Moneybags

Ikea's Disposable Stick

The Swedish retail giant encourages customers to use fewer bags by charging shoppers 5 cents for each disposable bag they take. (Ikea gives the nickel to American Forests, a nonprofit.) The policy, in effect since mid-March, has already cut bag consumption in the United States by more than 50%, far more than executives had expected. "Most people feel positive about it, though a few think it's crazy," says Pernilla Spiers-Lopez, president of Ikea North America. In the United Kingdom, the policy, which started in June 2006, cut bag use by 95%. The cynical view is that every time a retailer cuts its order for disposable bags, it saves money. "But that's not the way to look at it," insists Spiers-Lopez. "In the long term, it's a good decision for our customers and for the earth." As proof that money isn't Ikea's motivation, the company reduced the price of its big blue reusable totes from 99 cents to 59 cents when the bag penalty took effect; sales are up 10 times.

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