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Coles, Woolworths wind back buying restrictions

After some stressful weeks, things have taken a significant swing back towards normal for shoppers, with big supermarkets beginning to wind back restrictions.

Sally Loughnan with a prized packet of toilet paper at Coles Lisarow on the NSW Central Coast during shortages in March. Picture: AAP
Sally Loughnan with a prized packet of toilet paper at Coles Lisarow on the NSW Central Coast during shortages in March. Picture: AAP

Coles became the first supermarket to announce that it would lift buying restrictions on some consumer staples including toilet paper and paper towel introduced in the wake of the coronavirus pandemic, making the announcement on Tuesday afternoon.

Arch rival Woolworths responded shortly after, announcing it would also ease some restrictions.

The restrictions were put in place mid-March after worried consumers stripped toilet paper and other consumer staples from supermarket shelves in a wave of panic buying that became emblematic of community uncertainty about the evolving coronavirus pandemic.

A sign at Coles Norwood in South Australia in early April. Picture: Cameron England.
A sign at Coles Norwood in South Australia in early April. Picture: Cameron England.

Stories of toilet paper hoarding were common and some would-be profiteers attracted the attention of police.

But as some states announced they would to ease restrictions on gatherings and visits on Tuesday, Coles announced that some items in its stores were being freed from buying limits in a move that was foreshadowed by The Australian on Sunday.

“We are pleased to be able to remove purchase limits at Coles on key household staples like toilet paper and paper towel, and expect to remove further limits as customer demand continues to stabilise and more categories see supply levels return to normal,’’ a Coles spokesman said.

People waiting in the toilet paper aisle for a delivery of toilet paper, paper towel and pasta at Coles in Epping in Sydney’s northern districts in March. Picture: AAP
People waiting in the toilet paper aisle for a delivery of toilet paper, paper towel and pasta at Coles in Epping in Sydney’s northern districts in March. Picture: AAP

“We are grateful for the efforts of our suppliers to deliver significantly increased volumes to meet the recent unexpected surge in customer demand, and to our customers for their patience and understanding as our store and supply chain team members worked to get as much stock onto shelves as possible,’’ a Coles spokesman said.

Police watch on as shoppers descend on toilet paper at Coles in Epping in Sydney. Picture: AAP
Police watch on as shoppers descend on toilet paper at Coles in Epping in Sydney. Picture: AAP

Ten items still purchasing limits in place at Coles. They include a two items per person limit on pasta, flour, dry rice, eggs, frozen vegetables and desserts, sugar, tinned tomatoes, liquid soap, and antibacterial wipes.

Woolworths, meanwhile, announced that toilet paper and rice were moving from a limit of one product per shop to four per shop. All product limits removed for pasta, frozen vegetables, tissues, baby wipes, baked beans and canned spaghetti, paper towels and disposable gloves. A two-item limit per shop remains for eggs, flour, sugar, pasta sauce, handwash, cleaners and disinfectants. From Wednesday, Woolworths would be easing product limits on toilet paper, rice, hand sanitiser and antibacterial wipes with customer demand moderating and supply returning.

“Woolworths made the difficult but necessary decision to introduce purchase limits in March at the height of demand for groceries to ensure as many customers as possible could access what they need,’’ the supermarket said.

“In recent weeks Woolworths has begun rolling back purchase limits on many products and categories due to customer demand moderating and working closely with suppliers to improve product availability.”

Peak panic

At the peak of panic buying, supermarkets like Woolworths and Coles were facing three or four times the normal demand for groceries, with toilet paper leading the charge as the most sought after product.

Earlier this month in an email to customers Woolworths chief executive Brad Banducci said the supermarket had sold 20.5 million rolls of toilet paper in one week, but that things were “slowly” getting back to normal.

The panic buying of toilet paper was triggered in early March as households became anxious the growing coronavirus pandemic would see a shortage of key grocery essentials. Leading supermarket chains Woolworths, Coles and Aldi, as well as others like IGA and warehouse store Costco, saw their shelves completely stripped of toilet paper.

Demand for toilet paper reached fever pitch in mid-March with the owner of popular toilet paper brand Sorbent warning at the time that supplies to supermarkets could be threatened.

the supply of toilet paper at Coles store in Toombul in Brisbane was gone within five minutes of opening on March 15. Picture: AAP
the supply of toilet paper at Coles store in Toombul in Brisbane was gone within five minutes of opening on March 15. Picture: AAP

The panic buying also prompted the supermarkets to warn that they may be forced to impose strict buying limits if consumers continued to stuff their trolleys with toilet paper. In some stores, fights broke out in the aisles as shoppers grabbed as much toilet paper as they could carry away with them.

Restrictions imposed

By the second half of March all the major supermarkets had imposed buying limits on toilet paper, with the panic buying getting so out of control that Prime Minister Scott Morrison called on Australians to “cut it out” at a press conference in late March as he announced a range of directives to help stop the spread of the coronavirus pandemic.

“On bulk purchasing of supplies: Stop hoarding. I can’t be more blunt about it. Stop it,” Mr Morrison said at a press conference on March 18.

“It is not sensible, it is not helpful and it has been one of the most disappointing things I have seen in Australian behaviour in response to this crisis.”

The limitation imposed on toilet paper purchases now seem to have finally worked, with major suppliers catching up on supplying the supermarkets and the shelves once again filling with enough toilet paper for everyone.

On Sunday The Australian reported that in an email to suppliers from Coles executives that they should prepare for a return to normal trading patterns as the spike in demand in March and April – that was the equivalent of Christmas or even stronger – began to calm down.

Shoppers in Cairns search empty aisles for toilet paper in march. Picture: Brian Cassey
Shoppers in Cairns search empty aisles for toilet paper in march. Picture: Brian Cassey

“Finally, it looks like we’ll soon be back to normal with toilet paper!,’’ Coles CEO Steven Cain said in an email to customers last week.

“Stock has recovered significantly and by next week we should have removed limits.”

On Tuesday, Woolworths supermarkets managing director Claire Peters said: “We’re pleased to be able to ease more of our product limits.

“We are now in a position where our customers will see better product availability across the categories that have been challenged by the increased demand over the past two months. While their favourite brand within the category may not always be on shelf, we are confident an alternative option should be available for the customer to purchase,’’ she said.

“While product availability is getting better and better each day, it will take some time for us to get back to full supply. Customers may still notice certain products in shorter supply from time to time as we continue to adjust our operations to this ‘new normal’.

“We’ll continue to monitor stock levels and customer behaviour, with the desired outcome to eventually remove product limits altogether. That said, we are also mindful that we may reintroduce purchase limits if necessary.”

Eli Greenblat
Eli GreenblatSenior Business Reporter

Eli Greenblat has written for The Age, Sydney Morning Herald and Australian Financial Review covering a range of sectors across the economy and stockmarket. He has covered corporate rounds such as telecommunications, health, biotechnology, financial services, and property. He is currently The Australian's senior business reporter writing on retail and beverages.

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Original URL: https://www.theaustralian.com.au/business/companies/coles-lifts-toilet-paper-restrictions/news-story/25c0f2698ded5671751d9061f6cfd0b2