Measuring the Value of Retailer Brands

  • Brands used to be the domain of the big CPG companies. Today, if you were to ask consumers about their favorite or most trusted brands, the answers will inevitably include brands such as Wal-mart, The Home Depot and Best Buy.

    Each year, Interbrand – an international branding consultancy evaluates the value of the largest retail brands in the United States. Interestingly, of the Top 50 US Retail brands – 28 of them have operations here in Canada.

    A few observations:

    1. The staggering value of retailer brands. For example the value of the Wal-mart brand is pegged at over $154 billion USD (up 19% during 2009).
    2. The biggest brands got bigger during the economic turmoil in 2009 and Interbrand links this to brand strength and management’s resolve to stay the course over the past year.
    3. Two “Dollar Store” operators – Dollar General and Family Dollar made their way onto the Top 50 list this year. The dollar store format is moving into the mainstream.
    4. Internet operators are among the most valuable retailer brands with Dell (8), Amazon (10) and eBay (11) all making the Top 15.
    5. The only Grocery retailer to make the list in 2010 was Whole Foods. This speaks to the fragmentation of the US grocery market and the strength of the Whole Foods proposition.

    The Canadian market is a natural extension for US retailers and understanding the American landscape can help your organization understand the future of retail here in Canada. You can read the full Interbrand report here.

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