One year into its retail media network (RMN) journey, Costco is taking steps to stand out in a crowded marketplace by leaning into loyal customers and in-store potential.

• There are currently over 80 RMNs in the US. And since Amazon holds such a position of dominance in that landscape, it's imperative that competing networks find ways to stand out.

What's happening: Costco is working with data analytics firm Inmar Intelligence and other shopper marketing agencies, according to the Path to Purchase Institute.

• Inmar provides campaign planning and execution, contextualized creative, post-campaign reporting, and
• SKU-level sales lift measurement. Inmar’s creative studio also helps tailor ad experiences to shoppers.

Between the lines: The move comes as Costco prepares for increased tariffs and builds its retail media business as a value-driver for consumers, per CFO Gary Millerchimp on last week’s earnings call.

In an earnings call in March, Millerchip called retail media a “significant growth opportunity,” though he acknowledged the company was in “the very early stages” of a “multiyear roadmap”

State of play: Trust and loyalty are major assets for Costco’s retail media ambitions.

• The retailer ranked No. 5 among the most trusted US brands in this year’s Axios Harris Poll 100, ahead of retail media competitors like The Home Depot (No. 15), Amazon (No. 19), Lowe’s (No. 23), and Walmart (No. 81).
• Nearly 6 in 10 (58%) of consumers are buying more private label products than they were a year ago, according to an Ipsos consumer survey from August 2024.
• Consumer trust could encourage greater data-sharing, powering more effective retail media campaigns.

Costco’s fundamentals also provide a strong foundation for ad growth. In its most recent fiscal quarter, the company reported an 8% YoY sales increase. Unpredictable tariff policy and economic pressures may drive more consumers to Costco’s value-focused model for features like discounted gas.

The bottom line: As retail media networks mature, Costco’s differentiated position—a loyal membership base, high brand trust, and strong physical footprint—could make it a standout player in the next wave of RMN growth.

Editor’s note: This story has been updated to clarify the relationship between Costco and Inmar.