Edition #8

UK Retail Media: Hype or Impact? TikTok's £25 Rule & Asda's Price War

This week, we're dissecting UK retail media's effectiveness, questioning if it's just noise or real value. We'll also explore TikTok's sweet spot for sales — products under £25 and analyse Asda's aggressive price war strategy. Let's unpack the realities behind these retail trends.

Happy reading!

#1 Retail Media in the UK: All Hype, Little Impact?

Retail media is booming in the UK — but is it delivering real value?

From floor stickers to aisle-top boards, supermarkets are rapidly rolling out in-store media formats. Why? FOMO. With headlines buzzing about the rise of retail media networks and new revenue streams, no retailer wants to be left behind.

But as I walk through UK supermarkets, I can’t help but wonder:
👉 Is this actually the best use of the space?
👉 Are shoppers engaging?
👉 Or is it just more clutter competing for attention?

Let’s look at what’s happening in the UK, and contrast it with what Walmart is doing differently in the US, where retail media is treated less like wallpaper — and more like part of a connected commerce system.

UK Retail Media: The FOMO Effect in Full Swing

Retailers like Tesco, Sainsbury’s, and Asda are rushing to monetise their store footprint. We’re seeing:

  • Floor vinyls near entrances and checkouts

  • Overhead banners above key aisles

  • Shelf barkers and clip strips branded by suppliers

But here’s the question: Are these placements genuinely influencing purchase decisions? Or are they just ticking the “we do retail media” box?

🧠 Many placements lack contextual relevance
💬 Messaging often doesn’t align with the physical product nearby
👀 In-store execution feels outdated compared to how consumers shop today

What Walmart Gets Right

Walmart, on the other hand, is building an ecosystem — not just selling space. Through Walmart Connect, they’re integrating retail media into a broader, data-rich experience.

IMO here’s what sets them apart:
✅ Digital signage with real-time targeting
✅ End-to-end attribution — connecting in-store impressions to sales
✅ In-store TV walls playing contextual ads, not just promos
✅ Product demos and sampling integrated with media buys
✅ Self-serve platform for brands to plan and optimise campaigns

💡 It’s retail media as part of connected commerce, not just old-school POS slapped onto a new revenue model.

Is Retail Media Working in UK Supermarkets?

It’s early days, but the impact looks mixed:

  • Digital shelf-edge ads do boost conversion, but execution is patchy

  • Convenience stores show better ROI than big supermarkets, possibly due to shorter path-to-purchase

  • There’s little consumer trust or attention given to passive formats like overhead boards

And here’s the kicker — most UK retail media lacks data integration. Without clear performance metrics, it’s hard to prove value beyond anecdotal lift.

The Way Forward: Smarter, Not Louder

If UK retail media is going to thrive, it needs to evolve:
🔁 Connect in-store with online journeys
🎯 Use loyalty data to serve relevant in-aisle messaging
🛒 Focus on context, not clutter
📱 Integrate with apps, QR codes, and shoppable mobile moments

Retail media can be powerful, but not if it’s stuck in a 2010 mindset while shoppers have 2025 expectations.

Right now, too much of the UK strategy feels like a FOMO-fuelled land grab. The real winners will be those who turn real estate into real results.

#2 Why TikTok Belongs in Your Strategy (But Only If You're Under £25)

TikTok is a rocket ship, but only if you board it the right way.

Too many brands are throwing big-ticket items into short-form chaos and wondering why they’re not converting. Here’s what I discovered: TikTok thrives when your product is under £25 — impulse-friendly, scroll-stopping, and instantly shoppable.

This isn’t about “going viral.” It’s about being smart, strategic, and systemised.

💡 Why £25 Is the Magic Number IMO

Think of TikTok as digital word of mouth on steroids. The scroll is fast, the dopamine is real — and the buying decision is instant.

  • A £10 face mask? “Add to cart.”

  • A £15 cleaning spray with a viral before-and-after? “Need it.”

  • A £9 lipstick that’s trending? “Buy two.”

But a £200 air fryer? That’s going to take more than a trending sound.

🔹 TikTok works best when there’s low friction to convert.
🔹 Under £25 means impulse-friendly, low-risk decisions.
🔹 You’re buying the product and the moment—that’s the sweet spot.

