Emma Murphy

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Woolies sales dropping in wake of plastic bag ban

2 min read

“The time for customers to get used to the ban had been greater than any of us had thought.”

The big bag ban has turned out to be more controversial than whether you should put tomato sauce in the fridge or the cupboard. So, it’s not surprising to hear that supermarkets are starting to see a few negative results since the ban was introduced.

On Monday, Woolworths announced that their sales growth is down 3.1% for the first quarter of the 2018-2019 financial year with the supermarket giant pointing fingers at the plastic bag ban for its negative performance.  

In a statement made by Woolworths group chief executive Brand Banducci, it was revealed that the drop in sales could be attributed to “customers adjusting to the phasing-out of single-use plastic bags” as many people are choosing to buy less to avoid having to purchase 15c bags.

“The impact and the time for customers to get used (to the ban) has been greater than any of us had thought,” Banducci stated. “It had been a more painful adjustment than we thought.”

In the same statement, Woolworths also blamed Coles wildly successful Little Shop promotion, fresh produce deflation, and the cycling of their Earn and Learn program.

However, Banducci went on to say that the company expects sales to increase over the next six months.

 

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Written by Kate Stevens

Image: Getty