Limits On Toilet Paper And Cleaning Supplies Are Back At Costco

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Shoppers line up to buy supplies at Costco Wholesale in New Jersey last year as fears over COVID-19 grew around the world. The company recently reintroduced limits on toilet paper, cleaning supplies and other products as it copes with supply chain challenges.

Tayfun Coskun/Anadolu Agency via Getty Images

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Tayfun Coskun/Anadolu Agency via Getty Images

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«A year ago there was a shortage of merchandise, Galanti told investors during the call.

Now Galanti said the retailer has plenty of merchandise, but delivery delays are the issue, citing «short-term changes to trucking and «delivery need as the main factors.

In the meantime, Galanti said Costco is trying to stay ahead of the curve by continuing to place orders early to get stores what they need.

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In an effort to address the delivery issues, Galanti told investors that the company has chartered three ocean vessels for the next year to transport several thousand containers between the U.S., Asia and Canada. Each ship will be able to carry 800 to 1,000 containers at a time.

The membership-only warehouse retailer said it has seen an increase in overall price inflation on its products this quarter, estimated to be between 3.5% and 4.5%, Galanti said.