Saving Energy Costs at Retail Stores
Few sectors have experienced the ripple effect of the 2007/2008 economic crash quite as badly as the retail sector. More than 10 years on, retailers’ woes continue evident by store closures of some world’s best-known consumer brands in 2018/2019. Challenges related to economic stagnation, change in buying behaviour, online competition and environmental concerns have seen retailers scrambling for survival in what is already an extremely competitive sector. Traditional methods of survival have already been deployed such as wage cuts, roster changes and job losses. In an industry seeking a quick fix, short term solutions are applied to long term problems. But are there alternatives?
Making the Case For Energy Management Software In Retail Industry
“A 20% cut in energy costs represents the same bottom-line benefit as a 5% increase in sales.”
– Carbon Trust 2012
Depending on the nature of the business, energy expenditure may only be a fraction of the overall turnover. However, this does nothing to harm the fact that saving energy is one of the easiest ways to increase profits. Whether in reference to an independent corner shop or a multinational supermarket chain, this statement still rings true. There are no surprises when it comes to the largest consumers of energy across the sector. The usual suspects; lighting, heating, cooling & ventilation and refrigeration are omnipresent.
Retail energy management software for energy monitoring, analysis & tracking savings
Behavioural change programmes, supporting policy, energy-efficient technology investment are great examples of what can be implemented toward reducing energy consumption, waste & bring down the cost of energy significantly. But, energy management, maintenance & sustainability teams want to know:
- “How much energy and money am I really saving with my planned energy conservation measures & actions”?
- “What is the cost of not proceeding with my planned energy conservation measures & action”?
- “What is the payback period, should I install energy-efficient lighting throughout all my stores”?
- “How do I monitor and keep track of my energy-saving actions to ensure I am on track toward my energy saving and cost reduction goals”?
The answer lies in having the appropriate tools to know When, Where, How, How Much and By What areas, appliances, applications, behaviors, and practices energy is being consumed.
Retail energy management software, such as the one provided by Wattics energy software, provides energy management & sustainability teams as well as energy service companies & consultants with the monitoring, analysis and reporting tools necessary for retailers to:
- Identify significant energy uses in a store or multiple stores by area/floor; appliance (meter or sub-meter level)
- Benchmark energy use by area/floor appliance (meter or sub-meter level) across different stores
- Identify energy wastage and identify opportunities for energy savings in and out of work hours
- Identify peak demand (kVA) and consumption (kW) of a particular store or area/floor; appliance (meter or sub-meter level)
- Measure and verify energy conservation measures, retrofit and energy efficiency projects – taking into account variables such as Heating Degree Days and Cooling Degree Days, operational hours and other variables that affect energy consumption
- Establish payback period of energy efficiency upgrades and technology investments
- Monitor and track energy and cost savings through smart alerts & notifications
- Save and report on retail energy-saving projects from one unified platform
Below are some of the largest culprits in pushing up energy use and costs: Lighting, Heating, Ventilation & Airconditioning & Refrigeration. Let’s take a look at some potential energy conversation measures and actions implemented by retailers to maximise the potential for savings:
The core element of any retail outlet is its image, and lighting plays an integral role in this. This should always be factored into account when designing any new building or even when undergoing retrofit or major renovation. For existing buildings, there are still low-cost measures that can be put in place to help tackle excess consumption, such as:
- Staff Awareness – Educate staff about energy usage and what you are trying to achieve. Ensure light switches are adequately labeled so staff can choose only what is needed. Consider incentivising the process e.g. when ‘x’ amount of savings are achieved staff will earn a night out.
- Proper maintenance – It is important to keep light fittings clean from dust and other debris. Timers should be set correctly and old lamps replaced. It is widely acknowledged that poor maintenance of lighting equipment can lead to a drop in performance of as much as 35% in just a couple of years – and contribute to higher energy costs.
Inexpensive measures can be effective if implemented correctly, but in order to achieve bigger savings, monetary investment will have to be made. Such measures can include:
- Energy Saving Lamps – Consider changing the type of lamp that you are currently using in your light fitting. This will require a capital investment but significant savings will be made in the longer term. Consider ‘T5’ fluorescent lamps for example, which have been known to achieve savings of upwards of 50%.
- Occupancy Sensors – Consider the addition of these in areas which may only be occupied at certain points throughout the day, such as staff-only areas and stockrooms. This solution would also be ideal for clothing retailers who can have them installed in fitting rooms.
