WILTON, Conn. — Manufacturers view Target Corp. as a significant player in most strategic categories in Kantar Retail's 2010 PowerRanking survey.
On a composite basis, Target's power ranking rose 3.3% — the biggest gainer among the 10 top companies cited. According to Kantar, of all the retailers that will stand to benefit from the economic rebound, “Target is unique with its positioning as a place to shop for value with an aspirational offering.”
The PowerRanking survey, which has been conducted by Kantar and its predecessor companies since 1997, seeks to provide insights into industry best practices by asking manufacturers to rate retailers and retailers to rate manufacturers, with the results being compared from one year to the next.
Wal-Mart Stores saw its composite score as rated by manufacturers decline 2.7% in the latest study — “ironically, in spite of the economic doldrums,” Kantar pointed out, “due to what manufacturers perceive as internal turmoil and the unclear strategy [it] is now pursuing.”
Other retailers that fared well on composite scores were CVS, up 3.1%, and Walgreens, up 1.6%.
Coming in relatively flat, the report noted, were H.E. Butt Grocery Co., whose score from manufacturers was up 0.8%; Kroger Co., up 0.6%; and Costco Wholesale Corp. and Wegmans Food Markets, each down 0.7%. The other two chains in the top 10 composite were Publix Super Markets, down 3.2%, and Safeway, down 4.1%.
Manufacturers cited four retailers outside the top 10 for showing significant improvements overall in the past year: Aldi, Dollar General Corp., Giant Eagle and Meijer Inc.
Among retail rankings of manufacturers, Unilever's score was up 5.5% from the year-ago survey — because of its proactive marketing efforts, Kantar noted — followed by Procter & Gamble, up 1.3%, and Kraft Foods, up 1.2%.
In the manufacturer ratings of retailers, Target showed strong gains in several categories:
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In terms of composite store strategies, Target's score rose 2.6% and the score for CVS rose 3.5%, with other retailers showing declines in their scores. According to one manufacturer, “Target adapts its executions but remains consistent with its brand essence.”
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In terms of which retailers did the best job communicating their strategy, Target's score rose 3.5%, compared with a 3.9% boost in CVS' score; a 2.6% boost in the score for H-E-B “for offering competitive prices with Wal-Mart while catering to an ethnic population,” Kantar noted; and a 1.7% rise for Walgreens “for accommodating shoppers in a clean, friendly atmosphere that is supported by the efficacy of pharmacists,” Kantar said.
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Asked who did the best job branding its stores, CVS showed the biggest gain, up 3.9%, followed by Target, up 3.6%, and Wal-Mart, up 1.6%. On the negative side, H-E-B's score fell 4%, Safeway's fell 3.9%, and Whole Foods' fell 2.7%,
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Asked which retailers were likely to be power players in the next 15 years, Kroger's score rose 2.6%; CVS rose 2.4%; Dollar General rose 2.2%; Costco rose 0.9%; and Aldi was up 0.8%, while Publix's score dropped 1.1% and Safeway's score fell 2.4%.
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Asked which companies have the best business fundamentals — the best category management, buying teams, innovative consumer marketing programs and merchandisers, and the best supply chain management, manufacturers said they have seen the biggest improvements at Target (up 3.9%), CVS (up 2.8%) and H-E-B. (up 2%).
The biggest losers in that category were Wal-Mart, down 3.1%, and Safeway and Publix, each down 4.9%.
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Asked which retailers were the best ones to do business with, Target's composite score rose 9.1%, with the next closest gainer — Walgreens — up just 3.1%; and H-E-B and Wegmans tied at a 2.6% gain.
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At the other end of the spectrum was Publix, whose score fell 9%. Wal-Mart, down 6.7%, and Kroger, down 3.9%.
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In terms of category management staff, CVS and Target saw their scores rise 4.5% and 4%, respectively, followed by H-E-B, up 2.1%, and Meijer, up 1.6%.
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In terms of most innovative marketing and merchandising, Target led the way, up 3.6%, followed by CVS, up 3.1%; H-E-B, up 2.7%; and Kroger, up 2.4%.
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In the category of “most innovative consumer marketing and merchandising,” Target showed the biggest gain in its score, up 3.6%, followed by CVS, up 3.1%; H-E-B, up 2.7%; and Kroger, up 2.4%.
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In terms of best supply chain management, Kroger's score got the highest boost, up 4.7%, followed by Safeway, up 2.5%, and CVS, up 1.4%.
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In best practice category management, Target's score rose 2.7% — the same gain as H-E-B — while CVS saw its score rise 3.8% and Walgreens was up 3%.
