Last week, consultancy firm Brand Finance released its annual study on retail valuation and strategy. In it, the firm listed the retail brands with the top brand value based on reputation, loyalty, staff satisfaction, marketing investment and more. Here we’ve listed the Top 5 Most Valued Retail Brands covering the likes of e-commerce, home furnishings, home improvement and, well, a chain working as a hypermarket.
Brand value: $24.1B
IKEA has it down when it comes to consumer loyalty. Not only does it offer easy to construct furniture at affordable rates, but it provides a total shopping experience for consumers. It’s incorporation of food (their cafe and Swedish meatballs) and maze-like layout keeps shoppers coming back for more. In 2016, IKEA saw a 7% jump in total sales, raking in $38B for the fiscal year. Although only 43 of the companies 380 stores are in the U.S., the Swedish company sees a need for expansion in the market. IKEA’s U.S. President noted that the company plans to open more stores in areas such as Kansas City, St. Louis, Columbus, and Jacksonville.
Brand value: $30.2B
This year, The Home Depot saw a 5% growth in its brand valuation. In 2016, the company saw a total increased revenue of 5.8% year-over-year and boasted a revenue of $88.51B. Founded in 1978, The Home Depot has long been a dominant force in the home improvement retail and services sector. This should come as no surprise, seeing as the residential remodeling market is supposed to grow 2% per year through 2025.
Brand value: $34.9B
Alibaba Group is a Chinese e-commerce company much like Amazon. The company’s annual sales ammounted to over $100B and it saw its brand value rise 94% this year. According to Brand Finance, “Alibaba’s brand value has nearly doubled, making it this year’s fastest growing retail brand.” It’s success is largely due to its efforts in simplifying commerce opportunities for rural Chinese communities. Alibaba plans to grow the brand even further in global markets and will join the likes of Coca-Cola and Visa as a major sponsor of the Olympics Games.
Brand value: $62.2B
There’s a reason the family that founded Walmart is America’s Richest Family (valued at $130B). In 1962, the Walton family founded Wal-Mart Stores, Inc. which currently operates as Walmart with 11,695 stores and clubs in 28 countries. What made the brand so successful? It appealed to the majority of America with its “shop for less” discount sentiment. It’s both the most popular and most hated company in the U.S. On average, Wal-Mart sees an average of 100,000,000 customers a week.
Brand value: $106.4B
With a brand value nearly double Walmart’s, it’s no surprise Amazon comes in at number one. What does the brand represent? Convenience, variety, and trust. Consumers are looking for platforms to easily compare products and read reviews. It’s all in one place. Perhaps another common factor many (sometimes wrongly) associate with Amazon is affordability, too. According to Nasdaq, analysts predict that the company’s stock earnings will grow at an average annual rate of 26.36%.