Introduction
Costco published its retail media tech stack and made the intent plain: media exists to speed merchandise sales, not to be a standalone profit center. That clarity flips common industry incentives and offers a repeatable blueprint for retailers and brands that want measurable commerce outcomes.
The Core Principle: Sales Velocity Drives All
Costco places member trust at the top of a hierarchy that flows to sales velocity, aligns with merchant goals, and only then supports media monetization. Transparency about data and technology is part of earning trust. Media is treated as fuel for the retail machine – used to turn inventory faster and grow categories – rather than the fire that consumes strategic focus.
Key Pillars of a Sales-First Strategy
- Membership data as the foundation – First-party member signals let retailers target high-propensity buyers while protecting privacy.
- Clean rooms for true incrementality – Secure measurement environments prove whether ads drive incremental purchases, not just clicks or impressions.
- Vendor partnerships over proprietary sprawl – Best-of-breed partners reduce cost, speed deployment and keep the retailer focused on commerce outcomes.
- Integrated commerce media – In-store, onsite and offsite media are one system; budget and measurement should reflect their combined impact on category sales and inventory turns.
Actionable Lessons for Retailers and Brands
Retailers should make objectives explicit: increase SKU turns, lift category sales, improve member retention. Build a measurement stack that privileges incrementality tests and cross-channel attribution within a privacy-safe clean room. Limit tech vendors to those that move the needle on sales velocity and preserve member trust.
Brands should demand access to member-level insights via safe environments, insist on incrementality proofs tied to commerce metrics, and favor deals that tie media pricing to sales uplift or improved inventory flow. Move spend from vanity metrics to outcomes that grow the category.
Costco’s approach is a reminder: retail media succeeds when it is subservient to retail economics. Align media to merchandise goals, measure what matters, and keep member trust front and center.
