Procter & Gamble has said that it will hike pricing on various home items, including skin care products, oral care products, and razors. P&G Jobs attributed the increase to growing transportation costs and a scarcity of raw supplies, both of which have been clogging supply lines for some time.
However, the corporation stated that it is also working hard behind the scenes to reduce the current inflation. This includes locating backup suppliers, stockpiling extra raw materials, and even reformulating some products with readily available components.
According to Jonathan Gold with the National Retail Federation, a lot of manufacturers and retailers have been getting creative. “This includes bringing product in earlier than they normally would, looking at other ports. You’ve certainly seen larger retailers who’ve chartered their own vessels,” he said.
According to Procter & Gamble, these kinds of measures can help them control costs. According to David Marcotte of Kantar Consulting, companies are also attempting to ensure that people can find their items in the first place. “They have to have not only one plan, but two plans, three plans, an alternative, to be sure they can get the product to market,” Marcotte said.
Given the backups at factories and ports, the dearth of truck drivers, and everything else clogging supply chains, Wendy Liebmann, CEO of WSL Strategic Retail, believes there is a lot to be gained from shop shelves that look to be well-stocked.
“Even if it’s not six deep on a shelf, even if it’s three deep on a shelf,” Liebmann said. Empty shelves, she said, can erode the public’s confidence in a store and the brand a consumer is looking for. “Especially when you’re in an essential, everyday category, like cleaning products, laundry detergent, paper towels, pet supplies.”
And if those staples aren’t available, Liebmann said, it can even erode people’s confidence in the entire economy.