Supermarket shifts strategy as retail media becomes a major revenue driver

Morrisons is stepping up its focus on advertising as part of a wider effort to diversify revenues beyond traditional grocery sales. The retailer’s latest announcements highlight a clear push into retail media, with digital screens, in-store displays and partner-led campaigns now forming a central part of its commercial strategy. The move follows a broader trend across the UK grocery sector, where media networks are becoming increasingly valuable.

The rise of retail media has been fuelled by changing shopper behaviour and growing demand from brands seeking direct access to buying audiences. Morrisons, like its rivals, has recognised the opportunity to generate new income at a time when grocery margins remain tight. The supermarket has confirmed ongoing investments in digital infrastructure designed to support more targeted, measurable advertising.

Recent upgrades have focused on expanding digital screens across shop entrances, aisles and checkout areas. These screens allow dynamic content to be updated throughout the day, offering advertisers better visibility and flexibility. Morrisons’ media team says the strategy is intended to connect shoppers with timely offers the moment they enter stores, creating what it describes as a “high-impact” communication channel.

The company believes digital media can strengthen partnerships with both national brands and smaller suppliers. By offering new formats and consistent reporting, Morrisons aims to compete more directly with larger retail-media networks already established across the UK. The shift also helps suppliers reach customers at the exact point of decision-making, increasing campaign effectiveness.

Industry analysts say Morrisons’ move reflects the wider challenge facing supermarkets as they balance investment in stores with the need for long-term financial resilience. Advertising offers a comparatively fast-growing revenue stream that does not depend on the unpredictable nature of grocery demand. This makes it attractive at a time when households are increasingly price-conscious and basket sizes remain under pressure.

Several UK retailers have already expanded their media operations significantly, and Morrisons’ renewed push signals its intention to keep pace. The business has been working on modernising store layouts, technology and data tools to create a more unified retail-media environment. Executives say these upgrades will support more personalised and responsive advertising as the network evolves.

The retailer has also highlighted the role of customer insights in shaping its advertising plans. By using its loyalty and sales data, Morrisons can help brands target their campaigns more effectively. This data-driven approach is becoming essential for suppliers looking to improve return on investment, particularly in competitive product categories.

Shoppers are already encountering more digital content across selected stores, though Morrisons has said it will monitor customer feedback closely. The aim is to enhance, rather than disrupt, the shopping experience by providing clearer information, relevant offers and seasonal updates. Early testing suggests good engagement, but the retailer plans a gradual rollout to fine-tune the approach.

For Morrisons, the strategy is not about replacing its grocery focus but reinforcing it. Stronger advertising capabilities can support product launches, highlight promotions and drive category growth. By pairing traditional retail strength with modern media tools, the supermarket hopes to create a more compelling environment for both shoppers and suppliers.

As competition intensifies, the move towards advertising represents a significant shift in how major retailers think about their business models. Morrisons’ growing commitment to retail media shows its determination to adapt quickly, build new revenue streams and remain relevant in a rapidly changing market. The coming year will be crucial as the supermarket tests how far it can expand its advertising ambitions.

With the digital rollout under way and brand interest increasing, Morrisons is positioning itself for a future where ads play a much larger role in the supermarket landscape. This strategic turn suggests that the retailer sees retail media not as a side business but as a core pillar of how it will operate and grow in the years ahead.