From refrigerators to snacks through detergent, American households are looking for low -cost alternatives everywhere
Americans who seek to replace a device, to restore their pantry or refresh their household cleaning products all seem to tilt for the same thing at the moment – the lower prices.
The comments of companies ranging from Whirlpool (WHR) to Procter & Gamble (PG), as well as large brands of snacks like Pepsico (PEP) and Coca-Cola (KO), this month told prudent consumers.
“We continue to see consumers choose to mix in low -end products,” the company of CEO Marc Bitzer de Whirlpool told investors, the company behind the mixers Kitchenaid and Maytag Kitchen Appliances, in Investors on the call of the company’s results.
Bitzer said that “macroeconomic uncertainty marked by high interest rates and the evolution of trade policies has had a negative impact on the feeling of consumers”, leading to “deleted demand” in its last quarter.
The company failed the upper and lower lines and reduced its advice in its last quarterly results. The main sales of national devices in North America have dropped by around 5% from one year to the next and industry shipping fell by around 1%.
Whirlpool’s stock dropped by more than 13% after the results.
And this change in consumer behavior does not only weigh on purchases of large tickets, but also influences purchasing behavior for essential elements of household cleaning such as detergent.
The CEO of P&G, Jon Moeller, told Yahoo Finance that the company saw a “more prudent consumer in many regions of the world”.
“We see a modest trade exchange in our brand portfolio … Different tidal offers, there are more premium than others, and we see a little trade there,” said Moeller. “We also see exchanges with brands … like a gain.”
P&G also announced its intention to reduce 7,000 jobs by the end of the 2027 fiscal year. Moeller said that restructuring would allow the company to reinvest in the company and innovation to attract consumers.
Kelly Pedersen, world leader in pwc retail sales, said consumers were “concerned about prices” and “really looking for any agreement they can get now”.
Conference Board data published Tuesday have shown that consumer confidence remains depressed in relation to a year ago, with confidence in the labor market and fears concerning inflation weighing on perspectives.
“Consumer writing responses have shown that the prices were in the lead and were mainly associated with concerns that they would cause higher prices,” said Stephanie Guichard, principal economist at Conference Board. “In addition, references at high prices and inflation increased in July.”
