Procter & Gamble cuts half of its brand | RetailDetail

Procter & Gamble cuts half of its brand

Procter & Gamble cuts half of its brand

American manufacturer of consumer products, Procter & Gamble, will focus on 70 to 80 core brands, with the remainder sold off or shut down.

Core brands deliver 95 % of profit

Procter & Gamble currently has brands like Ariel, Bonus, Dash, Lenor, Mr. Proper, Swiffer, Head & Shoulders, Pampers, Tampax, Tide, Always, Gilette and Vicks.


Its core brands already create 90 % of the turnover and 95 % of the company's profit. With only 5 to 10 % for the other brands, they only represent a small number within the company.


Company becomes less complex

It is unclear which brands will have to be shut down or sold: "The goal is to keep the brands important to the consumer", CEO A.G. Laffley. Big brands in branches that do not weigh heavy on the company's bottom line may still leave the company, like it has already sold off a majority of its animal food branch.


The restructuring should be finalized in one or two years' time and it should help the company to become simpler to manage.


Modest turnover growth in new fiscal year

Procter & Gamble managed a 83.062 billion dollar (62 billion euro) turnover in its past fiscal year, which ended on 31 June 2014. Its operational profit was 15.288 billion euro (11.4 billion euro).


For its current fiscal year, it expects a low, one-single digit % turnover increase.

Questions or comments? Please feel free to contact the editors

CEO Peter Somers wants to take RetailDetail to the next level


RetailDetail has a new CEO: e-commerce entrepreneur and former bpost board member Peter Somers has major growth ambitions for the company.

"Protectionism makes everyone poorer" (Christian Verschueren, EuroCommerce)


Trade wars and discrimination within the single market create growing pressures on retailers in Europe. EuroCommerce Director-General Christian Verschueren is concerned, but looks forward confidently to the future.

Belgian online turnover surpasses 10 billion euro


Online commerce is becoming increasingly popular, in Belgium as well. Online turnover in the country rose to 10.05 billion euro last year, reaching the ten billion milestone for the first time. However, there is still a lot of growth potential online.

Claire’s files for bankruptcy


American chain Claire’s has now officially filed for bankruptcy, although it only relates to the company’s American division.

Amazon looks for additional cuts with manufacturers


Amazon wants to cut costs and that is why it will charge manufacturers with logistical fees more quickly. Up until now, the American online retailer often took it upon itself, but that move no longer seems profitable.

Amazon targets Toys 'R' Us stores


Amazon is apparently interested in several of bankrupt Toys ‘R’ Us’ stores, because their locations and stores would fit Amazon’s own retail formulas.

Back to top