Why is it so difficult to find toilet paper amidst the COVID-19 crisis? Conventional wisdom is that people have been irrationally hoarding, but a more likely explanation involves the ways in which supply chains between retail and institutional consumers have been disrupted and are unable to quickly adjust.
The ongoing coronavirus pandemic has caused countless restaurants and stores across the country to alter their services or close entirely, some for as long as a month so far. This stretch of downtime has been devastating for many small businesses that usually get by on week-to-week sales. At Old Town Pizza & Brewing in Portland, Oregon, owner Adam Milne had to lay off two-thirds of his staff as the brewpub transitioned into carry-out only service. In the process he racked up nearly $25,000 in credit card debt to pay for rent, utilities, and other mounting expenses. Although Milne has tried to secure a small business loan to stay afloat, he’s had no success so far.
The Tampa Bay Lightning announced they would be lowering prices on food and drink options in Amelie Arena for the 2020 season. Prices would be reduced by an average of 15 percent on 300 items, including alcohol. Some items (popcorn, bottled water, and soda) would be reduced in price by as much as 25 percent. Season-ticket holders would retain their additional 25 percent discount on top of those reductions.
US agriculture is suffering major setbacks related to the Coronavirus outbreak. Stay-at-home orders have caused a significant decline in restaurant business, forcing many to temporarily close or cut down to pick-up and delivery service only. Additionally, airlines have been grounded, cruise ships are no longer leaving ports, theme parks have closed, and school has been cancelled. These and other hospitality-related businesses are major destinations for fresh fruits and vegetables. As a result, farmers have millions of pounds of produce they cannot sell. While some of it will be donated to food banks and shelters, much of it will simply be destroyed. Harvesting is much more expensive, and the product is perishable.
The restaurant and service industries in our nation have been severely impacted by COVID-19. The Food Action Policy released a detailed blog regarding ways Congress can assist the restaurant industry during this time. The FPA states that the restaurant industry is crucial to our economy, contributing “$1 trillion to our economy and representing 4% of our gross domestic product.” Restaurants all over the nation are closed due to COVD-19. “Up to seven million people have been laid off, and millions of farmers, beverage suppliers, delivery people, manufacturers, launderers, and other small businesses will have their bills go unpaid, creating an unprecedented trickle-down effect of damage to these local restaurants and their communities.” The FPA estimates a $225 Billion loss in revenue over the next 3 months.
The global spread of the Coronavirus led to a surge in demand for a number of goods including toilet paper, disinfectant wipes, and hand sanitizer. Many people worried about future availability began stockpiling supplies for their family. Others began stockpiling to profit off of expected future prices. Many states enacted anti price-gouging laws to prevent profiteering, but shortages persisted.
NASA finds that COVD-19 has drastically reduced China’s air pollution. Through usage of the Ozone Monitoring Instrument (OMI) on NASA’s Aura satellite, NASA measured NO2 (nitrogen dioxide) levels in Wuhan, China. Nitrogen dioxide is emitted from the burning of fuel, primarily from transportation vessels and power plants. Every year, celebrations of the Lunar New Year normally result in business closures from late January to early February. During this time, NO2 levels drop and then eventually rise again. However, during January and February of 2020, China saw a reduction in NO2 levels of 10% to 30% below averages and expectations. Additionally, NO2 levels have not rebounded since the conclusion of the Lunar New Year Celebration.
As more people engage in “teleworking” from home due to being on lockdown due to COVID-19, sales of tops have increased – since that’s all that shows on the webcam. Walmart also reports increased sales of home entertainment items, as both adults and kids spend more time at home.