The Warehouse announce 10 cent charge on check-out bags to reduce plastic bag use

New Zealand’s largest general merchandise and apparel retailer, The Warehouse, today announces plans to charge customers 10 cents per plastic bag at the checkout; effective 20th April 2009. The initiative is in an effort to reduce unnecessary plastic bag use and to encourage the use of re-usable bags.

20 million bags will be taken out of circulation in the 12 months following April 20th, as a result of the new 10 cent charge. As for the bags that are purchased, all profits will be donated to local community groups, and bags can be returned for recycling at The Warehouse stores nationwide.

The Warehouse bags are recyclable and with the help of recycling partners such as Enviroreel Plastics (NZ) Ltd, Warehouse plastic bags are transformed into useful resources, including re-usable cable reels.

The Warehouse CEO, Ian Morrice, says, “We expect the new 10 cent charge will significantly reduce the unnecessary use of plastic bags. Overseas research, coupled with the trial recently conducted in The Warehouse stores, suggests that applying a small charge to check-out bags directly results in reduction, and our customers agree.”

Morrice adds, “A recent survey of 600 of our customers told us that 78% support the change, with 85% of those affected by the trials at The Warehouse stores, saying they would choose not to use a plastic bag once the 10 cent charge applies.”

The company anticipates customers will choose to use re-usable carry bags when shopping at The Warehouse, the same way in which people do in supermarkets.

AC Neilson research released in January this year shows that one third of New Zealanders already own a re-usable bag, and if not, customers can purchase a re-usable bag for 99 cents from The Warehouse stores nationwide.

The introduction of the new 10 cent charge follows The Warehouse’s commitment to The Packaging Accord, signed in 2004 in an effort to reduce waste, and the Make a Difference Campaign; a voluntary initiative funded by The Warehouse, Progressive Enterprises/Woolworths and Foodstuffs established in July 2007, seeking to reduce (by a fifth) the use of plastic bags by July 2009.

Ends.




Background information:

*The Warehouse Plastic Bag Trial, Research Findings, January 2008
Report available on request from Spark Activate

**Trial of Government and Industry Charge on Plastic Bags, 20 October 2008 http://www.ephc.gov.au/sites/default/files/PS_PBags_Rpt_KPMG_Final_Report_on_the_Trial_of_a_Charge_on_Plastic_Bags_20081030.pdf  

***AC Neilson Plastic Bag Report, 26 June 2009

http://www.packagingaccord.org.nz/documents/ACNeilsonresearchonplasticbaguse.pdf

The Packaging Accord:
The New Zealand Packaging Accord is a Government initiative designed to cut down on wasteful packaging. Those signing the initiative (there are now over 100 members) include the packaging & packaged goods industry, local and central government and the recycling operators – all of whom are voluntarily committing to doing what they can to reduce the proportion of packaging in NZ’s total waste stream. The Warehouse was one of the first to sign the Packaging Accord in 2004 Please refer to http://www.packagingaccord.org.nz  for more information.

Make a Difference:
The Make a Difference campaign is a voluntary initiative funded by The Warehouse, Progressive Enterprises/Woolworths and Foodstuffs. The campaign was launched in July 2007. It seeks to reduce (by a fifth) the use of plastic bags by July 2009.