Turkish retailer Migros Ticaret has been named the strongest grocery retail brand in Europe, in the inaugural 'Top 50 Strongest European Grocery Retailers' report, prepared by ESM: European Supermarket Magazine and Brand Finance.
The report, which assesses the strength of Europe's leading grocery retailers using a metric known as the Brand Strength Index (BSI), is published in the latest edition of the European Grocery Report, published by ESM.
To determine the BSI score of each retailer, Brand Finance examines the efficacy of each brand's performance on intangible measures relative to its competitors. It evaluates brand strength in a process compliant with ISO 20671, looking at marketing investment, stakeholder equity, and the impact of those on business performance. The data used is derived from Brand Finance's proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Migros Ticaret Tops The Rankings
Istanbul-based Migros Ticaret, which operates more than 3,000 stores across Türkiye, topped the rankings with a BSI score of 90.1, a rating of AAA+, a loyalty score of 9.0, and a reputation score of 9.8.
"Retail is all about understanding the customer, adapting to changes in the marketplace, and doing the small things well, and this has been part of the modus operandi at Turkish grocer Migros Ticaret since its foundation 70 years ago," commented Stephen Wynne-Jones, editor, ESM: European Supermarket Magazine. "Congratulations to chief executive Özgür Tort and his team, as well as to the other retailers that feature in our inaugural 'Top 50 Strongest European Grocery Retailers' report."
In second place, Swedish retailer ICA achieves a BSI score of 86.3, a rating of AAA, a loyalty score of 10.0, and a reputation score of 9.1, just ahead of Dutch operator Albert Heijn, in third with a BSI score of 86.1, a rating of AAA, a loyalty score of 10.0, and a reputation score of 9.8.
Fellow Dutch retailer Jumbo places fourth, with a BSI score of 84.1, a rating of AAA-, a loyalty score of 9.8, and a reputation score of 8.8, while UK market leader Tesco ranks fifth, with a BSI score of 83.9, a rating of AAA-, a loyalty score of 9.6, and a reputation score of 9.4.
The remainder of the top ten is comprised of E.Leclerc (6th, BSI 83.7), REWE (7th, BSI 83.5), Mercadona (8th, BSI 83.4), Edeka (9th, BSI 82.7) and Kaufland (10th, BSI 82.4).
"Various studies by Brand Finance and our partners managing investment funds have demonstrated the link between brand strength and business performance, both in terms of future sales growth and in terms of share price," adds Annie Brown, valuation director, Brand Finance. "For supermarkets, the link is clear. Where consumers enjoy a plethora of choice, trust and strong branding engenders loyalty which in turn enables higher market share and price premiums. Brand Finance research identifies the strength of brands among consumers to predict future market share shifts as well as opportunities for brands to enhance their position in a market."
The Strongest European Grocery Retailers – The Top 10
- Migros Ticaret (Turkey) BSI Score: 90.1
- ICA (Sweden) BSI Score: 86.3
- Albert Heijn (Netherlands) BSI Score: 86.1
- Jumbo (Netherlands) BSI Score: 84.1
- Tesco (UK) BSI Score: 83.9
- E. Leclerc (France) BSI Score: 83.7
- REWE (Germany) BSI Score: 83.5
- Mercadona (Spain) BSI Score: 83.4
- Edeka (Germany) BSI Score: 82.7
- Kaufland (Germany) BSI Score: 82.4
For more information:
Stephen Wynne-Jones
European Supermarket Magazine
Email: [email protected]