In the last fortnight we have seen supermarket shelves devoid of many commonly used items. Toilet paper, body and hand wash along with other surface cleaning items are no longer there. Here is a likely reason why.

You might expect that supermarket owners would be happy to sell whatever they can for a profit, but it doesn't work that way. The craze about bulk buying and hoarding certain items against possible supply disruption does more than just create a shortage. It would play havoc with supermarket business models.

These major store chains operate with finely tuned and balanced supply agreements with two-way guarantees. Most of their customers are on fixed incomes and many are on limited incomes. If shoppers are spending big on a few fast-moving items, they will be shunning others that are more profitable. That would throw into disarray negotiated volume/price quotas, which in turn disrupts the ability of supermarkets to keep operating smoothly and profitably.

So, in order to end the craze and restore order to their operations, managers have simply refused to meet the demand for items targeted by hoarders.

People have already stockpiled so much that there can't be a shortage in the community. Anyone who runs out can beg from family members and friends who have huge reserves.

While this may appear to be capitalists looking after their own bottom lines, mitigating factors exist. It should be remembered that supermarkets are not in a position to simply close operations like other businesses as they are an essential service. If their workings are disrupted by selfish panic buyers, their purchase and supply mechanisms could be derailed. That could have catastrophic outcomes and create real shortages instead of imaginary ones.

Note that no supermarkets have stated this as far as I know. But it doesn't take Einstein to figure it out.