"Members are turning to us for a variety of items associated with preparing for and dealing with a virus," the Costco CFO said.Costco CFO Richard Galanti told analysts that members have been visiting locations to scoop up crucial supplies during the coronavirus outbreak.
Costco CFO Richard Galanti told analysts in the earnings call that the company was "keeping a close eye on the developments of the coronavirus," specifically the safety of its members and employees, its operations, and its supply chain. He said that warehouses are having trouble keeping up with members, adding that the surge in demand has been "a little crazy." And that's despite the fact that warehouses are receiving deliveries of crucial supplies daily.
On the operations side, a handful of Costco warehouses in Korea closed for a few days, and the location in Shanghai is limiting the number of members allowed inside at once. Galanti also addressed supply chain issues, including the fact that many manufacturing facilities in China remained closed beyond the Chinese Lunar New Year holiday due to the outbreak.
Toilet paper. Crazy panic buying.
In China, people have brought back what they over purchased. Panic is a great salesman.
i assume retailers, pharmaceutical, cleaning products and food companies will be posting strong quarterly earnings the next time they report
The problem with this sort of demand is that it's not sustainable. In fact, it will backfire later once the initial hoarding period is over. People will pause buying at $COST either because of overbuying or socialdistancing. Same goes for $KR. It will backfire eventually.
Disaster capitalism is neat that way. Any 3M heirs are free to look me up
Sverige Senaste nytt, Sverige Rubriker
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