SlideShare a Scribd company logo
reduce its total energy usage and overall carbon
emissions. Lighting accounts for 35% of energy
consumption and $1.05 billion in potential savings
across the retail industry. After a successful LED
retrofit pilot program secured leadership support
following an in-person visit, Belk now plans to roll out
energy efficiency projects across the company,
including a redesign of their entire lighting
infrastructure.
Implementation Model:
Inviting Senior Executives to
Visit LED Retrofit Pilot Secures
Approval for Larger Rollout
BARRIER
New technologies often face skepticism; and once
proven, there is no path to scale them across the
portfolio.
SOLUTION
Design a pilot to measure the full benefits of a technology
and invite company decision-makers to see the positive
impacts firsthand.
OUTCOME
Belk reduced its in-store energy consumption at a single
location by more than 27% after retrofitting the lighting
system with LED lights. After seeing the project firsthand,
executives approved a redesign of Belk’s entire lighting
infrastructure.
1
Belk, Inc., a private department store company
based in Charlotte, N.C., is the home of Modern.
Southern. Style. with 293 Belk stores located in 16
Southern states and a growing digital presence. Belk
is a portfolio company of Sycamore Partners, a
private equity firm based in New York. Belk and
www.belk.com offer a wide assortment of national
brands and private label fashion apparel, shoes and
accessories for the entire family along with top name
cosmetics, a wedding registry and a large selection
of quality merchandise for the home.
Belk has shown its commitment to corporate
sustainability and continues to do more each year to
“We are pleased with the result and the project
benefits: energy savings, cost savings, and better
comfort for customers.”
Amy Baenen
Senior Vice President & Director of Stores

Northern Division, Belk
Overview
Belk, Inc. – Seeing is Believing LED Pilot
RILA Retail Energy Management Program: July 2016
This Implementation Model was completed with support from the Department of Energy’s
Office of Energy Efficiency and Renewable Energy and the Better Buildings Initiative to
highlight innovative proven energy solutions from market leaders in the Retail sector. Find
more ideas at the Better Buildings Solution Center at betterbuildingssolutioncenter.energy.gov
Total LED Bulbs Installed
Across All Belk Stores To-
Date
100,000
Energy Savings To-Date
per store
15-30%
Payback Period 1.5 - 2 years
Return on Investment
(ROI)
30-50%
Process
Belk’s Sustainability Team planned for its Crabtree
Valley Mall location in Raleigh, NC to be the site of the
first LED retrofit pilot project. After studying the success
of other LED installations at a nearby shopping mall,
Belk’s Director of Sustainability Candace Taylor
Anderson coordinated the pilot’s design in collaboration
with the Store Manager, Regional Vice President,
Executive VP and Head of Division, and Facilities Vice
President.
Belk leadership considered the following criteria before
approving the project: upfront costs, lighting quality,
alignment with existing company lighting standards, and
energy savings. In order to ensure these criteria were
met, the project was required review by (1) the Store
Planning and Design department, (2) the Financial
Planning and Analysis department, and (3) a third-party
vendor familiar with the rebate landscape.
In researching the LEDs, Anderson found that the risk
profile for the project was reduced thanks to existing
utility rebates from Duke Energy. Many ENERGY STAR-
certified LED bulbs are eligible for utility rebates. Belk
also took advantage of the Section 179D Commercial
Building Tax Deduction of the Federal Tax Code, which
provides a tax deduction for energy efficiency
improvements to commercial buildings. Thanks to these
cost reductions, Belk’s Finance team and other relevant
executives approved the pilot since it was clear that the
project was an efficient allocation of resources with a
strong return on investment.
With strong financial projections calculated and the pilot
lighting project implemented, Anderson organized a site
visit with the Vice President of Facilities, the Executive
Vice President, and head of the operating division to
showcase the technology and all of its benefits. During
the site visit, the senior executives were able to observe
possible changes to customer experience firsthand and
approve the aesthetic impacts of the new lighting on the
store. In addition, two performance evaluations, at
three- and six-months after the project initiation,
showed significant cost savings that confirmed the
financial performance projections. After reviewing the
cost saving and in-store performance, senior
leadership was able to approve a redesign of the
company’s entire lighting infrastructure. Since then,
customers have confirmed senior leadership’s
assessment of the LEDs’ lighting quality, commenting
that the stores look even better. Belk is now in the
process of rolling out the LED retrofits in more if its
locations.
