BENTONVILLE, Arkansas - Wal-Mart Stores Inc., the world’s largest retailer, has saved “tens of millions” of dollars in the U.S. since starting a push to reduce energy use, Chairman S. Robson Walton said.

The company has reduced energy costs tied to distribution by 32 percent and lowered power consumption in new stores by more than 30 percent, partly by installing light-emitting diodes that use less electricity and more efficient air conditioning units, Walton said last week in an interview in Singapore.

Walmart, based in Bentonville, Arkansas, is accelerating efforts to trim expenses as U.S. stores have reduced inventory. Chief Executive Officer Mike Duke said in July that Walmart would ask U.S. suppliers to provide information on water use and solid waste to increase quality and lower costs, expanding efforts started in 2005 to cut packaging and energy costs.

“It’s made a difference to the bottom line,” said Walton, who’s also chairman of Conservation International, a nonprofit environmental organization. “There are many opportunities for this to be net positive.”

Still, Walmart is “not anywhere close” to achieving its energy efficiency goals, Walton said. The company aims to produce “zero” waste and sell so-called sustainable products as part of its environmental initiatives, he said.

Outside the U.S., Walmart’s initiatives include boosting its environmental efforts in China, which was “well-received” by suppliers and government officials, Walton said.

China, India

“We’re big purchasers of goods from China,” Walton said. “We also operate 260 or so stores in China, so we have a big interest in how goods are produced in China.”

He reiterated comments made earlier this week, saying that the company will continue to expand in China, the world’s fastest growing economy, after opening more than 50 stores there this year.

Walton said he sees long-term opportunities in India. Expansion in the South Asian nation will be “relatively slow” because of restrictions on foreign direct investments, he said.

Sales from markets outside the U.S. have risen at a faster pace than in the U.S. Wal-Mart’s international sales rose 13 percent over the past two years, compared with 6 percent for the American market. The retailer generated 25 percent of its sales abroad in the fiscal year ended in January.

Source: Bloomberg

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