Supermarkets struggle with surge in 'hurricane business'

Wed, Aug 24th 2011, 12:07 PM

Preparations for Hurricane Irene had the command center of the Super Value grocery store chain buzzing yesterday, as managers radioed in updates on everything from supply levels to power outages.
"[Store] number eight is running on generator," sputtered a radio in the background, followed by notice of number three, number five, then number two going to generator.  On it went as the chain's founder and president, Rupert Roberts, juggled a Guardian Business interview with the challenges the store faced in serving its customers.
No stranger to the pre-hurricane shopping surge, Roberts said customers seemed to be shopping earlier than usual - a situation that threatened the supply of some goods.
"We ran out of milk and are very low on produce and other perishables, like fresh fruit and vegetables and fresh meat," Ruperts said.  The early rush on items meant that by "boat day" yesterday, supplies were already low.  The supply freighter was docked in Nassau by 8:00 a.m., however, and supplies were en-route to stores by early afternoon.
"It worked out fine - everything in the stores this afternoon will be fresh," Roberts said.
Later this week, those perishable items may become scarce again, Roberts cautioned.   Inventory levels typically would hold through the next "boat day" of Friday, but Irene has forced a cancellation of Friday's scheduled deliveries.  Another vessel could bring them in on Saturday, but clearing them through Customs for delivery to stores then would require that department's "cooperation", he said.
Customs usually does in these circumstances, he explained, but if they don't it may mean customers must to wait until Monday for those perishable items.
"Precaution shopping" at the Super Value stores picked up since Sunday and has been "heavy" ever since, Roberts said, adding that Bahamians seemed to be taking advantage of the early notice of Irene's approach.
Since the weekend, Super Value has been busy with its disaster preparedness plans - shuttering all the windows they could and allowing staff to get their homes prepared.
The staff will be needed as the chain keeps its doors open to the public for as long as reasonable, with Roberts saying the store would be open until at least 10:00 p.m. yesterday, and likely all today into the evening, depending on how weather conditions deteriorate.
Local suppliers of essential items such as water and bread are playing into the retailer's inventory levels as well.  Bread from Purity Bakery could become scarce, according to Roberts, who said the bakers would have to operate beyond its current levels to meet demand at the food store chain.
"Nine hundred loaves of bread go like water in the desert," Roberts said, noting that the bakery often supplied smaller retail operations first - leaving the chain at the end of the supply list in a time of increased demand.
"Unless they bake all day and until midnight they are not going to serve the public," Roberts said.
The chain had better success with one of its water suppliers -- Chelsea's Choice water company.  Many water suppliers focus on retailing their products directly to meet the hurricane demand, but Chelsea's was honoring its delivery commitments to the food store chain, Roberts said.
Aquapure, another leading water company, saw lines at its Bernard Road depot an hour-and-a-half before the company opened for business at 8:30 a.m. yesterday.  By late morning the queue was about 60 people long, according to Operations Manager Jeffrey Knowles, and its delivery operations were bustling.
"We have 23 delivery trucks going out and coming back in record time.   The stores are stocking up, as well as customers and gas stations.  They all need extra water, so it's madness," Knowles said.
The company had more than enough water, according to Knowles, but struggled to pump it fast enough to meet demand.  It may seem like an accountant's dream, but Knowles said it does not all translate into profits.  Historically the spike in demand ahead of a hurricane was followed by a sales slump after.
"The problem with it is whatever happens, people will probably have spare water next week.  We pay overtime this week and next week every one still has water and everyone's sitting around," Knowles said.
He said Aquapure planned to remain open " until the last minute" today to meet demand.
Business was booming at JBR building supplies yesterday, too - Manager Charles Albury said, to his surprise, the uptick started as early as Monday.  The added crush for nuts and bolts, screws and plywood, flashlights and lanterns, and other supplies brought with it heavy future refunds, a lot of frustration for staff and customers, and added security costs.
Customers have gotten into fights on the premises in the past, he explained.
"We don't like hurricane business," Albury said.  "It's not worth it.  The chaos turns people into beasts."
So far, business has been orderly, the manager said yesterday.  Today, JBR will be letting customers in three at a time, and will probably have a police at the premises to help with crowd control too, according to Albury.   He anticipates the business will close its doors sometime this afternoon, to give his staff time to finalize their home preparations and be with their families.

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