Procter & Gamble Faces Sluggish Sales as Shoppers Opt for Private Labels

Procter & Gamble (P&G) experienced a notable 5% drop in share price following its slowest sales growth in six years. Despite surpassing Wall Street’s earning expectations, the company reported a 7% decline in quarterly profits, totaling $3.1 billion.

This downturn was partly due to decreased demand for products like Luvs diapers and SK-II skincare, particularly in China – P&G’s second-largest market – where organic sales dropped by 9%.

However, it’s not all grim news for the consumer goods corporation. The company saw its first increase in sales volume in over two years, driven by strong performance in sectors like hair care, home care, and grooming products.

Consumers are increasingly turning to private-label goods, which recorded $236 billion in sales last year. This shift is evident as 65% of U.S. shoppers now prefer more affordable store brands over more expensive national brands.

For more information, check out the full article on Sherwood.