February 01: Ang Mo, Hao Mart Exit Bag Charge; ESG, Retail Margins in Focus
Ang Mo Supermarket bag charge is back in focus after Singapore’s NEA deregistered Ang Mo Supermarket and Hao Mart from the disposable bag charge scheme. Both chains fell below the S$100 million annual revenue threshold, so they are no longer required to collect at least S$0.05 per bag. They can still choose to charge. Investors should watch how this move affects ESG optics, costs, and shopper traffic versus larger chains that must keep charging under the Resource Sustainability Act.
NEA step and what it means for grocers
NEA deregistered the two grocers because their annual turnover fell below S$100 million, the level that triggers mandatory charges under the Resource Sustainability Act. That removes the legal requirement to collect at least S$0.05 per disposable bag. The change puts Ang Mo Supermarket bag charge decisions back at store level, with management weighing customer expectations, costs, and brand positioning. Details were reported by local media source.
Without the mandate, both chains can set their own practice. Some outlets may stop charging to boost convenience, while others may keep a fee or donate it. For Hao Mart plastic bags, messaging at entrance and POS will matter. Dropping the Ang Mo Supermarket bag charge could draw price-sensitive shoppers, but it can also invite scrutiny from sustainability-minded customers.
ESG outcomes and consumer behavior signals
NEA has said the large-supermarket charge cut carrier-bag use by about 70% to 80%, with more than S$6 million collected in 2024 for environmental causes. These results set a high bar for any policy change and shape public expectations. Even if smaller chains exit, consumers may keep bringing reusables due to habit formation and clear communications from stores source.
If stores end fees, they should present credible waste-reduction steps to keep trust. Options include promoting reusable bags, offering bag buy-backs, or running donation days that keep impact visible. Clear reporting helps, especially as larger chains continue charging. A thoughtful Ang Mo Supermarket bag charge policy, even when optional, can support loyalty and reduce reputational risk.
Margin math and competitive dynamics to watch
Bag costs look small per transaction, but they accumulate with high footfall. A fee can offset those costs or fund green programs. Removing it may lift basket conversion and speed up checkout. For investors, the key is whether lower friction and potential volume gains outweigh the loss of fee revenue and the expense of providing more bags.
Larger chains remain in the scheme, which preserves a price and optics gap. Smaller grocers could benefit at the margin if shoppers prefer free bags for quick trips. Yet big chains can respond with promotions, loyalty perks, or charity-linked fees. Tracking assortment, footfall, and any renewed Ang Mo Supermarket bag charge will show who holds share.
Final Thoughts
For investors, the key signal is how policy thresholds shape on-the-ground retail. NEA deregistration moved the Ang Mo Supermarket bag charge from a legal requirement to a business choice. That choice influences costs, queue times, and shopper sentiment. We expect stores to test formats: some may keep a small fee tied to donations, others may drop it and push reusables. Watch store notices, receipt lines, and basket sizes over February. Also monitor NEA updates, as any change to the S$100 million bar would reset incentives. The broader ESG trend still favors waste reduction, so grocers that match convenience with credible reporting should retain trust while protecting margins.
FAQs
What changed for Ang Mo Supermarket and Hao Mart?
NEA deregistered both chains from the disposable bag charge scheme after their annual turnover fell below S$100 million. They no longer must collect at least S$0.05 per bag, but they can still choose to charge or donate proceeds. Store-level signs and receipts should show their current policy.
Will the bag fee return if revenue grows again?
If a chain’s turnover rises above S$100 million in a future assessment, it could again be subject to the requirement to charge for disposable bags under NEA’s scheme. Investors should watch official NEA announcements and company notices for any re-registration updates and timing details.
How might this affect ESG perceptions?
Ending fees may lift convenience but can raise questions about waste reduction. Clear communication, reusable-bag promotions, or charity-linked charges can protect credibility. Consistent reporting and visible in-store nudges help maintain trust with sustainability-minded shoppers while keeping everyday operations simple.
What should investors track over the next month?
Monitor store signage, checkout scripts, and receipt lines to see if charges continue or pause. Watch for changes in footfall, basket size, and promotional activity. Keep an eye on NEA guidance and any comments from larger chains that remain in the scheme, as competitive responses may follow.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