By the Numbers:
Outcomes
A key success factor for the expansion of LEDs was the
pilot site visit by senior executive staff, where they
confirmed the positive impact to the store’s look and
feel. This buy-in enabled Belk’s LED program to
proceed from pilot to roll-out.
Belk was able to reduce its total energy use at the pilot
store by over 27% to-date with an expected ROI of 50%
(including utility and government incentives). In
addition to cost and energy savings, Belk has been
able to save on labor costs by reducing the frequency
of incandescent bulbs change outs.
The operations department at the store has been
thrilled with the initial results and reported that some
customers have noticed the change as merchandise
shines brighter under LED light. The success of this
pilot project inspired a redesign of Belk’s complete
lighting infrastructure; and it decided to increase the
number of full-store LED retrofit projects across the
company.
2
Outcomes
A key success factor for the expansion of LEDs was the
pilot site visit by senior executive staff, where they
confirmed the positive impact to the store’s look and
feel. This buy-in enabled Belk’s LED program to
proceed from pilot to roll-out.
Belk was able to reduce its total energy use at the pilot
store by over 27% to-date with an expected ROI of 50%
(including utility and government incentives). In
addition to cost and energy savings, Belk has been
able to save on labor costs by reducing the frequency
of incandescent bulbs change outs.
The operations department at the store has been
thrilled with the initial results and reported that some
customers have noticed the change as merchandise
shines brighter under LED light. The success of this
pilot project inspired a redesign of Belk’s complete
lighting infrastructure; and it decided to increase the
number of full-store LED retrofit projects across the
company.
Internal Process Spotlight: Securing Executive Engagement in
Energy Pilot Projects
It is important to communicate the success of a pilot project to senior executives in order to establish
credibility and prove the financial viability of energy investments – particularly when the project could impact
the shopper experience. Establishing thoughtful engagement methods can foster shared success stories, save
on approval time for future energy efficiency projects, and build credibility for the energy department.
 Organize site visits of pilots with senior executives and company decision-makers
 Share energy success stories with the Executive Team on a regular basis
 Provide post-audit results, including total cost and energy savings, return on investment, payback period, and
anecdotal feedback from store staff and customers
BEST PRACTICES
3
Belk offers many ways to connect via digital and social media, including Facebook, Pinterest, Twitter,
Instagram, YouTube and Google Plus, and provides exclusive offers, fashion updates, sales notifications
and coupons via email or mobile phone text messages. Customers can also download the latest Belk
mobile app.
4
5
RILA Energy Management Program
Program Background
Retailers have a significant opportunity to reduce the energy consumption and associated greenhouse
gases of their vast portfolio of locations, to the benefit of both companies and the environment. The Retail
Industry Leaders Association (RILA) is committed to helping its members overcome barriers to enhanced
energy performance across their building portfolio through its Retail Energy Management Program.
Program Workstreams:
RILA and its program members are working to (1) Develop Implementation Models, (2) Educate the
Industry, and (3) Spur Adoption of Implementation Models with a focus on three key areas:
1. Financial management, by exploring how to “speak finance”, improve project proposal and piloting
processes, create innovation funds, and utilize external financing.
2. Leased store management, by engaging landlords and internal real estate, construction, and store
associate teams to overcome the additional energy management challenges faced in leased store
locations.
3. Renewable energy, by partnering with existing renewable energy organizations to educate energy
managers on the landscape of renewable energy procurement options.
Join the Program
Retail energy managers interested in participating should email Erin Hiatt, Senior Manager of
Sustainability & Compliance, at Erin.Hiatt@RILA.org.
Learn more at rila.org/energy
Find more Better Buildings resources at betterbuildingssolutioncenter.energy.gov
Find more Better Buildings resources at betterbuildingssolutioncenter.energy.gov
This material is based upon work supported by the Department of Energy, Office of Energy Efficiency and Renewable Energy
(EERE), under Award Number DE-EE0007062.
