Last updated on November 16th, 2023
Kantar has released its annual industry benchmarking report 2023 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 10,” said Jeffrey Maloy, SVP for 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 2023 PoweRanking report is an industry assessment of 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, e-commerce and club channels.
Retailers
Walmart held its No. 1 spot as the top retailer. Though Kroger and Target switched places to No. 2 and No. 3 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 No. 4 and No. 5 respectively, while among the top 10, Publix and Meijer traded to No. 7 and No. 8.
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, VP for Kantar.
“While the precise direction of inflation and consumer spending is unclear for the next 12-18 months, it is evident that U.S. 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 and suppliers
PepsiCo stood out as the top supplier for the eighth straight year, leading retailer-manufacturer relationship standards and ranking No. 1 on all nine core PoweRanking metrics.
Other supplier-specific movements compared to 2022 include General Mills moving up a spot to No. 5, replacing Unilever, who moved to No. 6, 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, and who 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,” Mazumdar said.
Maloy added, “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.”
To download the 2023 PoweRanking Executive Summary and a preview of the full “Growth through Shopper-Defined Value” report, visit https://retailiq.kantar.com/poweranking-2023.
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