Walmart Saves $200 Million by Changing its Light Bulbs & $20 Million with a New Floor Wax
The multiplying power of size makes it easy to save big money on little changes.
Imagine saving millions of dollars just by changing light bulbs and floor wax. It’s exactly what Walmart is doing.
“We are in the process of a multiyear rollout of replacing all fluorescent fixtures with LEDs in our stores, clubs and parking lots,” Chief Financial Officer Brett Biggs told analysts Tuesday at the retailer’s investor day at its headquarters, in Bentonville, Arkansas. “Not only is it good for the environment, these changes could reduce our annual energy costs by $200 million over time.”
In the U.S. alone, Walmart buys tens of billions of dollars’ worth of goods and services used for the business that aren’t sold in its stores, a category called “goods not for resale.” These are goods like travel services or maintenance supplies.
It’s savings on a major scale.
Walmart’s founding principle is “everyday low price,4” which can only be achieved by everyday low cost. The more Walmart saves on the cost side, the more shoppers save at checkout.
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