Continued inflation is pushing prices over the heads of European consumers and companies like Unilever and Reckitt Benckiser are starting to notice. Now that price increases have climbed to 8.3%, the sale of products such as razor blades, cleaning products and condoms in Europe is visibly declining.
European consumers seem to have had enough of the price hikes for food and personal care products, among other things. This conclusion is drawn from the fact that several companies have sold fewer products in recent times. In food group Unilever and Reckitt Benckiser, sales of cleaning products and condoms, among other things, have declined.
Unilever let prices rise more
Unilever has been the leader in price hikes, which rose 8.3% last year. This while the amount of products sold has dropped dramatically. On the other side of the ocean, prices have risen much more, but this has had less of an effect on sales than on mainland Europe.
Reckitt Benckiser’s products are often immune to price increases. This is partly because consumers consider them essential. However, the company reported this week that sales of the products were actually down, by no less than 5.8%.
Corporate cuts
As long as inflation persists, not only consumers but also businesses will become increasingly trapped. If customers buy less and less, the company will eventually have to cut costs. Pricing decisions are getting tougher every month, says Andre Schulten, chief financial officer at Procter and Gamble. “We are doing everything we can to offset cost increases and minimize the need for price increases.”
“We are doing everything we can to offset cost increases and minimize the need for price increases.”
But it’s not that easy, especially now that Statistics Netherlands reports that price increases in February have accelerated again compared to the previous month. This means that groceries have become more expensive again. The Netherlands are certainly no European exception, the same goes for Spain, Germany and France.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
