where it is showing. That’s table stakes for everybody in this space: brand safety, data privacy, data security.

Do a lot of customers make purchases on their phones while in a physical store?

Years ago, people would go online, read reviews and forums, and then make a purchase in the store. Now, a lot of people like to make a discovery in the store — but they may not be ready to make a decision there in real time. The consumer journey is no longer linear.

People are constantly multitasking between screens. At the same time someone is looking at an in-store screen, they might be price-comparing on their phone.

Loyalty programs are a reason people might want to use the app instead. It’s a win-win situation. Brands want consumers that are transacting online because of the many signals generated, which help inform better decisions for the same customer in the future.

Yes, online purchases are becoming more prominent. But it’s a journey.

So how do you define in-store retail media?

Any form of communication that aids the consumer inside the store can be considered a form of in-store media. In-store audio could be considered in-store media. Screens at the checkout line could be. All of these touchpoints collectively working together forms that basis.

In-store has taken a huge leap because over 80% of transactions still happen in store. That’s just the physical touchpoints. If I start overlapping that with the amount of interaction they have with our apps or online sites, it just keeps adding up.

Something we want to do at scale in the future is personalize the customer experience while they’re in the aisles, such as with electronic shelf labels with personalized offers. There’s so much that you can do through in-store communication to help a customer make a decision.

It’s the same with our digital channels though: relevant communication, contextual communication, personalized communication. Personalization is not even an option anymore, it’s a necessity. You have to personalize your communication with the customer.

Overall, omnichannel is the way.