Bhg
  • Shop
  • News
  • Food
  • DIY
  • Garden
  • Travel
  • Renovating
  • Decorating
  • Property
  • Health
  • TV
  • Podcasts
Bhg
  • Shop
  • News
  • Food
  • DIY
  • Garden
  • Travel
  • Renovating
  • Decorating
  • Property
  • Health
  • TV
  • Podcasts
Subscribe
YOU’LL NEED A WEDGE TO HANG THAT DOOR
Watch 6:32

YOU’LL NEED A WEDGE TO HANG THAT DOOR

{headline}

{headline}

Coles and Woolworths take steps to reduce plastic, waste

Coles and Woolworths take steps to reduce plastic, waste

Should you buy your Christmas groceries instore or online this year?

Should you buy your Christmas groceries instore or online this year?

Woolworths release ‘12 days of Cheesemas’ cheese Advent calendar

Woolworths release ‘12 days of Cheesemas’ cheese Advent calendar

Coles release lamington-flavoured hot cross buns

Coles release lamington-flavoured hot cross buns

{headline}

{headline}

You can now buy Toblerone ice cream

You can now buy Toblerone ice cream

Woolworths release brand new Darrel Lea hot cross bun range today

Woolworths release brand new Darrel Lea hot cross bun range today

Woolworths launch massive surprise Black Friday sale

Woolworths launch massive surprise Black Friday sale

{headline}

{headline}

Coles now has unlimited home deliveries

Coles now has unlimited home deliveries

Woolworths confirm ‘Discovery Garden’ collectables launch date

Woolworths confirm ‘Discovery Garden’ collectables launch date

3 reasons why you should never release a balloon into the sky

3 reasons why you should never release a balloon into the sky

Coles is selling Christmas mince pies from today

Coles is selling Christmas mince pies from today

Coles now sell hot cross buns all year round

Coles now sell hot cross buns all year round

Woolworths pull $1 milk from shelves to help farmers

Woolworths pull $1 milk from shelves to help farmers

Uber Eats is now delivering a new food menu from Coles

Uber Eats is now delivering a new food menu from Coles

  1. Home
  2. Finance

Supermarkets set to make millions on plastic bag ban

Eco-friendly or financially savvy? - by Laura Barry
  • 05 Jul 2018
Supermarkets set to make millions on plastic bag ban

Coles and Woolworths stand by their original statement that they believe the plastic bag ban is a positive step towards an eco-friendlier future, however the supermarket giants will potentially make millions of dollars of profit thanks to the removal of single-use plastic bags.

By replacing the light-weight single-use bags with the heavier “reusable” 15 cent alternatives, the companies stand to potentially make up to $71 million dollars in gross profit, according to an analysis by Queensland University of Technology retail expert Dr Gary Mortimer. In a piece he wrote for The Conversation, Mortimer argued that the ban would have a minimal impact on the environment but would be a windfall for the retailers, writing:

“These bags are factored into the cost of doing business for these supermarkets. There are costs beyond just the bags themselves, such as the costs associated with sourcing and negotiating with packaging suppliers, procuring them, shipping and warehousing them, and distributing them to stores only to then give them away.”

“Supermarket margins are already feeling the strain of price deflation. These businesses are generally making less than 6c in the dollar, so the opportunity to phase out this cost certainly makes good business sense.”

While the heavier, reusable bags cost more to produce than single-use bags, fewer bags will be used as customers look for alternative ways to carry their groceries, resulting in fewer being order by the retailers, reducing their packing and procurement costs.

Woolworths plastic bag ban
Getty

Dr Mortimer came to the conclusion of the $71 million dollar profit figure by crunching the numbers of single-use bags the supermarkets were giving away for free, and the cost of doing so.

Woolworths say they give away 3.2 billion plastic bags a year and Dr Mortimer estimates Coles gives away 2.7 million bags, and with each bag costing around three cents each, retailers stand to save more than $170 million a year in direct costs. Selling the new bags creates another revenue stream, potentially adding $71 million.

As of July 1, single-use plastic bags have been banned in all states and territories except NSW and Victoria, and Coles and Woolworths have chosen not to comment on the profit they could potentially make thanks to the ban at the time of reporting.

You might also like:

Woolies backflips on plastic bag ban

Choose to refuse for plastic-free July 

The changes kicking in from July 1

  • News
  • Finance
Laura Barry
Laura Barry
Laura Barry is a writer, bookworm and interior design enthusiast with a love for reporting on all things homes, travel and lifestyle. When not tapping away at her keyboard, Laura can be found making endless cups of tea or perusing the shelves of Sydney’s many bookstores.

Get your mag delivered!-Save 29% off the cover price!

Subscribe for $4.95 per issue

Subscribe Now
Get your mag delivered!

Get your mag delivered!-Save 29% off the cover price!

Subscribe for $4.95 per issue

Subscribe Now
Get your mag delivered!

Recommended to you

YOU’LL NEED A WEDGE TO HANG THAT DOOR
Watch 6:32

YOU’LL NEED A WEDGE TO HANG THAT DOOR

{headline}

{headline}

Coles and Woolworths take steps to reduce plastic, waste

Coles and Woolworths take steps to reduce plastic, waste

Should you buy your Christmas groceries instore or online this year?

Should you buy your Christmas groceries instore or online this year?

Woolworths release ‘12 days of Cheesemas’ cheese Advent calendar

Woolworths release ‘12 days of Cheesemas’ cheese Advent calendar

Coles release lamington-flavoured hot cross buns

Coles release lamington-flavoured hot cross buns

{headline}

{headline}

You can now buy Toblerone ice cream

You can now buy Toblerone ice cream

Woolworths release brand new Darrel Lea hot cross bun range today

Woolworths release brand new Darrel Lea hot cross bun range today

Woolworths launch massive surprise Black Friday sale

Woolworths launch massive surprise Black Friday sale

{headline}

{headline}

Coles now has unlimited home deliveries

Coles now has unlimited home deliveries

Woolworths confirm ‘Discovery Garden’ collectables launch date

Woolworths confirm ‘Discovery Garden’ collectables launch date

3 reasons why you should never release a balloon into the sky

3 reasons why you should never release a balloon into the sky

Coles is selling Christmas mince pies from today

Coles is selling Christmas mince pies from today

Coles now sell hot cross buns all year round

Coles now sell hot cross buns all year round

Woolworths pull $1 milk from shelves to help farmers

Woolworths pull $1 milk from shelves to help farmers

Uber Eats is now delivering a new food menu from Coles

Uber Eats is now delivering a new food menu from Coles

Bhg
  • About Us
  • Subscribe Today
  • Contact Us
  • Terms and Conditions
  • Privacy Policy
Bhg Magazine Subscribe
  • About Us
  • Subscribe Today
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

Brands

  • All Recipes
  • BHG Shop
  • Girlfriend
  • Home Beautiful
  • New Idea
  • New Idea Food
  • Practical Parenting

Our Network

  • marie claire
  • Instyle
  • Beauty Crew
  • Who
  • Women's Weekly Food
  • Bounty Parents
  • That’s Life
  • Perth Now
  • The West Australian
  • 7Plus
  • Airtasker
  • 7NEWS
  • SocietyOne
  • Health Engine
  • Starts at 60
© 2021 Are Media PTY LTD
Get more from Better Homes and Gardens

Magazine Subscription Offer

Get your mag delivered!-Save 29% off the cover price!

Shop This Offer
Get your mag delivered!