Physical retail has something unique – It’s time to take back the initiative from e-commerce

Physical retail is uniquely positioned — combining two of marketing’s most powerful factors: mental availability and physical availability.

When a customer steps into a store, they are not only physically close to the product – they are also mentally open, curious, and ready to buy. It’s a decisive moment, say Christian Bönnelyche, Tanja Cronqvist, and Michael Lemner at BizLab.

Despite the fact that 80% of purchases still happen in physical stores – and 97% within grocery retail – only around 10% of retail media budgets are directed there. The rest goes to digital channels, where reach, data, and measurement have been easier to package. Until now.

With BizLab’s technology, it’s possible to combine demographic visitor insights (gender, age group, dwell time) with audience-driven advertising on in-store digital screens – all in one system. This allows stores to display the right message to the right audience at the right time, while gaining deep insights into who actually visits and how long they stay.

“This is where the physical store becomes truly unique – the ability to connect messaging to real presence, to a demographic that’s ready to act, and where the product is physically available,” says Christian Bönnelyche, Senior Advisor at BizLab.

Historically, physical retail has struggled to measure and understand the full customer journey. Retailers have known a lot about those who buy – but very little about those who look and don’t convert.

“I’ve worked in retail for over 30 years. This is the first time I’ve seen technology that gives us the same data power that e-commerce has enjoyed for years,” says Michael Lemner, former senior executive at H&M, Bally, and New Look, now a board member at BizLab.

BizLab’s solution is built on GDPR-compliant AI that anonymously detects visitors’ gender and age category in real time. The data can be used both for visitor analytics and to control in-store digital screens. A message targeting women aged 30–45 can appear within half a second after detection – and switch instantly when a different audience is in front of the screen.

“We’re moving from selling space to selling audiences. This isn’t just a new revenue stream – it’s also a way to enhance the customer journey right at the point of decision,” says Tanja Cronqvist, Head of Retail at BizLab.

Globally, retail media has become one of the fastest-growing advertising formats. This year alone, the global retail media market is projected to exceed 58 billion USD, and in-store retail media is now starting to claim a larger share of that growth.

Walmart, Tesco, and Carrefour have already taken the lead internationally. Now, Swedish retailers stand at a crossroads. With technology that enables both in-store visitor analytics and audience-targeted messaging, Swedish retailers can become pioneers in this space. Some, like ICA, are already far ahead – though most investments still remain digital.

“This is the moment. The technology is ready, the business model is proven, and consumers are more receptive than ever. The question isn’t if – it’s who will take the lead,” concludes Christian Bönnelyche.