From refrigerators to snacks to detergent, US households are looking for low-cost alternatives everywhere

Yahoo

9 hours ago

Americans looking to replace an appliance, restock their pantry, or refresh their household cleaning products all seem to be angling for the same thing right now — lower prices.
Comments from companies ranging from Whirlpool (WHR) to Procter & Gamble (PG), as well as major snack brands like PepsiCo (PEP) and Coca-Cola (KO), have told investors this month that cautious consumers are also deal-seeking consumers.
"We continue to see consumers choosing to mix into lower-end products," CEO Marc Bitzer of Whirlpool, the company behind KitchenAid mixers and Maytag kitchen appliances, told investors on the company's earnings call Tuesday morning.
Bitzer said that "macroeconomic uncertainty marked by elevated interest rates and evolving trade policies negatively impacted consumer sentiment," leading to "suppressed demand" in its latest quarter.
The company missed on both the top and bottom lines and cut its guidance in its latest quarterly results. Major domestic appliance sales in North America were down about 5% year over year and industry shipments were down roughly 1%.
Whirlpool stock fell over 13% following the results.
And this shift in consumer behavior is not only weighing on big-ticket purchases, but is also influencing buying behaviors for household cleaning essentials like laundry detergent.
P&G CEO Jon Moeller told Yahoo Finance the company is seeing a "more cautious consumer in many parts of the world."
"We are seeing modest trade-down within our branded portfolio ... different Tide offerings, there are some that are more premium than others, and we are seeing some trade down there," Moeller said. "We're also seeing some trade-down to brands ... like Gain."
P&G also announced plans to cut 7,000 jobs by the end of fiscal 2027. Moeller said the restructure would allow the company to reinvest in the business and innovation to draw in consumers.
Kelly Pedersen, PwC's global retail leader, said consumers are "super price conscious" and "really looking for any deal that they can get right now."
Data from the Conference Board published Tuesday showed consumer confidence remains depressed from a year ago, with confidence in the labor market and fears over inflation weighing on the outlook.
"Consumers' write-in responses showed that tariffs remained top of mind and were mostly associated with concerns that they would lead to higher prices," said Stephanie Guichard, senior economist at the Conference Board. "In addition, references to high prices and inflation rose in July."
Read more: What is consumer confidence, and why does it matter?
This week's comments from Whirlpool and P&G follow similar notes from food and beverage giants Coca-Cola (KO) and PepsiCo (PEP), which reported their quarterly results earlier this month.
Coca-Cola CFO John Murphy told Yahoo Finance last week, "Part of what we continue to be very focused on is to offer even more affordable options," as low-income consumers remain under pressure.
PepsiCo CEO Ramon Laguarta told investors on the company's earnings call that it is "trying to make granular investments in value, [to] make sure that consumers stay within our brands."
He added, "Better entry points, better value every day, and that has been successful."
Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at [e-mail].
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