Walmart (4th), Aldi (9th), Tesco (15th), Lidl (16th) and Carrefour (17th) have been named among the most valuable global retail brands, according to the latest BrandZ report, produced by WPP and Kantar Millward Brown.
According to the rankings, the undisputed number-one retail brand in the world is Amazon, which has seen a 41% increase in its brand value since last year. The online retailer is now valued at more than $139 billion, making it more than twice as valuable as the next retail brand in the list, Alibaba, valued at $59 billion.
The Most Valuable Global Retail Brands rankings form part of the BrandZ Top 100, which rates the most valuable brands each year. In this overall list, Amazon places fourth, while Alibaba is 14th, with the list topped by Google, Apple and Microsoft.
Changing The Game
“The pace of retail was always fast and furious, but in the 12 years since the BrandZ rankings began, the rules of the game have radically changed," said David Roth, CEO of EMEA and Asia, the Store WPP.
"Walmart has been overtaken as the world’s most valuable retail brand by Amazon, and two Chinese e-commerce brands are in the top ten. E-commerce has radically reshaped the retail and brand landscape, and these changes are set to accelerate. Retail brands that don’t deliver seamless, unique customer-centric experiences online and offline will continue to suffer. The future of retail is not what it used to be.”
In terms of Amazon's leadership position, BrandZ notes that the retailer has developed its 'reputation for rethinking all forms of retail, with concepts for checkout-free stores, where payment is via an app. Innovations such as Amazon Echo and Alexa, combined with moves to develop the benefits of subscribing to Prime, have also reinforced the power of its technology ecosystem, strengthening loyalty and customer satisfaction.'
Focus On The Customer
Elsewhere, retailers have focused on developing customer-facing initiatives to try to combat the rise of e-commerce.
'Target (No. 14, at $8.7bn) has implemented a store-remodelling programme, designed to offer shoppers routes round its stores based on the purpose of their trip,' the report reads. 'Many grocery-sector players have also adapted their customer focus. Carrefour (No. 17, at $6.8bn) has deployed a range of smaller convenience stores to complement its hypermarkets.'
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
