Essential Goods Stockpiling Returns in the US, Causes Differ from Last Year

[Image source=AP Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] The U.S. wholesale giant Costco has once again limited the purchase quantities of essential items such as toilet paper, following last year. Why is the U.S., which struggled with a shortage of essentials during the early stages of the COVID-19 pandemic last year, facing scarcity again?

According to CNBC on the 24th (local time), Richard Galanti, Costco's Chief Financial Officer (CFO), announced that "purchase quantities per person for toilet paper, bottled water, and major cleaning supplies will be limited."

Major U.S. retailers like Costco and Walmart had restricted purchase quantities last year when anxiety over COVID-19 led to hoarding of essential goods. Then-President Donald Trump held a press conference urging people to refrain from hoarding, saying, "There is no need to buy too many essentials. Do not panic and stay calm."

However, this time the reason for the purchase restrictions differs from last year. While last year's restrictions were due to inventory shortages, this year empty shelves are caused by logistics issues such as a shortage of transportation personnel.

Richard Galanti, Costco's CFO, stated, "Unlike last year, there is currently sufficient stock," adding, "However, deliveries are delayed by 2 to 3 weeks due to transportation shortages." He also revealed, "To ensure smooth logistics, we have leased three large vessels connecting Asia, the U.S., and Canada."

Meanwhile, demand for jewelry, home furniture, pharmaceuticals, and sports equipment has surged over the past three months. In fact, transactions of rings worth up to $100,000 have taken place at Costco.

CFO Galanti said, "With vaccinations underway, private gatherings and outdoor activities have increased, leading to higher demand for sports equipment and jewelry," adding, "This has offset the slowdown in grocery sales."

This content was produced with the assistance of AI translation services.