(Adds details, BRC comment, updates shares)
By James Davey
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.
British Prime Minister Boris Johnson said on Monday that the
country needed to be prepared for the coronavirus to spread
further and would announce its main action plan for responding
to the outbreak on Tuesday. Confirmed cases in the UK have risen
to 40.
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.
It also asked customers to book weekday delivery (Monday to
Thursday) rather than weekends if they are able to be flexible.
Shares in Ocado were up 6.5% at 1549 GMT.
The company, which is Britain's fastest growing grocer,
according to industry data, 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.
However, Andrew Opie, director of food and sustainability at
the British Retail Consortium, which represents the industry,
said retailers were monitoring consumer behaviour to anticipate
changes in future demand.
'PANIC BUYING'
Separately on Monday, Bernstein food retail analyst Bruno
Monteyne said that in a pandemic scenario parents and carers of
the sick would be unable to work, leading to a broader impact on
supply chains than only those who contract the virus.
"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.
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 supermarket groups will be reluctant to pass
on to shoppers the temporary operational costs of dealing with
the disruption.
The BRC's Opie said disruption to supply chains has been
limited so far, and the availability of products remains good.
But he noted that sales of hand sanitiser have risen as
individuals and businesses take precautions to reduce the spread
of the virus, adding that retailers were also taking necessary
steps to meet the rise in demand for hygiene products.
Shares in Tesco, Sainsbury's and Morrisons were flat, up
4.1% and up 5.3% respectively, with the latter two recouping
some of last week's losses.
(Reporting by James Davey
Editing by David Goodman and Jane Merriman)