RETAIL ENVIRONMENT
Will bag levy increase store losses?
England is following the rest of the United Kingdom in introducing a 5p charge for single-use plastic bags next week in an effort to spare the environment from the billions handed out by UK supermarkets every year.
From October 5 shoppers at all supermarkets and large shops will have to use their own bags or pay the charge as part of a Government policy that aims to reduce litter and protect wildlife.
Wales, the first in the UK to adopt a charge, saw a reduction in plastic bags being handed out of 79% in the first three years, while Northern Ireland and Scotland have also seen reductions since they brought in charges.
Before the Welsh levy was introduced, there had been concern from loss prevention managers that more shoppers bringing their own bags into stores may increase incidents of theft, although to date there has been no research or anecdotal evidence to support or disprove this hypothesis.
The Government in England expects to see a reduction of up to 80% in the use of single-use carrier bags in supermarkets, and 50% on the high street in England, as well as £60 million saved in litter clean-up costs and £730 million generated for good causes.
All retailers with 250 or more full-time equivalent employees will have to charge a minimum of 5p for the bags they provide for shopping in stores and for deliveries, but the plan has prompted criticism because it will not include smaller shops or paper bags.
The initiative appears to have the support of the majority of shoppers in England, with 62% thinking it is reasonable to charge 5p for all carrier bags - a 6% increase on 2012, a poll for the Break the Bag Habit coalition of litter charities found.
But the latest survey found 51% were in support of an even more comprehensive scheme that extended the charge to all retailers.
The Association of Convenience Stores (ACS) said it was encouraging its members in England to introduce their own voluntary charging schemes wherever practical.
James Lowman, chief executive of the ACS, said: "Independent retailers in England support the introduction of a universal 5p single-use carrier bag charge, with 15% already having their own voluntary scheme in place.
"Unfortunately, the Government has chosen to exclude small businesses, creating confusion for both retailers and consumers."
Break the Bag Habit spokeswoman Samantha Harding said: "It is great that the Government has decided to introduce a bag charge in England, starting with major retailers and plastic bags. This poll shows that the appetite is there to support a more comprehensive scheme, and tackle more of the bag litter that blights our countryside, rivers, towns and seas."
The Government will not be collecting the money from the charge and its website states that they expect retailers to donate the proceeds to good causes of their choice.
The most recent figures show the number of single-use plastic bags handed out by UK supermarkets increased for the fifth year running to 8.5 billion.
In England, the number of single-use bags given out by major supermarkets reached more than 7.6 billion last year - the equivalent of 140 per person and 61,000 tonnes in total.
