As Americans dig into frugality, consumer companies feel the pinch

Some U.S. consumers are learning how to stretch
their staples to save money. (Adobe Stock photo)

As creeping grocery inflation continues, U.S. consumers are clamping down on spending by resurrecting saving and stretching tactics, which is translating into slower sales across the sector. "People are experimenting with frugality, and it is affecting sales at consumer companies," reports Natasha Khan of The Wall Street Journal. The more families pinch pennies, the less they spend.

Devising ways to save on staples has led some consumers to begin diluting products, such as dishwashing liquid or cleaners, to get more while using less. Some have decided you don't need a toothbrush full of toothpaste to prevent cavities -- a single dollop at the end of the brush can do the job.

For many consumers, scrapping every bit here and using a little bit less there can save precious dollars, while consumer companies see sales slip. Khan explains, "Procter & Gamble reported volume declined 2% in the latest quarter in its home and fabric-care division, which includes brands like Tide detergent, Dawn dish liquid and Swiffer dusters."

Even as brand-name purchases have dipped, generic product sales haven't increased, suggesting "consumers are using up their inventory and making their existing stock last longer, rather than trading down," Khan adds.

Many consumer companies hope Americans will tire of scrimping and return to their less frugal habits. Andre Schulten, P&G’s chief financial officer, told analysts and investors, "I’m convinced this is temporary."