RSA RETAIL RESEARCH PAPER2 WEB HR.pdf

ENGAGING RETAIL BRANDS –
VOTED BY CONSUMERS
DOES ALL OF THIS MATTER?
There is no clear measure of consumer feedback across all
markets, although there are some messages in the research papers
available showing that consumers are less happy with Retailers.
The reasons for this could be many e.g. the fi nancial crisis making
consumers more aware of pricing, the in-store experience not
standing out in ways consumers would expect.
Similarly we cannot rely on Retailers’ performance reports as
an indicator of consumer preference, as there are so many
diffi cult external factors that will have an impact on market share,
profi tability etc.
“ORC International, announced in January 2011, research fi ndings
that showed that half of UK consumers are likely to encounter
poor customer service in an average month. The worst culprit
for poor service was the Retail sector, with 17% of respondents
unimpressed with their experiences. Closely following were
broadband suppliers and banks, with 16% and 15% respectively.”
Ref. Prof Merlin Stone – The Death Of Customer Service In Retail
TOP RETAIL BRANDS
# Brand Brand Value
$M
Brand
Contribution
Brand
Momentum
Brand Value
Change
1 Walmart 39,421 2 8 -4%
2 Amazon 27,459 4 9 29%
3 Tesco 25,741 5 4 12%
4 Carrefour 14,980 5 7 0%
5 Target 12,148 4 7 -1%
6 eBay 9,328 3 7 -28%
7 Home Depot 8,971 2 3 -3%
8 ALDI 8,747 1 6 1%
9 Auchan 7,848 4 7 NA
10 Lowe’s 7,008 2 5 10%
11 Best Buy 5,807 3 8 18%
12 IKEA 5,710 3 8 -15%
13 Marks & Spencer 5,699 5 3 -5%
14 Asda 4,922 3 7 -9%
15 Kohl’s 4,371 4 5 12%
16 Lidl 4,102 1 5 -1%
17 Costco 3,875 1 4 -26%
18 Sam’s Club 3,255 1 6 -7%
19 Safeway 3,173 2 4 -8%
20 Sainsbury’s 2,728 5 4 -4%
Consumers will vote with their money. The fi nancial crisis has
clearly impacted consumer spending with a slight increase or
remaining the same across Europe. Those Retailers showing clearly
improved fi nancial performance are ‘value’ brands and those having
‘own brand’ goods such as Walmart, and some high-end luxury
brands such as Mulberry Group.
The brand ranking research database BrandZ, places Walmart,
Carrefour, Aldi and Tesco in their top 20 brands globally.
TO SUMMARISE...
Ref. Millward Brown Optimer including data from BrandZ,
Datamonitor and Bloomberg
Understanding consumer preference and priorities and adapting
to the pressures in the market at present are crucial for the
survival of Retailers.
Consumers are fi nancially pressured and voting for value. They
are looking for ways that are meaningful to them to differentiate
between Retailers, and moving seamlessly between channels
to do so.
Retailers are working with a rapidly changing set of consumers but
must remember to keep their focus on the basics of product range
and service across the channels they operate.