Haleon Secures Better Shelf Placement in US Retailers

Haleon plc (NYSE:HLN) is working to increase its visibility in the US consumer-health market by securing better shelf placement at major retailers like Walmart Inc. (NYSE:WMT) and Target Corporation (NYSE:TGT). The company has been offering improved commercial terms, including lower prices, stronger promotions, new products, and exclusivity, which has already led to a 0.6% increase in its share of the US market from February to August, according to NielsenIQ data.

Haleon's research shows that consumers generally look for brands first when searching for products, followed by premium and new products within the branded section. By placing its products at eye level or directly above its existing lineup, Haleon is able to attract more attention from shoppers. The company has also shared forecasts with retailers showing how these changes could increase sales, which helped persuade Walmart and Target to adopt the new arrangements.

The strategy appears to be working across multiple categories, including oral health, where Sensodyne, Aquafresh, and Polident have seen gains in market share. Centrum vitamins have also benefited from better shelf placement and promotional support. Despite these gains, investors must consider whether Haleon's growth will remain profitable without heavy promotional support.

Haleon's portfolio is well-suited to a more cautious consumer environment, as toothpaste, pain relief, and vitamins are generally treated as practical purchases. However, the company's dependence on promotional spending raises concerns about its long-term profitability. More than 21% of Haleon's second-quarter US sales came from products sold with promotions, according to NielsenIQ data analyzed by Bernstein.