Along with lighting, heating is responsible for a significant portion of the energy expenditure for any retail outlet, with an average spending of ~ 30%. As in the case of lighting, there are measures that can be taken to improve heating efficiency at little or no cost:
- Door Policy – While leaving the front door wide open will allow customers quick access and egress from the building, this will also apply to heat. The internal heating system will have to compensate for this, and as a result, energy usage will increase. Consider installing automatic or revolving doors. Perhaps a draught lobby may be applicable?
- Impact of outside temperature – The colder it is outside, the more clothes a customer will be wearing. Bear this in mind when setting the internal temperature as you don’t want customers becoming uncomfortably warm. Adjusting the set temperature will have significant bearing on your energy bill as it is thought that lowering this by just 1°C can cut your fuel costs by 8%.
- Usage Patterns – This seems the most basic of tasks but is often overlooked. Check that operating hours match the times when heating is required. Is it possible for the heating to be powered off an hour before close of business?
In order to maximise energy savings, a certain level of financial investment will be required at some point, methods include:
- Control measures – The use of heating control systems can ensure that set temperatures and usage patterns can be predetermined and can be adhered to. Further savings can then be gained from the use of a compensator, which can regulate the temperature in the building based on the weather outside.
- Maintaining existing equipment – Regular maintenance of equipment should be carried out irrespective of desire for energy savings as it constitutes good practice. When targeting savings it becomes of paramount importance. All equipment such as pipework, boilers, valves, and hot water tanks should be insulated to prevent heat loss. This will require capital investment but should have a relatively short payback period.
Ventilation & Air Conditioning
Heat gained from lighting, IT equipment, staff and customers alike mean ventilation and air conditioning are an important aspect of any retail outlet. As with the other forms of energy expenditure, there are simple low cost measures that can be taken to cut energy consumption, including:
- Natural Ventilation – While natural ventilation may only be possible at certain times, it still provides relief for the high energy-consuming methods of mechanical ventilation. Consider, where applicable, the use of natural ventilation through vents, doors and windows.
- Component efficiency – An all too common sight throughout any building are dust covered vents. This applies to fans and mechanical air conditioning systems also. Ensure these components are kept free from dust and debris which will harm performance. Schedule regular servicing of mechanical components to improve maintain a high level of efficiency.
- Operational Use – Ensure that heating and cooling are never operating at the same time as they will ‘fight’ each other. Make sure there is a substantial gap between the points at which each kicks in, in order to avoid this. For example, programme heating to switch off when the inside temperature hits 18°C but cooling not to start until it exceeds 24°C.
In the case of a small food retailer, refrigeration can account for as much as 50% of the entire electricity bill. Proper procedures need to be in place in order to make energy consumption as minimal as is possible. Consider the following:
- Operating efficiencies – Ensure all chiller doors are kept shut to avoid heat entering the area. Make sure equipment is used as intended and don’t over stock the unit as temperature settings may need to be adjusted to accommodate this.
- Scheduling of Maintenance – Like lighting & HVAC before, regular maintenance of important equipment such as condensers and evaporators is necessary to maintain performance levels. Ensure all seals on doors etc are in working condition.
- Temperature Setting – As with any equipment, correct temperature setting is necessary for efficient performance. Consider increasing the set temperature for cooling by 10C to see what can be saved.
In order to achieve significant savings, consider –
- Upgrading equipment – In the case of a food retailer, for whom refrigeration costs will make up the majority of their electricity bill, consider the long term investment. Investing in highly efficient equipment now could achieve substantial savings over the course of time.
- Time Switches – Fizzy drinks and non perishable foods won’t deteriorate if appliances are switched off at certain times. For example, a time switch can ensure equipment is switched off during closing times or at weekends.
- Installation of night blinds – Refrigeration night blinds trap the cold air in the cabinets and thus reduce the need for space heating throughout the store. This will ensure a better morning temperature as theating will have been switched off overnight. Refrigerated night blinds have potential to decrease refrigeration energy costs by up to 40%.
Are you an Energy Service Company (ESCO) or Consultant looking for energy and cost-saving opportunities for your retail clients? Are you a retail chain with multiple stores in one or more locations? if yes, get in contact with us for a free demo of the Wattics energy management platform and speak to our Global Partnership team about your energy project!
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See Also: Retail Energy Management Software
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