Canadian Business and the Reputation Institute have released their annual list of the 50 Most Reputable Companies in Canada and retailers did very well with 12 of 50 spots on the list and 9 in the top 20.
The Jean Coutu Group did particularly well, reaching the number two spot sandwiched in between Tim Horton’s (1) and Bombardier (3).
This is great news for Jean Coutu and the other retailers that have made the list. These companies are becoming true brand builders in their own right. Rona, on the heels of its Olympic sponsorship placed in the number 5 spot ahead of the iconic Canadian Tire (7).
It was also good news for Metro who may now be seeing payback on its integration of its Ontario supermarkets under the corporate banner. They finished 9th well ahead of arch rivals Loblaws (13) and Sobeys (28).
It was not such great news for CPG suppliers, with only three companies making the list including Saputo (6), Cott (36) and Maple Leaf Foods (46).
The challenge will be for CPG brands to continue to build their reputation with consumers while competing with retailer brand building efforts – both in the name over the door and the private labels on the shelf.
I highly recommend a book called Retailization – Brand Survival In the Age of Retailer Power (Aconis et al) if you are interested in reading more about the strategies CPG suppliers can take to meet this challenge.