Walmart most valuable global retail brand in study by Kantar Retail
Boston Walmart tops the list of a newly released study by Kantar Retail and BrandZ that examines the most valuable global retail brands, with Amazon.com, Tesco, Carrefour, and Target rounding out the top five.
The “Top 20 Most Valuable Global Retail Brands” report combines retailer and shopper insights and analyses from Kantar Retail with the Top 100 Most Valuable Global Brands ranking produced annually by Millward Brown Optimor and powered by the BrandZ database.
While the Top 10 most valuable global retail brands have remained quite consistent during the past five years, two instances of dramatic brand value growth — at Amazon and Aldi — reflect major marketplace trends. On the strength of a 359% increase in brand value, Amazon moved from a ranking of Number 8 in 2006 to No. 2 in 2010, indicating the revolutionary impact of e-commerce, according to the report. Aldi’s 241% increase in brand value signifies the consumer’s increased concern with price and embracement of private label.
The retail brand that grew most in value last year was Amazon. While the retail category as a whole declined 1% point in brand value, the value of the Amazon brand appreciated 29% points to $27.5 billion, making it one of the fastest growing global brands across all categories and moving it into second place behind Walmart. Walmart’s brand value declined slightly last year to $39.4 billion.
“Competitive advantage in retailing no longer can be accomplished by saturating markets with stores and attracting customers with a combination of range, price and service,” said Bryan Gildenberg, chief knowledge officer for Kantar Retail and major contributor to the report. “Success requires a thoughtful portfolio of shopping venues — both physical and virtual–that appeal to specific shopper segments. Every retail brand needs to find a proposition that makes visiting these retail spaces worth the shopper’s time.”
Among the report’s key takeaways:
- Value remains critical. Brands that combined value with a more emotion-based connection to consumers did well last year. That ability will continue to be key to engaging post-recession shoppers;
- Successful retail brands increasingly will be built on intimate knowledge of shopping behavior. Retailers that invest in this capability will thrive;
- The battle for shopping trips will drive competitive strategy coming out of the recession. Retailers will fight to keep shopping trips gained during the downturn by keeping shoppers from returning to the outlets they abandoned;
- Mobile commerce will be a game changer in how, when and where shoppers purchase products;
- Brands must become active participants in digital conversations surrounding purchases or risk becoming irrelevant; and
Best-in-class retailers will maximize share of wallet from their most profitable shoppers.
Here are Kantar Retail’s top 10 global retail brands:
1. Walmart 2. Amazon.com 3. Tesco 4. Carrefour 5. Target 6. eBay 7. The Home Depot 8. Aldi 9. Auchan 10. Loew’s Cos.
Home goods looking good, for some
The success one retailer has in a given category can oftentimes be an indicator of a rising tide lifting all boats, which is why results last week from Bed Bath & Beyond are of particular interest to Target. The home goods specialist said first-quarter sales for the period ended May 29 increased 13.5% to $1.9 billion and same-store sales increased 8.4%. Earnings per share surged 53% to 52 cents a share.
Target is a major player in the home category, and last year it said the home furnishings and decor category accounted for 19% of total sales of $63.4 billion. As defined by Target, the category includes furniture, lighting, kitchenware, small appliances, home decor, bed and bath, home improvement, automotive and such seasonal merchandise sas patio furniture and holiday decor.
A strong performance by Bed Bath & Beyond is either an indication that the overall category is looking up, despite some significant ongoing difficulties in the housing market, or simply an example of a well-positioned superior operator gaining share from competitors, one of whom is possibly Target. The company has certainly had mixed things to say about the home category during the three month period that overlaps with Bed Bath & Beyond’s first quarter. For example, In May, comps in home were down slightly with a low single digit increase in the decorative home category and softness in housewares. In April, comps were moderately better than the total company decline of 5.9% and were led by a low single digit increase in the decorative home category with the softest performance in seasonal categories. In March, comps in home increased in the mid-to-upper single-digit range with the strongest results in the seasonal categories and weaker performance in housewares.
Former Ace director dies at 89
Gregg Ziegler, the past director and vice chairman of Ace Hardware Corp.’s board of directors, was laid to rest last week. He was 89.
The World War II veteran joined the family business, Ziegler’s Ace Hardware, after graduating from college in 1947. He was the recipient of the 1983 Illinois Retail Merchants Association’s Retailer of the Year. Today, Ziegler’s Ace operates 11 locations in Illinois.
According to his obituary in the Chicago Tribune, Ziegler was also an accomplished driver who set the NASCAR record for the Flying Mile event at Daytona Beach in 1960.