Walmart CEO Doug McMillon said Tuesday that customers are
loading up on items such as toilet paper again as coronavirus cases rise — but
he said the retail giant is better prepared to keep up.
“It feels to me like we’ll work through this period of time
better than we did in the first wave,” he told investors on an earnings call.
He said the company’s supply chain is “still stressed in some places” with
out-of-stock items.
Coronavirus cases and hospitalizations have shot up across
the U.S. The seven-day average of daily new Covid infections in the U.S.
surpassed 150,000 for the first time on Monday, according to a CNBC analysis of
Johns Hopkins University data. It marked the 10th day in a row of an at least
30% increase in that seven-day trend.
In some parts of the country, the outbreaks have gotten especially
severe and prompted new government restrictions or curfews. In El Paso, Texas,
hospitals have run out of beds for sick patients, freezer trucks have become
temporary mortuaries and doctors have been forced to make tough calls about who
receives care. Other cities and states are looking to reimpose restrictions on
gatherings and activities such as indoor dining to prevent the virus’ spread.
With the latest surge, retailers have adjusted their
policies. On Saturday, Walmart resumed counting the number of customers in
stores to make sure they had more room to socially distance. Some grocers,
including Kroger, Wegmans and Publix, have reinstated purchasing limits on
toilet paper, disinfecting spray and hand sanitizer.
“The recent rise in Covid cases throughout the country
reminds us we must remain vigilant,” McMillon said. “As we’ve done since the
beginning of the outbreak, we’ll continue being disciplined about the safety
protocols throughout our stores, clubs, distribution, and fulfillment centers.”
He said the pantry-loading varies widely in different states
and regions, depending on the number of cases, local restrictions and
consumers’ mindset.
“It really does have everything to do with what’s happening
with Covid cases in any particular community,” he said. “I was in stores last
week, and I saw variance from one state to the other, one location to the other
— just depends on how people are feeling in that moment.”
This time around, retailers face an additional hurdle. They
must keep shelves stocked, stores cleaned and customers spread apart during the
all-important holiday shopping season.
McMillon said he anticipates customers will still fill up
their grocery carts or virtual baskets with festive foods to eat and gifts to
exchange — and said its sales patterns will likely reflect that in the winter
months.
“People are at home more,” he said. “They’re eating at home
more, and they’ve all been through a difficult year. So just emotionally, I
don’t know what you’re thinking, but in my family — while it will be a smaller
group — we’re really looking forward to Thanksgiving and Christmas and New
Year’s and some sense of joy and normalcy.”
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