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As hoarders around the world empty grocery shelves amid the coronavirus outbreak, the UAE’s supermarkets are ramping up contingency plans to ensure there are no shortages in the market.
From beefing up contracts with suppliers to chartering cargo planes and actively sourcing products overseas, big-box retailers assured they’re doing everything they can to meet surging demand.
However, they urged customers to be responsible shoppers and avoid panic buying, citing that existing inventories could last up to several months, even without adding new stocks in.
Consumers around the world are stockpiling essentials, including toilet paper, tinned goods, pasta and flour, as they prepare for self-isolation amid spiking coronavirus cases. As of Thursday morning, the number of infected people globally has reached more than 219,000.
Authorities in economic powerhouses have already locked down millions, particularly in coronavirus-hit countries like France, Spain and Italy. In the UAE, schools and public venues have been shut and passenger planes on more than 90 routes have been grounded.
Beef up inventories
Despite ample supply, Union Coop, which operates 17 grocery outlets in Dubai, is beefing up stocks in anticipation of a surge in demand, especially during the holy month of Ramadan. It announced on Thursday that it has just secured contracts, worth 400 million UAE dirhams, with various suppliers.
At LuLu hypermarkets, a special committee has been formed to ensure there is stable supply in the market by actively monitoring stocks and consumer sentiment, and quickly replenish shelves as soon as goods run out. More human resources and vehicles have also been deployed to meet unprecedented levels of demand from online shoppers.
On Monday, the supermarket chain operator chartered some special cargo planes to deliver 20 tonnes of additional food products from India to shoppers in Kuwait, where commercial flights have been disrupted.
“Any such measures required, we will not hesitate to do those, to ensure stability in consumer prices and that there are products on the shelves,” V. Nandakumar, chief communications officer of LuLu Group, told Zawya.
He also assured that all LuLu Group branches across the region are very well stocked and there’s plenty of essentials and food products to meet consumers’ needs.
“There’s no need to panic. We’re fully equipped to handle this situation. Our sourcing officers not only in the country but around the world are totally active and sending us food products so that we maintain good []levels of] stock in the market,” Nandakumar said.
“We have formed a strategic committee to handle food security, [as well as] procurement [and distribution] of food. This high-level committee has been formed in LuLu Group, with experts from all concerned departments, and the main focus is to keep monitoring the stores, the stock levels, the market, consumer sentiment and behavior, and act accordingly,” he added.
According to Dr. Suhail Al-Bastaki, director of happiness and marketing department at Union Coop, they have enough stocks to last more than six months. He said a team has also been in talks with suppliers, including those based outside the country, to ensure that the delivery of supplies will not get disrupted and that domestic needs are met.
“There is absolutely no need to fear that the products will run out of stock because the cooperative and retail outlets in the country, in cooperation with the competent authorities, [have] worked over the past years to build a national food stock, as well as prepare resource sustainability plans,” Al-Bastaki said.
Sheikh Mohamed Bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, had earlier assured residents in the UAE that the country is “infinitely able to supply everyone” with all the food and medicines they need.
“We are well prepared to face any challenge that arises,” the crown prince of Abu Dhabi and deputy supreme commander of the Armed Force, said.
The UAE government had earlier rolled out a $27 billion economic stimulus package to offset financial losses caused by the coronavirus and boost the local economy.
(Reporting by Cleofe Maceda; Editing by Mily Chakrabarty)
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