Loblaw's $3 million green act

Loblaw Companies Limited
News Release

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Brampton, ON - In an effort to reduce the environmental impact of plastic shopping bags, starting April 22, 2009, Loblaw corporate and participating franchise stores will no longer provide complimentary plastic shopping bags to customers. Customers will be charged $0.05 for each requested plastic shopping bag. With this initiative Loblaw hopes to meet its stated goal of diverting 1 billion plastic shopping bags from landfills by the end of 2009.

“We are encouraged by our customers, support of reusable bag practices to reduce waste,” said Galen G. Weston, Executive Chairman, Loblaw Companies Limited. “At Loblaw we are committed to reducing the environmental impact of our operations and driving industry innovation for responsible approaches to business.”

Loblaw has invested and tested various approaches in an effort to identify best practices in reducing plastic shopping bag use. Loblaw data revealed that its stores that have been charging a nominal fee for plastic bags distribute almost 55 per cent fewer bags per $1,000 in sales than those stores that provide plastic shopping bags for free. While Loblaw stores that provide only a rebate to reward the use of reusable bags distributed approximately four per cent fewer plastic shopping bags. In addition, stores involved in the Company’s plastic bag reduction pilot program in the City of Toronto resulted in distributing approximately 75 per cent fewer plastic shopping bags per $1000 in sales. The data reveals that a nominal charge for bag strategy is the key driver behind significantly reducing plastic shopping bag use.

Loblaw is proud to be working with WWF-Canada to further encourage Canadians to demonstrate their support of the environment. For the next three years, Loblaw will provide a corporate donation and partial proceeds from the charge on plastic shopping bags from corporate stores totalling $3 million to WWF-Canada. This will support the development of WWF-Canada’s national program to help Canadians reduce their daily environmental footprint through simple planet-friendly actions. The program includes a series of targeted campaigns aimed at inspiring at least 1 million Canadians to make changes to their behaviour, such as the use of reusable bags, as first steps toward sustainable living and to demonstrate that small actions make a real difference to the environment. WWF-Canada will engage Canadians in their own communities, be they online, offline, urban or rural, and recognize those who are leading by example and celebrate personal and collective action. In the province of Quebec WWF-Canada will be working with the Quebec Environment Foundation (FQE) to administer the program.

“Loblaw has shown great leadership in helping Canadians give up plastic bags,” says Gerald Butts, President and CEO, WWF-Canada. “We are excited to work with Loblaw to help Canadians take further actions to live healthier, more sustainable lives.”

The remainder of the proceeds from the charge on plastic bags will be used to cover the cost of the Loblaw plastic shopping bag reduction program and invested back in the business in price and customer service.

Shopping with reusable bags requires a change in behaviour by customers and Canadians are supportive of making that change. Research conducted in March 2009 for Loblaw by Leger Marketing revealed that 81 per cent of Canadians support Loblaw’s plan to divert 1 billion plastic shopping bags from landfills by implementing a pay for plastic bag program.

Many efforts are being taken to assist customers in this transition, from the Bring It reminder signage campaign, in-store customer announcements; limited time promotional offers on reusable bag options and importantly a new, 33 per cent larger and heavier gauge plastic shopping bag. The new bag is now made with 15 per cent plastic waste material recovered from the manufacturing process and the thicker larger bag makes it stronger, allowing for repeat use and more items per bag.

To help customers make the transition to reusable bag options, Loblaw corporate and franchise stores are offering a variety of special limited time promotions.

From April 16 to 26, there will be a 50 per cent off promotion in all corporate and participating franchise stores on all PC® G.R.E.E.N. Reusable Shopping Bags (large and original size) and from April 22 to 30, online coupons will be available from individual Loblaw store banner websites for a free PC G.R.E.E.N. Box with a minimum $60 purchase at stores. If customers of participating stores forget their reusable bags, they can borrow Loblaw's PC G.R.E.E.N Box for a fully refundable deposit.

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