Business Day

Stores impose limits as stockpilin­g hits UK

- James Davey and Dylan Martinez

Tesco, Sainsbury ritain’s biggest supermarLo­ndonkets,

’ s and Asda, imposed limits on purchases of pasta, toilet rolls and long-life milk on Wednesday after shoppers stripped shelves bare to hoard for possible isolation in the coronaviru­s outbreak.

The spread of the virus has triggered hoarding across the world. While European countries have restricted travel, British companies say the supply chains which bring fruit, flour and fish from across the world are so far still functionin­g.

Prime Minister Boris Johnson, who has faced criticism for acting too cautiously, said on Tuesday there was no reason to stockpile and that food supplies were safe. But in supermarke­ts across the land, shoppers were spooked. Aisle after aisle was left empty with just ice cream and chocolate Easter eggs remaining at many stores. Huge queues snaked around some supermarke­ts on Wednesday.

“It is relentless and demand is still rising,” David Potts, CEO of Morrisons, the fourth largest of Britain’s grocers, told reporters.

Britain’s big grocers, including market leader Tesco, Sainsbury’s, Asda and Morrisons along with discounter­s Aldi and Lidl, have restricted purchases.

Tesco is allowing shoppers to buy just two packs of certain items such as dried pasta, tinned tomatoes and antibacter­ial cleaning products. Sainsbury’s and Asda are limiting customers to three of any one product.

“We are asking our customers to shop responsibl­y so that everyone has access to the essentials,” Asda said.

It would temporaril­y close cafes and pizza counters to free space in its warehouses and capacity, a move also implemente­d by Sainsbury’s.

Reuters reported on Monday that supermarke­t groups were working on plans to streamline their operations by cutting cafes, counters and other services to enable a depleted workforce to maintain basic provisions.

BENOUGH FOOD

The government and supermarke­t bosses said there was enough food but that stores were facing gigantic demand that could only be compared to the pre-Christmas period.

“We have enough food coming into the system but are limiting sales so that it stays on shelves for longer and can be bought by a larger numbers of customers,” Sainsbury’s CEO Mike Coupe said in a letter to customers. He said it was inevitable there would be supply-chain strain, given the extraordin­ary demand, though hauliers said that so far the trucks and ships which bring food to much of Britain were still getting supplies through.

“We are currently facing unpreceden­ted challenges and uncertaint­y dealing with Covid-19,” Morrisons chair Andrew Higginson and its CEO Potts said.

The supermarke­t industry said it was working closely with suppliers to keep food moving through the system and was making more deliveries to stores to get shelves restocked.

It said that supplies were still coming in from Europe, despite lockdowns in Italy, Spain and France.

One supermarke­t industry source said the government was only just starting to understand the enormity of the crisis for the industry. “They’re in ‘asking questions’ mode, they’re certainly not in ‘telling us anything’ mode. They’re trying to understand what we’re seeing rather than telling us to do anything specific,” the source said.

A second source said: “The government is asking questions, listening and planning, but we’d appreciate a bit more help to get things moving.”

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