The fourth annual dunnhumby Retailer Preference Index (RPI) has a new retail leader in the top spot — Amazon.
The analysts said that in a year dominated by COVID-19 and its impact on retail and consumers’ lives, Amazon was able to jump the reigning top two grocers H-E-B and Trader Joe’s, who slid to second and third, respectively, in the latest index.
The index evaluates a retailer’s performance based on several drivers: price, quality, digital, operations, convenience, discounts, rewards, information and speed. This year, dunnhumby also included calculations from its COVID Momentum Metric, a statistical model that predicts how retailer execution on the same preference drivers’ impact short-term financial success, namely market share gains or losses during 2020.
The study also factors in a survey of 10,000 U.S. households for their feedback on retailer performance and studies retailer financial data. In the end, Amazon moved up to the top spot from No. 3 last year.
“Amazon accelerated past every other retailer on our COVID Momentum Metric and customer safety ratings, due to its speed to shop and virtual store format,” said Grant Steadman, dunnhumby’s president, North America. “As we begin to emerge from the pandemic, we should expect value perception to come back strongly. Beyond COVID, retailers with ‘Customer First’ strategies will best adapt to changing behaviors and deliver what matters most to their customers."