Aldi overtakes Tesco in BrandZ ranking
Aldi claims eighth position within influential ranking's top 20 most valuable retail brands
2 June 2015 | 0
Aldi’s brand value has overtaken Tesco’s for the first time, according to the BrandZ Top 100 Most Valuable Global Brand ranking conducted by Millward Brown on behalf of WPP.
Within the ranking’s top 20 retail brands, Aldi now holds the number eight position, Tesco comes in 12th position and Lidl rounds off the list, at number 20.
Tesco’s brand value declined by 37% to $9.4m, from $14.8m last year. The value of Aldi’s brand, however, gained 22% to reach $11.7m and Lidl’s brand increased by 27% to $6m.
The report states that as low grocery prices and convenient location attracted shoppers to food discounters Aldi and Lidl, hypermarkets like Carrefour and Tesco opened smaller stores. Walmart also opened smaller stores under its Neighborhood Market and Walmart Express banners, and experimented with a format called Walmart to Go.
Chinese e-commerce giant Alibaba topped the list of the 20 most valuable retail brands, followed by Amazon.
The report states: “Alibaba and Amazon have no physical stores but surpassed Walmart, which operates over 10,000 stores worldwide, and ranks third in the Retail Top 20. This irony illustrates the impact of e-commerce on the radical transformation and rationalisation of retail.”
Millward Brown’s report also emphasises a significant shift in consumers’ attitudes over the past decade, stating: “Almost half of the BrandZ Retail Top 20 brands have changed since the BrandZ Top 100 Most Valuable Global Brands report launched 10 years ago. At that time, consumers expected a trade-off between price, selection and convenience. Now they expect it all – the broad range and sharp pricing of big-format stores, but with more personalized products and service, including greater convenience.”