Median company revenue has either declined or experienced very low growth quarter over quarter across all Consumer Product sectors. However, despite this headwind, top quartile performers in the majority of sectors have been able to demonstrate margin growth, with the exception of Apparel & Luxury and Health & Beauty. Sector performance reflects recent weakness in spending as consumers pull back on Home, Durables, and Luxury. High interest rates and continued elevated inflation have suppressed outlook for economic growth, pushing consumers to shop for bargains and be more mindful about where their dollar goes. As a result, companies are more challenged to pass on price increases to the consumer and face increasing risk of margin deterioration. With top-line growth headwinds looming, how will CPG companies enhance and accelerate their productivity engines?
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