UK supermarkets lose brand value

29 April 2013
LONDON: ASDA, Co-op, Morrisons and Tesco, four leading UK supermarkets, saw their collective brand value fall by £3bn during 2012, reversing a long-term positive trend for the sector.

Brand Finance, the brand valuation firm, highlighted the poor performance of UK top 50 most valuable brands of British origin.

It noted that Tesco, ranked fourth overall, accounted for almost half the fall in value (£1.4bn) among the four supermarket groups, but added that the retailer's disposal of its US Fresh & Easy operation may help revive its brand.

Sainsbury's, by contrast, enjoyed a 3% increase in its brand value, something the company attributed, at least in part, to successful sponsorship schemes.

"Not only did we sponsor several key Diamond Jubilee events," said Mark Given, head of sponsorship at Sainsbury's . "Our brand value rose following our landmark sponsorship of the Paralympic Games." 

Shell, the oil company topped the table, following a 35% jump in brand value to £19.5bn, overtaking mobile operator Vodafone, in second place, and HSBC Bank, in third, both of which suffered major brand value falls of 10% and 17% respectively.

Accountancy firms also fared well, with PWC (15%) in fifth place, Deloitte (33%) in eighth and Ernst & Young (18%) all registering double-digit increases to climb the rankings. KPMG's 4% rise saw it slip two places to tenth, just ahead of rival Ernst & Young in 11th place.

The remaining places in the top ten went to Orange, the mobile operator, in sixth spot, Barclays Bank in seventh and oil company BP in ninth.

Brand Finance also drew attention to the performances of Burberry (ranked 33rd), Rolls-Royce (32nd) and Cadbury (19th), which rose 13%, 17% and 57% in brand value respectively. 

"Burberry has expertly twinned more traditional signifiers of Britishnness such as its Royal connections and the heritage of British tailoring with London's more modern reputation as a fashion hub and home of the global elite," said David Haigh, chief executive of Brand Finance.

Data sourced from Brand Finance; additional content by Warc staff
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