Grocery Shortages Loom Again... US Retailers Increase Inventory in Preparation for COVID-19 Resurgence

Retailers Prepare Thanksgiving Turkeys and More Starting June
Some Items Face Supply Shortages Despite Increased Production Speed

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] According to the Wall Street Journal (WSJ) on the 27th (local time), U.S. retailers are increasing grocery inventories in preparation for the resurgence of COVID-19 and the year-end sales peak season.

According to the report, U.S. supermarkets have started stocking groceries earlier than before in preparation for this fall and winter. Southeastern Grocers LLC, a distributor based in Florida, has secured Thanksgiving turkeys and hams starting from summer, several months earlier than usual. United Natural Foods, a food wholesale company, also announced that it began preparing for Thanksgiving since June.

The supermarket cooperative Associated Food Stores has even recently created a "pandemic can" to specially manage detergents and disinfectants. WSJ reported that distributors are stocking several months' worth of key groceries such as pasta sauce and toilet paper in preparation for winter.

Food companies are also accelerating production of popular items. Hormel Foods, a U.S. food company that produces Spam and others, stated that the company's inventory recently decreased by 24% compared to a year ago, and if productivity worsens due to some employees being unable to come to work because of COVID-19, items such as bacon, pepperoni, peanut butter, and Spam could become scarce.

The reason supermarkets and food companies are focusing on such preemptive measures is due to their experience of a grocery shortage caused by lockdown measures last March. The industry believes that even if COVID-19 resurges, preparations are better than before, so the situation will not be as severe as it was then.

However, WSJ reported that some products, including cleaning wipes, continue to have high demand, and although manufacturers have increased production speed, supply is still insufficient, making it difficult to maintain stock in stores.