In addition, Galanti said the company has seen an increase in price inflation on its products this quarter, which is estimated to be between 3.5% and 4.5%. Each ship can carry 800 to 1,000 containers at a time. To meet the demand and keep shelves stocked, Costco has been “ordering as much as we can, getting it in earlier,” he said.Ĭostco has chartered three ocean vessels for the next year to transport containers between Asia and the U.S. Galanti also said there was an “uptick in Delta-related demand” in parts of the country where the more contagious Delta variant has created a surge in COVID-19 cases in recent weeks. “Now they’ve got plenty of merchandise, but there’s 2- or 3-week delays on getting it delivered,” he said. “A year ago, there was a shortage of merchandise,” Richard Galanti, executive vice president and chief financial officer of Costco, said during the company’s latest earnings call on Thursday. The company didn’t specify the exact limits per customer but noted that supplies were affected by port delays, container shortages, limits on raw materials and ingredients, labor cost pressures, driver shortages, and other pandemic-related disruptions. 27, 2021 - Warehouse retailer Costco has placed new “limitations on key items” such as toilet paper, paper towels, bottled water and cleaning products due to a recent increase in demand and several supply challenges, according to The New York Times.
0 Comments
Leave a Reply. |