Retail’s 10 Most Valuable Brands 2020

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Retail’s 10 Most Valuable Brands 2020

By Jamie Grill-Goodman - 01/27/2020

A strong retail brand helps attract customers and talented staff, while fostering loyalty among both. Overall these things lead to making money, while simultaneously, huge investments are made in the promotion of these brands.

Bridging the gap between marketing and finance, independent brand valuation consultancy Brand Finance has released its annual report on the world's most valuable and strongest brands, the “Global 500” 2020 list.

Brand Finance’s proprietary ranking system examines a company’s marketing investment, shareholder equity, and business performance to place an economic value to each company’s brand.

This year Amazon ranked as the world’s most valuable brand for the third consecutive year. It also made history as first brand to exceed the $200 billion brand value mark.

The value of the Amazon brand increased 17.5% to a record $220.8 billion, according to BrandFinance’s Global 500 2020 index.

“The disrupter of the entire retail ecosystem, the brand that boasts the highest brand value ever, Amazon continues to impress across imperishable consumer truths: value, convenience, and choice,” commented David Haigh CEO of Brand Finance. “Today, Amazon’s situation seems more than comfortable, but what will the roaring twenties hold in store?”

In the traditional retail space, American giant Walmart (up 14% to $77.5 billion) has seen its brand value resurge, jumping up three places and entering the top 10 once again.

“As well as committing to its expansion program in key markets, Walmart has focused on an innovative digital proposition, through a partnership with Microsoft and with the launch of Alphabot – robots that pick and pack online grocery orders at high speeds,” reads the report. 

Meanwhile, according to the report, Lidl (148 on the full list) and Aldi (130 on the full list) are the fastest-growing brands in retail proving that e-commerce is no longer only route to success in sector.

The discount supermarket chain rivals are among the top 10 fastest-growing brands overall this year, increasing 40% (Lidl-$12.4 billion) and 37% (Aldi-$14.3 billion) respectively.

“Lidl and Aldi have reshaped the supermarket landscape by winning market share from their long-established highstreet counterparts,” reads the report. “Initially competing on price leadership, both chains have gradually earned their customers’ trust and loyalty. With almost identical propositions, however, the brands will need to differentiate themselves in order to continue to successfully widen their footprint globally.”

“Despite the unprecedented disruption caused by e-commerce, the popular assertion that entering digital operations brings instant success while bricks and mortar stores are doomed for extinction is being proved wrong,” said Haigh. “As digital operators find they need to remain attentive to consumers and traditional retailers, such as Walmart, successfully adapt to change, we are back to normal as all brands realize that ultimately the customer is king.”

While Disney ($45.7 billion) is much larger than just its retail stores, it’s notable in that Disney jumped from 25th place to 17th on the overall list.

“Disney has put an emphasis on delivering direct-to-consumer experience,” reads the report. “With the recent launch of Disney+, intended to take on Netflix and other emerging rivals such as HBO Max, the brand has poised itself for success.”

While the entire “Global 500” ranking is available here, global retailers claimed numerous spots throughout the ranking. According to how Brand Finance designates a retailer, 44 retail brands feature in this year’s ranking alongside Amazon, with a combined value of nearly US$800 billion, making the sector the third most valuable behind tech and banking.

Below we break out the first 10 U.S. retailers, according to RIS’s designation, to make the list.

Retail’s 10 Most Valuable Brands in the U.S

 

  1. Amazon (1)
  2. Apple (3)
  3. Walmart (8)
  4. Disney (17)
  5. The Home Depot (21)
  6. Starbucks (28)
  7. Nike (40)
  8. Lowe’s (63)
  9. CVS (70)
  10. Costco (77)