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Costco Brings Back Purchase Limits on Toilet Paper, Cleaning Products, and More Amid Supply Chain Crisis

Costco has decided to limit the purchase of certain essential items to ensure its supplies last as U.S. customers resort to panic buying amid an increase in Covid-19 cases.

Richard Galanti, the company’s chief financial officer, said he “puts [purchase] limitations on key items’ such as toilet paper, bottled water, and cleaning products, among others. It is not yet known how many items a customer is authorized.

As coronavirus infections increase in the United States, many customers fear a new lockdown and buy and stock essential items. The seven-day average of new Covid-19 cases in the United States was 134,000 this week, up from 77,000 cases in the last week of July.

In addition to panic buying, which has persisted over the two years of the Covid-19 pandemic, the U.S. retail giant’s problems have also been exacerbated by port congestion and labor shortages caused by the pandemic, causing delays in the supply chain.

“A year ago there was a shortage of goods,” said Mr. Galanti. “Now they have a lot of cargo, but there are two or three week delays in getting them delivered because there is a limit to the short term changes in the trucking and delivery needs of the suppliers, so that’s really everywhere. “

The move came after delays were seen in shipping toilet paper orders online in recent weeks, with the retailer notifying customers in its confirmation emails, as first reported. both Fox Business.

Some customers have also reported product limitations for some of the company’s private label products, according to CNBC.

Costco beat expectations in its quarterly results amid strong demand after the lockdown and in the midst of the ongoing vaccination campaign, causing its stock price to rise 1% on Thursday.

The company’s total revenue reached $ 62.68 billion (around £ 45 billion) in the fourth quarter, up from $ 53.38 billion (around £ 38 billion) a year earlier, per compared to market expectations of $ 61.30 billion (£ 44 billion), according to IBES data from Refinitiv.

The Independent Gt

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