STORES Magazine - December 2008 - (Page G5)

A Special Report Sponsored by expenditures that have made green programs a top priority for 2009. Energy experts say this new sense of urgency around sustainability could not have come at a more appropriate time. Fuel prices may have declined from their record highs, but the cost of heating oil and electricity continue to soar. Energy efficiency remains the quickest, emerged as a role model, with CEO Sir Terry Leahy putting forth his intent to “create a mass movement in green consumption” by making it easier and more affordable for customers to buy green products. Tesco’s strategy consists of greening the company’s operations and supply chain and empowering customers to make greener purchasing decisions. Earlier this year, the chain began labeling some 70,000 products to reflect the amount of carbon released in their production, cheapest and cleanest solution for addressing demand and mitigating climate change. This special section, sponsored by IBM, marks the official launch of monthly coverage of this burgeoning topic in STORES Magazine. As you turn the pages, you’ll read about some of the retail companies that are taking a leadership role in their approach to sustainability. In some instances, the spotlight is on renewable sources of energy; others have put the emphasis on recycling or the reuse of reclaimed materials in store construction. This is by no means a definitive list. It would have been impossible, for example, to feature the efforts of The Home Depot on a single page. Since Earth Day 1990, the Atlantabased home improvement retailer has worked to bring shoppers alternative, green products. In 2007, the Home Depot Foundation committed to invest $100 million over the next decade to build more than 100,000 affordable “green” homes and plant three million trees. Similarly, it would be difficult to capture Tesco’s efforts around sustainability in a brief write up. The U.K. supermarket retailer has WWW.STORES.ORG transportation and consumption. At its U.S. Fresh & Easy Neighborhood Markets, the goal is to simplify green purchasing decisions by offering eco-friendly products at budget prices. These items included rechargeable batteries, reusable plates and cutlery and energy efficient light bulbs. Just in the last six weeks there has been a flurry of green news reported about retailers. J.C. Penney Company recently broke ground on a store in Fairview, Texas, that is expected to use 41 percent less energy than similar-sized stores. Recycled construction materials are being used and plumbing fixtures will reduce water consumption by 20 percent. H-E-B opened a supermarket in the Houston area last month that has already been awarded LEED certification from the U.S. Green Building Council for its use of recycled materials and its commitment to conserving resources. With energy consumption expected to double in five years and most costs continuing to soar, the time for retailers to address green programs across all aspects of their business is now. Isn’t it interesting that green is used as a symbol to represent both the environment and money? And how appropriate! Indeed, the convergence of economic pressure, consumer interest and environmental factors is forcing retailers to take notice and adapt processes, policies and products in order to become greener – in both senses of the term. They must continue to make money and grow in challenging economic times, where energy prices fluctuate wildly and become an ever-more-important part of operating costs, and respond to consumer demand (and their own sense of responsibility) to care for the environment. The breadth of retailers featured in this section demonstrates that the entire industry is beginning to take strong steps to understand its own impact on the environment, and then to reduce it – and with it, the costs associated with lighting stores, running freezers and data centers, manufacturing and transDr. Françoise LeGoues porting goods, etc. IT is at the core of all these efforts, and obtaining the right data, analyzing and optimizing it are often the most difficult parts of any “green” project. That’s one reason IBM is proud to be sponsoring this special section of STORES. At IBM, we have built on our long history of environmental stewardship to develop a broad set of offerings that help retailers become greener. From understanding, managing and reducing the retailer’s overall carbon footprint, to minimizing the energy consumption in stores and the supply chain to our leadership position in energy efficient servers, POS and data centers, we help “green” all aspects of the retailer’s operations. And that’s good for the environment, for talking to consumers who care about it — and for reducing costs. So, on behalf of IBM, I am thrilled to welcome you to this green section of STORES. We hope it will lead to even larger adoption of a green agenda by the industry, to growth, to more loyal consumers and to a better world. Dr. Françoise LeGoues Vice President and CTO for Retail, IBM STORES DECEMBER 2008 G5 http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - December 2008

STORES Magazine - December 2008 Contents Executive Editor's Page President's Page Wrap Rage Unraveled What Shoppers Think Courting a Comeback 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Cover Story: Navigating the Road Ahead Website Strategy Concept2Watch Online Customer Service International Marketing Green Retailing Online Merchandising Signage Operations Online Strategies Pricing Strategy Kiosks RFID Human Resources Loeb Retail Letter ARTS Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - December 2008

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