Tag Archives: Profit Center

Why are Grocers For Plastic Bag Bans?

English: This is a paper bag from Victory Supe...
English: This is a paper bag from Victory Supermarkets (Photo credit: Wikipedia)

Have you ever wondered why grocery stores are in support of a plastic bag ban?  Well, I have.  I wondered if they supported the bag ban in order to cozy up to local officials?  Or was it because they wanted to be good citizens?  Or, is there some kind of financial incentive?

Before a bag ban, stores purchased plastic and paper bags and distributed these bags at checkout for “free”.  They really weren’t free, the retailer purchased and paid for the bags and passed the cost to you in the form of higher retail prices.  Plastic bags cost less than 2 cents each and paper bags from 5 to 8 cents each in bulk quantities.  The cost of plastic and paper bags is considered an overhead cost or an indirect cost and is indirectly paid for by customers. Continue reading Why are Grocers For Plastic Bag Bans?