STORES Magazine - February 2008 - (Page 66) GREEN RETAILING Star Treatment Efforts to conserve energy paying off for JCPenney BY LAURI GIESEN R etailers generally don’t win awards for energy conservation as the result of one or two projects or a handful of minor operational changes. Such honors typically come after an extensive, cumulative series of efforts. Such was the case at JCPenney: four of its stores in Washington State were recently singled out as the first retail buildings to earn the Energy Star designation for energy efficiency and environmental performance from the Environmental Protection Agency. Compared with similar retail stores nationally, the four JCPenney locations collectively spend nearly $250,000 less on energy and emit three million fewer pounds of carbon dioxide per year — equal to the greenhouse gas emissions associated with the electricity use of nearly 200 homes. In addition to these four stores, company executives say other JCPenney locations have made similar conservation strides and are also in the process of becoming EPA-certified. EPA has been awarding Energy Star labels to office buildings, schools and other facilities since 1992, but retail establishments only became eligible last year. In order to qualify for certification, stores have to rate in the top 25 percent of similar retail buildings nationally. On average, the four Washington stores use about 35 percent less energy than comparable retail stores. JCPenney collects daily consumption data for participating stores in Washington State. Retail establishments can play a crucial role in lowering energy consumption and carbon dioxide emissions. The nearly five million retail buildings in the United States account for the largest energy bills within the commercial building sector and are responsible for the second-largest percent of greenhouse gas emissions among commercial buildings, according to the EPA. Like all JCPenney stores, those in Washington participated in the company’s Monthly Utility Mania (MUM) program, which began in spring 2004 as March Utility Mania. Through the program, stores in each region with the highest energy savings for the month had their energy costs taken off the balance sheet when determining store profitability for the purposes of awarding bonuses. Employees were also treated to special dinners and parties and had their break rooms remodeled with energy-efficient appliances. Runner-up stores received a 25 percent reduction in balance-sheet energy costs. JCPenney continued the MUM pro- gram in May 2005; during that month, the chain estimated it saved nearly eight million kilowatts of energy — or about $600,000 in utility payments. The company shifted its focus to yearround energy conservation in 2006, though much emphasis remained on promoting employee efforts to reduce energy consumption. Awards were given to associates offering suggestions for ways to save energy, as well as to those who have made strong strides in energy reduction. Three of the four Washington stores, as well as eight other JCPenney locations, have taken the MUM program an extra step by using “advanced meters.” Working with local utility companies, JCPenney collects daily consumption data for the participating stores. That information arrives at the store manager’s desk the next day, says Rob Keller, director of energy management services for JCPenney. “We can plot out our stores’ energy consumption so that store managers can view energy consumption for every 15WWW.STORES.ORG 66 STORES / FEBRUARY 2008 http://WWW.STORES.ORG
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