Many retail media networks operate independently from core business functions, but staying disconnected may limit how far they can grow.

"Most retail media networks essentially were launched as startups within large legacy organizations, and they are tasked to grow and scale quickly in an industry that the rest of the retailer is not familiar with, which is media," said Molly Hjelm, head of retail media for Ace Hardware's RedVest Media network, during IAB’s Connected Commerce event last week.

That separation creates friction for brands trying to get the most out of the channel. When retail media sits apart from commerce teams, it limits how effectively brands can drive growth and performance.

"If retail media is not working together with the rest of the commerce operations, it really diminishes the brand's ability to reach its growth and profitability potential on the channel," said Jyoti Malik, former senior director of ecommerce at Belkin who has worked with consumer product brands for 15 years.

The fragmentation manifests in misaligned strategies: Retail media teams pursue different KPIs and audiences while commerce teams focus on promotions, inventory planning, and merchandising. Brands end up managing multiple relationships with separate teams at the same retailer, unable to leverage their full investment.

That’s why Ace Hardware designed its 2025 retail media launch to avoid the pitfalls more established networks are now trying to fix. Hjelm pointed to three core priorities:

• Real-time measurability across the entire portfolio
• Mature capabilities from day one spanning off-site, on-site, and in-store
• Direct merchant engagement and collaboration

"When we were able to demonstrate performance in real time, our merchants were able to see that it performs," Hjelm said. "When you can see that it performs, it becomes a tool in your toolkit that they feel confident about."

Jenn Moran, senior merchant at Ace Hardware leading the housewares team, confirmed retail media functions as an additional lever alongside marketing and promotion.

"I look to retail media as another tool in my belt," she said. "Marketing and promotion are key levers that I need to pull on in order to drive success for my business."

This enables Moran to support brands that don't receive spotlight in Ace's national marketing campaigns, which focus heavily on marquee hardware brands.

Collaboration requires communication, not restructuring

Becoming more integrated doesn’t require a full reorg; what matters most is consistent alignment.

"If the retail media team is not communicating, they ultimately can become a burden versus a blessing," Moran said.

At Ace, retail media sits within marketing, giving the team visibility into broader brand campaigns and promotional plans. That proximity helps ensure retail media supports existing initiatives instead of competing with them.

"We're connected on the marketing and on the merchant side," Hjelm said. "When you can do that, it's the most respectful thing to do for your vendor and your advertiser community."

But alignment doesn’t stop at marketing. Ace’s cooperative model, where more than 5,700 independent retailers decide what to stock, means retail media also plays a role at the store level.

"We also leverage retail media to connect and sell directly to our stores," Moran said. "Being able to connect directly with our stores is really important and incredibly valuable for our brands."

From siloed to synchronized

Looking ahead, deeper integration between retail media and core operations will be critical.

"The conversation has to get more and more integrated," Malik said. "Every brand is asking the question, do I have the best return possible? Is it all working together? Brands definitely want to look at it as one P&L, one conversation, because ultimately it's one customer journey."

But there’s no one-size-fits-all approach. Malik emphasized that brands need to align their structure with their level of maturity.

"If ecommerce you haven't figured out, then keep it all together before you start separating them out," she said. "Get the operating model right, make sure it works seamlessly internally and with your retail partners."

When that alignment is in place, the benefits are shared across the ecosystem.

"Everybody should be high-fiving because of retail media: Merchants, brands, retail media. It's not just a money grab,” said Hjelm. “When applied correctly, everybody should be extremely excited about the growth that it's delivering."

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