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Grocers Stockpile, Build 'Pandemic Pallets' Ahead of Winter
By Jaewon Kang and Annie Gasparro Grocery stores and food companies are preparing for a possible surge in sales amid a new rise in Covid-19 cases and the impending holiday rush. Supermar...
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Grocery stores and food companies are preparing for a possible surge in sales amid a new rise in Covid-19 cases and the impending holiday rush.
Supermarkets are stockpiling groceries and storing them early to prepare for the fall and winter months, when some health experts warn the country could see another widespread outbreak of virus cases and new restrictions. Food companies are accelerating production of their most popular items, and leaders across the industry are saying they won't be caught unprepared in the face of another pandemic surge.
Associated Food Stores recently started building "pandemic pallets" of cleaning and sanitizing products so it always has some inventory in warehouses, said Darin Peirce, vice president of retail operations for the cooperative of more than 400 stores. The company is establishing protocols so it can better manage scenarios of high demand.
"We will never again operate our business as unprepared for something like this," he said.
These changes, a reaction to the sudden and massive shortages grocers experienced in the spring, amount to a shift from the just-in-time inventory management practices that have guided the fast-moving retail business for decades.
Now, food sellers are stockpiling months, rather than weeks, worth of staples such as pasta sauce and paper products to better prepare for this winter, when people are expected to hunker down at home. Ahold Delhaize USA, SpartanNash Co. and others say they are buying more food as soon as they can, stocking warehouses with wellness and holiday items. Many retailers are expanding distribution capacity, augmenting warehouse space and modifying shifts..