An innovative, sustainable retail environment
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1 The Food Retail Industry An innovative, sustainable retail environment
2 $ A MORE EFFICIENT FOOD RETAIL INDUSTRY $ $ Sustainable, energy efficient stores Reduced operating costs Improved in-store experience Now more than ever, grocery stores are seeking to achieve greater energy efficiency and lower operating costs, all while improving the in-store experience for their shoppers. As the industry continues to focus on serving growing communities with new construction and store remodeling, it s even more important to incorporate sustainable solutions that can improve the efficiency of stores while also helping to protect the environment. An investment in more energy efficient solutions can help: Reduce energy consumption Significantly reduce operating expenses Respond to shoppers concern for the environment Maximize the efficiency of HVAC systems Take advantage of government LEED certification incentives LESS ENERGY, MORE PROFITS With industry average net profit margins at less than 1%, it s critical for companies to take advantage of every opportunity to cut costs. In addition to refrigeration solutions, choosing more energy efficient solutions for HVAC and lighting can be a very cost-effective way for grocery store chains to expand margins and increase profitability. 8 Firms Industry Income Statement (P&L) 2010 Energy Distribution for a typical Grocery Store % of Sales Net Sales 100% Merchandise Costs 74.4% Gross Margin 25.6% How Your Electric Energy Is Used Lights 23% Heating 13% Operating, G&A Costs 20.2% Utility Costs 1.3% Adj. Operating Profit 2.7% Net Profit 0.4% CapEx 2.2% FMI Net Margin estimate: 0.98% 1. Industry P&L includes avg. of 8 firms Kroger, Safeway, SuperValu, Whole Foods, Winn Dixie, Harris Teeter, Weis Markets, Spartan Foods 2. Utility costs estimated based on FMI data Refrigeration 38% Cooling 11% Misc. 3% 23% Ventilation 4% Water Heating 2% Cooking 5% A SUSTAINABLE WAY TO SAVE HVAC and energy management. The future of energy saving. LIGHTING REFRIGERATION HVAC ENERGY MANAGEMENT, UTILITY INCENTIVES AND RENEWABLES
3 HVAC - VRF (Variable Refrigerant Flow) Reduce energy consumption and improve your in-store experience with LG s HVAC industryleading new technology, VRF. HVAC-DFS (Duct Free Splits) Good HVAC solutions come in small packages. That s why LG s DFS offers the ideal solution for your store s smaller spaces. LG s HVAC VRF will help you: Improve energy efficiency Lower lifecycle maintenance costs Decrease construction time and labor costs Eliminate 90% of current ductwork Operate more quietly, emitting as few as 23 db indoors Outdoor Unit Indoor Unit Outdoor Unit Indoor Unit LG s HVAC DFS will help you: Meet small area cooling & heating requirments Operate quietly and softly Offer stylish designs and customizable faceplate options Features Outdoor unit capacity from 18K-36K BTU and indoor units from 9K-18K BTU Inverter based Dual / Tri / Quad zone outdoor units with auto restart feature Indoor unit with plasma air purifying system Gold Fin anti-corrosion LED LIGHTING SECURITY Saving the environment has never saved your store so much money. With LED Lighting solutions from LG, you can reduce your store s energy consumption, lower your power bills and cut down on energy costs. LG s LED Lighting will help you: Achieve lower TCO with monthly energy savings compared to T8 lamps Create additional savings with lighting control solutions Lower energy costs with longer lifetime lamps Provide eco-friendly lighting with no mercury Features (based on 2X2 LED Flat Lighting) Certification: cul, FCC, LM79 Luminous Flux 3,480-4,400 lm Wattage 53W - 68W CCT 3,000/5,700K CRI 75 Lifetime approx. 50,000 hours 3 year limited warranty Flat Lighting LED Lamp * Also Available Digital Signage & Solar Maximize your protection and minimize your expenses with LG s comprehensive security solutions. Install LG surveillance and you can: Monitor customers in real-time Reduce expenses with LG s Central Monitoring System Store POS information Customize surveillance options Features International Standards for the worldwide market (UL, CE, FCC, Gost) 650TVL High Quality Image cameras Save to synchronize text and images The ability to brighten images even in dark environments by using higher AGC The best recording speed and quality The combination of Analog and IP DVR-configurable system * Also available Retrofit LED Lamps
