Turning Green into Gold
How retailers can implement cost-effective green practices.
By Dawn Shoemaker

Staples^®, the office supply mega-retailer, has literally seen the light. On April 7, 2009, the company reported that it improved its financial performance, not by selling more or new marketing programs, but by implementing a variety of green practices, including switching from 3-amp to 2-amp light bulbs. The company estimates that switching from 3-amp to 2-amp light bulbs will add more than $4 million to its annual bottom line.

Changing lights is not the only green practice the retailer is undertaking, nor the only one that is proving to be a significant cost savings. The company also retrofitted its delivery trucks to not go more than 60 miles per hour. This reduces diesel consumption by nearly 550,000 gallons annually, saving an estimated $1.5 million.

Staples is not alone in this green movement. Many retailers are looking into green building and operating practices, but not necessarily because it is the “right thing to do” or as a strong marketing tool. Green is now surprisingly a way to cut costs and improve the bottom line.

Historically, going “green” typically required spending a lot of money with only marginal returns — if any returns at all. Further, when the economy began to dramatically decline last September and October, many green advocates believed it would put the brakes on the environmental movement in all types of facilities and, specifically, the retail industry. After all, who is thinking about the environment when job cuts and store closings are omnipresent?

“It is true that building and operating a green facility was more costly than a conventional facility a few years back,” says Klaus Reichardt, founder and CEO of Waterless Co. Inc., and a frequent speaker and writer on green issues and water conservation. “But today, those costs are negligible and the savings, both tangible and intangible, can be substantial.”

Reichardt’s comments are borne out in a 2007 study conducted by Davis Langdon, a construction consultancy firm. The study found that the average cost for constructing a green building, as compared to a non-green building, was roughly the same. But green buildings, the survey reported, have the significant advantage of being less expensive to construct and operate since less energy and water are used. Further, green facilities are healthier for building users, which helps lower absenteeism and has an overall positive impact on worker productivity.

The Three Green Buckets

Retailers in existing facilities can take several steps to operate in a more environmentally responsible, efficient manner — and save money. In particular, the process can be divided into three key categories, sometimes referred to as the “three green buckets”:

• Items that can be completed now at very little or no additional cost are placed in bucket 1.

• Steps and programs that can be implemented over the next 1 to 2 years and may incur some costs are found in bucket 2.

• In the third bucket are “big ticket” items that will likely be costly and take more time to address.

However, before anything can be accomplished, a green audit is required. This crucial audit helps determine current status and identifies what has to be completed in order for the facility to be more environmentally responsible. According to Reichardt, in addition to the audit, retailers should also establish a green team to head the process and develop a plan for moving forward.

“The green team will determine which items go into which green bucket,” Reichardt says. “In some cases, it may be best for the environment and cost savings to tackle a more costly item. However, things are usually categorized by what can be done now at little or no expense and what may need more time and money to approach.”

Steps in Action

Many environmental experts say there is no “end point” when going green. Retailers and facility managers should always investigate new ways, procedures, and systems that can help green their locations. Below are some specific items retailers can use to make their facilities healthier and more environmentally responsible:

Bucket #1

• Green Cleaning: At this point, most experts agree that the costs and performance of green cleaning products are comparable to conventional products. Although some training is recommended, in most cases these products can be put to work immediately, replacing harsh products.

• Reuse and Recycle: Retailers typically receive many boxes and packaging items. Often these are tossed into dumpsters, but invariable these items can all be reused and recycled. Some retailers have even found creative ways to use these materials, such as for store, holiday and window displays.

• Paint: Retailers often remodel or redecorate specific areas of their stores. Managers can now select low VOC (volatile organic compound) paints that are safer for the environment and healthier for staff and customers.

Bucket #2

• Lighting: Although lighting can be costly, retailers must address it on an ongoing basis. Some retailers have simply lowered the amperage of the bulbs, such as Staples, or have reduced the number of light bulbs used in a fixture. Many fluorescent fixtures house four bulbs; reducing this to two may prove sufficient and use half the energy.

Switching to energy-saving lighting options will likely have upfront costs; however, there are long term issues to remember. In most cases, energy-saving bulbs last much longer than conventional light bulbs — as much as nine times longer. Additionally, they may use only about one-third the energy.

• Restroom Fixtures: Because restroom fixtures are moderate cost items and relatively easy to complete, many retailers place upgrading them in bucket 2. Older toilets, made before 1992, may use 3 or more gallons of water per flush. New high-efficient toilets use about 1.28 gallons per flush.

Some retailers find installing waterless urinals a water savings as well as a cost savings. This is because they typically cost less to purchase and install than conventional urinals, and because there are no flush valves, plumbing problems are minimal. The waterless systems save as much as 40,000 gallons of water per year, per urinal. However, as to saving money, managers are encouraged to ask their suppliers how much and how long the trap/cylinders last in the unit. Some systems have long lifespans and are very inexpensive — others are just the opposite.

Bucket #3

• Flooring: Bamboo, seagrass and sisal, which are derived from plants, coir, coconuts, as well as natural fibers, are used in all types of retail settings. Managers report these materials are durable, stylish, affordable, sustainable and environmentally responsible. Some carpet manufacturers are also using recycled content in conventional carpets, backing and padding.

• HVAC: Normally, HVAC systems last 10 or more years. Because of potentially high costs, it is usually best to replace them with more energy-efficient systems as needed. However, there are many options and some retail and commercial facilities have even installed geothermal systems that significantly reduce energy costs and produce no greenhouse gas emissions.

Picture an old train slowly but surely pulling out of a station, and you can see where green is today. Slowly but steadily, retailers and other facilities are becoming more environmentally responsible. Soon, if not already, every change, retrofit or new retail project will likely be designed with sustainability and the environment in mind and fortunately, this is not only good for our health and our planet, but our bottom line as well.

Dawn Shoemaker is a writer for the professional cleaning, building, hospitality and education industries. She may be reached at info@alturasolutions.com.