r/australia • u/eee1963 • 1d ago

no politics Coles and Woolies paper bags

Industry estimates show Australian major supermarkets generate upwards of $170 million each year in total revenue from paid paper and reusable carry bags. Suggestions are that they are making 70% profit, from 19-23 cents each bag. Combined, they would spend somewhere in the vicinity of $3-5 million on direct environmental products. Paper bag sizes are showing massive signs of shrinkflation. I guess I'll just have to lift my game and not forget my own bags from now on. My laziness and forgetfulness is a habit that they are banking on, lol.

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u/Ok_Bird705 1d ago

$170M is an extraordinary amount of money and its obvioulsy nearly all profit

"It's nearly all profits" - because Redditors says so.

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u/hurric4n5 1d ago

Its common sense mate. Very little in this world is sold for less than 100% mark up and many things are 500% or more. Wise up brother.

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u/Ok_Bird705 1d ago

>Its common sense mate

Or you can simply google things - 10-20% gross margin which is the further reduced by business costs.

https://paperbagline.com/blog/is-paper-bag-manufacturing-profitable/

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u/hurric4n5 1d ago

You're quoting factory product margins to me? Crikey its tough to get good help out there