Reusable Shopping Bags, Will Walmart Lead the Way for Consumers?
Reusable Shopping Bags and Consumers, Will Walmart Lead The Way?
Reusable shopping bags are gaining popularity with everyone from consumers to marketing execs. This uptick in reusable shopping bags is mainly due to laws regulating disposable plastic bags like the new California bag ban and certified reusable grocery bags requirement under the California Public Resources Code (Sections 42281, 42281.5, and 42282).
Problems Caused by Single-Use Plastic Bags Well Documented
From using non-renewable resources like natural gas and oil to the likelihood of single-use plastic bags ending up as litter entering our food chain or sitting in a landfill forever, we must stop their use. The resulting environmental issues make it no secret that disposable plastic bags are bad news.
Typically, when bag bans or fees come about, it is a concern for the environment. The logic is by eliminating single-use plastic bags, the negative ramifications will also be eliminated. A recent post I found on my friend Ted Rubin’s website, which I believe was written originally by his best friend, my acquaintance, and Walmart insider, John Andrews, outlines how Walmart could easily help their bottom line and the planet while also getting more people to switch to reusable shopping bags.
The Effectiveness of Disposable Plastic Bag Fees
The entire philosophy behind Walmart’s pricing structure is offering low prices, right? This strategy has proven to be very lucrative. Low prices are enough of an incentive to get shoppers in the door. Still, Walmart offers many shoppers the ability to do most, if not all, of their shopping in one place, so convenience and availability of products is also a compelling reason to shop there.
The so-called free disposable plastic bags handed out at the checkout are not really free. The prices include their cost, so customers pay for the single-use bags, but they do not appear as a line item. Here’s the thing, if Walmart were to charge a bag fee for each disposable plastic bag handed out, they would likely drive a majority of their customers to bring their own reusable shopping bags.
If fewer plastic bags were handed out, that would mean Walmart could cut back on the quantities they purchase, which would save them money. They would also collect revenue in bag fees from shoppers who continue to use plastic bags, even if it would mean an extra charge. Charging a plastic bag fee would likely also increase sales of reusable bags, further helping Walmart’s bottom line.
Taking Walmart Everyday Low Prices to New Lows
Eliminating disposable plastic bags could allow Walmart to lower their already low prices even more. If they are not purchasing these bags to hand out, there would no longer be a reason to work this expense into their pricing structure. They could cut their prices to incentivize shoppers further. This means more customers may stop in to do their shopping. Existing customers who maybe get some items at Walmart, but go to competitors for other things, make the switch and do all of their shopping at Walmart.
Walmart Canada is Being the Change
Walmart Canada implemented a 5-cent per bag fee effective on February 9, 2016. This measure is intended to help the company achieve its goal of going zero waste. To date, specifics about how many disposable plastic bags have been given out and the total money raised by the fee has not been made available.
If this bag fee works for Walmart Canada, that will be a good indicator that it will also work in other stores. We hope Walmart in the U.S. keeps an eye on what is happening with the California bag ban and at the stores in Canada and considers implementing a similar fee here.
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