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Demand For Batteries Is Shrinking, Yet Prices Keep On Going and Going ... Up (wsj.com)

schwit1 shares a report: Batteries on average cost 8.2% more than a year ago, while prices in the overall household-care segment rose only 1.8%, according to Nielsen. At a time when prices are stagnating on everything from toilet paper to diapers, such pricing power for a product that is increasingly obsolete has confounded shoppers [Editor's note: the link may be paywalled]. "As far as the prices go, you don't have a choice," said Samuel Hurly, a contractor from Mount Vernon, N.Y., as he scanned a Home Depot display of AAA batteries to power flashlights he uses on the job. Batteries ordered online take too long to arrive, Mr. Hurly said, and he finds cheaper, private-label options lose power too quickly.

Battery prices were more likely to fluctuate a few years ago, when Duracell was owned by consumer-products giant Procter & Gamble Co. and Energizer was part of Edgewell Personal Care Co. Those companies were more focused on their bigger, more profitable razor businesses -- Edgewell with Schick and P&G with Gillette. They would invest less in batteries, or slash prices to drive up volume, to compensate for weak sales in other units, said SunTrust analyst Bill Chappell. Energizer Holdings Inc. spun off from Edgewell in 2015, and Duracell broke apart from P&G a year later when it was acquired by Warren Buffett's Berkshire Hathaway Inc.
schwit1 asks, "Both businesses have become more profit-focused since separating from their previous owners. Is the Energizer/Duracell duopoly ripe for disruption?"

1 of 210 comments (clear)

  1. Re:Ripe for disruption by GameboyRMH · · Score: 2, Interesting

    If only NiMH had the proper voltage - it has a lower voltage - 1.2v vs. 1.5v, so the more cells the device takes, the greater the undervoltage. It does work decently for low-power devices that only take 1 or 2 batteries such as clocks and TV remotes, but let's not kid ourselves.

    I've been trying out a commercial off-the-shelf alkaline battery recharger, although by now I use them in so few things that I've hardly been able to see how effective the recharged batteries are compared to new ones. It does work, but you can only safely recharge the batteries a few times before they're likely to leak.

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