Think smart to bag reward

END OF PLASTIC HURTING BIG TWO

THE supermarket duopoly is rewarding customers who remember their own plastic bags, weeks after the ban of single-use plastic bags was introduced.

Coles is offering 30 Flybuys points a day until July 17 to customers who bring their own bags.

Woolworths said from today customers who brought their reusable bags would earn bonus Rewards points.

But Citi retail analyst Bryan Raymond said the move was hurting the companies’ bottom lines.

“Woolworths and Coles are experiencing sales weakness following the elimination of single-use shopping bags, a significant change that has not been well executed by either retailer,’’ Mr Raymond said in a note to his clients.

The US investment bank believes the removal of plastic bags is having an impact on sales for customers looking to “top up” their shopping during a store visit.

Citi has also spoken to grocery suppliers who have reported an impact to sales.

Coles store operations director Paul Bradshaw said the supermarket operator was grateful customers were increasingly bringing their own bags.

“Offering Flybuys points is a small way of saying thank you to our customers for making the switch to reusable bags,” Mr Bradshaw said.

Woolworths chief executive Brad Banducci said the majority of its customers had embraced the move away from single-use plastic bags.

“We appreciate forming new habits is an adjustment for some of our customers and our recent complimentary bag offer was aimed at providing a little extra help during the transition,” Mr Banducci said.

“We believe now is the time to encourage and reinforce greener habits and hope this Rewards recognition will act as a further prompt for all customers to bring their own bags when shopping with us.

“Our store teams remain focused on helping shoppers with the transition away from single-use plastic bags over the coming weeks and we encourage customers to speak to a team member if they need further support during this time.”

Last year Woolworths and Coles announced they would strip out single-use plastic bags from their stores, hoping to remove more than 3.2 billion bags a year from the environment.

The move was welcomed by environmental and activist groups, despite findings in a government report 10 years ago revealing less than 0.2 per cent of landfill was made up of thrown-out plastic bags and that penalising people by charging them for bags was an uneconomic and weak way to reduce litter.

with ELI GREENBLAT