Amid Baby Formula Shortage, Retailers Put Cap On Purchases: Report - CVS Health (NYSE:CVS), Abbott Laboratories (NYSE:ABT)

The U.S. faced a nationwide shortage of the most popular baby formula brands in the week starting April 24, according to the latest figures from Datasembly, which tracks out-of-stock messages on retailers' websites and apps. An average rate is less than 10%.
Reasons For The Shortage: Supply chain issues caused by the COVID-19 pandemic have made baby formula harder to find for months.
The shortage worsened after Abbott Laboratories ABT voluntarily recalled some products and closed a plant where the products were made in Sturgis, Mich.
Related: FDA Inspection Flags Quality Control Issues At Abbott's Michigan Facility.
The FDA is investigating consumer complaints related to five hospitalized infants, two of whom died.
The agency said cronobacter sakazakii, a germ that can be deadly in infants, was detected in the Sturgis plant but not in the products.
Retailers including Target Corporation TGT, CVS Health Corp CVS, and Walgreens Boots Alliance Inc WBA have limited purchases of baby formula due to a supply shortfall.
CVS said in an emailed statement that it restricted in-store and online purchases to three per order last month, while Walgreens issued a similar cap early in March.
Kroger Co KR has a limit of four products per customer, while Target has had restrictions on online purchases for weeks.
Photo by tung256 via Pixabay