Retailers destroy products accumulated because of March hype

Capitalism does not do charity work

Distribution networks have increased the volume of products that have to be disposed of due to expiration. The distributors have to destroy the stocks accumulated in March to cover the rush demand. This was reported to the TASS portal by representatives of the Association of Retail Companies (ACORT).

Merchandize disposal
Merchandize disposal

In mid-March of this year, all retail chains were faced with an increased demand for groceries and essentials, which citizens began to stock up for the future due to the COVID-19 epidemic. Then, sales of personal hygiene products, pasta and cereals, goods with a long shelf life, seriously increased. However, perishable goods also went up in demand, so retailers procured them taking this increase into account.

Now, when demand and traffic at retail outlets have fallen, products with a low shelf life have to be discarded. And, according to preliminary data, we can talk here about 1.4 billion rubles of unplanned expenses.

«Here, for comparison, we would like to bring the figure of 468.5 billion rubles — this was exactly the revenue of the X5 Retail Group alone, which in January — March 2020 increased by 15.9% compared to the same period last year».

These successes do not prevent retailers from complaining about the losses described above and throwing away tons of “extra” products, instead of transferring something that is no longer for sale but can still be used by those in need. Indeed, with the growth of unemployment and the deterioration of the citizens’ welfare, there have already been cases of robbing grocery bags on the streets and attacks on food delivery couriers.

But, as AKORT told reporters, altruism in this industry is hindered by the current legislation, according to which any transfer of products, even for charitable purposes, is considered a sale. And while there are still bureaucratic inaccuracies that do not allow to finally determine all the subtleties of charity procedures, the products will keep being destroyed, regardless of the current situation.

In our opinion, the problem here is not at all the oversight of some negligent legislator who did not spell out all the nuances in a law. The problem lies in the capitalist system itself, aimed not at the welfare of society as a whole, but at the extraction of profits by its smaller part. Whether it is legislation flaws or greed of merchants — unsold products under capitalism will be destroyed, no matter how many people are starving now.