Haleon plc (NYSE:HLN) is trying to win the US consumer-health market one shelf at a time. The Sensodyne and Advil owner has secured more prominent positions at Walmart Inc. (NYSE:WMT), Target Corporation (NYSE:TGT), and other major retailers by offering improved commercial terms, including lower prices, stronger promotions, new products, and exclusivity.
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The strategy is already coinciding with market-share gains. Haleon’s portion of the US consumer-health market increased from 11.4% in February to 12% by August, according to NielsenIQ data cited by Reuters. The challenge is determining how much of that growth reflects stronger underlying demand, and how much depends on promotional spending.
Bull Case
Better shelf placement can materially improve Haleon’s (NYSE:HLN) visibility in crowded health and personal-care aisles. The company researched how shoppers search for its products and found that consumers generally look for brands first, followed by premium and new products within the branded section. Haleon used that research to recommend placing products at eye level or directly above its existing lineup. It also shared forecasts with retailers showing how the proposed changes could increase sales, helping persuade Walmart, Target, and other chains to adopt the new arrangements. You can also read about how Walmart and Target’s Shelves are Becoming a Battleground for Budget-Conscious Shoppers in our recently published article.
The strategy appears to be working across more than one category. Haleon said the shelf resets are supporting market-share gains in oral health, which includes Sensodyne, Aquafresh, and Polident. Its Centrum vitamins also benefited after retailers placed the products at eye level and supported them with promotions.
Haleon’s expanding US share compares favorably with some established competitors. Procter & Gamble’s portion of the US healthcare market declined to approximately 10.8% in July, while Colgate-Palmolive’s share of the oral-care, personal-care and household market remained flat at just under 5%, according to Bernstein’s analysis of NielsenIQ data. These percentages cover differently defined markets and should not be treated as direct like-for-like comparisons, but they indicate that Haleon gained ground while some competitors were flat or declining.
The company’s portfolio is also well suited to a more cautious consumer environment. Toothpaste, pain relief, and vitamins are generally treated as practical purchases, potentially giving Haleon greater resilience as households prioritize essentials, and offering retailers exclusive products and innovations may strengthen these relationships further. Walmart and Target receive differentiated merchandise and promotional support, while Haleon secures the visibility needed to challenge larger established brands.
Bear Case
It is significant to note that Haleon is paying for that visibility through lower prices, promotions, exclusivity, and other favorable commercial terms. Although these concessions can increase volumes and market share, the company has not disclosed their effect on profitability. Promotional dependence is particularly important. More than 21% of Haleon’s second-quarter US sales came from products sold with promotions, according to NielsenIQ data analyzed by Bernstein. That does not mean those sales were unprofitable, but it raises the possibility that some recent growth was encouraged by discounts rather than stronger full-price demand.
The consumer environment creates another difficulty. Middle-class Americans have become increasingly cost-conscious as elevated fuel prices pressure household budgets. Even essential products must compete for limited spending, making price an increasingly important factor in purchasing decisions.
Competitors can also respond. Haleon’s shelf-space gains are not necessarily permanent, and rival consumer-health companies may offer retailers stronger discounts, new products or exclusivity of their own. Maintaining premium positions could therefore require continued commercial investment. The available figures do not prove that improved shelf placement alone caused Haleon’s market-share increase. Product launches, pricing, brand demand, and promotional activity may also have contributed.
Conclusion
Haleon’s strategy is producing encouraging early evidence. Its US market share has increased, while improved placement is supporting oral-health and vitamin brands across some of the country’s largest retailers.
The central question is whether Haleon can retain those gains without sacrificing too much pricing or promotional spending. Better shelves can attract attention, but lasting value will depend on converting that visibility into repeat purchases and profitable growth.
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This article is originally published at Insider Monkey.
