Retailers are making their presence known in an ultra-competitive shopping environment that’s been radically transformed post-pandemic. They are the fourth highest-scoring category in MarketCast’s Brand Fandom research, so it’s worth examining how some brands have tackled the “new normal” of customer behavior and expectations while reshaping the retail shopping experience under current, often challenging economic conditions.
How did Walmart top the charts while Costco, CVS, and IKEA trail behind? You’ll have to get in touch for access to MarketCast Brand Tracking+, our next-gen brand research solution that helps brands build Fandom. But here’s a sneak peek.
Years of research has shown that fandom creates a stronger relationship with consumers that drives commercial outcomes. MarketCast’s Brand Fandom Model (part of our Brand Tracking+ research solution) reveals multiple ways for brands and marketers to turn consumers into fans by tapping into our three Fandom pillars: Presence, Distinction, and Relevance.
Our most recent research in the retail category, fielded in late 2023-early 2024, has Walmart, Home Depot, Kroger, Walgreens, and Target scoring above MarketCast’s norm for overall Brand Fandom in all three MarketCast categories (Presence, Distinction, and Relevance). Walmart and Home Depot won the overall retail category thanks to a combination of strong advertising creative and media placement, diverse product/brand offerings, and great shopping experiences and customer service.
Location, Location, and Other Things
For retailers, the number of brick-and-mortar retail locations typically contributes to having a stronger Presence score, but it is no longer the defining factor. For example, CVS and Walgreens have outsized footprints in the US compared to Walmart, with nearly double the number of locations, but are 26% less present in consumers’ lives, according to our research.
A few factors contribute to Walmart’s high overall Fandom score, like Linear TV and CTV ads with nearly perfect Message Linkage scores, according to MarketCast’s Brand Effect ad measurement, as well as a variety of ways to shop in-person and via online delivery and pickup. Additionally, while Walmart continues to prioritize competitive pricing, the retail brand is increasingly tapping into positive emotion-based shopping to drive Brand Fandom.
Conversely, the Swedish furniture maker, IKEA, has beautifully curated stores and boasts an Instagram following of more than 2.5M followers in the U.S., but the lack of retail locations (just over 50 U.S. stores) leaves many American consumers unable to engage with its products or brand.
What’s Relevant to Retail Brand Fans?
In terms of our Distinction and Relevance scores, The Home Depot and Target take two different retail paths but are the top brands that consumers would miss “a lot” if they were no longer available. As a refresher, MarketCast’s Fandom Distinction score measures how unique a brand is while our Relevance score looks at how a brand fits into the daily lives of consumers.
The Home Depot often prioritizes service quality and employs knowledgeable and experienced staff for projects. The Home Depot marketers also expertly balance specific advertising messages for both their DIY consumers and professional contractors, as well as use long term sports sponsorships, including ESPN’s College Gameday, to smartly target new and existing customers.
By contrast, Target stands out as a brand that is dedicated to ease, joy and affordability. But value isn’t just a pricing tactic. Their private label brands layer in additional benefits. For example, Target’s Good & Gather food and beverage brand offers high-quality, better-for-you products while its Favorite Day brand offers sweet indulgence with its cookies and ice cream sandwiches.
Want to Know How Your Brand Fandom Measures Up?
While the competitive omnichannel shopping environment can make loyalty harder to build and sustain, our research demonstrates that consumers can be transformed into long-term brand fans.
MarketCast is using its Brand Tracking+ solution, and its unique Fandom model, to study a wide range of brands across categories, from Retail and Banking to QSR, Automotive, and Entertainment. To learn more, please Contact us.