The Middlemen Podcast by Nextipedia

Retail Media in Warehouse Mode - Costco's Mark Williamson

Mark Williamson, AVP of Retail Media at Costco, talks member-first culture and the primacy of the merchant team and how that shapes its approach to retail media

Tom Limongello & Todd Sawicki

Our first discussion with a club retailer is with our friend Mark Williamson, AVP of Retail Media for Costco. Mark brings a wealth of humor and expertise to deal with the reality of what he calls 'the last mover advantage.' Costco is retailer with strong convictions about both its 'warehouse mode' consumer experience as well as the role of the retail media 'growth team' and how they support the merchant organization

Mark explains why Costco prioritizes member value and long-term relationships over short-term ad revenue, highlighting the critical role of the retail media “growth team” in supporting merchants and enhancing the treasure hunt experience that defines the warehouse shopping journey. The conversation explores how digital tools, like the Costco app’s “warehouse mode,” are used to drive product discovery and trial, and why aligning retail media with merchandising is essential for success. Mark also addresses the challenges and opportunities of in-store media, drawing parallels to Costco’s famed sampling program, and offers insights for technology vendors and brands hoping to collaborate with club retailers.

Listen for insights on how technology vendors should think about Club retailers, as well as Costco's special view on impulse buys on the treasure hunt and what that means for personalization of retail media both inside and outside of the retailer's four walls.

Find Mark Williamson on Linkedin

Chapters:

• 00:00:00 - Introduction to The Middleman Podcast
• 00:00:28 - Retail Media Landscape Overview
• 00:01:40 - The Three Pillars of Retail Media
• 00:02:50 - Understanding Retail Media Goals
• 00:05:01 - The Importance of Top-Line Sales
• 00:06:17 - Introducing Mark Williamson from Costco
• 00:06:47 - Lessons from Previous Retail Experiences
• 00:08:18 - The Unique Membership Model at Costco
• 00:10:13 - Costco's Retail Media Initiatives
• 00:12:42 - Shifting Focus from Revenue to Member Value
• 00:14:04 - Driving Discovery and Trial in the Warehouse
• 00:16:47 - Warehouse Mode and Digital Tools
• 00:21:18 - Retail Media Structure at Costco
• 00:23:57 - Aligning Retail Media with Merchandising
• 00:28:07 - The Role of Competition in Retail Media
• 00:34:05 - Conclusion and Future Conversations

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Retail Media in Warehouse Mode - Costco's Mark Williamson The Middlemen Podcast

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