What Brands Should Focus On

If you’re launching (or already have) a hero product priced under £25, TikTok should be a core channel in your growth playbook. But here’s how to make it stick:

1. Start with a Killer Hook

The first three seconds matter.

  • A jaw-dropping transformation

  • A super relatable pain point

  • A “did you know?” stat or surprising use

It’s not about slick production, it’s about attention first, product second.

2. Use TikTok to Build Community, Not Just Customers

Your video may get 1M views but what happens after the scroll?
Use TikTok to drive:

  • Follows

  • Newsletter signups

  • Traffic to owned platforms

  • Engagement through comments and shares

Turn visibility into loyalty.

3. Capture the Sale, Then Build the Relationship

Once someone buys on TikTok Shop (or clicks through), bring them into your ecosystem:

  • Send a welcome email with value-driven content

  • Invite them to follow your brand on Instagram or YouTube

  • Include QR codes or incentives in packaging

TikTok is your front door — your brand home lives elsewhere.

4. Use Retail for Scale, Not Just Reach

After TikTok proves traction, partner with selected retail platforms to scale distribution:

  • High street retailers who align with your audience

  • Marketplace giants like Amazon

  • Specialty stores that reinforce your brand identity

💡 Let TikTok generate the demand and retail capture the volume.

🚫 What to Avoid

❌ Launching high-ticket products expecting TikTok to close the sale
❌ Overproducing content — authentic wins
❌ Relying only on one viral video to drive growth
❌ Ignoring owned channels and retention.

#3 Asda’s Price War Play: Bold Headlines, But What's the Follow-Up?

Asda’s latest move has taken over LinkedIn — positioning itself as the UK’s “online discounter”, promising the cheapest branded products and petrol in the market.

It’s a punchy message.
It grabs headlines.
It rattles the competition.

But here’s the PROBLEM: pricing isn’t strategy. It’s a marketing tactic and one that only delivers short-term wins unless it’s backed by something bigger.

The Real Question: What’s Asda’s Endgame?

Being the cheapest online is compelling, for about five minutes. But it raises questions:

❓ What happens when the competition matches you (and they will)?
❓ How does this build long-term loyalty in a promiscuous shopper base?
❓ Where’s the margin protection?

Asda’s real challenge isn’t just about price, it’s about differentiation. Right now, there’s a risk they’re playing someone else’s game rather than defining their own.

What Asda Could Be Doing Instead (Or in Parallel)

If the goal is winning back shoppers, the answer isn’t just to go cheaper. It’s to go smarter.

Here’s what I’d be building:

1. Joint Business Plans That Go Beyond Cost Cuts

Rather than a blanket race to the bottom, collaborate with key suppliers on:

  • Value bundles (e.g. family meal kits using big-brand ingredients)

  • Seasonal moments (e.g. “Back to School” or “Cost-of-Living Savers”)

  • Smart pricing ladders that give consumers choices without margin bleed

This keeps pricing agile without eroding value perception.

2. Loyalty as the Real Differentiator

Asda’s existing rewards platform has potential but it’s underutilised. Why not:

  • Integrate exclusive brand-led offers

  • Offer personalised value based on shopping habits

  • Build a value ecosystem — think discounts on petrol, partner services, or credit with frequent shop thresholds

Loyalty isn’t about points, it’s about belonging.

3. Do the Persona Work

Understand who your shoppers really are. Not everyone is chasing the cheapest basket.

Break it down by verticals:

  • Young families looking for convenience + price

  • Value-maximisers who want discounts but not at the cost of quality

  • Wellness-conscious buyers trading down in some areas to trade up in others

  • Time-starved professionals who want value AND flexibility

Build journeys around them. Let price play a role but not the only one.

Learning from Lidl & Aldi: Price Alone Isn’t Enough

Discount retailers like Lidl and Aldi didn’t just win on cost—they won on trust, consistency, and simplicity.

Asda’s brand legacy gives it more to work with—but also more to lose if this approach feels like a short-term grab.

IMO

✅ The price-first move will generate PR and short-term footfall.
✅ But if there’s no follow-up strategy, no ecosystem, no value add, no loyalty play the gains will evaporate.

The price war grabs attention. But sustainable growth comes from relevance, value, and consistency.

Asda has the scale. It has the reach. Now it needs to decide — Is this a headline, or a roadmap? 

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