7 Household Brands That Will Plummet in Value Before the End of 2024
Written by
J. Arky
Edited by
Ashleigh Ray
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If you look around your house — inside your refrigerator, your cabinets and underneath your sink — you’ll find that you are surrounded by brand products that are familiar.
While you’ve come to expect that they will always be on your shelves, whether at home or in the store, you might be surprised to hear that some household brands might not make it through the end of the year.
One of the major reasons some household brands may take a nosedive is the shift in consumer behavior and preferences, according to Mohan Babu, a savings specialist at Dealhack.
“Many consumers are now prioritizing sustainability and ethical sourcing, leading to a decline in demand for brands that have not adapted to these values,” Babu explained. “Brands that continue to rely on outdated practices or fail to embrace transparency in their supply chains may find themselves losing favor among increasingly conscientious shoppers.”
Here are 7 household brands that will plummet in value by the end of 2024.
Peloton
“Personally, I see Peloton further plummeting in value,” said Reilly Newman, the founder of and brand strategist for Motif Brands.
He continued, sharing how Peloton “… had a nice break in 2020 as the trend of cycling at home became the hot new thing. They had an app and great instructors who brought high energy to the workouts.
“Unfortunately, this was only a fad,” Newman explained. “The brand capitalized on a fleeting trend without creating a foundation to build the purchase appeal and customer retention further.”
Since then, Newman has watched as Peloton has not only lost the majority of its stock value but also lost the perception it once held in the minds of consumers. Now, Pelotons can be easily found on Facebook Marketplace or Craigslist as buyers ditch their workout routines and subscriptions.
“The brand is extremely dependent on the outgoing personalities they had as the instructors,” continued Newman. “This helped build the relationships consumers felt they had with the brand and added some fun to the repetitive workouts.”
But according to Newman, recently “… the brand has lost several major personalities [including] some of their top instructors. This is yet another red flag for the brand’s future.”
Toys “R” Us
After numerous attempts to stabilize itself after filing for bankruptcy, the giant toy retailer has not been able to find solid footing for nearly 25 years. Online shopping and a changeup in what kids actually play with today have only hurt its value, as do ongoing legal troubles.
In 2022, Retail Dive reported that: “While the Toys R Us drama played out years ago, it remains relevant. To some extent, it, along with other cases, may have altered the relationship between retailers in Chapter 11 and the suppliers they depend on. At the very least, many vendors are more wary than they were before the toy retailer’s bankruptcy.”
J.C. Penney
For more than ten years, J.C. Penney has attempted a resurrection of their brand as the leading department store, but financial upsets, numerous bankruptcies and an ongoing change in management could not bring the brand back to life.
Earlier this year, the Franchise Herald reported, “In its most recent quarterly report, [J.C. Penney] saw a 5.9% drop in net sales year-over-year, totaling $2.3 billion. Net income for the quarter decreased by 8.9% to $41 million.”
Mattress Firm
While the company’s name is ubiquitous, Mattress Firm has a business model that relies on an outdated showroom experience that does not match current shopping trends.
“Online mattress brands now dominate the market, offering competitive pricing, free shipping and 100-night trials,” explained Albert Brenner, the co-owner of the contract manufacturer company, Altraco.
“Mattress Firm’s same-store sales have dropped over 25% in two years, and they continue closing stores, showing the brand lacks a sustainable plan to turn things around.”
Victoria’s Secret
Facing backlash over the years for lack of inclusivity and marketing that feels incredibly stuck in the past, Victoria Secret has tried to modernize with rebranding that’s largely gone nowhere. As other retailers fill the markets asking for body-positivity and non-traditional leisurewear to fit all, Victoria’s Secret might find itself struggling to keep up by 2025.
Just last year, Victoria Secret published a press release showing a “reported a net loss of $71 million, or $0.92 per diluted share for the third quarter of 2023. This result compares to net income of $24 million, or $0.29 per diluted share for the third quarter of 2022. Third quarter 2023 operating loss was $67 million compared to operating income of $43 million in the third quarter of 2022.”
Tesla
Newman also highlighted that “… the perception of the [Tesla] brand has degraded over time as the Tesla models saturate the market. Simultaneously, the brand faces pressures from competition entering the market and taking shares, making Tesla the market leader no longer.”
He continued, sharing that EV buyers also seem to be regretting their purchase. He said, “About 50% want to switch back to gas-powered, according to Motor1.com.”
While Newman does understand that Tesla is diversified into other sectors like energy, AI and robotics, he warned, “… these are not immediate solutions that will empower the growth of the brand. Many will fight me on this and that’s okay, but [this is also] a sign of the euphoria and ‘hype’ behind the brand by shareholders that is also very concerning. A 40% or so correction in value would be reasonable for Tesla as sales slow and market share shrinks.”
Sears
Sears, once a major player in the retailer world, has been on the decline for years. Even after attempts to restructure and update, the brand fell flat. The company continues to see market share lost to online competitors like Amazon.
Stores keep closing as customers gradually become disinterested in what Sears has to offer, pushing it to the brink of not being worth much in the very near future.
Babu noted that “[niche] brands, with their unique offerings and targeted marketing, are also capturing the attention of specific consumer segments, further intensifying the competition.”
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