Manufacturers Rank Top 10 Retailers
Last week, CGT published a report that identified retailers' 10 favorite suppliers. This week, we're turning the tables to bring you a list of the the Top 10 power retailers, ranked by their manufacturing partners.
Amazon is challenging Walmart as a Power Retailer of the future according to America’s leading manufacturers who have ranked the top movers in the next 15 years in Kantar Retail’s 2012 US PoweRanking report.
Walmart is still predicted to be the No. 1 Power Retailer in the next 15 years but other retailers are challenging its lead — Amazon saw an increase of 9.3 points, placing it fifth as a future Power Retailer.
The gap is narrowing between the top four Power Retailers, namely Walmart, Target, Kroger and Costco, showing how significantly retailing is changing with consumers moving toward multi-channel and discount retailers.
The retailers projected to be the Power Retailers in the next 15 years are:
Walmart – 71.3% (-9.5 points versus a year ago)
Target – 44.6% (+0.2)
Kroger – 38.2% (-8.8)
Costco – 32.9% (-2.0)
Amazon.com – 16.2% (+9.3)
Dollar General – 13.2% (+2.5)
Walgreens – 10% (-2.2)
Publix – 7% (+0.4)
CVS – 5.9% (-3.8)
Aldi – 4.3% (-0.7)
The annual PoweRanking study — now in its 16th year — included input from 600 retailer and manufacturer respondents in the United States to benchmark how they view each other in the most important areas of the manufacturer/retailer relationship.
Metric scores are reported as the percentage of respondents ranking a trading partner among the top three.
The overall lesson to be drawn from the study is the importance of customer centricity to both partners. Those companies that ranked as best-in-class had strategies that aligned with those of their partners and placed customers at the heart.
Why the Power Retailers are Doing Well
As mentioned earlier, the US PoweRanking 2012 report also revealed the top manufacturers as ranked by retailers. P&G and Unilever took leading positions in this side of the report with some large gains from Nestle and Kellogg’s.
Overall, the results showed that companies reward partners who place the customer at the center of their strategies and who have actionable ideas based on a compelling insight into shopper behavior.
The annual study by Kantar Retail is comprised of customized questionnaires for retailer and wholesaler respondents in food, drug, mass merchandiser, dollar, convenience and club channels and manufacturers in food, household products, general merchandise and health & beauty care.
A similar Kantar Retail PoweRanking report is also conducted with China’s retailers and manufacturers.
Jonathan Phillips, CEO Kantar Retail Americas Consulting, said: "Customer centricity has been around for some time. This year it seems to have more teeth as a concept and a higher bar to live up to in practice."
Amazon is challenging Walmart as a Power Retailer of the future according to America’s leading manufacturers who have ranked the top movers in the next 15 years in Kantar Retail’s 2012 US PoweRanking report.
Walmart is still predicted to be the No. 1 Power Retailer in the next 15 years but other retailers are challenging its lead — Amazon saw an increase of 9.3 points, placing it fifth as a future Power Retailer.
The gap is narrowing between the top four Power Retailers, namely Walmart, Target, Kroger and Costco, showing how significantly retailing is changing with consumers moving toward multi-channel and discount retailers.
The retailers projected to be the Power Retailers in the next 15 years are:
Walmart – 71.3% (-9.5 points versus a year ago)
Target – 44.6% (+0.2)
Kroger – 38.2% (-8.8)
Costco – 32.9% (-2.0)
Amazon.com – 16.2% (+9.3)
Dollar General – 13.2% (+2.5)
Walgreens – 10% (-2.2)
Publix – 7% (+0.4)
CVS – 5.9% (-3.8)
Aldi – 4.3% (-0.7)
The annual PoweRanking study — now in its 16th year — included input from 600 retailer and manufacturer respondents in the United States to benchmark how they view each other in the most important areas of the manufacturer/retailer relationship.
Metric scores are reported as the percentage of respondents ranking a trading partner among the top three.
The overall lesson to be drawn from the study is the importance of customer centricity to both partners. Those companies that ranked as best-in-class had strategies that aligned with those of their partners and placed customers at the heart.
Why the Power Retailers are Doing Well
- As well as being named a Power Retailer, Walmart also retained its top spot in the overall Composite, scoring 51.9%, only 2.3 points down on its score last year.
- Discount retailers saw significant improvement in the overall Composite, reinforcing that the value chain is where the most dramatic growth has been in a difficult economic environment. CostCo was up by 0.7 points to 22.1% and in fourth position, while Dollar General broke into the top ten with a score of 6.6%, up one point from last year.
- Amazon climbed into the Top 10 in the “Strategic Composite” – a combination of retailer strategy, branding of stores and likelihood to be a Power Retailer in 15 years.
- Walmart, Target and Kroger were voted the Top 3 retailers with which to do business by United States manufacturers with only a narrow gap between them all.
- Target was out in front when it came to most “Innovative Marketing and Merchandising,” proving they understand more than most how to reach shoppers. The retailer easily beat Walmart in this measure despite Walmart gaining 1.4 points since last year.
- Walmart reigns as leader of the Supply Chain Management metric (92%), with Costco in second place (28.3%) a move up from fourth place last year.
As mentioned earlier, the US PoweRanking 2012 report also revealed the top manufacturers as ranked by retailers. P&G and Unilever took leading positions in this side of the report with some large gains from Nestle and Kellogg’s.
Overall, the results showed that companies reward partners who place the customer at the center of their strategies and who have actionable ideas based on a compelling insight into shopper behavior.
The annual study by Kantar Retail is comprised of customized questionnaires for retailer and wholesaler respondents in food, drug, mass merchandiser, dollar, convenience and club channels and manufacturers in food, household products, general merchandise and health & beauty care.
A similar Kantar Retail PoweRanking report is also conducted with China’s retailers and manufacturers.
Jonathan Phillips, CEO Kantar Retail Americas Consulting, said: "Customer centricity has been around for some time. This year it seems to have more teeth as a concept and a higher bar to live up to in practice."