Battle of the retail brands: Who’s the best in SA?

Date:4 August 2022

According to the Most Valuable South African Brands 2022 report released by data and analytics company Kantar BrandZ, the top 30 brands in the nation are now valued at $34.9 billion as a group, a 21 percent rise from the previous year.

With a brand worth of $3.7 billion, MTN has risen four spots in South Africa’s brand rating to take over the top spot for the first time. The telecom company also takes home the award for fastest growth this year after seeing its brand value increase by 85% over the previous year.

Twelve South African brands have had growth over normal (21 percent rise in brand value). The second-fastest riser, up nine positions, is Investec (No.16, $700 million), followed by Checkers, a major retailer and member of the Shoprite Group that has put a lot of emphasis on expediting its digital transformation (No.23, $531 million), according to Kantar.

Woolworths ($1.2 billion) finished 11th overall, ahead of Shoprite ($801 million), Pick n Pay ($642 million), and Checkers ($531 million), while online retailer Takealot ($461 million) came in 25th.

The best-performing brand for convenience was Checkers, which made sure that goods and services complemented consumers’ daily lives, according to¬†

In a setting where the customer is king, brands must effortlessly integrate into the daily lives of their customers. It should come as no surprise that Checkers ranks highly in this market. Although not the only fast grocery delivery option in the nation, its Sixty60 service is by far the most well-liked, according to Kantar.

Today, 28% of South Africans with access to the internet say they’ve used a Rapid Grocery Delivery (RGD) app in the past month; 49% say they use one at least weekly; and 62% say they plan to use one more frequently.

The Checkers Sixty60 app is the most notable of these, but other establishments are also expanding quickly. More than a million people have downloaded Pick n Pay’s ASAP!, which had a 300 percent increase in users the previous year. The statistics analyst pointed out that Woolworths’ shopping app Woolies Dash presently has 1.5 million users and that its overall ecommerce sales are increasing by double digits.

It was stated that a variety of variables are probably the reason for the quick adoption of new forms of business.

First off, the services are generally affordable (Checkers Sixty60 costs only R35 per delivery). The brand claims that this is typically 33 percent less expensive than driving to the store, despite the fact that gas costs are higher than ever. But the most important factor is the increased demand for seamless purchase, where consumers seek to acquire their desired goods as soon and without difficulty as feasible. All brands ought to make an effort to live up to this expectation by lowering transactional barriers and enhancing CX (customer experience).

Deloitte, a provider of professional services, has released its annual Global Powers of Retail report for 2022, which ranks the 250 largest retail organizations worldwide, including five from South Africa.

The rating is based on data from FY2019 that is openly accessible and covers fiscal years ended through June 2020. Deloitte evaluates a company’s performance across channels, industries, and locations.

Despite ceasing operations in Nigeria, Kenya, Uganda, and Madagascar, Shoprite Holdings was the largest retailer in the area, surpassing Steinhoff in FY2020 and moving up seven spots in the Top 250 rankings. It also generated good sales in the grocery segment.

According to Deloitte, the poor performance of troubled retailer Steinhoff, which reported FY2020 retail revenue down 34.1 percent and a US$2.6 billion net loss (30 percent) due to high finance costs, the impact of currency translation for foreign operations, and losses due to ongoing litigation, overshadowed the performance of the companies in South Africa.

Following its accounting fraud crisis that surfaced in 2017/18 and the group’s subsequent failure to publish full-year results, Steinhoff was removed from the report in 2019, however the company made a triumphant comeback in 2020.

It did so for the first time in the 2022 report relative to other merchants in the nation. Its position in the global rankings significantly declined as well, falling from 72nd in 2021 to 124th in 2022. Additionally falling in the ranks were Pick n Pay and the Spar Group.

The only local retailers to move in the rankings were Shoprite and Woolworths, with the former once more appearing in the top 100.

According to Deloitte, Spar was the only store to be listed among the top 50 fastest-growing retailers worldwide.

The comparison of South Africa’s largest retailers in the Deloitte report is shown in the table below.

# Retailer Countries FY2019 revenue ($m) FY2020 revenue ($m) Retail growth 5Y CAGR
100 Shoprite 13 9 995 10 892 +7.1% +5.3%
124 Steinhoff 29 13 524 8 839 -34.1% -6.7%
142 Spar Group 13 7 621 7 648 +13.5% +10.9%
194 Pick n Pay 8 6 173 5 632 +4.3% +5.1%
213 Woolworths 13 4 601 5 247 +9.1% +3.9%

Global retailers

The world’s top 10 biggest retailers.

# Group Country Countries of operation Retail Revenue (US$m)
1 Wal-Mart Stores United States 27 523 964
2 United States 17 158 439
3 Costco Wholesale Corp United States 12 152 703
4 Schwarz Group Germany 33 126 124
5 The Kroger Co. United States 1 121 539
6 Walgreens Boots Alliance United States 9 115 994
7 The Home Depot United States 3 110 225
8 Aldi Einkauf Germany 19 106 326
9 CVS Health Corporation United States 1 86 608
10 Tesco United Kingdom 8 31 347

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