Hudson's Bay Company

The story

$12-million registers big electricity savings for HBC.

"By adopting a Power Smart ethic, we're setting an example for our associates and customers. This benefits our bottom line, the communities we live in and the environment."

— George Heller, President and CEO, Hudson's Bay Company
Power Smart Certified Customer

The situation

Hudson's Bay Company (HBC), established in 1670, is Canada's largest department store retailer and oldest corporation, and has operations in every province in Canada. With more than 500 stores, HBC is Canada's fifth largest employer, with 70,000 associates nation-wide. In B.C., HBC operates 62 Bay, Zellers and Home Outfitters stores.

Like all retailers, HBC has its eye on the bottom line and is constantly on the lookout for opportunities to reduce operating costs. As Fred Ware, HBC's senior energy and environment manager, puts it: "We are a sales-driven company that understands the need for cost efficiencies and environmental impact in all that we do."

The solution

HBC became a Power Smart Partner in 2000 and worked with BC Hydro to develop a national energy conservation strategy, which was implemented in 2002 throughout the entire HBC operation. The strategy includes policies, procedures and day-to-day steps that associates take to improve energy efficiency and environmental sustainability. It has three main components:

Associate Awareness Program

BC Hydro partnered with HBC to pilot this program in its B.C. Zellers stores. Senior management challenged each store to reduce its energy consumption by changing energy use practices and implementing energy efficiency projects where feasible. Associates responded by adopting numerous behaviour changes, including:

• Reducing lighting levels during cleaning and restocking,
• Lowering thermostats, and
• Adjusting operating schedules for general store lighting, exterior lighting and escalators to eliminate unnecessary electricity use.

The program was so successful that HBC has rolled it out across Canada.

Energy tracking system

HBC installed real-time energy monitoring technology in stores nation-wide. This helps HBC identify energy-intensive facilities and develop plans to curtail consumption. As a result of actions taken, both electricity use and greenhouse gas emissions have been significantly reduced.

"Hard-wired" projects

HBC has been implementing energy upgrades in stores nation-wide, including retrofitting lighting systems, installing energy-demand controls, and installing high-efficiency motors in heating, ventilation and air conditioning equipment. In one innovative move, HBC connected store lights to the alarm system so that lights turn off as soon as the store is locked up at night, rather than at a set time. This has reduced lighting time by 20 to 40 minutes daily.

Green Power Certificates

HBC is using green power to support one of its largest initiatives, its sponsorship of the 2010 Olympic Winter and Paralympic Winter Games. Starting in 2005, HBC will purchase enough Green Power Certificates to power all of the Olympic and Heritage shops in B.C.'s Bay and Zellers stores annually until 2010. This purchase of green power will avoid 720 tonnes of greenhouse gas emissions per year, equivalent to removing 200 cars from the road.

Future projects

To date, HBC has completed energy upgrades in over 65% of its total floor area, and is not stopping there. HBC has approved an aggressive three-year energy retrofit plan (2005-2007) which commits the company to retrofit all remaining stores – 200 stores nationally, and 17 in B.C. This represents a further electricity use reduction of 23% from the 2000 level.

Leader in Energy Efficiency

In recognition of HBC's outstanding energy conservation achievements and its commitment to future improvement, BC Hydro has made HBC the first retailer to be designated a Power Smart Certified customer.

The benefits

Electricity savings

Since 2000, HBC has saved over $12-million nationally in energy costs through store lighting retrofits and other energy initiatives. For B.C. stores, that translates into a 12% reduction in their energy use. In 2004, for B.C alone, HBC saved $294,000 on energy costs. In addition, HBC is enjoying reduced maintenance costs as a result of longer-lasting technologies.

Reduced environmental impacts

As a result of HBC's national energy conservation strategy, greenhouse gas emissions have been cut by 50 megatonnes, equivalent to removing 10,000 cars from Canada's roads each year.

More involved employees

By participating in the Associate Awareness Program, employees are more aware of the benefits of energy efficiency and take ownership in reducing energy consumption in their stores.

Contact us

Find out how Power Smart can energize your bottom line. Call us today at 604 453 6400 in the Lower Mainland or 1 866 453 6400 elsewhere in B.C.