Thursday, December 22, 2022

"Whole Foods Reports Major Shortages As Grocery Products Become Impossible To Find"

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"Whole Foods Reports Major Shortages As 
Grocery Products Become Impossible To Find"
By Epic Economist

"Does your Whole Foods market have empty shelves? In a flood of social media posts, shoppers have been reporting that stores of the Amazon-owned grocery giant are seriously understocked these days, with huge inventory gaps leaving aisles looking emptier than ever. Considering the size of the locations, its upscale reputation, and its unmatched product range, Whole Foods isn’t the kind of supermarket chain where customers would expect to find shortages of everyday items. But newly leaked documents reveal why stockouts are becoming so common at the stores right now, and employees warn that the lower supplies will ultimately impact customers’ wallets.

Since being acquired by Amazon in 2016, Whole Foods has gone through some significant changes over the past few years. While some have been welcome, like curbside pick-up and special discounts, others have been clearly causing some major headaches. Fans of the grocery retailer say that nowadays its supply chain is a total and complete mess.

In a repeat of shortages last seen in 2018, shoppers have been noticing that grains, beans, and lentils are in short supply at several locations all across the country. “Is there a dried bean/lentil shortage or supply disruption? The local Whole Foods has barren shelves and at this point, the bulk section is also empty,” another online comment reads.

In a research note last week, Barclays analyst Karen Short said many stores were also out of cookies, crackers, popcorn, canned beans, peaches, and bottled water. On the West Coast, consumers have reported a consistent lack of lettuce. Other hard-to-find items include staples like bread and even sugar at some locations. Photos shared by Business Insider reveal how barren or sparsely stocked displays of food in some Whole Foods departments, including produce, dairy, bulk foods, and packaged foods.

A representative for the grocery chain explained that some of the shortages are being caused by a current issue with a supplier. Regarding produce shortages, Whole Foods mentioned that extreme weather events earlier this year affected the supply of produce products and some vegetables coming from California.

But one leaked document reviewed by Insider gives an insight into why the stores of one of the largest retailers in the world are facing so many inventory problems in recent days. Managing the inventory of a grocery chain could be tricky for Amazon. Even though the e-commerce giant is supply chain expertise at its distribution centers, a key to the formula that allowed it to become an online sales powerhouse, it still needs to master the stocking of physical stores as well and pay added attention to customer experience.

As it struggles to source new wholesale suppliers, Whole Foods is raising prices on some emerging food brands. Some of the price hikes have added as much as a dollar or two to on-the-shelf prices of products that sell for $20 or less, according to the sources familiar with the matter. Undoubtedly, that will be another serious blow to customers’ wallets. But it’s a risk the Amazon-owned chain seems willing to take."
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