3 Canadian companies rank in Top 50 of most-valuable retail brands: survey
People pass by a Shoppers Drug Mart in downtown Toronto on Monday, July 15, 2013. (Graeme Roy / THE CANADIAN PRESS)
Published Wednesday, April 9, 2014 5:42PM EDT
Last Updated Wednesday, April 9, 2014 6:04PM EDT
Three Canadian retailers are among the Top 50 most-valuable retail brands in North America, according to a new global survey.
Global branding consultancy Interbrand released their 2014 brand value rankings Wednesday, marking the first year Canadian brands have been ranked alongside U.S. brands in a North American list.
The Canadian brands that made the Top 50 include:
- Shoppers Drug Mart: ranking: 28, value: $3.1 billion
- Lululemon Athletica: ranking: 29, value: $3 billion
- Canadian Tire: ranking: 38, value: $1.76 billion
Retail giant Walmart topped the list overall with an estimated brand value at $131.8 billion, making it the world’s most-valuable brand. Target, which posted a brand value of $27 billion, ranked second. Despite a healthy lead, Walmart’s brand value declined six per cent compared to 2013, while Target’s value saw spike of an eight per cent over last year’s numbers. The Home Depot, Amazon, Walgreens and eBay also made the Top 10 North American list.
Department store giant Macy’s, which ranked 16th, posted a whopping 383-per-cent increase in value, while electronics chain Best Buy’s value suffered a 41-per-cent decrease in value.
The rankings come after a string of controversies involving Lululemon in recent months. In 2013, the athletic wear company was forced to pull thousands of pants from stores after customers complained that the products were too “sheer.” Company founder Chip Wilson stepped down as chairman after suggesting that the problem wasn’t with the products, but that women with the wrong body type were wearing them. CEO Christine Day has also since stepped aside.
But according to Interbrand, Lululemon was able to weather the storm by maintaining a “solid financial position” and a “passionate” customer base.
“Although much of 2013 was spent in damage control, Lululemon continued to open stores in North America, a showroom in Hong Kong, and diversified its product offering through new swimming and ballet lines for women and cycling and running lines for men.”
According the report, pharmacy and food giant Shoppers Drug Mart began 2013 with a rise in earnings and higher sales in their non-pharmacy business. The report also noted Loblaw Companies $12.4-billion acquisition of the pharmacy and food chain last July. “Let’s see how consumers react when the recently approved merger closes and the integration plans are set in motion,” the report said.
In a statement, Interbrand Global CEO Jez Frampton said successful retailers are adapting to e-commerce and embracing digital innovation.
“Digital, which currently threatens all that retail once was, also promises to make it what it was destined to become: a living theatre, a crucible of human creativity, and the field where brands and consumers meet to foster prosperity and co-create the world of the future,” Frampton said. “From mobile shopping and augmented reality apps to virtual storefronts and fitting rooms, retails brands are reimagining the customer journey through a digital lens.”
The global survey also included separate rankings for European, Asia Pacific and Latin American brands:
- Bodega Aurrera