‘Brand Aldi’ now worth more than Tesco
The brand value of discount supermarket Aldi is now higher than Tesco after the UK’s largest retailer experienced a dramatic fall from market dominance.
Based on figures compiled by brand analysts, Aldi’s value went up by 22% last year to $11.7m (£7.68m).
Conversely, the value of the Tesco brand dropped by over a third last year, from $14.8m (£9.7m) to $9.4m (£6.17m) – a 37% fall.
The figures seen by The Telegraph from the annual BrandZ report, created by advertising agency WPP market researcher Millward Brown, show the impact of the negative image surrounding Tesco following its £265m accountancy scandal and the subsequent fallout, which saw top employees fired or suspended.
In April, the company announced the biggest losses in its 96-year history – and the sixth biggest in UK financial history – with £6.4bn worth of pre-tax losses.
A huge drop in store footfall and subsequent fall in value of the company’s property assets – plus a commitment to plug the £3.9bn deficit in employee’s pensions – all contributed to the figure.
It has also led to moves to slash various retail lines, including the company’s beer, wine and spirits division, which could see its range culled by 30%, according to reports.
The brand-value ranking also shows the exceptional rise in popularity of Lidl, the European discount retailer famous for offering cut-price, lesser-known brands.
Lidl’s brand increased by 27% to $6m (£3.94m) last year, according to the BrandZ findings.
Lidl is also becoming highly regarded for its drinks offering. In November last year, the retailer was named the UK’s best value supermarket for wine, beating the likes of Marks & Spencer and Waitrose.
The 18-month study by wine app Wotwine saw more than 4,000 wines on offer at all nine of the UK’s major supermarkets tested by an expert panel, which included four MWs, for their value.
Nearly two thirds (65%) of the wines available to Lidl customers represented “value or extra value”, compared to chains such as Marks and Spencer where shoppers were found to be at risk of over-paying for wine on 74% of its range.