Interbrand reveals the world's most valuable retail brands

Walmart is the world’s most valuable retail brand, but its value is waning, according to Interbrand’s Best Retail Brands report. The 4th annual global report ranks the top 50 North American retail brands and leading brands internationally—all by brand value.

Walmart’s brand value is estimated at $131.8 billion, a decline of 6% compared to last year. Despite the drop, Walmart has an enormous lead over the number-two retailer in North America, Target, which has a brand value of $27 billion—an 8% increase over 2013.

The Home Depot holds its third-place spot with a brand value of $25 billion. Amazon is number four at $23 billion, a 27% jump from last year. CVS pharmacy rounds out the top five nearing $18 billion, up 12%.

This is the first year that Canadian brands have been ranked alongside U.S. brands for a North America list. Three Canadian brands make the top 50: Shoppers Drug Mart (number 28, $3.1 billion), Lululemon Athletica(number 29, $3 billion), and Canadian Tire (number 38, $1.76 billion).

In the grocery sector, the report noted retailers are reinventing themselves according to how consumers want to shop. Trends driving change include mobile technology, home delivery, consumer income disparity, and the strategic necessity of e-commerce. On a global scale, France's Carrefour was ranked the best grocery brand. While no Canadian retailers made the list, U.S.A's Publix and Whole Foods Market were ranked second and fifth for the world's best grocery brands.

Woolworths, the largest grocery chain in Australia, was awarded number one brand in the rankings for Asia Pacific.

At number 16, Macy’s made the biggest gains, with a 383% increase and brand value of $6 billion. The report said Macy’s has been quick to respond to shoppers’ new digital behaviours and is rapidly becoming a leader in omnichannel retailing. Meanwhile, Whole Foods Market saw a 173% increase, landing at number 16 with a brand value of $4.1 billion.

The report said the most valuable retail brands are reimagining the customer journey through a digital lens, from mobile shopping to virtual fitting rooms. Retailers are also looking beyond their core businesses, bridging the divide between in-store and online shopping and leveraging big data to meet customer needs.

“Adapting retail formats to accommodate the shift in consumer preferences for e-commerce is proving to be the key to success for many retailers worldwide,” said Jez Frampton, Interbrand’s global CEO, in the report. “In today’s rapidly evolving global marketplace, retail brands must be more agile, flexible, and responsive than ever before. The winning retail brands will not only survive the continuous shift to digital retail, they will become more extraordinary because of it.”

Electronics giant Best Buy witnessed the steepest decline in brand value internationally (-40%). In 2009, Best Buy was the second most valuable brand in the U.S. after Walmart, but by 2013 it had lost more than 50% of its brand value due to weak sales and online competition.

Download the full report.

You can see a full list of the best grocery brands here

This article was first published by Marketing Magazine.