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Ranked: The Fastest Growing and Declining Retail Brands, from 2019-2020

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The Fastest Growing and Declining Retail Brands in 2020

The COVID-19 outbreak has led to the savage disruption of retail the world over.

Almost overnight, foot traffic in physical stores disappeared, and supply chains were left scrambled. Now at a major fork in the road, many retailers are forced to make tough decisions that were completely unforeseen.

While some global retail giants are laying down their weapons and filing for bankruptcy, others are innovating to save themselves, serving their customers in new and unexpected ways.

Today’s graphic uses data from Kantar’s Brand Z™ report to illustrate the retailers that are growing through adversity, and those that may struggle to survive.

Editor’s note: The report compares brand value of the top 75 retailers globally between 2020 and 2019, using mid-April as a cut-off date for incorporating latest financial information. Some early effects of the pandemic are incorporated in these calculations, but the pandemic’s impact on retail going forward is uncertain.

Retailers Rising to the Top

The calculation of brand value refers to the total amount that a brand contributes to the overall business value of the parent company.

In this case, it is measured by taking the financial value of a brand (latest data as of mid-April), and multiplying it by the brand’s contribution, or the ability of the brand to deliver value to the company by predisposing consumers to choose the brand over others or pay more for it, based purely on perceptions.

Based on these metrics, activewear brand lululemon is the world’s fastest growing retail brand for the second year running. Famous for its culture of accountability and global community events, the brand has struck the perfect balance between a seamless online and offline experience.

Explore the 10 fastest growing retail brands of 2020 below:

BrandBrand Value 2020
Brand Value % Change
2020 Vs. 2019
Category
Country
lululemon$9.7B40%Apparel🇨🇦 Canada
Costco$28.7B35%Retail🇺🇸 United States
Amazon$415.9B32%Retail🇺🇸 United States
Target$10.6B32%Retail🇺🇸 United States
Walmart$45.8B24%Retail🇺🇸 United States
JD.com$25.5B24%Retail🇨🇳 China
Sam’s Club$6.8B19%Retail🇺🇸 United States
Alibaba$152.5B16%Retail🇨🇳 China
Tanishq$2.8B15%Retail🇮🇳 India
Flipkart$4.7B14%Retail🇮🇳 India

Interestingly, Walmart holds three spots in the ranking as it also owns Flipkart and Sam’s Club. Moreover, the American retail giant purchased a stake in Chinese e-commerce platform JD.com, which has grown from 5% to 12%.

The two brands entered the strategic partnership together with the goal of dominating the Chinese market and surpassing Alibaba.

The Recipe for Retail Success

While every retailer has a unique growth strategy, according to the authors of the report, there are three factors that are undeniably crucial for success.

  • Value: Offering value for money through fair pricing for all products or services.
  • Uniqueness: Having a clear purpose and standing for something that consumers find meaningful.
  • Premium: Being perceived as being worth more than the price consumers pay.

Further, research also suggests that successful brands dominate their respective category when it comes to brand awareness and consistently provide experiences that enrich their customers’ lives, as demonstrated by lululemon.

As retailers continue to shift their focus towards digital transformation, consumers are still finding great value in having the best of both worlds when it comes to combining e-commerce and brick-and-mortar, otherwise known as “brick and click”.

Retailers Struggling to Stay Relevant

Unfortunately, there are several brands that haven’t yet mastered this winning combination, and the ruthless pandemic economy has only emphasized their struggles.

Here are the 10 fastest declining retail brands of 2020:

BrandBrand Value 2020
Brand Value % Change
2020 Vs. 2019
Category
Country
Under Armour$2.6B-34%Apparel🇺🇸 United States
H&M$4.7B-27%Apparel🇸🇪 Sweden
Walgreens$6.8B-26%Retail🇺🇸 United States
Tim Hortons$5.4B-20%Fast Food🇨🇦 Canada
Subway$13.8B-20%Fast Food🇺🇸 United States
Burberry$3.8B-18%Luxury🇬🇧 United Kingdom
M&S$2.5B-18%Retail🇬🇧 United Kingdom
Uniqlo$8.2B-16%Apparel🇯🇵 Japan
Dunkin'$2.4B-15%Fast Food🇺🇸 United States
The North Face$2.4B-14%Apparel🇺🇸 United States

Under Armour’s distribution relies heavily on third party retailers and department stores, so the brand has understandably been negatively impacted by the mass store closures.

