Pandemic buying depletes stores of big-ticket items

When the coronavirus pandemic slammed broadside into the U.S. economy, tons of retailers cut orders to manufacturers on the expectation the economic crash would mean the end of demand for big-ticket items like washing machines and refrigerators.

They were wrong.

Many stay-home consumers realized they needed to upgrade appliances to live or work in place, and construction of new apartments and homes ebbed but ultimately returned to normal.

At the same time, manufacturers continued to struggle with new employee-safety protocols and the demands of production in the time of COVID-19.

As a result, anyone trying to get that new kitchen refrigerator, especially one that is not stainless steel, could face monthslong delays, said Ryan Holzapple, assistant general manager at Fred’s Appliance in Spokane.

“It’s the most inconsistent times you’ve ever seen in the business,” Holzapple said. “It’s stressful. Everybody is working at max capacity right now.”

The shortages extend to furniture, especially desks for either parents or students, who are now studying or working from home.

The delays have had other unforeseen consequences, such as people holding off moves into new apartments and homes, Holzapple said.

“In the Spokane market, with all the building going on, we (supply appliances to) all the apartments,” he said. “We are even having trouble getting appliances for those.”

The same goes for new houses, he said.

“There have been many cases where people can’t close on their homes because they can’t get their range,” Holzapple said. “We’ve had to put in a loaner to get them by. This is crazy.”

Holzapple said he understands that many customers face delays at Spokane-area Lowe’s and Home Depot stores, which don’t have the warehouse space that Fred’s does.

Its warehouse allows Fred’s to purchase items by the truckload instead of waiting for individual orders.

“I just walked through our warehouse. It’s at max capacity. But all that stuff is sold,” Holzapple said. “It’s all stuff that was sold months ago that finally came in that we now have to get delivered. Everybody is just digging out of a hole.”

A Spokane-area Lowe’s manager wouldn’t comment and a manager at a local Home Depot confirmed that appliances have delays, but that manager refused to give a name because of corporate rules.

Murray Huppin, owner of Huppin’s Custom Audio, Video & More, sells smaller kitchen appliances and electronics.

He said his store has avoided most of the delays that have beset Fred’s and the big-box stores.

“There certainly have been some spot shortages,” Huppin said. “It’s more about the vendors getting their supply chain in order. Just like we have to take precautions against COVID, the vendors have the same situation with their production and warehouse facilities.”

The only item that has been in short supply for Huppin’s has been stereo receivers.

“My sense is most companies have figured it out,” Huppin said. “And, I think we’ll see fewer shortages after the first of the year. But in general, my company has been very proactive in acquiring inventory.”

Holzapple said the appliance backlog can depend on the brand. Plus, he said, many manufacturers have almost given up on making anything other than stainless steel items.

“If you have anything that requires a special order, there are a lot of issues,” Holzapple said. “Particular colors, white and black, are hard to come by. Manufacturers are making tons of stainless steel.”

Bosch dishwashers are moving faster than they can be built, he said.

“I think Bosch builds 8,000 dishwashers a day. Then the factories were getting shut down once a week because someone would test positive (for COVID-19),” Holzapple said. “That’s a lot of dishwashers that don’t get built that day. So, they just keep getting further and further in the hole.”

As a result, Holzapple said Bosch has back orders in the hundreds of thousands.

“And, they have never been back-ordered. Everything they are making is sold,” he said. “Nothing is going to the warehouses. It’s going directly into homes.”

Early during the pandemic, consumers made a run on freezers. They remain in short supply.

“Freezers are still hit-and-miss,” Holzapple said. “I’m getting a lot of chest freezers, but not upright freezers. We are just getting more demand for appliances than we ever have, and manufacturers are struggling to keep up.”

Spikes in coronavirus cases in China, the U.S. and Mexico forced many factories to close or slow production. As a result, experts are warning of backlogs that could last through the end of the year and into 2021, according to a recent report by National Public Radio.

“It’s kind of the perfect storm of all these factors that are creating this demand, and brands like LG are ramping up to meet it,” John Taylor, chief spokesman for LG Electronics USA, told NPR.

Taylor said his company had fewer supply disruptions than some others, but LG is facing “unprecedented demand” for kitchen and laundry appliances.

When the pandemic started, many suppliers cut their orders to manufacturers because they were afraid the economy was shutting down, Huppin said.

“Movie theaters, live music and travel have been particularly impacted,” he said. “But people are spending more time at home and they want to be able to enjoy their time at home, and they are spending their money on all these other things.

“At the beginning of the pandemic, everybody pulled back to see what would happen. So they are double scrambling” to catch up.