Kroger continues to work aggressively in all areas of our business to reduce energy consumption.
Since 2000, we have reduced overall energy consumption in our stores by 31%. That is enough electricity to power every single-family home in Columbus, Ohio for one year.
Company-wide, including all of our facilities, we have saved more than 2.34 billion kilowatt hours, which equals 1.47 million metric tons of greenhouse gas emissions. That equates to taking more than 292,000 cars off roads for one year!
Our new and remodeled stores use the latest technology to make a big difference in energy efficiency. Today, one of our new stores will consume 30% less energy than a store built in 2000. This translates into a significant reduction in operating costs. Here are a few of the ways we are achieving these goals:
LED Lighting: Nearly all of our stores have transitioned to LED lighting in our glass door frozen cases. We are also installing LED lighting on our fresh meat cases as well as in our back room coolers and freezers. These lights use 75% less energy than fluorescent lights. Future uses of LED lighting will include fuel center canopies, track lighting and service cases.
Motion Sensors: Newer stores are using motion sensors in many of our service departments, back rooms, and in other areas. These sensors turn lights on when a customer approaches an aisle and shut them off when the aisle is empty.
Skylights: Harvesting natural light through a pattern of skylights in our new stores is another energy efficient technique. These skylights provide daylight to enhance the shopping experience for our customers while helping us reduce our energy consumption.
Control Systems: Each store uses a specially designed computer system to monitor and control energy usage in the store’s refrigeration, heating and cooling units, and lighting systems.
Our 339,000 associates are engaged in reducing energy consumption in the workplace in numerous ways. Their actions make a real difference in our efforts to reduce energy. See page 17 to learn about FAST behaviors.
We measure transportation efficiency improvements by cases shipped per gallon used. In 2011, we improved our fleet efficiency by 9.75% compared to 2010. Kroger has increased its transportation efficiency by 25.5% (from 2008 baseline). Our goal is to improve our fleet efficiency by 40% by 2014! We believe we can achieve this goal by reducing the number of miles our fleet travels, ensuring our equipment operates at peak performance, and implementing a variety of fuel-saving strategies.
Kroger has been a partner in the U.S. Environmental Protection Agency’s SmartWay™ program since its launch in 2004.
This innovative program promotes cleaner, more fuel efficient transportation practices. As part of this SmartWay™ program, Kroger increased its 2010 score from .75 to 1.0. This achievement recognizes our continuing efforts to improve our fleets’ fuel economy and elevates Kroger into the second highest tier within Smartway’s™ Freight Logistics and Environmental Tracking (F.L.E.E.T.) model. To learn more about Smartway™, visit http://www.epa.gov/smartway
Improving our “cube efficiency”, increasing miles per gallon, & reducing empty miles
(loading trucks to capacity)
In 2011, we increased our cube per load by 1% compared to 2010. We will continue to increase our case per pallet and load our trucks more efficiently. Overall, we have improved our cube efficiency by 6.6% since we began measuring it in 2008. (Cases were up 16.3% from 2008.) We are on track to meet our goal of improving our cube efficiency by 15% by 2014.
Diversity is one of Kroger’s core values and we have actively sought diversity among our vendor partners for more than 25 years. Minority- owned, and women-owned business enterprises (MBEs and WBEs); along with other diverse-owned businesses, provide products, services and perspectives that align with our business strategies and help us better understand both our customers’ needs and trends in the marketplace. We value our business relationships with these M/WBEs because they continue to facilitate employment opportunities in our local communities and their products and services produce positive sales results.
Supplier Diversity Champions
Each Kroger division and buying group has supplier diversity champions committed to ensuring that our supplier diversity goals and initiatives are communicated throughout the organization. These champions hold a variety of positions within the company and their valuable insights support our continued growth.