Retail Media Therapy Episode 41

Costco, Membership Models & the Future of Connected Commerce

In this special episode, Viv Craske and Colin Lewis are joined by Mark Williamson (AVP Retail Media at Costco) to unpack how one of the world’s most disciplined retailers is approaching retail media – without compromising its core business model.

From Costco’s iconic $1.50 hotdog to its membership-first philosophy, this episode explores how retail media can drive growth while staying true to brand principles. The conversation dives deep into sales velocity, data strategy, and Costco’s partnership with Symbiosis (now part of DoorDash) to enable a new kind of connected commerce search.

Key Topics Covered:

The Costco Model Explained

Membership-first business model
Low-margin, high-efficiency strategy focused on delivering value
Ecosystem approach: retail + services
The $1.50 hotdog as a symbol of customer commitment

Retail Media, the Costco Way

Retail media must serve member value first, not just ad revenue
Built on strict guardrails and principles, not “quick wins”
Transparency & data governance
Privacy-first measurement
Saying “no” to misaligned revenue opportunities is a strategic advantage

Sales Velocity > Vanity Metrics

Core metric: sales per warehouse per week
Retail media’s job = increase product movement, not just impressions
Faster sales = better operations + stronger membership renewal
Keeps retail media aligned with merchant priorities

Connected Commerce & Symbiosis

Partnership enables performance-driven shopping ads
Extends reach beyond Costco’s owned channels (search, social, etc.)
Connects upstream signals → downstream conversions

The Big Idea: Connected Commerce Search

Meet customers wherever they search (Google, social, LLMs, etc.)
Identify intent
Personalize experiences
Drive conversion back to Costco

The Power of Saying No

No to non-endemic advertising (if it doesn’t serve members)
No to short-term monetization that breaks trust
“Costco will survive without retail media—so it must add real value”

Bonus Discussion: Opportunities Beyond Costco

Membership + retail media = powerful combo (Amazon, Walmart)
Untapped UK opportunities:
B&M (high traffic, strong app usage)
Holland & Barrett (health data + personalisation potential)

Grace & Co | Retail Media Experts

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