This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United
States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any
legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process
disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product,
process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement,
recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors
expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.

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RILA BELK.PDF

  • 1. reduce its total energy usage and overall carbon emissions. Lighting accounts for 35% of energy consumption and $1.05 billion in potential savings across the retail industry. After a successful LED retrofit pilot program secured leadership support following an in-person visit, Belk now plans to roll out energy efficiency projects across the company, including a redesign of their entire lighting infrastructure. Implementation Model: Inviting Senior Executives to Visit LED Retrofit Pilot Secures Approval for Larger Rollout BARRIER New technologies often face skepticism; and once proven, there is no path to scale them across the portfolio. SOLUTION Design a pilot to measure the full benefits of a technology and invite company decision-makers to see the positive impacts firsthand. OUTCOME Belk reduced its in-store energy consumption at a single location by more than 27% after retrofitting the lighting system with LED lights. After seeing the project firsthand, executives approved a redesign of Belk’s entire lighting infrastructure. 1 Belk, Inc., a private department store company based in Charlotte, N.C., is the home of Modern. Southern. Style. with 293 Belk stores located in 16 Southern states and a growing digital presence. Belk is a portfolio company of Sycamore Partners, a private equity firm based in New York. Belk and www.belk.com offer a wide assortment of national brands and private label fashion apparel, shoes and accessories for the entire family along with top name cosmetics, a wedding registry and a large selection of quality merchandise for the home. Belk has shown its commitment to corporate sustainability and continues to do more each year to “We are pleased with the result and the project benefits: energy savings, cost savings, and better comfort for customers.” Amy Baenen Senior Vice President & Director of Stores
 Northern Division, Belk Overview Belk, Inc. – Seeing is Believing LED Pilot RILA Retail Energy Management Program: July 2016 This Implementation Model was completed with support from the Department of Energy’s Office of Energy Efficiency and Renewable Energy and the Better Buildings Initiative to highlight innovative proven energy solutions from market leaders in the Retail sector. Find more ideas at the Better Buildings Solution Center at betterbuildingssolutioncenter.energy.gov
  • 2. Total LED Bulbs Installed Across All Belk Stores To- Date 100,000 Energy Savings To-Date per store 15-30% Payback Period 1.5 - 2 years Return on Investment (ROI) 30-50% Process Belk’s Sustainability Team planned for its Crabtree Valley Mall location in Raleigh, NC to be the site of the first LED retrofit pilot project. After studying the success of other LED installations at a nearby shopping mall, Belk’s Director of Sustainability Candace Taylor Anderson coordinated the pilot’s design in collaboration with the Store Manager, Regional Vice President, Executive VP and Head of Division, and Facilities Vice President. Belk leadership considered the following criteria before approving the project: upfront costs, lighting quality, alignment with existing company lighting standards, and energy savings. In order to ensure these criteria were met, the project was required review by (1) the Store Planning and Design department, (2) the Financial Planning and Analysis department, and (3) a third-party vendor familiar with the rebate landscape. In researching the LEDs, Anderson found that the risk profile for the project was reduced thanks to existing utility rebates from Duke Energy. Many ENERGY STAR- certified LED bulbs are eligible for utility rebates. Belk also took advantage of the Section 179D Commercial Building Tax Deduction of the Federal Tax Code, which provides a tax deduction for energy efficiency improvements to commercial buildings. Thanks to these cost reductions, Belk’s Finance team and other relevant executives approved the pilot since it was clear that the project was an efficient allocation of resources with a strong return on investment. With strong financial projections calculated and the pilot lighting project implemented, Anderson organized a site visit with the Vice President of Facilities, the Executive Vice President, and head of the operating division to showcase the technology and all of its benefits. During the site visit, the senior executives were able to observe possible changes to customer experience firsthand and approve the aesthetic impacts of the new lighting on the store. In addition, two performance evaluations, at three- and six-months after the project initiation, showed significant cost savings that confirmed the financial performance projections. After reviewing the