With an overall brand value rise of 38 per cent, the Latin American retail sector has outperformed all other categories in the 2020 BrandZ Top 50 Most Valuable Latin American Brands report, launched recently in Mexico City by advertising and public relations firm WPP and consulting firm Kantar, both based in the United Kingdom.

The huge growth in retail compares to just 2.6 per cent growth in value of the overall BrandZ LatAm ranking this year, according to a Kantar press release.

Investment in digital transformation has been key; the most valuable retailers are driving customer engagement and business value with innovative business models, including omni-channel solutions, online and mobile platforms and digital payment systems.

Mexico's Walmart-owned discount store, Bodega Aurrera (No. 6, $5.4 billion) was the best performer overall with a 44 per cent increase in brand value and a rise of four places in the ranking. This follows aggressive expansion plans that saw new store openings to help strengthen its distribution capabilities and physical presence in the region.

Chile's Falabella (No. 7, $5.2 billion) was the other retail brand to make the top 10, thanks to the development of an integrated digital retail platform to maximise its diverse portfolio and to leverage its omni-channel strategy.

Other top retail performers included Lider (No. 13, $3.2 billion), Liverpool (No. 21, $2.4 billion) and Lojas Americanas (No. 39, $1.3 billion) with 19 per cent, 10 per cent and 23 per cent brand value growth respectively.

The highest ranked newcomer this year was e-commerce company MercadoLibre (No. 19, $2.5 billion), with a presence in around 20 Latin American countries, which recently introduced new digital payment methods including QR codes, virtual wallets and discounts with the Mercado Pago app.

Supermarket chain Magazine Luiza (No. 24, $2.3 billion) and fast fashion retailer Renner (No. 29, $1.9 billion), both Brazilian brands, also entered the Top 50 this year.

Overall there were 11 retail brands in the Top 50, with the others being Sodimac (No. 12, $3.2 billion), Ipiranga (No. 38, $1.3 billion) and Tottus (No. 45, $1.1 billion). Their combined value was $27.1 billion, 20.2 per cent of the total ranking compared to 15.1 per cent in the previous report.

Fibre2Fashion News Desk (DS)

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