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Dubai: Now that single-use plastic bags have surcharges in Dubai and Abu Dhabi, will retailers start thinking about bringing back paper bags?
Paper bags have become the choice of specialty retailers, as is the case with mass-market furniture brand IKEA and burger giant McDonald’s. For these companies, using paper is an extension of what they do in their global network.
Some of the largest local retailers are also considering a full or partial plastic-to-paper switch. However, such a move would come with some serious costs, which is why retailers won’t make any hasty decisions.
As a first step, we contacted local suppliers (non-plastic bags). But we are also exploring alternatives around the world to find the right source and long-term solutions.
– Mark Laurent, GMG
“The introduction of paper bags is under consideration, but we need to see how we can do that without passing some of the cost on to shoppers,” said a senior official at a leading supermarket chain. “Shoppers may not be ready to pay extra when inflation has already boosted consumer staples.”
Are you the kind of person who brings your own reusable bag? Or will you pick one up at the store?
Image source: provided
Are you the kind of person who brings your own reusable bag? Or will you pick one up at the store?
Image source: provided
Also, supermarkets are in the business of high volume and thin margins. Marc Laurent is President of GMG Consumer – Retail, which recently acquired the Giant supermarket in the UAE. He said: “We are currently offering the paper bag option for free in some Géant hypermarkets/supermarkets. But in our upcoming Monoprix store in Gardenia, we will only be using paper, which will definitely increase the cost.
“Géant won’t stop offering plastic bags as customer convenience remains a top priority. However, we will be charging 25 Phil per bag, which will definitely encourage regular shoppers to bring their own bags. We will provide customers at checkout Offers options to buy cost-effective non-plastic alternatives, including jute bags, woven bags and paper bags. We already offer paper bags in the produce section.” Bringing your own consumer psychology means that most shoppers bring Head to the supermarket with a reusable tote bag. Shoppers are starting to pay attention to cost, and 25 Phils per bag now seems like an unnecessary cost. Will carrying a reusable bag become a habit?
Retail industry sources said the changes were most pronounced in visits to grocery stores and supermarkets. As for other retail categories, consumers may be less discerning.
With the retailing of tech and electronics, products are getting smaller, which also helps reduce plastic elements on bags.
Ashish Panjabi, chief operating officer of Jacky’s Electronics, said each category will have to come up with its own solution to move away from ditching plastic bags entirely. “For electronics, we use thicker grammage bags, so the bags are considered reusable,” he said. “The economic sectors of Abu Dhabi and Dubai have clarified this – so electronics retailers with the bags can continue to operate.
“In any case, as most of the electronics we use come in smaller packages, the size of the bags we use has also changed. We used to have three sizes – small, medium and extra large.
Ashish Punjabi
We haven’t ruled out switching to paper bags – but that’s also about the weight of the product and making sure they don’t damage the bag with sharp edges. Paper doesn’t always work well due to its weight. We’ve been running various prototypes.
– Ashish Panjabi of Jacky’s
“Today, we don’t even stock oversized bags because nothing we sell doesn’t need one. As more appliances and gadgets can fit into a small bag, the percentage of medium sizes is decreasing. So , our plastic consumption has been decreasing as the packaging becomes more compact.”
Catering companies feel the cost heat
Food and beverage operators and couriers will need to readjust their costs when sourcing plastic bag needs. “On average, we use close to 70,000 single-use plastic orders per month,” said Rohith Muralya, SFC Group’s director of concept culinary. Most F&B operators will have to procure higher prices and inevitably pass this on to their customers.
“Our industry has forced us to adapt, and we’ve had a lot of feedback from customers about the early adoption of paper bags.”
Rohit Mulalia
The cumulative cost impact of these policy changes increased our packaging costs by approximately 24%. The restaurant space is razor-thin, and this shift will increase the cost of goods sold, which will be pushed down to customers by many operators in the industry.
– Rohith Muralya, Director of Concept Gastronomy, SFC Group
Many F&B businesses feel that the time is ripe for more changes after experiencing consumers’ increasing health and environmental awareness. “We are considering ditching single-use plastics and have focused on using paper bags for delivery and takeaway in our stores,” said Deepak Bhatia, CEO of Snowbell Restaurant Management Group. Not plastic bottles. Also, we are remodeling the back of the house to eliminate sources of plastic. Using steel containers and cutlery instead of plastic. “For an organization as large as ours, such a change has come at a huge cost . We expect a variable cost of 20% to start with, but gradually, it should decrease. “
Deepak Bhatia
We are already in talks with suppliers who have edible cutlery and biodegradable options.Cane cutlery for delivery and takeaway has been ordered, as well as paper straws and edible straws instead of plastic
– Deepak Bhatia, CEO of Snow Bell Restaurant Management Group
In any shift in pursuit of the greater good, there is a cost element. If, as Bhatia says, retailers and F&B operators can cut the extra costs, it’s all a win-win. The environment also wins…
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