CFL juggernaut rolls on
With Wal-Mart Stores’ announcement early in October that it had already surpassed its goal of selling 100 million compact fluorescent light (CFL) bulbs by the end of 2007, the home improvement industry showed that sustainability programs were more than just talk. The achievement was evidence that green means business, literally.
Neither the relative initial expense of the new bulbs nor the inconvenient fact that CFLs contain trace amounts of mercury could derail the world’s largest retailer’s ambitious effort to blow them off the shelves and into American homes, where they are saving massive amounts of energy.
“We are grateful that our customers and members have seen the economic and environmental benefits of CFLs,” said Andy Barron, Wal-Mart’s senior vp-hardlines. “With their support, we can continue to have a positive impact on the environment with energy-saving bulbs and other affordable, eco-friendly products,” he added.
The CFL goal was just one step in the company’s Sustainability 360 approach toward becoming more “green.” The company said the five states with the top CFL sales were Texas, Florida, California, Illinois and Ohio.
The Bentonville, Ark.-based retailer’s announcement came earlier this month, just prior to the Environmental Protection Agency’s Energy Star Change a Light Day, an extension of the EPA’s Change a Light pledge campaign.
Before that, Wal-Mart announced a partnership with the Carbon Disclosure Project in September to monitor the energy usage of the stores supply chain. Using the CDP measurement, the company will implement a pilot program with its suppliers to improve energy efficiency throughout the process.
“This is an important first step toward reaching our goal of removing non-renewable energy from the products Wal-Mart sells,” said John Fleming, executive vp and chief merchandising officer.
But Wal-Mart is not the only big box that’s turning its focus toward green, especially in the direction of CFLs.
Home Depot launched its Eco Options program earlier this year. The program highlights the products sold by Home Depot that are eco friendly, including woods, insecticides, programmable thermostats and CFL bulbs. The company sold more than 50 million CFL bulbs in 2006.
“CFL bulbs continue to be an important part of our light bulb transactions with sales spiking around events such as Earth Day and increases in utility costs,” said Jerry Shields, a Home Depot spokesman.
“Customers make spending decisions based on environmental impact, but they are also buying CFLs to save money,” he added.
It’s not just the big boxes that are lighting up sales with CFLs. CFL bulbs are Ace Hardware’s fastest growing category, showing a 200 percent growth in 2007, according to Santo Lee, Ace buyer for electrical. Lee added that CFLs account for 25 percent of the bulbs sold across Ace stores.
“They’re a tremendous growth for us,” he said.
Lee attributes this growth to consumers increased awareness of the product. “This is now widespread throughout the U.S.,” he said.
New home sales increase 4.8 percent
New single-family home sales increased 4.8 percent in September to an annual pace of 770,000 units, up from a downwardly revised figure of 735,000 new units in August, according to the Commerce Department.
The August figure was previously reported as 795,000, which would have meant a September decline. Sales for June and July were also revised downward — signaling that the market for new homes is weaker than previously thought.
Sears Canada earnings jump 178 percent
Toronto, Ontario–based Sears Canada reported third-quarter net earnings of C$105.2 million (US$109.4 million), a 178 percent increase over net earnings from the same quarter last year of C$37.8 million (US$39.3 million).
The company reported revenues of C$1.36 billion (US$1.42 billion), down 2.9 percent from the same quarter last year of C$1.41 billion (US$1.46 billion).
The company also reported same-store sales were down 3.9 percent for the third quarter ended Sept. 29.
The company’s earnings jumped, due mostly to $55.9 million in real estate sales for the quarter.
“The quarter had less favorable business conditions than we experienced at this time last year, most notably the unseasonably warm weather which affected our apparel categories and the improvement in the value of the Canadian dollar in relation to the U.S. dollar and the increased interest in cross-boarder shopping,” said president and CEO Dene Rogers about the decrease in sales.
Sears Canada is a multichannel retailer with a network of 196 corporate stores, 179 dealer stores and 61 home improvement showrooms.