While the brand focuses on expanding its personalized and connected fitness product offerings, it faces huge pressure from powerful competitors such as Nike and Adidas who already dominate this space.

A Rising Tide Lifts All Shipments

2020 has instigated a retail renaissance of epic proportions through accelerated digitization and changing consumer values. Ultimately, some brands will be better positioned than others to benefit from these changes.

As retailers begin reopening for business, they are presented with an opportunity to recalibrate the current retail landscape by setting new standards for the industry.

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Retail

Visualized: 10 Black Friday Retail Trends

Consumers are expecting more this Black Friday, but for retailers, the pressure is mounting. Here are 10 trends that may impact them in 2023.

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Black Friday trends infographic

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The following content is sponsored by Airwallex

10 Black Friday Retail Trends 

This year, retailers are under major pressure to orchestrate even more substantial and enticing Black Friday discounts for their customers.

We partnered up with Airwallex to visualize the latest available data from 2022 to understand what this year’s holiday weekend could look like for retailers.

Trend 1

Consumer Loyalty and Price

Theme: Buyer Behaviour

In a 2022 U.S. study conducted by Emarsys, 58% of people claim they are more loyal to retailers that offer them discounts, incentives, and rewards, indicating that price plays a crucial role in fostering loyalty.

Moreover, 60% of respondents admitted to turning their back on the brands they were previously loyal to in an effort to save money amid inflation hikes.

Trend 2

Convenience is King

Theme: Buyer Behaviour

Salesforce notes that 2022 saw a global increase of 9% in Buy Online, Pick Up In Store (BOPIS) adoption during Cyber Week compared to early November data.

Specifically in the U.S., retailers offering BOPIS experienced 38% higher growth in online revenue during Cyber Week compared to those without this service.

Trend 3

Global Spending is Up

Theme: Spending Patterns

Globally, 2022 Cyber Week spending increased 2% YoY to $281 billion. This is despite some regions experiencing a decline and some retailers reporting lighter foot traffic.

Trend 4

Margins at Risk

Theme: Spending Patterns

While consumers are spending more, retailers are still seeing their margins squeezed due to a variety of factors such as high inflation, high cost of goods, strained systems, and increased demand for discounts.

That is why we are starting to see certain retailers choosing to “boycott” Black Friday, and although estimates vary, The Guardian reported that as many as 85% of smaller retailers were not participating in Black Friday in 2021.

Trend 5

The Smartphone Surge

Theme: Buyer Behaviour

According to Adobe, 47% of U.S. online sales came from smartphones during the 2022 holiday spending season—up from 43% in 2021.

This reflects a broader trend within the retail sector, aligning with projections for substantial growth in the global mobile commerce market.

Trend 6

Deeper Discounts

Theme: Spending Patterns

In another benefit to consumers, discounts are getting deeper. Throughout the 2022 holiday season, the average discount stood at 21% compared to 19% in 2021 with apparel, skincare, and beauty touting the deepest discounts.

Trend 7

Alternative Payment Options

Theme: Payments

When it comes to payment methods, alternatives such as Buy Now Pay Later (BNPL) are gaining traction, as evidenced by a 5% increase in orders YoY.

Trend 8

Financing Lower-Priced Goods

Theme: Payments

Despite the success of Buy Now Pay Later, the average order value decreased 5% YoY, meaning consumers are using the payment method more, but to help finance lower-priced goods.

Trend 9

Sales Spikes in APAC + Europe

Theme: Payments

Even though Black Friday has been traditionally viewed as an American retail phenomenon, it has transcended its U.S. origins and has been embraced by consumers the world over.

Several countries witness significant spikes in online sales in 2022, most notably in Australia with a +239% sales spike, and Spain at +576% spike when compared to average October sales.

Trend 10

Retailers Hit with Hidden Fees

Theme: Payments

Did you know that merchants of all shapes and sizes can often find it hard to escape paying unnecessary transaction fees during the holiday season?

For context, every international dollar a retailer generates during the holiday period could be converted up to three times, costing them up to 5.5% of every transaction.

Black Friday supplemental The Conversion Trap


Considering the multitude of benefits afforded to consumers during Black Friday and the holiday season, the question that looms is: is this retail bonanza genuinely worthwhile for retailers?

By partnering with Airwallex, retailers can simplify global payments, but also capitalise on increased consumer spending—without sacrificing on profit.

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Learn more about Airwallex now.

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