Sustainability

Walmart’s Commitment to Solar

Walmart’s commitment to solar energy is nearly a decade old — a decision we made for many reasons. For one, using the power of the sun and installing solar panels lowers our energy costs and is clearly good for the environment, but another benefit is that it keeps prices low for our customers.

Since 2007, when we made a formal commitment to being more energy efficient, we have taken significant steps toward making that a reality, including solar installations and even eco-roofs. But we’re always looking to build on that success, so we’ve continued our goal setting in this area.

This week we signed on to the Department of Energy’s Better Building’s Initiative, which commits to reducing the energy intensity of Walmart U.S. buildings by 20 percent versus 2010 by 2020. And today we announced that Walmart will double the number of solar energy projects in the U.S. and Puerto Rico by 2020.

Our commitment to solar has paid off. In fact, since our first on-site solar installation in the U.S. in 2007 we have become the No. 1 commercial solar energy user according to the Solar Energy Industry Association and are now recognized as the largest on-site renewable energy user in America by the EPA’s Green Power Partnership. Our efforts have even been publicly recognized by President Bill Clinton. And today, of course, President Obama made a visit to a Walmart in Mountain View, Calif. to highlight the importance of energy efficiency and renewable energy in keeping America strong.

At the end of 2013, we had more than 335 renewable energy projects in operation or under development across our global portfolio. These projects provide our facilities with more than 2.2 billion kilowatt hours (kWh) of renewable electricity annually. Together with renewable electricity from the grid, 24.2 percent of our electricity needs globally are supplied by renewable sources.

What’s more is that last year we committed to driving the production or procurement of 7 billion kWh of renewable energy globally by Dec. 31, 2020. We’re already 32 percent of the way there, but we’re not finished. And we’re doing even more to meet that goal, including:

  • Walmart U.S. installed 240 solar projects through 2013, saving approximately $4.8 million. Walmart U.S. grew its number of fuel-cell sites to 42, each site providing 40 percent to 60 percent of store needs. These new systems bring us closer to our anticipated total of more than 1,000 projects worldwide.
  • Walmart’s first 1 MW wind turbine completed its first year of operation. It provides approximately 15 percent to 20 percent of the total electricity required by our Red Bluff Distribution Center in California.
  • Walmart Mexico broke ground on four large-scale renewable energy projects that will be completed in 2014. Combined, these projects will add 252 megawatts (MW) of clean energy. Walmart Mexico is on track to supply 60 percent of its energy demand needs for 1,233 stores through renewable energy by the end of 2014. 
  • Walmart Brazil entered a bid to purchase green power on the open market sourced from sugar mill, hydropower and small hydropower plants. To date, 84 stores are being served by this clean energy, with an expected savings of 11.5 percent on each store’s energy bill. Eventually, 97 stores will be served through this green power bid.

Our work in renewable energy is an ongoing process, one that we are fully committed to because the future of the environment depends on it—and our customers deserve it.
 For more details on our approach to renewable energy, please read our white paper on the topic.

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Business

A New Angle on Our Fresh Produce Departments

As a store manager, nothing compares to the thrill of actually seeing or hearing a customer react to a change I’ve worked with a team of associates to bring to life. In fact, since the remodel of our store earlier this year, I’ve purposely spent more time in our fresh produce department, just to watch and listen.

My store was among the first of our remodeled locations to unveil Walmart’s new Fresh Angle approach, which places fresh, unpackaged vegetables front and center. When you walk into our store today, you're intentionally greeted with a farmer’s market vibe. We’ve lowered the profile of our fixtures so customers can see across the entire department. We’ve captured the field-to-store experience, and in a way that’s easier and more enjoyable for customers to navigate. But – while the positive feedback on the visual aspect of the program represents a victory in itself – that barely scratches the surface of what Fresh Angle is all about.

The fact is, “looking” fresh only goes so far. The key is making sure the fresh produce our customers buy in our stores continues to look and taste the same when they pull it out of the fridge three days later. That’s the real driving force behind this new approach, which has been rolled out at 180 stores to date and more than 3,000 by the end of the year.

In addition to improving the sight lines across our produce department, we’ve reconfigured our fixtures to look fuller while holding fewer products. At the same time, we’ve maintained our broad assortment.

Why fewer products? Pressure and time go a long way in determining the freshness of an item. By reducing the depth of our produce fixtures, our avocados are no longer stacked four or five deep. Same goes for tomatoes and so many other popular fresh items. By reducing the depth of our fixtures, we’ve reduced the volume of product we’re holding on the sales floor at any given time. And, given the clock on freshness begins ticking the moment fresh fruit and vegetables are picked, we’re essentially passing increased freshness on to our customers – and working even harder to reduce food waste.

