Wal-Mart sets goal to improve appliance efficiency

Wal-Mart has set a goal to increase the efficiency of the most energy intensive appliances sold at its stores by 25% within three years.

Lee Scott, Wal-Mart president and CEO, made the announcement to 7,000 store managers last week.

“We do not know exactly how we will get there.  We do not even know if our suppliers can make items like hair dryers use 25% less energy.  But we do know that our approach works – to partner with suppliers, to help customers make better decisions, and to use our business model to drive out waste,” Scott said in prepared remarks.

Wal-Mart intends to motivate customers to buy energy efficient appliances by charging “everyday low prices” for the products.

“Price is perhaps the most important factor in helping motivate consumers to make the right decision.  Unfortunately, energy efficient products – like environmentally friendly products – often come at a premium.  We think we can change this.  At Wal-Mart, we do not want our customers to have to choose between products they can afford and energy efficient products,” he said.

The plan calls for selling only Energy Star-rated air conditioners in US stores, and flat-panel televisions that are 30% more energy efficient than current models.  The energy savings on televisions alone would be enough to power more than 53,000 single-family homes for an entire year, Scott said.

Wal-Mart also is working toward doubling the sale of products that help make homes more energy efficient.  “By doubling the amount of weather stripping that we sell, we can save customers $285 million in heating costs and save the energy equivalent of over 4,000 tanker trucks of gasoline. This is a huge opportunity.”

In addition, Scott said he envisions Wal-Mart playing a yet-to-be defined role in spurring the market for plug-in hybrid cars.

“I have been talking with the heads of the major auto manufacturers over the past few weeks.  And I have been asking them if there is a place for Wal-Mart in the hybrid electric or plug-in electric car market, so our customers do not have to spend so much money filling up their gas tanks.  Maybe there isn’t room for Wal-Mart in this right now.  But something tells me that there may be some role for us in the future, and we are going to continue taking a look at this,” he said.
 
Scott added, “Imagine your customers pulling into your parking lot, and seeing wind turbines and solar panels, and being able to charge their cars while they shop.  I think that would make them feel good about shopping at your stores.  It would also make them feel good if they could save money in the process.  What if we fed the power generated by those wind turbines and solar powers back into the electrical grid?  Just imagine the impact of our customers being able to buy eco-friendly energy at the unbeatable Wal-Mart price.”

Wal-Mart immediately rolled back prices on air filters for heating and cooling systems in a show of its intentions. The filters, which need to be changed frequently to guarantee that the systems operate efficiently, are now $10.88, down from $12.88.