Coles (ASX:COL), Woolworths (ASX:WOW) put buying limits amid flood crisis

Highlights 

• Both Coles and Woolworths have put limits on products like toilet paper, rice and meat.
• Woolworths now announced that customers at Woolworths Supermarkets and Metro would be able to help flood-affected areas through donations.
• In the last one year, Woolworths Group, in collaboration with consumers, has donated about AU$4 million.

Woolworths Group Ltd (ASX:WOW) and Coles Group Limited (ASX:COL) have reinstated purchasing limits on various essential products on Tuesday (1 March 2022) due to the record-break rain and floods. These products include rice, milk, and toilet paper.

Woolworths and Coles have temporarily closed several of their stores in Queensland and New South Wales, while others have limited hours of operation. Online operations of the food retailers are also affected by natural disasters.

This comes soon after Woolworths put a purchasing limit on 12 February 2022 on a variety of critical products, both in-store and online due to the increased demand amid the five-days lockdown announced by the Victorian government.

Meanwhile, Coles shares closed 0.69% up today at AU$17.6 each, while Woolworths stock closed in red today at AU$35.24 apiece, dropped 0.17% on ASX on Tuesday.

Also Read: Coles (ASX:COL) grows ‘Wings’ to deliver groceries via drone!

Source: © Starfotograf | Megapixl.com

More about purchase limits

• On Tuesday morning (1 March 2022), Woolworths informed that it has put limits on tissues, toilet paper rolls, rice, milk, bottled water, and meat in affected areas.
• Later, the same day, Coles followed suit. However, the purchasing restrictions do not apply only to flood-affected areas but across the country.
• Woolsworth also said that due to "strong demand," flood-affected districts in Queensland and NSW must abide by temporary limits on essential commodities.
• According to Woolworths GM for Queensland, Danny Baldwin, "the loss of important transportation routes as a result of flooding will, unfortunately, have an impact on product availability in various parts of Queensland."
• Coles: For flood-affected stores of Coles in NSW and Queensland, only two packs per customer is allowed for the products like paper towels, facial tissues, flour, rice, fresh milk, mince, sausages, chicken breasts and chicken thighs. However, in all stores in these two states, only one pack of toilet paper, two packs of paracetamol/ibuprofen/aspirin and one pack of bulk or multipack still water is allowed per customer.
• Woolworths: Two packs per customer is allowed in the stores of Woolworths for the products like paper towels, facial tissues, flour, rice, fresh milk, mince, sausages, chicken breast, chicken thighs, paracetamol/ibuprofen/aspirin in central and northern Queensland. However, the retailer allows only one pack of toilet paper and bulk or multipack still water per customer in these areas.

Also Read: Woolworths (ASX:WOW) invests millions in meat start-up All G Foods

How Woolworths is helping flood-hit communities?

Woolworths announced today (March 2) that customers at Woolworths Supermarkets and Metro would be able to help flood-affected areas around Australia's eastern seaboard by rounding up their in-store purchases at the checkout. Woolworths' consumers in NSW and Queensland can now donate, while customers in all other states and territories will be able to do so from tomorrow.

The money donated will go to The Salvation Army, a long-time natural disaster relief partner of Woolworths Group. This will help the families who have been displaced from their homes by providing meals at evacuation centres, as well as grants and support for the rehabilitation and rebuilding process.

Flooding continues to wreak havoc on Woolworths’ supermarkets and BIG W stores throughout the region, with road closures disrupting supply flow and forcing some stores to close.

BIG W is collaborating with Good360 Australia, a Woolworths Group partner, to assist with much-needed products for charities and schools in flood-affected areas.

Also Read: Why Woolworths’ (ASX:WOW) share price would be on watch today

Bottom Line

In the last one year, Woolworths Group, in collaboration with consumers, has donated about AU$4 million to its partners - The Salvation Army, Foodbank, Rural Aid, and Lifeline - through the S.T.A.N.D (Support Through Australian Natural Disasters) initiative. These funds help charities respond promptly to a natural disaster and support the long-term rebuilding of the affected areas.