Costco reinstating purchase limits on some warehouse items, including toilet paper

Costco is reinstating its purchase limits on certain items in its warehouses, such as toilet paper, cleaning supplies, water, and other items due to demand fueled by the COVID-19 pandemic.

The reasoning behind this, according to Chief Financial Officer Richard Galanti, is the company wants to ensure its items are stocked on shelves even if there is a supply chain shortage.

“A year ago there was a shortage of merchandise,” Galanti told CNBC. “Now they’ve got plenty of merchandise but there’s two- or three-week delays on getting it delivered because there’s a limit on short-term changes to trucking and delivery needs of the suppliers, so it really is all over the board.”

Last week, the company had trouble filling toilet paper orders, warning customers that they might face delays in getting their orders.

“Due to increased volumes, you may see a slight delay in the processing of this order,” Costco’s customer service team noted in a purchase order confirmation email obtained by Fox Business.

The retailer already anticipated this situation in an alert on its website updated at the end of August, warning customers that “some warehouses may have temporary item limits on select items.”

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