When More Power Makes for Less Power

As the world’s largest retailer, Wal-Mart expectably has a lot of power and influence. All too often, the company has seemed to use such like a street gang bent on vanquishing potential rivals, expanding its reach, and making a fast buck. Of late, though, Wal-Mart is showing signs of changing its ways and—à la the Grinch—growing a heart. Back in November (as noted here), the company stood up to some ultra-conservative groups that took exception to the retailer’s modest support for some gay rights organizations. Now, as reported in the New York Times, Wal-Mart is taking an active role in promoting energy conservation by encouraging consumers to use more efficient lighting:

Power-Sipping Bulbs Get Backing From Wal-Mart

As a way to cut energy use, it could not be simpler. Unscrew a light bulb that uses a lot of electricity and replace it with one that uses much less.

While it sounds like a promising idea, it turns out that the long-lasting, swirl-shaped light bulbs known as compact fluorescent lamps are to the nation’s energy problem what vegetables are to its obesity epidemic: a near perfect answer, if only Americans could be persuaded to swallow them.

But now Wal-Mart Stores, the giant discount retailer, is determined to push them into at least 100 million homes. And its ambitions extend even further, spurred by a sweeping commitment from its chief executive, H. Lee Scott Jr., to reduce energy use across the country, a move that could also improve Wal-Mart’s appeal to the more affluent consumers the chain must win over to keep growing in the United States.

“The environment,� Mr. Scott said, “is begging for the Wal-Mart business model.�

It is the environmental movement’s dream: America’s biggest company, legendary for its salesmanship and influence with suppliers, encouraging 200 million shoppers to save energy.

For all its power in retailing, though, Wal-Mart is meeting plenty of resistance — from light-bulb makers, competitors and consumers. To help turn the tide, it is even reaching out to unlikely partners like Google, Home Depot and Hollywood.

A compact fluorescent has clear advantages over the widely used incandescent light — it uses 75 percent less electricity, lasts 10 times longer, produces 450 pounds fewer greenhouse gases from power plants and saves consumers $30 over the life of each bulb. But it is eight times as expensive as a traditional bulb, gives off a harsher light and has a peculiar appearance.

As a result, the bulbs have languished on store shelves for a quarter century; only 6 percent of households use the bulbs today.

Which is what makes Wal-Mart’s goal so wildly ambitious. If it succeeds in selling 100 million compact fluorescent bulbs a year by 2008, total sales of the bulbs in the United States would increase by 50 percent, saving Americans $3 billion in electricity costs and avoiding the need to build additional power plants for the equivalent of 450,000 new homes. [full text]

One thought on “When More Power Makes for Less Power

  1. Give Wal-Mart credit for coming up with a public relations scheme that may actually contribute to the greater good. Now if they would only demonstrate the same level of concern for their employees – by complying with labor laws and providing decent wages and health benefits – as they do to improving their corporate image, I may have to reconsider my boycott of their operation.

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