Walmart to transition lighting products away from compact fluorescent to LED
by February 23, 2016 1:49 pm 3,188 views
The lighting evolution continues. Wal-Mart Stores plans to transition the light bulbs it sells this year away from compact fluorescent to the higher priced LED varieties, citing gained efficiencies and changes in consumer preferences.
Laura Phillips, senior vice president of sustainability, said Walmart will participate in the “break-up” campaign led by General Electric which plans to stop manufacturing CFL bulbs in the U.S. by the end of this year. She said the retailer understands the benefits that come with LED lighting compared to compact fluorescent.
Phillips said Walmart has already installed LEDs into everything from signs and ceiling fixtures to freezer cases in an effort to cut energy use in its buildings by 20% by 2020.
“We’re excited about LED technology and what the future can hold with even more innovation around the intelligent lighting,” Phillips said in the announcement from General Electric. “We’re leveraging LEDs to help customers save money so they can live better.”
Walmart U.S. was one of the first retailers to transition away from the sale of incandescent light bulbs to compact fluorescent bulbs in 2006. The CFL was made more affordable by Wal-Mart’s commitment with its largest lighting supplier General Electric 10 years ago. Fast forward a decade and now GE says thanks in large part to continuing price declines, LED shipments in the United States climbed three-fold last year, accounting for 15% of the market in the third quarter. GE expects more than half of light sockets in the country will use LEDs by 2020.
Phillips noted in a Feb. 17 corporate blog that it will again revamp its lighting products and tweak the looks of lighting aisles later this year in step with the manufacturing changes at GE.
“Our priority is always to provide our customers with the best shopping experience possible while minimizing our impact on the environment. With that in mind, we have worked closely with our suppliers to make LED bulbs more accessible and affordable for our customers, so you don’t have to choose between a product’s sustainability and affordability,” Phillips noted in the blog.
Prices of LED bulbs have dropped during the past five years. A report from TrendForce indicates that the average price of the 40W-equivalent LED light bulbs in the U.S. slid 1.6% in December to $10.60. The 60W- equivalent LED bulb prices slid fractionally to $14.50. Prices of mainstream LED packages were in a down trend in 2015, with year-on-year declines ranging from 20% to 40%. Some of the price declines resulted form heavy year-end promotions, the report noted.
Where once it was common to pay $50 or even $100 for an LED light bulb, they are now available for around $8 per bulb online at various retailers. This compares to CFL bulb prices of 60-W equivalents around $2.40 each with heavy promotion from multiple retailers including Walmart as they gear up to replace the inventory with LED bulbs.
Phillips admitted their are upfront costs to making the switch to LED, but the efficiencies gained with LED provides savings overtime and a greener carbon footprint. Consumer Reports indicates LED light bulbs can last anywhere from 20,000 to 50,000 hours, or up to 5 times longer than any comparable bulb on the market.