Eight of the world’s top ten retail brands experienced declines in brand value this year; Amazon maintains its number one global ranking
With its brand value increasing 3% to USD308.9 billion, Amazon is once again the world’s most valuable retail brand. Amazon also noted improved brand strength, with its Brand Strength Index (BSI) score reaching 85.1 out of 100, maintaining an AAA rating. Higher year-on-year scores across several metrics, including consideration and reputation, drove this improvement, leading Amazon to become the retail sector’s fourth strongest brand.
Walmart remains the world’s second most valuable retail brand, despite its brand value declining by 15% to USD96.8 billion. The American retail sector saw muted results this year, with many well-known brands noting declining brand value. Maintaining the third rank, Home Depot’s brand value declined 14% to USD52.8 billion. In contrast, Costco’s brand value increased by 4% to USD48.4 billion.
Inflationary and cost-of-living pressures are influencing consumer brand preference. This trend is underscored by improved brand values for discount and more affordable brands. Dollar Tree (brand value up 23% to USD5.1 billion), Ross Dress for Less (brand value up 18% to USD5.1 billion), Family Dollar (brand value up 15% to USD3.2 billion), and the UK’s B&M (brand value up 19% to USD2.3 billion) each noted improved brand values.
Major shifts among the world’s strongest retail brands: Bunnings and Decathlon emerge on top
With an AAA BSI rating, Bunnings (brand value up 14% to USD4.1 billion) has emerged as the world’s strongest retail brand. According to Brand Finance research, Bunnings is one of the most widely talked about brands in Australia.
In addition, Bunnings achieves exceptionally high advertising recall, demonstrating the impact of active brand promotion on brand strength. This underscores Bunnings’ significant foothold in its local markets of Australia and New Zealand, with strategic pricing strategies such as its EDLP (everyday low prices) and price matching as key drivers. The brand’s feature in the popular children’s cartoon, Bluey, further highlights its influence.
Decathlon (brand value up 5% to USD9.3 billion) has become the world’s second-strongest retail brand, with a BSI score of 87.3 out of 100 and an AAA rating. Decathlon continues to score highly in terms of perceptions of its people (customer service), familiarity, and reputation
Lazada surges 40% to become the world’s fastest-growing retail brand, followed by Metro and Chedraui
Lazada, one of Southeast Asia’s largest ecommerce operators, has emerged as the world’s fastest-growing retail brand, with a 40% increase in brand value to USD2.1 billion. This rise stems from the brand’s significant growth in orders despite increasing competition from Shopee and TikTok. In 2023, Lazada introduced its value offering “Choice”, which competes with brands like Temu and Shein, to bring value products to its customers, driving core growth.
Closely behind, Germany’s Metro has become this year’s second-fastest retail brand globally following a 39% increase in brand value to USD3.0 billion. This increase has fuelled an 18-rank hike, with Metro now standing in 76th position. As a discount superstore, Metro has benefited from the rising consumer demand for affordable shopping options and significant sales growth has propelled the brand’s growth, with sales now surpassing pre-pandemic levels.
Chedraui has become the world’s third fastest-growing retail brand, entering the ranking in 94th position. Up 33% to USD2.1 billion, Chedraui’s climb is driven by several new store openings and expansions, across both Mexico and the US. Notably, Chedraui has significantly boosted its brand strength in the US, with both consideration and reputation seeing substantial improvements.
Amazon also holds the highest Sustainability Perceptions Value (SPV) at USD20.7 billion
Brand Finance also uses its Global Brand Equity Monitor (GBEM) research to compile its Sustainability Perceptions Index. The study determines the role of sustainability in driving consumer choice, which brands consumers believe to be most committed to sustainability, the proportion of brand value attributable to sustainability perceptions, and the value at risk or to be gained, based on the difference between sustainability perceptions and actual performance.
The research finds that sustainability is a prominent driver of customer consideration for supermarkets, at 11.1%. In general retail and e-commerce, sustainability’s impact on consideration is lower at 6.7%. This difference is intuitive, considering the closeness of supermarkets to sustainability considerations of food and household products. Environmental topics like food waste, local producers, and associated carbon emissions are top-of-mind for supermarkets brands.
At USD20.7 billion, Amazon has the highest sustainability perceptions value, followed by Walmart and Costco at USD6.4 billion and USD5.4 billion, respectively. With their great financial scale, these brands have greater value attributable to sustainability perceptions.
Brand Finance’s perceptual research is analysed alongside CSRHub’s ESG performance data to determine a brand’s ‘gap value’. This is the value at risk, or value to be gained, arising from the difference between sustainability perceptions and actual performance. Home Depot has the highest positive gap value among retailers, at USD477 million.
This gap value suggests that Home Depot could potentially generate up to USD477 million in additional value through enhanced communication of its impact and accomplishments in sustainability.
The retail sector in emerging markets is on the rise while major economies are declining
An interesting trend emerges when analysing brand values by country: while major economies have experienced declines, emerging markets are on the rise. The total brand value has dropped in the US (down 3%), China (down 22%), Germany (down 4%), the UK (down 12%), and Japan (down 9%). In contrast, Mexico's total brand value surged by 38%, Argentina by 23%, Poland by 24%, and Italy by 18%.
Among these emerging markets, Mexico's Chedrauiand Italy's Conad stand out, with their brand values growing by 33% and 27%, respectively. India, a key emerging market, is notably absent from the top 100, despite its economic scale and growing global prominence. However, India's retail sector is poised for rapid growth, with projections suggesting it could exceed USD2 trillion by 2030 or 2032, positioning it as a market to watch closely in future rankings.