The split shopper at P&G: big packs versus small packs

The quick take

Reported by Reuters, P&G’s latest quarterly results signal the consumer is not great, but stable, and the company is acting accordingly. It lifted U.S. prices by roughly 2% to 2.5% to help offset tariffs while leaning on everyday essentials like Dawn and Pampers. At the same time, it’s seeing more discounting from rivals in laundry and diapers and is answering with product upgrades like Tide Evo detergent tiles and Olay premium body wash.

Why it matters

As we’ve previously written about Target’s income split (read more here), P&G is noting the same trend. Higher-income shoppers are trading into larger sizes to save over time, while paycheck-to-paycheck households are picking smaller packs to manage weekly spend. That puts a premium on precise pricing and pack strategy. Modest shopping list increases can stick if they come with visible performance gains, but they can be undone if competitors drive deeper promotions in the same aisle. The result is a market where small price moves, better product, and the right size mix matter more than broad, across-the-board cuts.

The broader read

P&G’s margin dip, even with price increases, shows the friction from tariffs, mix, and competitive discounting. The company still runs ahead of peers like Colgate-Palmolive and Unilever on operating margin, but that advantage is under pressure and management will be judged on keeping it from slipping further. For now, beauty and grooming are carrying more of the growth, which supports a playbook that pairs selective price with innovation rather than chasing every promo.

Why pricing intelligence matters more than ever

Teams need clear reads on three things:

1. Where 2% to 2.5% price moves are holding
2. Where rivals are cutting deeper in laundry and diapers
3. How shoppers are moving between small and large packs

Intelligence that tracks these shifts by banner and week helps you decide what to match, what to improve, and where to hold. It also quantifies the margin tradeoff for over-discounting so you protect profit while staying relevant to both value-seekers and premium buyers.

How hoppr iq helps with price intelligence

• Competitor price and promo tracking across retailers and marketplaces, refreshed on-demand during events.
• Trend dashboards that visualize top price moves, price gaps, and promo depth.
• Alerts and guardrails so your team reacts to meaningful changes instead of scanning pages.