As Virus Surges, Is Pandemic Panic Buying On A Roll Again?
VILLANOVA, Pa. (WLVT) —A winter wave of pandemic stockpiling is underway.
Grocers are again struggling to keep certain items in stock, and placing limits on products like eggs, meat and toilet paper.
The biggest supply issue seems to be paper products: 21% of shelves that stock paper towels and toilet paper are empty, according to market research group IRI.
Still, industry experts say suppliers are more prepared for a second rush.
"We have more data and a better understanding of buying behaviors," Kathleen Iacocca, Ph.D., who teaches supply chain management at Villanova University, told PBS39. "We have stores like Walmart talking to stores like Target about best practices for forecasting and replenishing goods. That collaboration has put our supply chain in a better position for consumers."
Iacocca says retailers are also working with lesser-known manufacturers who work with restaurants and office buildings to refill their shelves. So, while popular brands may be hard to find, alternative brands should arrive faster than they did in March.
Swee-Lim Chia, Ph.D., who teaches marketing at La Salle University, says this time around, manufacturers have measures in place to respond to demand spikes.
"We’re nine months into the pandemic and many food manufacturers have ramped up production," Chia told PBS39. "Procter and Gamble, which makes Charmin, is running its production lines nearly 24-hours a day."
It’s not only TP and food that consumers are scooping up.
"One of the more surprising items that are flying off the shelves is Tupperware," said Iacocca. "Tupperware prices in some regions are almost tripling in sales. During the holiday season people want to bake and with more people at home, baking products have become more popular as well."
The National Retail Federation expects the sale of holiday decorations, candy and gifts to rise this year, too. In 2019, sales in those categories were up 4.1%, with consumers spending an average of $1,048.
"We’re going through a period of time where we feel a lack of control," said Chia. "Christmas spending is something that we feel allows us to control the atmosphere around us."
The high supply and demand means prices are up. According the U.S. Bureau of Labor Statistics, the cost of consumer goods rose in November.
"The consumer price index is up 3.6%," said Chia. "The price index for meat has gone up over 7% in the last 12 months. Also, consider that costs have also gone up for manufacturers, in terms of keeping the meat factories running, and keeping up with cleaning."
Iacocca expects panic buying to subside soon.
"The magic question is, when? We’re seeing frontline workers start to take the vaccine in the U.S. and that will help to calm fears," she said. "Once people feel that they don’t need to stock up, the panic buying will settle down. Probably in the first quarter of 2021."