Global Ranking of Retailers Sees Biggest Gains for Discount Brands

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Source: Thinkstock

Source: Thinkstock

Interbrand released its 2014 Best Retail Brands Report on Tuesday, with Walmart (NYSE:WMT) maintaining its substantial lead as most valuable brand, despite a 6 percent slip in ranking. Distantly rounding out the top five retailers in North America were Target (NYSE:TGT), Home Depot (NYSE: HD), Amazon (NASDAQ:AMZN), and CVS (NYSE:CVS). The largest ranking gain was held by Macy’s (NYSE:M) at a 383 percent increase. Best Buy (NYSE:BBY) performed the worst with a 41 percent drop in value.

The two common themes between all gaining brands was the ability to leverage a competitive advantage by adapting to consumers’ increased online shopping habits as well as effective evaluation of sales data to anticipate and tailor customer demand. Ecommerce, led by Amazon, is rapidly dominating the retail market and expected to outpace brick and mortar sales by 2017. Traditionally, modeled stores have raced to keep up with the digital landscape and create innovative online experiences. Macy’s stood out this year as a “digital hybrid model,” growing its brand value by utilizing consumer data to customize their shoppers’ experience as well as increased their digital technology to integrate mobile, online, and in-store purchasing options.

Walmart commanded a strong lead in the North American retail sector, ranked at $100bn more valuable than their nearest competitor, Target. However, they were the only top ten retailer whose ranking slipped, due to their consumers’ increasing preference for small box discount and dollar stores as well as fierce competition from ecommerce brands such as Amazon. In recent years, Walmart has focused on increasing their online profits, but still struggles to gain a competitive edge. MarketWatch reports that 19 percent of Walmart’s in-store customer base shops at, compared to 53 percent also buying on Amazon.

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