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UK Insights

Tesco and M&S in the top 25 most valuable global retail brands

Claire Davies

Former editor and head of content

Retail 20.12.2016 / 11:04

Person shopping with a trolley

But 2016 list is dominated by US and digital retailers

Two British brands, Tesco and Marks and Spencer, have made it into the 2016/17 BrandZ top 25 most valuable global retail brands. However, the list is dominated by US brands and there are three digital-first brands in the top 10. These three brands, Amazon (1), Alibaba (2) and eBay (10), together account for 40% of the total brand value of the top 25 global retail brands.

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Overall, the value of retail brands rose 7% between 2015 and 2016; however, Tesco at number 15 and M&S at number 24 both lost brand value year-on-year.

Tesco, the UK’s biggest supermarket chain, has refocused on its priorities to arrest a dip in market share and falling profitability. Former Unilever executive, Dave Lewis, took over as CEO in 2014 and he’s been busy refurbishing larger stores, and expanding its convenience and ecommerce operations. In the BrandZ top 25 most valuable global retail brands 2016/17, Tesco has a brand value of $8,923m (-5% year on year).

M&S has struggled in recent years with declining clothing and homeware sales, although its upmarket grocery offering has outperformed the UK grocery market. Under new CEO, Mark Rowe, appointed in April 2016, Marks & Spencer hopes to re-establish itself as an authority on style, improve in-store availability and improve the customer experience. M&S has a brand value of $4,790m (-10% year on year) in the BrandZ top 25 most valuable global retail brands 2016/17.

The forces of change in the retail sector at the moment are huge. The challenge for brands in the future is to improve the shopping online, and the buying in-store, and coordinate both of them as seamlessly as possible. Done well, a true omni-channel approach combines the pleasure of browsing, exploring and discovering that tends to come from physical retail with the convenience of ecommerce.

Source : Kantar Millward Brown

Editor's Notes

Journalists, download the full 2016/17 BrandZ top 25 most valuable global retail brands report here, or contact us for more information.

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