Aldi overtakes Tesco in BrandZ Top 100 global brand value ranking

Aldi: the German discounter has overtaken Tesco in BrandZ's global brand value stakes
Aldi: the German discounter has overtaken Tesco in BrandZ's global brand value stakes

Aldi has beaten the once meteoric Tesco in BrandZ's Top 100 Most Valuable Global Retail Brands ranking, becoming the globe's 8th brand with a value of $11.7bn (£7.6bn).

As is mirrored in the UK market, the German discounters are on the rise. While Aldi’s brand value rocketed 22% compared with last year, its rival Lidl grew an even more impressive 27% to 20th place with a brand value of $6bn (£3.9bn).

BrandZ’s Top 100 has been released today (27 May) by WPP and Millward Brown, which said the German discounters ad proposition of focusing on quality produce has helped their businesses grow aggressively. The reported noted:"The major supermarkets no longer dominate the ranking."

Tesco is a case in point. Even so, it is still the only major UK supermarket to hold a place in the global ranking, but its brand value has plummeted 37% to $9.4bn (£6.1bn).

Meanwhile, other retailers saw their values fall, with Carrefour declining 12% to $8bn and Whole Foods falling 24% to around $7bn.

Alison Casey, Millward Brown’s senior client director for retail, said: "The discounters provide a great customer experience. They are relevant to cost-conscious shoppers with everyday low pricing and their smaller-sized store shopping format is more suited to today’s ‘small and often’ shopper. Importantly, they have also articulated and clearly communicated what they stand for.

"Lidl’s TV advertising in particular tells a compelling story in a meaningful and relevant way. Its ‘surprises’ ad was one of the best-loved and most persuasive Christmas TV adverts last year, with respondents saying it made them more likely to buy the brand."

Top 20 most valuable retail brands 2015

  1. Alibaba
  2. Amazon
  3. Walmart
  4. The Home Depot
  5. Ikea
  6. eBay
  7. Woolworths
  8. Aldi
  9. Costco
  10. Lowe’s
  11. CVS
  12. Tesco
  13. Walgreens
  14. Target
  15. Carrefour
  17. 7-Eleven
  18. Macy's
  19. Wholefoods
  20. Lidl

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