Sam's Club says rice limits meant to protect stock
NEW YORK, April 24 (Reuters) - Limits placed on sales of several kinds of rice by Wal-Mart Stores Inc's (WMT.N) Sam's Club warehouse division are meant to stop large distributors or wholesalers from depleting its stock, a spokeswoman said on Thursday.
"We believe limiting rice purchases to four bags per visit is consistent with the needs of the majority of our members, including many restaurants," said Sam's Club spokeswoman Susan Koehler in an email.
Koehler said Sam's Club, the No. 2 U.S. warehouse club operator, is continuing to work with its suppliers to manage inventories to meet demand.
The chain said on Wednesday that it was limiting sales of 20-pound (9 kg) bulk bags of Jasmine, Basmati and long grain white rice "due to recent supply and demand trends."
That came a day after Costco Wholesale Corp (COST.O), the largest U.S. warehouse club operator, said it had seen increased demand for items like rice and flour as customers, worried about global food shortages and rising prices, were stocking up.
Warehouse clubs cater to individual shoppers as well as small businesses and restaurant owners looking to buy cheaper, bulk goods.
Costco Chief Executive James Sinegal told Reuters he believed the surge in demand was being driven by media reports about rising global demand and shortages of basic food items in some countries. (Reporting by Martinne Geller; Editing by Tim Dobbyn)