It was eye-opening how a department could look so abundant with less. It’s helping us reduce throwaways and operate more efficiently across the board. We’ve also received positive customer feedback at stores where Fresh Angle has been implemented.

Customers want fresher products so they can enjoy them longer. With Fresh Angle, we’ve developed a vehicle to deliver on those expectations. The impact has been immediate – and it’s growing. It just makes sense.

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Sustainability

One ‘Perfect’ Solution for Saving Ugly Apples

As the world’s largest grocer, Walmart knows food waste is a big issue.

For more than a decade, we’ve been doing our part by changing the way we do business and working to create a zero waste future, especially where fresh produce is concerned. Last week, my colleague Frank Yiannas wrote about our dedication to reducing food waste in the U.S., outlining our progress and the ways we’re making a difference with innovative date labeling, as well as the Spuglies potato launch and our wonky veg program at Asda.

Now, we’re excited to announce that after months of discussion, a brand of apples from Washington state, called “I’m Perfect,” will make its debut in Walmart stores this week. One of the challenges growers have is that Mother Nature can throw a curveball such as a hailstorm, high winds or even a string of very hot sunny days, which can damage the exterior finish of fruits. While the texture and flavor remain perfect, the exterior damage usually renders these fruits unsellable in the fresh market because they fail to meet traditional grade standards. We’re proud to be the first retailer to bring these apples to you.

These “beautifully imperfect” apples will eventually be available in 12 varieties from Granny Smith to Red Delicious. For now, about 300 stores in Florida will offer the apples in five-pound bags.

From helping our growers find alternate uses for these less than gorgeous fruits, such as making apple juice or selling small apples for lunch kits, we are committed to identifying options to get less than perfect fruit to market and thereby reduce this type of food waste.

What excites me the most about the launch of these “I’m Perfect” apples is that it is a result of working with our suppliers to build the infrastructure and processes that create a new home for perfectly imperfect produce. Because ugly produce can occur unexpectedly in any growing season or crop, we want to have the systems in place to offer this type of produce whenever it may occur.

The “I’m Perfect” product is just one example of the ways we are aiming to reduce food waste, supporting growers, and providing value to our customers.

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Heritage

Remembering Don Soderquist, Retired Walmart COO

Walmart’s culture – defined by our core values of service, respect and excellence – has always been key to our success.

That culture lost a very significant champion this week, as Don Soderquist, a key member of our company’s leadership team until his retirement in 2002, passed away.

Don joined Walmart in 1980 as executive vice president of administration and logistics and was a driving force behind our company’s growth. In fact, he led us through a period of significant progress from 1988 to 1999 when he served as vice chairman and chief operating officer. During his tenure, the company’s revenue increased from $1 billion to more than $200 billion.

Don epitomized the term servant leader. He was always thinking of others, provided great feedback and was encouraging to so many people. He had a deep passion for integrity, and it was Don who drafted our original core values. Don became known as the “Keeper of the Culture” after our founder, Sam Walton, passed away because he not only helped define our values – he lived out our culture and spoke passionately about it year after year. He truly believed that ordinary people could do extraordinary things when they worked together, and he taught the beliefs and values that supported that conviction for the rest of his life. Even after his retirement, he invested his time and energy into many associates who still work for the company.

After retirement, he established The Soderquist Center for Leadership and Ethics in Northwest Arkansas to provide values-focused development training to future generations of leaders. In 2005, he wrote the book “The Walmart Way” to teach others how to apply the lessons that made Walmart successful to their own lives and careers. He was also involved in numerous charitable organizations and served on several corporate boards.

Don touched so many lives here, and he will be dearly missed by his family and all of us at Walmart.

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Community

Making Room to Provide the Gift of Vision

The ability to see is personal for me because my vision began to deteriorate when I was a child.

One day, I couldn’t see the chalkboard anymore. I couldn’t read the letters. Since then, I’ve had to wear either glasses or contact lenses. So I can relate to someone who does not have the ability to see. Vision and its connection to daily function and providing for your family is significant.

My distribution center, Walmart Optical #7054, started donating warehouse space to RestoringVision – a nonprofit that helps get glasses to those in need – two years ago, and recently, RestoringVision received a massive gift of eyeglasses that they had nowhere to house. Because ours is the only optical-focused distribution center within Walmart’s supply chain, I knew we would be uniquely equipped to help.

When major donations arrived, Walmart volunteers got to work in preparing these donations for shipment around the world. As we continue to work on this, the Walmart Foundation matches our volunteer hours with donation money that is passed along to RestoringVision.

When I hear the stories of how people can now provide for their families because of the work of RestoringVision, I instantly feel a sense of pride that we are a part of that mission. Helping people live better is what we do at Walmart. The partnership that we have established with RestoringVision is one way that we are better able to achieve that goal.

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