Where Are the Discounts? Lost to the Pandemic.
From Crocs to Jif, many shoppers are demonstrating a certain numbness to higher prices in a broad swath of categories. Will it last?
From Crocs shoes to Jif peanut butter, pricing power is everywhere.
Photographer: Luke Sharrett/BloombergIn many ways, the business of selling Jif peanut butter, Crocs clogs and Whirlpool appliances could not be more different. But recently, these disparate consumer businesses have something in common: Each has benefited from the pricing power that a weird year of pandemic living has helped confer upon them.
J.M. Smucker Co., Jif’s corporate parent, said in its latest earnings report that raising prices and cutting promotions on this pantry staple added 5 percentage points to revenue growth at its U.S. consumer-foods division. Crocs Inc. — whose signature shoes fit squarely with the comfort trend that has taken over fashion — said in October that its average selling price had increased 8.8% from a year earlier to $21.36, partly reflecting a retreat from discounting. And Whirlpool Corp., maker of refrigerators and washing machines, said in January that its Ebit margin had widened in the latest quarter largely as a result of reducing promotions and “mix,” meaning customers were opting for pricey items as part of home renovation projects.