Saturday, October 04, 2008

That'll be a penny please, sir.

So, WH Smith have followed in the example of Marks and Spencer by charging for carrier bags. Although for some reason Smith's bags are 4p cheaper than M&S. Still, at least we know which company offers value for money.

There will be some that praise the decision of various retail outlets to charge for carrier bags, and praise this as an increasingly common example of companies becoming environmentally responsible. Now, I hate to rain on anyone's parade, but the reason why shops have started to charge for bags isn't because they have been won over to the environmental cause. No - the reason why they have done this is to make money.

Think about it. By pursuing this policy - a muted nod in the direction of the environmental movement - large companies may be able to win over some people who might not normally shop at their stores. Let's be honest, the Friends of Swampy probably don't spend a lot of time and money at M&S normally. The charging for carrier bags may help to make more money because it may attract new customers.

Furthermore, as someone who was a retail manager for over four years, I can tell you that carrier bags cost money. Believe it or not, carrier bags don't appear free of charge in M&S and co. They are bought - and whilst the cost is not debilitating, it still represents a substantial cost that hits the bottom line of the P&L. By reducing the number of people who want bags, you reduce this cost - and make your business more profitable. Also, you reduce the costs of storing the plastic bags - 200 boxes of bags takes up a lot of space in a store warehouse - space that could be used to increase product availability and therefore increase the amount of sales.

So, by charging for carrier bags, stores may win new customers and will reduce costs. It isn't so much surprising that some stores have stated charging for bags; what I find more amazing is that it has taken them so long to do so, and that more haven't jumped on this bandwagon.

Still, at least WH Smith have managed to do something positive by charging one pence for carrier bags. They have managed to find a use for the increasingly redundant 1p coin. And that should be a blessing to anyone who wants to spend their pennies on second rate carrier bags in a second rate newsagent who would have gone out of business a long time ago has they not got such an unlikely stranglehold on this nation's station platforms.

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