ParknShop will from today stop automatically handing out plastic bags to customers.
Shoppers who want a bag will be asked to pay 20 cents for each one. But the levy is voluntary. If they refuse to pay, customers will be given new biodegradable bags with the message: "I'm a plastic bag, please use me responsibly."
The 222 stores will no longer use plastic bags with its classic "P" logo.
The company expects its policy to cut the number of plastic bags by 90 million in the next two years.
Making the 20-cent payment "on a voluntary basis allows people to make their own choice", said ParknShop managing director Philippe Giard. "We are driving a change; we are not making any profit out of these 20-cent contributions. It's not a question of money."
Mr Giard also believed the new policy would not deter customers.
The bag levy is part of the company's programme, "For a Better Hong Kong", which includes other measures such as the use of recycled gift-wrapping paper during festive seasons, in which customers are encouraged to pay HK$1 for each sheet of paper.
Another incentive to persuade customers not to use plastic bags is a system of giving five bonus MoneyBack points for every HK$25 spent, up to 20 points per visit.
A spokeswoman for rival chain Wellcome said its "no plastic bag days" had helped save 95 million bags over the past two years. She said Wellcome would review the effort before starting another campaign. Customers pay a voluntary 50 cents for bags at Wellcome every Tuesday.
Both ParknShop and Wellcome said they were seeking alternatives for wrapping fresh food.
The Plastic Bags Manufacturers' Association said its business had dropped by 20 to 30 per cent since the "no plastic bag day" campaign had begun.
Association spokeswoman Penny Yeung Pui-yee said: "ParknShop's decision will affect only one or two suppliers, and it will have little effect on the whole industry, but we expect business will drop by 90 per cent after the government introduces a tax on plastic bags."
Ms Yeung said the industry was facing a difficult business environment with the rising price of resources for manufacturing.
"Our members now focus more on overseas markets such as Europe where there is a huge demand for bags specially designed for putting dog faeces," she said.
Ho Ka-po, project manager of Green Sense, which started the "no plastic bag day" campaign, hailed Parkn Shop's initiative to reduce plastic bag use.
"We hope the new practice will help strengthen public awareness about using fewer plastic bags and build up a habit of using their own shopping bags," she said.
The executive director of Greener Action, Angus Ho Hon-wai, also welcomed the move.
"This is a good start, as the supermarket is now promoting environmental protection at all their branches every day by ceasing to give out free plastic bags. We hope other retail stores will follow suit."
But he was worried whether the programme would be effective, as it was voluntary. "Customers can still ask for plastic bags if they need them, and they have to pay only 20 HK cents. The fee is set even lower than what the government has proposed, which is 50 cents."
A spokesman for the Environmental Protection Department said: "The initiatives are generally in line with our policy objective, which is to avoid and reduce waste at source.
"We encourage other retailers to strengthen their waste reduction initiatives."
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