Stores are the New Media

Forget AI Mannequins—The Future of Stores Lies in Screens

 Jordan Berke

 Lee Peterson

Estimated Read Time: 3 Minutes

At this year's RetailSpaces Spring conference, a standout presentation titled, "Digital in Store: Engaging and Monetizing in The Era of Retail Media" delivered by our good friend and colleague Jordan Berke of TOMORROW, made a compelling case: retailers are poised to generate billions annually by turning their physical stores into immersive, content-driven media platforms. These aren't just any screens—they're manufacturer or retailer-supplied and woven into the store environment to create new streams of ad revenue.

While the idea of stores mimicking the ad-saturated experience of phones might cause some initial recoil, the upside is hard to ignore. Sephora, for example, just opened a store in Dubai where over 40% of the space is covered in screens. The results? Over $65 million a year in ad revenue at profit margins above 80%.

Walmart is in on the act, a pioneer in Retail Media Networks, the retail giant is covering its walls and shelves with 'show me' ad screens that other product info and suggestive selling beyond what their stores' meager staffing density can provide.

Read More on Retail Media Network's and the role of Digital in Stores in our POV.

The Store-as-Screen Strategy

Retailers are now merging commerce, content and media into one powerful, profitable sales tool—their store. The idea is that retailers are tapping into both media and the public's comfort with screens. The future? Stores will start to feel and function like screens themselves. Younger consumers, conditioned by endless scrolls and shoppable feeds, are primed for this shift. The in-store content—whether educational, inspirational, or promotional—mimics the phone-based shopping experience only with the product right there, at hand's length.

This evolution squeezes more benefit from stores giving them a more important role in the business as well as the company's profits. Executed thoughtfully, these digital integrations can not only increase store foot traffic but make that store much more interesting to shop.

The App: Retail's Secret Weapon

A key hinge in all this is the app. When done well, an app can act as a utility in-store, decreasing the friction of physical purchasing through try-on or self-checkout. An idea shared by Jordan was "App Only" value buys and in certain cases 'gamification' (think: trivia for free or discounted merch). An app is not an unusual ask for consumers or retailers at all, even Sam's Club reports that over 50% of in-club purchases occur via their app. Apps bridge the gap between media and merchandise, turning passive screen-gazers into active buyers.

A Billion-Dollar Forecast

TOMORROW projects that in-store media will generate over $1 billion in high-margin revenue for U.S. retailers by 2028. Translation: this isn't a futuristic "what if"—it's already happening.

Retailers looking to future-proof their stores should be asking:

1. How does your store become a screen—without losing its soul?
2. How can media be used as a long-term revenue stream?
3. How can apps be leverages more intentionally in-store?

These ideas stand out for several reasons: They offer stores a way to generate profit without wrecking the vibe or aesthetic—if executed well. They also reflect how consumers already behave: shopping on screens. And perhaps most importantly, they have the potential to energize store environments beyond the century-old model of simply stacking goods. In short, with the right execution, this kind of approach could finally bring stores profitably into the 21st century. Discuss.

For more insights, reach out to Jordan Berke (jordan@tomorrowretail.com) or Lee Peterson (lee.peterson@wdpartners.com).