Friday, September 24, 2021

Leading retailer limits purchases of toilet paper, mostly due to supply chain issues and truck and driver shortages

Orange County Register

Increased demand due to the spread of the Delta variant is only partly to blame for Costco deciding to ration toilet paper. My gut tells me we’re going to see a lot more of these sort of issues in the years to come, and we’ll have persistent shortages of basic goods. - 

(CNN) — Costco is once again placing limits on purchases of toilet paper, paper towels and cleaning supplies. 

The Delta variant continues to spread across the globe, sending demand for those items higher. But that’s not the only reason why Costco is limiting purchases. The warehouse store is also having trouble finding trucks, drivers and shipping containers to get the items to its stores. 

“The factors pressuring supply chains and inflation include port delays, container shortages, Covid disruptions, shortages on various components, raw materials and ingredients, labor cost pressures and truck and driver shortages,” said Costco CFO Richard Galanti, speaking to investors after reporting quarterly results Thursday evening. “Various major brands are requesting longer lead times, and in some cases, difficulty in finding drivers and trucks on short notice.” 

Last year, Costco and other retailers were having trouble keeping those products on their shelves because of panic buying by customers worried that they wouldn’t be able to buy them in the future. Manufacturers were also unable to keep up with the surge in demand. (Read more)

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