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Finance Asda Sainsbury's

Brand value of UK supermarkets falls by £3m as Shell and Cadbury's see success - study

By Angela Haggerty, Reporter

April 25, 2013 | 3 min read

The brand values of UK supermarkets have fallen sharply in the last year according the annual top-50 study by Brand Finance, with only Sainsbury's bucking the trend.

Drop: Tesco and other UK supermarkets saw brand value decrease

Shell saw a substantial 35 per cent increase in brand value to £19.5m to top the table and shove Vodafone and HSBC down a couple of notches. Vodafone saw a drop in value of 10 per cent while HSBC's decreased by 17 per cent.

But it was the performance of UK supermarkets which attracted attention, as Tesco's brand value dropped by 11 per cent to £11.7m, while 13th place ASDA was down 16 per cent to £5.2m and Morrisons 15 per cent to £3.5m, resulting in a combined loss of value of around £3m.

Tesco, which polled fourth overall, recently announced the winding up of the company's Fresh & Easy stores in America, which had been an attempt to break into the US market. The abandonment of the US operation will result in a £1bn write off. A recent Which? poll saw Tesco voted the UK's worst supermarket.

Morrisons, in 21st place, recently announced it was reviewing its £73m advertising account with DLKW Lowe and invited agencies to pitch.

However, Sainsbury's saw a three per cent brand value increase to £3.9m, putting it a position higher in the table than it polled last year, to 18.

Sainsbury's head of sponsorship, Mark Given, said: "For Sainsbury's, 2012 was a year like no other. Not only did we sponsor several key Diamond Jubilee events, our brand value rose following our landmark sponsorship of the Paralympic Games.

"No other brand had previously taken the opportunity to sponsor the Paralympic Games solely and this had an extremely positive impact on how Sainsbury's is viewed by our customers."

Cadbury's jumped from 31st place last year to 19th with a massive brand value increase of 57 per cent to £3.7m, while Kit Kat's value rose by 31 per cent and Burberry saw an improved performance.

Finance Asda Sainsbury's

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