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PDF instructions can be found here - Grocery bag pdf instructions
Cut out the 42"x 4" blue/grey strip along the bottom and the 36" x 2 inch green spotty strip down the side.
Cut the remaining fabric in half to leave you with two 40" x 16" pieces, one of these is the outer fabric and the other the lining.
Create the bag handles by folding and ironing the strip in half lengthwise, fold the edges in to the crease and then fold the entire strip and iron. Top stitch along both edges. This strip will form the two handles
Repeat for the thinner green strip. This strip will form the ties used when folding the bag.
Take the bag outer, fold over the top 1/2 inch of both shorter sides and iron. Match the two folded top edges to each other, with the fabric right side to right side.
Now to form the gusset. Fold the bottom edge up in between the layers approx.2" so you have a concertina effect. Pin and sew straight down both edges.
Before repeating this with the bag lining sew the fabric ties to the lining approx 2 inch from the side and 1 inch from the top folded edge. Again fold the bottom edge up in between the layers approx. 2" so you have a concertina effect. Pin and sew straight down both edges.
Place the lining inside the outer, match the edges and stitch around the top.
Take your handle strip and cut in two, attach each handle approx 4 inches in from the side seam, folding the cut end under so it's hidden and secure well.