In Business Today

Pick n Pay to cut power consumption by 20%

[Cape Town, 30 January 2008] Pick n Pay is well-equipped to deal with the effects of load-shedding, with most major stores having their own generators to protect the cold chain and run tills, lights and security. But the company believes that what is more important is the national role it has to play by significantly cutting back on its own electricity usage.

"Using generators to keep our stores open during blackouts addresses the symptom, not the cause of load-shedding: that there is not enough electricity to go around. The reality is that we are all at the mercy of our circumstances, and we can either continue to point the finger of blame or we can do something about it. The time has come for everyone to act in the national interest by conserving electricity, and we will aim to lead by example by cutting our own power consumption by at least 20%," says Pick n Pay CEO Nick Badminton.

"But we also want to help our customers do their bit, too. This is why we have decided to sell energy-saving light bulbs at cost. Although they are cost-effective in the longer term - because they last much longer and use much less power than conventional light bulbs - their unit cost is comparatively much higher, which makes them less affordable to a great many South Africans. We want to change that by making them more accessible to more people, and in so doing also have an indirect beneficial impact on our country's power situation."

According to Pick n Pay's general manager for sustainable development, Tessa Chamberlain, the company has long since identified more efficient power usage as a key objective for reducing its carbon footprint, an indicator of how much energy it consumes, and this constitutes a major part of its sustainability strategy.

"Pick n Pay was South Africa's first major retailer to participate in the Carbon Disclosure Project, an international initiative to promote more efficient use of our planet's precious resources, and we have been working hard for several years already to reduce the amount of power we consume.

"For example, we have been using upright merchandise freezers with glass doors in new and refurbished stores since 1998, as they use 60% less electricity than open horizontal refrigeration cabinets. We also commenced with the fitting of fluorescent lighting with electronic ballasts in our stores, which are 22% more efficient than conventional lighting, in all new stores from 2001. In the past year we began converting the balance of our stores to the new lighting. We have also since 2001 been using heat reclaim systems, which harness heat dispelled from our refrigeration systems, to provide hot water. All our larger stores have also been using the same heat reclaim systems for comfort heating through the air-conditioning system, further cutting back on consumption," says Chamberlain.

"Nevertheless, we have identified several more ways in which we intend to aggressively cut back further on our electricity usage and meet our target of a 20% reduction. Many are simple, commonsense measures that we will implement immediately, and many are longer-term interventions that will fundamentally change the way we use power and do business."

Badminton confirmed the immediate actions to conserve power in both Pick n Pay stores and corporate offices, which include the following:

• Educating staff about how to conserve power and why they should do so, and encouraging them to be vigilant
  
  
• Switching off lights in areas that have sufficient natural lighting
  
  
• Isolating lighting to necessary spots, such as above desks
  
  
• Installing geyser blankets, turning down the settings of geysers, and switching off geysers for activities such as hand-washing
  
  
• Running air-conditioners only when necessary
  
  
• Using equipment more efficiently
  
  
• Evaluating equipment such as that used in kitchens and canteens, with a view to better efficiencies
  
  
• Unplugging equipment such as cellphone chargers when they are not being used
  
  
• Switching off lights and unnecessary equipment at night, and using only security lighting
  
  
• Keeping cold room doors closed when not in use, installing alarms that will sound if cold room doors are left open too long, and ensuring that cold room flaps are kept in top condition
• Installing fridge covers for open-top refrigerators, to be used at night
  
  
• Switching off or turning down ovens when they are not in use
  
  
• Fitting some equipment with timers, so they switch off at non-essential times
  
  
• Engaging with centre managements regarding signage lighting at nigh 

Longer-term actions include challenging Pick n Pay's equipment suppliers to present innovative solutions in terms of low-energy equipment, building stores that are more energy-efficient, making air-conditioning more efficient, implementing better store maintenance practices, making better use of heat reclaim systems, reviewing opportunities to make business activities more energy-efficient, and looking to international retailers to identify further power-saving innovations. In addition, Pick n Pay will be investigating the feasibility of using decentralised renewable energy sources.

"It is common cause that load-shedding is far more than just an inconvenience; it is a national crisis. It is costing our economy millions of rands every day in lost productivity, and it is threatening jobs and inhibiting economic growth. However, all this can be minimised if we all pitch in - in both big and small ways. Every little bit makes a difference.

"We all need to take simple, immediate steps to cut back on our electricity consumption, at home and at work. But more importantly, we all need to change our mindset by accepting that electricity is a scarce commodity that should be used sparingly and judiciously. Only by doing that together can we steer our country away from economic loss. It's the responsible thing to do," says Badminton.

Disclaimer: In Business Today disclaimerThe In Business Today section is reserved for relevant company announcements and releases. Companies are not entitled to have their announcements published in this section, but from time to time, these may be selected by Moneyweb for publication in the interest of the Moneyweb Community of readers. The copy has not been generated by Moneyweb nor should be attributed to Moneyweb. Nor has the information contained therein been verified by Moneyweb journalists. 29 January 2007