The UK is facing its highest rate of inflation in more than 40 years as the combined impact of the pandemic, Brexit, and the war in Ukraine continues to push up prices across the board. With margins and sales under serious pressure, UK retailers and brands should act quickly to protect profits, maintain shopper loyalty, and make sure every penny spent on advertising counts.

Retail Media Booms as Brands and Retailers Seek to Boost Profits

Retail media offers retailers serious margins. Retail media networks (RMNs) are gaining ground as inflation-hit retailers look for ways to boost profits and capitalize on the shift to online shopping. RMNs could provide margins of between 40% and 80%, while Alvarez & Marsal forecasts that average retail margins are only 5%.

Advertisers have followed shoppers’ digital footfall. In the UK, ecommerce’s share of total retail sales is among the highest in the world. Brands want to reach their customers wherever they are, and retail media looks like an increasingly safe bet.