cost saving and in-store performance, senior leadership was able to approve a redesign of the company’s entire lighting infrastructure. Since then, customers have confirmed senior leadership’s assessment of the LEDs’ lighting quality, commenting that the stores look even better. Belk is now in the process of rolling out the LED retrofits in more if its locations. By the Numbers: Outcomes A key success factor for the expansion of LEDs was the pilot site visit by senior executive staff, where they confirmed the positive impact to the store’s look and feel. This buy-in enabled Belk’s LED program to proceed from pilot to roll-out. Belk was able to reduce its total energy use at the pilot store by over 27% to-date with an expected ROI of 50% (including utility and government incentives). In addition to cost and energy savings, Belk has been able to save on labor costs by reducing the frequency of incandescent bulbs change outs. The operations department at the store has been thrilled with the initial results and reported that some customers have noticed the change as merchandise shines brighter under LED light. The success of this pilot project inspired a redesign of Belk’s complete lighting infrastructure; and it decided to increase the number of full-store LED retrofit projects across the company. 2 Outcomes A key success factor for the expansion of LEDs was the pilot site visit by senior executive staff, where they confirmed the positive impact to the store’s look and feel. This buy-in enabled Belk’s LED program to proceed from pilot to roll-out. Belk was able to reduce its total energy use at the pilot store by over 27% to-date with an expected ROI of 50% (including utility and government incentives). In addition to cost and energy savings, Belk has been able to save on labor costs by reducing the frequency of incandescent bulbs change outs. The operations department at the store has been thrilled with the initial results and reported that some customers have noticed the change as merchandise shines brighter under LED light. The success of this pilot project inspired a redesign of Belk’s complete lighting infrastructure; and it decided to increase the number of full-store LED retrofit projects across the company.
  • 3. Internal Process Spotlight: Securing Executive Engagement in Energy Pilot Projects It is important to communicate the success of a pilot project to senior executives in order to establish credibility and prove the financial viability of energy investments – particularly when the project could impact the shopper experience. Establishing thoughtful engagement methods can foster shared success stories, save on approval time for future energy efficiency projects, and build credibility for the energy department.  Organize site visits of pilots with senior executives and company decision-makers  Share energy success stories with the Executive Team on a regular basis  Provide post-audit results, including total cost and energy savings, return on investment, payback period, and anecdotal feedback from store staff and customers BEST PRACTICES 3 Belk offers many ways to connect via digital and social media, including Facebook, Pinterest, Twitter, Instagram, YouTube and Google Plus, and provides exclusive offers, fashion updates, sales notifications and coupons via email or mobile phone text messages. Customers can also download the latest Belk mobile app.
  • 4. 4 5 RILA Energy Management Program Program Background Retailers have a significant opportunity to reduce the energy consumption and associated greenhouse gases of their vast portfolio of locations, to the benefit of both companies and the environment. The Retail Industry Leaders Association (RILA) is committed to helping its members overcome barriers to enhanced energy performance across their building portfolio through its Retail Energy Management Program. Program Workstreams: RILA and its program members are working to (1) Develop Implementation Models, (2) Educate the Industry, and (3) Spur Adoption of Implementation Models with a focus on three key areas: 1. Financial management, by exploring how to “speak finance”, improve project proposal and piloting processes, create innovation funds, and utilize external financing. 2. Leased store management, by engaging landlords and internal real estate, construction, and store associate teams to overcome the additional energy management challenges faced in leased store locations. 3. Renewable energy, by partnering with existing renewable energy organizations to educate energy managers on the landscape of renewable energy procurement options. Join the Program Retail energy managers interested in participating should email Erin Hiatt, Senior Manager of Sustainability & Compliance, at Erin.Hiatt@RILA.org. Learn more at rila.org/energy Find more Better Buildings resources at betterbuildingssolutioncenter.energy.gov Find more Better Buildings resources at betterbuildingssolutioncenter.energy.gov This material is based upon work supported by the Department of Energy, Office of Energy Efficiency and Renewable Energy (EERE), under Award Number DE-EE0007062. This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.