Pepsi Says It’s Facing the Same Trends That Are Battering Retail
- CEO says spending is moving online and to experiences
- Wells Fargo sees changing consumer habits challenging staples
PepsiCo Inc. products.
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The slow demise of traditional retail has been well documented. But a similar shift in consumer habits is now hurting another industry: Drink and snack companies.
On Tuesday, PepsiCo Inc. Chief Executive Officer Indra Nooyi echoed what companies like Target and retail analysts have long been saying: More spending is happening online and for experiences, health and wellness instead of possessions. PepsiCo’s comments on consumer trends overshadowed the Purchase, New York, company’s second-quarter results and have consequences for the whole consumer staples sector, which has underperformed leisure and recreation stocks this year.