‘good business sense’: coles and woolworths to rake in $71 million profit from plastic bag ban

by:Yucai     2020-02-19
The plastic bag ban is here.
Picture: Joel Carret/AAPSource: The Australian news group and Woolworth will get about $71 million in gross profit by replacing the free lightweight plastic bag with a heavier 15 cents option.
According to an analysis by Dr. Gary Mortimer, a retail expert at the Queensland University of Technology, he believes that the package ban will be a \"windfall\" for supermarkets, but it will not help the environment much \".
\"These bags are taken into account the cost of doing business for these supermarkets,\" Dr. Mortimer wrote in an article in the conversation . \".
\"In addition to the bag itself, there are costs, such as those associated with sourcing and negotiating, sourcing, shipping and warehousing by packaging suppliers, and then distributing them to the store and then distributing them out.
\"Supermarket profits have already felt the pressure of tight prices.
The dollar income of these businesses is usually less than 6 cents, so the opportunity to phase out this cost is definitely meaningful.
Dr. Mortimer estimated that Coles and Woolworth had previously donated a total of 5 pounds.
7 billion bags per year, 3 cents per bag, cost a total of $0. 171 billion.
He predicts that they will only use 1 under the new scheme.
18 billion heavy bag for $106. 1 million.
\"While retailers can make a profit from this savings, they are moving towards a stronger and more diverse
\"There is a cost in using plastic bags themselves,\" he said . \".
\"First of all, the cost of these bags alone is higher --9 cents each —
There are also related procurement costs.
\"In turn, when new
Available packages can be more expensive than thinner individual packages
Use bags, use less, so order.
Retailers can expect lower costs for these packages.
\"Selling these new bags for 15 cents per bag actually creates another revenue stream with a potential gross profit of $71 million.
Jeff Duterte, a retail analyst at DGC Consulting, disagrees, saying he does not believe supermarkets will profit from the ban.
\"The opposite is true,\" he said . \"
\"We need to keep in mind that a large number of shoppers from Coles and Woolies are also shopping at Aldi, who are used to bringing their own luggage or grabbing an empty box in the aisle, he said.
\"The bounce is not as bad as some people think, which means shoppers are adjusting and don\'t have to pay for the package.
It is also possible to consider the cost of purchasing and storing stores in bags by Coles and woolys --
Heavy and light-
It is handled by the clerk.
\"At the very least, unprepared shoppers reduce the number of times they shop each time to avoid costs and multiple purchasesshop —
That said, come back and prepare the second store, or, since most Coles and Woolies are close to fresh fruit and vegetable shops and butchers that are still providing bags, go there first.
\"How Long, who knows?
Customers and consumers have a choice, they are not [sitting still]
In terms of managing the family budget and finding alternatives.
Dr. Louise Grimer, marketing lecturer at the University of tazhou, said she was disappointed with being single
The use of plastic bags has been \"effectively replaced by thicker bags that are usually not repeated for shopping, and will eventually be landfill in the same way as a single baguse bags did”.
\"At least when single --
\"Use bags that can be reused, such as trash can padding,\" she said . \".
\"If retailers, as many of them now claim, work hard to achieve sustainability, they will offer small discounts to shoppers who bring their own luggage.
Dr Grimer said it would offset some criticism that supermarkets can now move from 15-cent bags.
\"I have no problem with retailer profitability, and that\'s how businesses stay in the game,\" she said . \". “[But]
In particular, retailers and supermarkets, if they sell themselves as \"green\" and are committed to sustainable development, then I want them to take the lead in banning all plastic bags altogether, such as encouraging shoppers to bring their own plastic bags.
She added that she wanted the media and social media to expand the rebound but did not reflect the real response.
\"I would be disappointed to think that many of us cannot simply change the way we shop and make this issue so angry,\" she said . \".
\"There are bigger issues that need attention --
When you go shopping, bring your own bag, which is simple.
\"According to Dr. Mortimer, experience from other countries has shown that although bag usage has initially decreased, light plastic bags, including the United States and the United Kingdom, have been charged, the customer starts paying soon.
\"Simply charging for plastic bags without putting these funds into environmental projects doesn\'t necessarily solve the problem,\" he said . \".
\"Shoppers slowly recover their old habits, governments and retailers are no longer educating consumers, and reusable bags will soon enter waterways and landfill sites.
Neither Woolworths nor Coles will say how much profit they will make from the plastic bag ban.
\"The price of our 15 cents reusable plastic bags reflects the cost of supply and associated operating costs,\" a Woolworth spokesman said . \".
\"We also have bags for our customers, a lifetime bag.
It costs 99 cents and when it is damaged, we change it for free whenever the customer buys it from us.
Any money earned by selling bags will help fund the primary land care grant program.
\"Woolworths will continue to offer customers in new states, Victoria, Western Australia and Queensland free reusable bags until Sunday for a smooth transition.
After complaints from customers, the supermarket announced the move last week.
A spokesman for Coles said: \"We determine the price of our luggage based on supply costs and operating costs.
We have a better bag, it is made of 80% recycled material, bigger, thicker and more durable than a single bag
Use plastic bags.
\"Better bags can be used multiple times, and when customers run out of better bags, they can be recycled through the REDcycle bins provided by all Coles supermarkets.
The better bag costs 15 cents.
Coles also launched a series of community packages designed by Australian schoolchildren.
The collection includes a $1 tote bag, a $2 backpack and a $2 backpack.
50 cold packs and a $3 sack.
Part of the bag sale will be donated to the Australian cleaning, the Australian track and field, the second dog in Australia and the guide dog.
Single as of Sunday
Plastic bags are prohibited in all states and regions except new states and Victoria.
Supermarkets took the initiative to remove them from the entire store network, and Woolworths arrived 10 days in advance on June 20.
There are about three, though.
The move sparked strong opposition from customers, which the retail union described as \"plastic bag rage \".
In an extreme case, a staff member in Woolworth, Washington, was \"strangled\" by an angry customer \". frank. chung@news. com.
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