In the tenth annual BrandZ Top 100 Most Valuable Global Retail Brands ranking, released by WPP and Millward Brown, discount retailers showed that they are winning the loyalty of shoppers. Aldi shot up the ranking with a 22% increase in brand value and is now at number 8 with a value of $11.7bn. Lidl (number 20) was up 27% to $6.0bn.
Advertising that focuses on promoting quality produce that is equal to the major multiples helped the discounters’ value proposition, with the major supermarkets no longer dominating the retail ranking.
Tesco, the only major UK supermarket that makes it into the global ranking, saw its brand value decline by 37% to $9.4bn on the back of challenging trading conditions, which impacted profits as the retail sector undergoes a radical technology-driven transformation. Other global retailers also saw declines – Carrefour declined by 12% to $8bn while Whole Foods declined by 24% to just over $7bn.
Alison Casey, Senior Client Director for Retail at Millward Brown said: “The discounters provide a great customer experience; they are relevant to cost-conscious shoppers with everyday low pricing and their smaller-sized store shopping format is more suited to today’s ‘small and often’ shopper. Importantly, they have also articulated and clearly communicated what they stand for. Delivering on the brand promise is a critical component of success for all major brands and it’s helping the discounters to build engagement, trust and loyalty with customers.
The full global and retail ranking is available from www.millwardbrown.com/brandz
Source: NamNews
