Monday, December 23, 2024

Walmart Claims Top Retailer Spot for 2023 Kantar PoweRanking for 27th Consecutive Year

Kantar released its annual industry benchmarking report PoweRanking, which identifies retailers and manufacturers/suppliers that set the standard of performance, ranked by their trading partners. Walmart claimed the top spot for retailers for its 27th consecutive year, while PepsiCo, Coca-Cola, P&G, Nestle and General Mills round out the top five suppliers for 2023.

“It is a distinguished achievement for brands to be included in the top ten,” said Jeffrey Maloy, Senior Vice President, Kantar. “For retailers, Walmart continues to set the standard of service to their shoppers amongst the general retailer ecosystem. PepsiCo, CocaCola and P&G also continue their leadership taking the top three manufacturers/suppliers again this year.”

Kantar’s annual PoweRanking report is the industry’s leading assessment of best-in-class manufacturers and retailers. Chosen by the industry, brands are ranked on a range of factors, from strategic metrics to business fundamentals and includes input from a number of key industry leaders. Kantar looks at how retailers and manufacturers can best innovate and serve shoppers in all major categories and across food, drug, mass merchandise, dollar, convenience, specialty, ecommerce and club channels.

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RETAILERS

Walmart held its number one spot as the top retailer. Though Kroger and Target switched places to number two and number three respectively, they continue to round out the top three, a testament to each retailer’s strength year in and year out. Costco and Amazon traded places to number four and number five respectively while among the top ten, Publix and Meijer traded to number seven and number eight.

Inflation has made for some healthy top-line growth in 2023. “This growth is great for retailers, however the focus on dollar growth has masked the fact that store traffic and trips have eroded,” said Rohan Mazumdar, Vice President, Kantar. “While the precise direction of inflation and consumer spending is unclear for the next 12-18 months, it is evident that US shoppers across socioeconomic groups will continue to be mindful of how they can get the most for their money. The open question is how manufacturers and retailers will respond to this environment, but we expect both to refocus on growing units and trips.”

Value, in terms of the net value delivered to shoppers for the price they pay at shelf, has been a recurring theme throughout PoweRanking discussions. The current climate has made value top of mind for shoppers, leading suppliers and retailers to mirror those concerns coming into 2024. This value-centric focus is fueled by macroeconomic realities, such as less government assistance and the resumption of student loan payments, and has cascaded to retail realities such as inflation and ‘shrinkflation’.

MANUFACTURERS/SUPPLIERS

PepsiCo stood out as the top supplier for the seventh straight year, leading retailer-manufacturer relationship standards and ranking number one on all nine core PoweRanking metrics. Other supplier-specific movements compared to the 2022 include General Mills moving up a spot to number five, replacing Unilever, who moved to number six, as well as Mars entering the top 10 and AB InBev dropping out of it.

PARTNER ENABLEMENT

With the economic uncertainties, collaboration between retailers and manufacturers/suppliers likely will focus on two distinct audiences: the cost-focused shoppers vs quality-focused shoppers. Retailers who cater to more budget-conscious shoppers are prioritizing partnering with suppliers who ensure core items are in stock and priced strategically, and who effectively communicate their price-value message to shoppers.

Conversely, retailers that position themselves as a more premium experience are turning to suppliers to maximize convenience, quality, and service. This includes activities that enable disruptive innovation and the ability to provide valuable, personalized offers, as well as relevant shopper solutions.

“The 2023 rankings reflect the value in understanding the macroeconomic realities of the consumer and adjusting strategies accordingly,” said Mazumdar.

“Continued partnership remains vital as shoppers gain more control and demand higher quality and service amid tight budgets. As such, Kantar encourages the industry to keep collaborating, pushing, and innovating together to maximize shopper-led value in the year ahead,” added Maloy.

SOURCE : BusinessWire

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