Foodstuffs has dropped its 5c charge for supermarket bags at all its South Island New World supermarkets, citing "customer annoyance at the checkouts".
A small but vocal group of customers had opposed the charge since it was introduced 10 weeks ago and that had translated to some taking their business elsewhere, Foodstuffs South Island retail general manager Alan Malcolmson, of Christchurch, said yesterday.
"You've got to listen to your customers."
Wellington and Auckland New World supermarkets dropped the charge just a month after it was introduced.
Charging in the South Island ended on Tuesday, something Mr Malcolmson said Foodstuffs was disappointed about.
"Over the years, we have been bombarded by customers wanting us to reduce the number of plastic bags used in our supermarkets and introducing the charge reduced usage by 65%.
"We hope customers will continue to opt for recyclable bags, but if they choose to use plastic bags, we won't be charging them."
Two weeks ago, the company donated $50,000 from plastic bag sales to five South Island environmental projects identified by the Department of Conservation.
Mr Malcolmson said the projects would continue to be supported from Foodstuffs' funds.
Foodstuffs also operates Pak'n Save and Four Square supermarkets.
Bag charges had been accepted by their customers and would continue, Mr Malcolmson said.
Asked why Pak'n Save customers were happy to pay for bags but New World customers were not, he said he did not know.
"We could analyse that all afternoon."
Green Party co-leader Russel Norman is renewing calls for the Government to introduce a mandatory levy on supermarket plastic bags following the decision, NZPA reported.
Dr Norman said he was surprised at how easily the supermarket had folded to public pressure.
"They should have had the gumption to stick with it."