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Equities19 Feb 20265 min
Consumer & retail: reading resilience in a slower cycle
Where pricing power and category mix are protecting margins as the consumer cools.
By Orofante Research
A cooling consumer does not hit every business equally. The dispersion between winners and losers is widening, and it tracks two things: pricing power and category mix.
Brands with genuine pricing power and exposure to resilient categories are holding margins even as volumes soften; commoditised, discretionary names are not. We screen for the former and stay cautious on the latter.
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