AOL Money & Finance

The Wal-Mart Weekly: The elimination of plastic shopping bags

More

Welcome to the 78th installment of The Wal-Mart Weekly, a column dedicated to bringing you insight, wit, facts, results, opinions, and just a bit of everything else when it comes to a very hot topic these days: Wal-Mart.

This week, let's take a look at a major initiative by Wal-Mart Stores Inc. (NYSE: WMT) to cut down on the amount of plastic shopping bags it provides. Wal-Mart has made itself part of the "green" movement in recent years, from being the leader in sales of CFL-type lighting to natural-gas powered fleet vehicles to the sale of items made from recycled materials.

But still, it doles out tens of millions (that's a conservative estimate) of plastic bags every single month, most of which probably end up in landfills. In my area, plastic bags are not accepted as recycled even though there is the recycling mark on them. In some counties, only specific kinds of plastic are accepted for recycling. Thus, just making something recyclable does not mean it will be or can be. How should Wal-Mart assist in this effort? Read on.



Taking the lead

Instead of handing out gobs and gobs of plastic bags to every consumer with more than a handful of purchases, how about Wal-Mart supplying customers with five free reusable shopping bags? Sure, customers could purchase more (and I've seen customers buy many bags), but if Wal-Mart really wants to get serious about helping the environment, giving away reusable bags make sense. The bean counters will immediately say that giving five free bags to millions of Wal-Mart customers would be a huge expense. Thus is true. But, let's look beyond that.

First of all, these bags would be branded with the Wal-Mart logo. It's hard to imagine folks going to Wal-Mart for their five free bags and then using them at the competition. Sure, this will happen -- but remember Wal-Mart, you're basically getting a huge advertising boost at the same time. Think about it -- you have perhaps a million customers (again, a conservative estimate) bringing your branded bags anywhere they shop for groceries or other goods. Sounds like a better deal than any viral marketing I can possibly imagine. In other words, so what if your customers are not always shopping Wal-Mart stores? They are basically wearing a walking billboard with your brand on it anywhere else they go (think Target, Publix, Kroger, etc.).

Really making a dent

The retailer said last week that it wants to slash its plastic bag waste by a third globally as the year 2013 approaches. That's pretty quick all things considered. Wal-Mart's plan here is to cut nine billion bags from its global stores each year while reducing global waste annually by 135 million pounds. That is a great plan -- I only hope it works. Part of this plan really dies need to include sharply redirecting regular Wal-Mart shoppers to use some kind of bag that 1) is not thrown away after a single use, 2) can be reused as many times as needed and 3) is made from recycled material itself.

Matt Kissler with the sustainability department of Wal-Mart told Reuters, "If we can encourage consumers to change their behavior, just one bag at a time, we believe real progress can be made toward our goal of creating zero waste." That's true, Matt -- and the first step to "zero waste" would be to give out a certain number of free, reusable shopping bags for whatever time period is needed and kick-start the process to zero waste as soon as possible.

Wal-Mart's U.S. locations will begin selling a $0.50 reusable bag starting next month in addition to its baggers being trained to pack shopping bags more efficiently. We can almost toss out the "pack more bags efficiently" right off the bat, since it's hard to imagine entry-level Wal-Mart workers caring a single bit about how bags are packed. That leaves this $0.50 reusable bag as the single agent of change in getting Wal-Mart to its goal of reducing waste by 135 million pounds per year.

Hint: give the first five bags away for free to every customer for a period of at least three months. Those bags are $0.50 each, but their costs is probably half that. That is: subsidize these bags at an estimated $1.25 for five bags (half of $2.50). Immediately reduce by half those plastic bags and scale those down within half a year. 2013 sounds like an eternity when you rapidly accelerate the process, yes? It can be done -- anything like this can be done.

Ramping up

The Earth Resource Foundation agrees with me. Stephanie Barger with that California-based group told Reuters that "We applaud their efforts, but 33 percent by 2013 is not a very aggressive goal. It's doable ... by 2010 or 2009." She is dead right. This is something that should not take more than two years at the most. With the standard plastic bag taking up to 1,000 years to fully disintegrate when ending up in a landfill, the process could start now and perhaps be complete by early 2010.

To the naysayers: let's see if Wal-Mart can put its money where its mouth is and really make an impact on the environment by eliminating plastic bags from its stores by 2010. Market this program just like a Black Friday sale on $10 DVD players and get your shoppers energized. At the same time, be known as the retailing leader when it comes to really making an eco-impact beyond products that are purchased (like light bulbs and recycled-rubber floor mats). Take any steam away from the competition and install yourself as the retailer that turned a part of its reputation around from a no-holds-barred retailing 800-lb. gorilla into one that is sensitive to the needs of the planet.

In 1,000 years, none of us will be here and Wal-Mart won't exist. Yet, these millions of plastic bags will be here in some shape or form. Let's stop them now -- not in 2013. Stay tuned right here next week for another edition of The Wal-Mart Weekly. Until then, make sure to recycle all you can this week.

Reader Comments (Page 1 of 1)

Add your comments

Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments.

When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.

To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.

Symbol Lookup
IndexesChangePrice
DJIA+38.5510,472.26
NASDAQ+7.892,177.07
S&P 500+4.511,110.16

Last updated: November 25, 2009: 12:02 PM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

WalletPop Headlines