Walgreens and Amazon.com advance in the 2014 Kantar Retail PowerRanking Survey

WILTON, Conn. — Both Walgreens and Amazon.com advanced in the 2014 Kantar Retail PowerRanking Survey released Tuesday. Walgreens climbed from the No. 10 spot to No. 9 and Amazon.com went from No. 8 to No. 5. 

 

The annual survey, now in its 18th year, benchmarks how U.S. retailers and manufacturers view each other across the most important areas of their commercial relationships. 

 

Meanwhile, last year’s top four retailers — Walmart, Target, Kroger and Costco — each retained their respective ranks in 2014. Walmart generally expanded its lead over the rest of the field, once again earning top marks for its comprehensive and efficient supply chain management in particular. Manufacturers also praised Walmart for increasing its investments in digital capabilities and expanding its smaller store formats versus its traditional supercenters. 

 

Coming in at No. 6 was Publix; HEB ranked No. 7 and Wegmans No. 8; Safeway rounded out the top 10 list. 

 

"As Walmart gets bigger and they flex their business into new spaces (i.e. online, convenience store, etc.), they will have to stay ahead of the curve knowing Amazon's threat," suggested one manufacturer respondent. "They will find a way to further innovate and cater to their consumers' needs. They have the scale and resources to do it."

 

Turning to the study’s findings on the manufacturer side, retailers once again gave Procter & Gamble a collective nod as the top-ranked trading partner. P&G strengthened its position atop the manufacturer leaderboard, receiving the No. 1 ranking on five out of the eight individual metrics that comprise the total PoweRankings. General Mills and PepsiCo both improved their ranks since last year to capture the second and third place positions, respectively.

 

The remainder of the manufacturer's list included, in order: Unilever, Kraft, Coca-Cola, Nestle, Kellogg, Mars and Kimberly Clark. 

 

This year's PowerRanking report portrays an industry grappling with uncertainty stemming from several fundamental forces currently reshaping the retail landscape. The emergence of millennials as the domninant shopping cohort of the future; the extension of e-commerce into packaged goods and perishables; the new normal of a national economy dramatically divided between the rich and the poor — none of which are news to the retail industry. What is new in 2014 is that retailers and manufacturers are seeing these forces impact their business in tangible and unsettling ways. 

 

PoweRanking participants pointed to the abilities to act fast and to focus on the future as key factors for success. "The retail landscape is undergoing rapid, fundamental change," noted Dianne Graham, Kantar Retail VP. "Marketplace leaders will be those companies that are best able to anticipate trends and then act quickly to adapt to changing shopper preferences and behaviors."

 

In particular, PoweRanking respondents reported that they are heavily focused on figuring out how to win with the approximately 80 million Millennials now aging into their prime spending years. "It is crucial that suppliers help us better understand the Millennial shopper," noted one retailer. "We need their guidance and collaboration in adapting and preparing for their new shopper needs in assortment, value and communication.

 

The 2014 PoweRanking report reflects a consensus that industry changes have reached a tipping point. Retailers and manufacturers want help from their major trading partners to move forward. 

 

Other key findings from this year’s PoweRanking report include: