The days of toilet paper shortages may not be over yet: Costco has announced new restrictions on the purchase of certain household items as supply chain issues plague the company and the distribution of the Delta variant.
Costco Chief Financial Officer Richard Galanti said in the company’s latest earnings report that the company is placing restrictions on “essential items” such as toilet paper, bottled water and cleaning products to meet a surge in demand due to the COVID-19 pandemic. . Thursday.
Galanti said the retailer has plenty of inventory right now, but delivery delays are an issue, citing “short-term changes in the shipping industry” and “shipping demand” as the main factors.
Meanwhile, Galanti said Costco is trying to stay ahead of the curve and continues to place orders early to ensure stores have the supplies they need.
To address shipping issues, Galanti told investors the company has chartered three ocean-going vessels for the next year to transport thousands of containers between the United States, Asia and Canada. Each ship can transport from 800 to 1000 containers at a time.
Galanti said the members-only warehouse retailer reported that overall price inflation for its products increased during the quarter, estimated to be between 3.5% and 4.5%.
Post time: Jun-03-2024