Costco Is Again Rationing Essential Items Due To Shipping Delays
Costco (NASDAQ:COST) is again rationing essential items such as toilet paper and cleaning supplies as shipping delays and truck driver shortages make it hard to keep some products on its store shelves.
During an earnings call, the company said it is "putting some limitations on key items" such as toilet paper, paper towels, bottled water and high-demand cleaning products.
The new product limits have been prompted by a different challenge than the ones in earlier phases of the pandemic when stores saw unusually high demand for paper products and antibacterial wipes.
Costco said it is grappling with two- or three-week delays on getting some items delivered because there's a limit on short-term changes to trucking and delivery needs of suppliers.
The membership-only warehouse chain beat analysts' expectations for the fiscal fourth quarter, which ended August 29. Costco's shares were up less than 1% following the earnings announcement. The stock has gained 20% this year, bringing its market value to $200 billion U.S.
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