Procter & Gamble (NYSE:PG) Chairman and CEO David Taylor looks forward to witnessing how consumer spending gets recalibrated post-pandemic. However, he believes there will be quite a minimal change in the health, cleaning, and hygiene segments.
Demand in particular areas to persist
Taylor says that people have already gotten accustomed to cleaning habits and cites that as the reason why the cleaning and hygiene products’ demand will remain unaffected. This official isn’t the only one sharing a similar perspective on the state of affairs. Clorox Linda Rendle’s chief executive said it severally that cleaning will remain despite the rest of the changes. Rendle affirms that people have embraced cleaning as a way to ensure their safety and wellness, a sharp contrast with looking at it merely as a chore.
The Covid-19 outbreak brought down many businesses, with people losing their jobs. Frustration became the order of the day, as everyone strived to survive. Reports came out about people stocking household items in large supplies to keep them going at a time of movement restriction and great uncertainty.
The truth remains that significant variability still lies ahead, although the stigma around the deadly pandemic is gradually fading. Sources indicate a substantial change in the way people used to stock up on household supplies in the pre-pandemic period. The early days witnessed people buying and stocking supplies in their homes, but that has changed except for specific categories. P&G exudes confidence that the demand for the special categories will remain despite changes in the other areas.
Taylor reveals that customers are currently operating with the inventory they’ve got in their homes and that the hoarding period is over. The official was in an interview with “Closing Bell” when he called upon customers to recognize that the scales could tilt at any time.
Taylor outlines that his leadership will focus on undertakings that offer a tailwind for the company to stay at the top of its game.
CNBC’s Jim Cramer saw P&G as one of the businesses that stood to reap maximum benefits from the coronavirus outbreak. Cramer moved ahead to enlist the company’s stock in his Covid index, although most investors dispute the Covid-related sales boosts’ durability aspect.