4 CASE STUDY BUILDING MODELING SOFTWARE EnergyPro V.5.1 building energy simulation software provided by EnergySoft, using the following accreditations: Uses DOE-2.1E simulation engine from U.S. Department of Energy Approved by the California Energy Commission Accepted by USGBC for use with LEED certification Incorporates ASHRAE based load calculations DESIGN PARAMETERS The utility rates used for energy analysis were $0.10/kWh and $1.46/Therm The store building energy analysis was performed using ASHRAE 90.1 standard The outdoor cooling design temperature was 80 F db and heat design temperature was 2 F wb The design conditions were used to model the performance of 2 different types of HVAC systems LG Multi V Plus II Constant Volume Rooftop Package Units BUILDING DESCRIPTION Store location: Upstate New York Total area (Sq.Ft.): 58,400 Number of independent zones: 9 Elevation: 1,591 feet HVAC Systems Annual Operating Cost $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 0 LG Multi V ($0.10/kWh, $1.46/Therm) Store building modeled in upstate New York 27% Saved CV RTU Multi V III Efficient Design The LG Multi V system eliminates energy losses that are unavoidable in other systems that use large air distribution ducts. Optimized scroll compressors, specially designed heat exchangers, and inverter technology, minimize energy consumption over non-vrf systems. Zoned Comfort Control & Dehumidification With the use of inverters and dual compressor outdoor units, the LG Multi V system offers superior load matching, preventing constant cycling or large temperature swings. Tight temperature control ensures maximum comfort, efficient operation, and superior dehumidification. The modular design of VRF results in superior energy savings and flexibility to air condition or heat according to each department s needs. Sustainability The LG Multi V system helps achieve points for sustainability programs. The USGBC has developed holistic design standards for constructing new and retrofitting existing buildings known as LEED Leadership in Energy and Environmental Design. LG s Multi V system is engineered for sustainable green buildings and provide opportunities for designers to claim numerous LEED prerequisites and points. Stylish Design Multi V indoor units are available in a wide range of styles to fit any interior design. With indoor unit choices including cassettes that mount flush to drop ceilings, ducted units that blend into raised ceilings, and mirror finished wall mounted units that fit into any decor, LG s Multi V system offers unparalleled aesthetic design. Quiet Shopping Environment Your clerks can more easily engage shoppers without the fan noise distraction of ducted air HVAC systems. With indoor units that can operate at sound levels as low as 23dB(A) and outdoor units that operate as low as 50dB(A) and lower with night quiet operation, Multi V creates a comfortable environment so quiet it s almost undetectable.
5 WHY LG? LG will be your partner to help cut operating costs and improve your shoppers experience. Here are just a few reasons why more companies are investing in LG s retail solution to improve their grocery store locations. LG is making significant investments in sustainable technologies, including energy generation, conservation, and management LG can be your partner in supporting your green and growth strategies LG solutions can help you reduce energy consumption over traditional HVAC systems by 20%* LG can provide you with extensive design, installation, and after-sales services through our certified channel partners LG can offer value-added extended warranty and leasing options * Average reduced energy consumption for a typical store is 20% LG is continuing to demonstrate strong growth, with 2010 revenues of $63 billion, a five-year sales growth CAGR of 13% and a R&D investment of $1.4 billion. HISTORY ESTABLISHMENT GROWTH EXPANSION LG Group Established 1947 Goldstar (former LGE) Established 1958 Manufactured Korea s first air conditioner 1968 Korea s first Inverter air conditioner 1985 Exported Korea s first window air conditioner 1986 First LG rotary compressor 1990 Company name changed to LG Electronics 1995 First LG scroll compressor Produced Korea s first commercial air conditioner 1998 Became world s number one seller of residential air conditioner 2000 Reached total global sales of 100 million air conditioners 2008 for the first time in the industry Introduced picture frame air conditioner 2001 Achieved worlds highest annual sales in air conditioner with 10 million units 2004 Created B2B-focused business structure 2010 U.S.A. Corporate Headquarters 1000 Sylvan Avenue Englewood Cliffs, NJ LG Electronics U.S.A., Inc., Englewood Cliffs, NJ. All rights reserved. LG Life s Good is a registered trademark of LG Corp All other product and brand names are trademarks or registered trademarks of their respective companies.
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