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Demand For Batteries Is Shrinking, Yet Prices Keep On Going and Going … Up

schwit1 stocks a file: Batteries on moderate value eight.2% greater than a yr in the past, whilst costs within the general household-care phase rose just one.eight%, consistent with Nielsen. At a time when costs are stagnating on the entirety from bathroom paper to diapers, such pricing energy for a product this is more and more out of date has confounded consumers. “As far as the prices go, you don’t have a choice,” stated Samuel Hurly, a contractor from Mount Vernon, N.Y., as he scanned a Home Depot show of AAA batteries to energy flashlights he makes use of at the activity. Batteries ordered on-line take too lengthy to reach, Mr. Hurly stated, and he reveals inexpensive, private-label choices lose energy too briefly.

Battery costs had been much more likely to differ a couple of years in the past, when Duracell was once owned by way of consumer-products large Procter & Gamble Co. and Energizer was once a part of Edgewell Personal Care Co. Those corporations had been extra desirous about their larger, extra successful razor companies — Edgewell with Schick and P&G with Gillette. They would make investments much less in batteries, or slash costs to force up quantity, to atone for vulnerable gross sales in different devices, stated SunTrust analyst Bill Chappell. Energizer Holdings Inc. spun off from Edgewell in 2015, and Duracell broke except for P&G a yr later when it was once obtained by way of Warren Buffett’s Berkshire Hathaway Inc. schwit1 asks, “Both businesses have become more profit-focused since separating from their previous owners. Is the Energizer/Duracell duopoly ripe for disruption?”

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