Two MN Cos. Make List of “Best Retail Brands” in U.S.
International brand consultancy Interbrand on Tuesday released its 2013 list of the “Best Retail Brands” in the nation—and both Target and Best Buy made the list.
Minneapolis-based Target Corporation ranked second, and Richfield-based Best Buy Company, Inc., ranked 13th. Interbrand, which has nearly 40 offices across the world, said it examines “the ongoing investment and management of the brand as a business asset” in order to compile the list.
According to Interbrand, Target’s “brand value” is $25.1 billion, up 7 percent from a year ago.
Interbrand pointed out that Target’s sales grew last year (profits rose 2.4 percent to $3 billion, and revenue grew 5 percent to $71.9 billion) as the company completed its store remodels and added fresh produce to its offerings. Additionally, the first City Targets opened in three U.S. cities, and the retailer has begun its expansion into Canada, with plans to open 125 stores there this year. Interbrand also touted Target’s “shoppable” film that debuted last fall and The Shops at Target, a concept unveiled in January 2012 that involved opening small boutiques within stores; Target recently tabled the concept.
Meanwhile, Best Buy’s brand value totals $8.1 billion, down a whopping 52 percent from the previous year. This marks the first time in five years of compiling the list that the company didn’t make the top 10.
Interbrand referred to Best Buy as “the last big-box consumer electronics retailer standing in the U.S.” but pointed out that the company has made headlines in recent months because of its shares and earnings declines. To adjust to the “soft economy, razor-thin margins, cut-throat competition, and deal-seeking consumers armed with price-comparison apps,” the retail giant closed 50 big-box stores and is opening 100 smaller ones, and it intends to double the number of its Best Buy Mobile stores by 2016, Interbrand pointed out.
Walmart ranked first on the list with a brand value of $141 billion, and Home Depot came in third behind Target with a brand value of $22.9 billion. Amazon and CVS rounded out the top five. To see the full list, click here.
To compile its list, Interbrand examined three key factors—the financial performance of the branded products or services, the role of brand in the purchase decision process, and the strength of the brand. (To learn more about list criteria and methodology, click here.)