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

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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.

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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.

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Find Mark Williamson on Linkedin

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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