In-Store Digital: The Funnel Stage Nobody’s Talking About

90%+ of Canadian grocery sales still happen in physical stores.

Yet most CPG retail media budgets go entirely to digital: sponsored products, search ads, programmatic. Brands are spending heavily to reach shoppers online while the vast majority of purchases still happen in the aisle.

That’s a massive disconnect.

The conversation around retail media has focused almost exclusively on what happens on screens: Amazon, Walmart Connect, Instacart, Loblaw Advance. And those channels matter. But they’re only part of the picture. For brands serious about full-funnel commerce media, there’s a stage that’s been largely ignored: in-store digital.

Key Takeaways

• • Over 90% of Canadian grocery sales still occur in physical stores, yet most retail media investment focuses on digital platforms
• • Loblaw Advance is significantly expanding its in-store digital screen network: nearly 2,000 screens across 700+ locations today, with hundreds more coming through 2026
• • In-store digital screens drive a 3.6x increase in customer growth when included as part of an omnichannel campaign
• • The gap between upper-funnel awareness and lower-funnel conversion is where in-store digital creates impact, reaching shoppers at the point of decision
• • Brands connecting awareness, in-store reinforcement, and retail media conversion as one system will outperform those optimizing each channel in isolation

Why Is In-Store Getting Overlooked?

It’s not hard to understand why digital retail media gets the attention. The targeting is precise. The measurement is closed-loop. You can see what’s working and optimize in real time. It feels modern, accountable, and scalable.

In-store has historically been harder to measure and easier to ignore. Brands run trade promotions, negotiate for end caps, and hope for the best. The connection between media investment and sales has been fuzzy at best.

But that’s changing. Retailers are investing heavily in digital infrastructure inside their physical stores: screens at entrance, in-aisle, at checkout. And they’re connecting that inventory to the same data that powers their online retail media networks.

In-store digital isn’t a throwback to old-school shopper marketing. It’s becoming a measurable, targetable, attributable media channel. And for brands that figure out how to use it, it fills a critical gap in the funnel.

What Is Loblaw Doing?

In October, Loblaw Advance announced a major expansion of their in-store digital screen network through a partnership with STRATACACHE. They’re building on a foundation that already includes nearly 2,000 screens across more than 700 locations and scaling to hundreds more stores through 2026.

The numbers tell the story:

• 1. 4.1 million shoppers in Loblaw stores daily
• 2. Nearly 2,000 screens across 700+ locations today, expanding through 2026
• 3. 3.6x increase in customer growth when in-store digital is part of an omnichannel campaign
• 4. 17 million+ PC Optimum relationships powering targeting and measurement

Lauren Steinberg, Loblaw’s Chief Digital Officer, put it directly: “We’re scaling up our in-store screen network because that’s where customers are making their final purchase decision. That’s where you can actually inspire them.”

This isn’t just about adding screens. It’s about connecting those screens to the same audience data and measurement infrastructure that powers Loblaw Advance’s digital offerings. The result is in-store media that can be planned, targeted, and measured alongside online retail media—not as a separate line item with different rules.

Where Does In-Store Digital Fit in the Funnel?

Think about how most commerce media strategies are structured today.

At the top of the funnel, you’re running connected TV and programmatic to build awareness. You’re reaching your target shopper while they’re streaming in the evening or browsing online. The goal is brand recognition and consideration, planting a seed before they’re actively shopping.

At the bottom of the funnel, you’re bidding on retail media to capture conversion. Sponsored products on Amazon. Search ads on Walmart Connect. Display on Instacart. The goal is to be present when the shopper is ready to buy, to win the click and close the sale.

But what happens in between?

The shopper saw your connected TV ad last week. They have some awareness of your brand. Now they’re pushing a cart through Loblaw, making real-time decisions in the aisle. They’re not looking at their phone. They’re not searching on a retailer app. They’re looking at the shelf.

This is where in-store digital creates impact. It’s the reinforcement layer, the moment where awareness converts to action. The shopper who was primed by upper-funnel media now sees your brand again, right at the point of decision.

Without in-store, there’s a gap. You’ve invested in building awareness. You’ve invested in capturing demand. But you’ve left the middle unaddressed: the physical space where the majority of purchases actually happen.

Why Does This Matter for Canadian CPG Brands?

The Canadian grocery market has unique characteristics that make in-store digital particularly relevant.

1. • 1. First, retail concentration. Loblaw, Walmart Canada, and Sobeys control roughly 60% of grocery sales. A handful of retailers reach the majority of Canadian shoppers. When Loblaw invests in in-store digital infrastructure, that’s not a niche channel; it’s mass reach.
   • 2. Second, the in-store reality. Online grocery has grown, but it’s still under 10% of total sales. The overwhelming majority of Canadian grocery purchases happen in physical stores. Any commerce media strategy that ignores this is optimizing for a fraction of where sales actually occur.
   • 3. Third, the PC Optimum advantage. Loblaw’s loyalty program covers 17 million+ Canadians. That data powers targeting and measurement across both digital and in-store channels. For brands already running Loblaw Advance campaigns online, extending into in-store digital means leveraging the same audience insights in a new environment.

What Does a Connected Strategy Look Like?

The opportunity isn’t just adding in-store digital as another line item. It’s connecting in-store to the rest of your commerce media strategy so that awareness, reinforcement, and conversion work as one system.

Here’s what that looks like in practice:

• 1. Awareness through programmatic and connected TV. You identify your target shopper using retailer audience data and reach them across streaming platforms and the open web. The goal is brand recognition before they’re actively shopping.
• 2. Reinforcement through in-store digital. When those same shoppers enter physical retail locations, in-store screens deliver contextual messaging. The brand they saw last week appears again as they walk the aisle. Awareness becomes consideration.
• 3. Conversion through retail media. For online shoppers, sponsored products and search ads capture the sale. For in-store shoppers, the reinforcement work increases the likelihood they reach for your product at shelf.
• 4. Measurement across the full journey. Because all three layers are powered by the same data infrastructure, you can connect the dots. Did households exposed to all three stages convert at higher rates than those exposed to only conversion-stage media? What’s the incremental lift from awareness? From consideration?

The brands that win won’t be the ones optimizing each channel in isolation. They’ll be the ones running awareness, in-store, and conversion as a coordinated system with each stage reinforcing the others.

The Bottom Line

In-store digital is the funnel stage most brands are missing. It’s the bridge between the awareness you’re building and the conversion you’re chasing; the moment where shoppers make real decisions in real aisles.

Loblaw’s investment in expanding their in-store screen network signals where retail media is heading. The retailers are building the infrastructure. The measurement is catching up. The question is whether brands will connect the dots.

If you’re thinking about how to extend your commerce media strategy beyond digital or how to connect upper-funnel awareness to in-store conversion—we should talk.

Get in touch → commercemediaagency.co

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