DDi - June 2010 - (Page 38)

38 | Marketing & Branding Most Valuable U.S. Retail Brands 2010 Interbrand Design Forum unveils its second-annual ranking of the top U.S. retail brands 1 Walmart Change in brand value: Up 19% 5 Walgreens Change in brand value: Up 28% Although Walmart was already the most valuable retail brand in the United States, the economic downturn made it relevant to even more shoppers. Its Project Impact store remodel program—less inventory, wider aisles, lack of in-aisle displays—paid off in high samestore sales. The company’s revamped 5,000-item Great Value grocery brand line and the nation’s cheapest prepaid wireless plan, Straight Talk, continue to solidify its brand proposition. Additionally, the marketing efforts that deliver the “save money, live better” message have become increasingly more efﬁcient and effective. By encouraging the adoption of e-prescriptions, Walgreens ﬁlled more than 45 million electronic prescriptions in 2009, compared with 15 million in 2008. Yet, it’s not impervious to downturns. More competition and greater low-price demand commanded lower pharmacy margins. The company is slowing its expansion rate, while improving its pharmacy, health, photo and mobile options. The brand also enhanced online shopping for its 13 million monthly visitors. 2 Target Change in brand value: Up 49% 6 CVS Change in brand value: Up 12% Target’s enduring blend of style and mass discount proves that value and hip are not mutually exclusive. Although trafﬁc and same-store sales slid this year, the company improved its ﬁnancial operations, and market forecasts are positive. The new “up & up” private label is strongly on-brand, as is the purchase of the Smith & Hawken name. The company will invest $1 billion in its P-fresh food-oriented concept. Target continues to differentiate and create excitement with limited-edition soft goods from an ever-changing roster of high fashion designers. It was a good year for CVS, although it slowed the rollout of its in-store MinuteClinics. The company’s integration of Caremark, a pharmacy beneﬁts manager business that handles drug coverage for large employers and health plans, is a game-changer, enabling CVS to capture the business of Caremark members. The remodeled stores continue to offer a pleasant shopping experience, and its loyalty program is driving front-end business. 3 Best Buy Change in brand value: Down 19% For Best Buy last year, revenue rose while same-store sales dipped. Sales of its private-label electronics soared 40 percent. It now offers free ﬁnancing for shopping carts full of items versus one product at a time. The company inﬂuences which products come to market by working with suppliers; it has even set up its own venture capital fund. Best Buy is also creating a media network to run promotions on the thousands of TVs, PCs and cell phones in its stores. 7 Sam’s Club Change in brand value: Up 11% Sam’s Club wants to steal customers from its warehouse rivals and grocery stores by offering more variety, including private-label spirits and more brands with higher sales and returns. Revamped stores will cut costs. Business membership has been simpliﬁed, and free technical support is now offered for electronics purchases. The company is expanding its membership base through its Hispanic-focused Más Club. 4 The Home Depot Change in brand value: Down 18% Despite a few signs of recovery, the collapse in the home improvement category will depress The Home Depot’s business until the housing market picks up again. As a result, it continues to control expenses to help offset a decline in sales, as consumers pare back on big-ticket purchases. Despite these setbacks, Home Depot’s strength has been its ability to quickly cut losses and preserve capital; it shuttered its highend décor EXPO business. 8 Dell Change in brand value: Down 12% In the ﬁrst quarter of 2009, HP dethroned Dell as market share leader, due partly to Dell’s lack of speed in adopting netbooks as a ﬂagship product. The role of the brand is falling in this sector as well, as consumers demand functionality, but focus on price. Still, the company’s track record of successful branding and its effort to cater directly to customer needs have allowed it to maintain leadership. | June 2010

Table of Contents for the Digital Edition of DDi - June 2010

DDi - June 2010
From the Editor
Newsworthy
Quick Tips
Greentailing
Editor’s Choice
Design Snapshot
Channel Focus: Home Furnishings
Levi’s London
Berlin
Put the “StoreFirst”
Branding in 2010
Most Valuable U.S. Retail Brands 2010
POP Products
Right Light
In-Store Technology
Product Spotlight
Calendar
Advertisers
Classifieds
Shopping with Paco

DDi - June 2010