Posted 1/22/2024, 5:30:16 PM
Consumer Goods Firms Brace for Slower Sales Growth in Europe as Prices Ease
- Consumer goods companies likely to post stronger Q4 sales growth in Europe than US due to higher persisting prices in Europe
- Prices rose in US and Europe in 2021 due to pandemic supply chain issues and Ukraine war, but easing more in US now
- Pricing deals more flexible in US with companies like Walmart vs highly regulated Europe
- As price hikes hit Europe later, growth there still higher for now, but expected to normalize in 6 months
- Some companies may price more competitively in Europe to win back market share lost to retailer brands due to high prices