Haleon Enhances Retail Strategies Amid Rising Consumer Costs
By Richa Naidu
LONDON, Sept 3 (Reuters) – Sensodyne toothpaste maker Haleon has successfully negotiated improved shelf placements at major U.S. retailers like Walmart and Target, seeking greater visibility as consumers face rising grocery costs.
The company, which spun off from GlaxoSmithKline in 2022, has offered retailers lower prices, enhanced promotions, new product offerings, and exclusivity to secure these favorable positions.
A Haleon spokesperson stated that the company is enhancing “commercial terms, relationships, exclusivity, price, promotions,” and ensuring the stocking of top innovations. This effort is critical as Haleon contends with competitors for attention amid a landscape of cash-strapped shoppers, and improved shelf visibility has positively impacted its U.S. market share.
According to NielsenIQ data, Haleon’s share of the U.S. consumer health market rose to 12% by August, up from 11.4% in February. In contrast, P&G’s market share fell to around 10.8% in July, while Colgate-Palmolive maintained a flat share of just under 5%.
Walmart and Target declined to comment on the matter.
As middle-class Americans become increasingly cost-conscious due to high fuel prices, consumer spending has shifted towards essentials, as reflected in recent retail earnings reports. Nevertheless, Haleon reported that its “shelf resets” have improved market share for its oral health and adult vitamins segments, particularly after its Centrum products were prominently displayed.
Joe Sta-Romana, Haleon’s U.S. chief customer officer, noted that the company studied shopper preferences for product placement in developing its strategy. “Shoppers told us they look for brand first, then premium and new items,” Sta-Romana explained, leading to strategic shelf positioning.
Data shows that over 21% of Haleon’s second-quarter U.S. sales were from promotional products, highlighting the importance of promotions in driving growth. Retailers like Walmart noted that consumers are making trade-offs due to the “psychological impact” of high gasoline prices, leading to the company reporting its slowest same-store sales growth in six years, despite lower prices across various items.
(Reporting by Richa Naidu. Additional reporting by Nicholas Brown; Editing by Lisa Jucca and Susan Fenton)
