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LONDON, March 2 (Reuters) - British online supermarket Ocado
has advised customers to place orders further in
advance because of "exceptionally high demand", indicating a
possible reaction from shoppers to the spreading coronavirus
outbreak.
Britain announced a jump in coronavirus cases on Sunday,
with 13 new infections taking the total to 36 and Prime Minister
Boris Johnson warning that the number is likely to rise.
Ocado, a pioneer in online food shopping, e-mailed some
customers on Friday to warn of high demand for its delivery
service.
"More people than usual seem to be placing particularly
large orders. As a result, delivery slots are selling out
quicker than expected," it said.
The company advised customers to place orders further in
advance than they might normally; ideally, two or three days
before.
It also asked customers to book weekday delivery (Monday to
Thursday) rather than weekends if they are able to be flexible.
Ocado declined to comment further.
Britain's traditional big four supermarkets - industry
leader Tesco, Sainsbury's, Asda and
Morrisons - did not have any immediate comment when
asked if they had seen an upturn in demand for their online
services as Britons start to avoid social contact.
'PANIC BUYING'
Separately on Monday, Bernstein food retail analyst Bruno
Monteyne cautioned that in a pandemic scenario parents and
carers of the sick will be unable to work, leading to a broader
impact on supply chains than only those who become ill.
"With tight supply chains, if a major outbreak happens, that
will quickly lead to panic buying, empty shelves and food
riots," he said in a note published on Monday.
Monteyne said the industry will be drawing up plans with
suppliers to rationalise product ranges and transition to a
"feed-the-nation" status when necessary.
He forecast that sales would be resilient but profit would
take a hit because retailers will be reluctant to pass on to
shoppers the temporary operational costs of dealing with the
disruption.
Shares in Ocado were up 2% at 1106 GMT, while shares in
Tesco, Sainsbury's and Morrisons were up 1.3%, 3% and 2.3%
respectively, recouping some of last week's losses.
(Reporting by James Davey
Editing by David Goodman)
