Energy management has traditionally been billed as a sustainability effort, but its true value could add up to more than $3 billion!
Retail buildings have a notorious reputation for consuming massive amount of energy during normal operations. However, many retailers do not have 24/7 open hours, and yet, they continue their unrelenting demand on today’s energy resources. Meanwhile, the global economy is putting pressure on retailers to reduce their reliance on unrenewable sources of energy. As a result, more companies are embracing the sustainability revolution, but it goes beyond sustainability. Retailers could look to eradicate inefficient operations through retail energy management in several key ways.
Retail Energy Facilities Management Can Provide Sharp Savings
Energy management reaches into every aspect of retail. Even systems that seem to run continuously without change, like refrigerators, can benefit from implementing an EMS. Retail energy facilities management systems can save up to 41 percent in energy costs by implementing an EMS, reports Schneider Electric. More importantly, that reflects a 15-percent cut in electricity costs. Now, imagine how that number may grow if retailers were able to cut 30 percent of all energy costs too. The savings could be astounding.
Small-Format Stores Require Better EMS
Small-format stores, like those operating in strip shopping malls, face many challenges regarding energy consumption. They each have exterior exits and a nominal shopping space. Thus, cooling this space means continuously fighting incoming heat from these exits. Furthermore, small retailers that also prepare food, like small grocery stores with lunch menus, may have even higher energy costs. This holds true among retailers selling perishable food items that require refrigeration. These companies may utilize up to 300-percent more energy than their clothing or non-food counterparts.
Overhead Savings Results in Better Customer Service Through Lower Prices
Overhead savings in retail are not just derived from analyzing and reducing reliance on energy resources. These savings come in the form of more customers and higher levels of customer service.
For example, employees that work in a company with an EMS solution in place are more likely to have larger salaries due to increased profit margins. Consequently, higher pay means better customer service. This may not be true in all cases, but it is an assumption that has some basis. According to The Seattle Times, larger wages contribute to increased job performance and higher employee satisfaction. As a result, your business will see larger gains in profitability and sales.
Retailers Can Extend Product Stability and Durability With Proper Energy Management
With respect to retailers selling food items, an EMS system can improve product stability and safety. This means fewer returns or complaints resulting in business losses. Furthermore, even shelf-stable products, like clothing, benefit from EMS implementation.
For example, fibers within clothing can change shape repeatedly with swift temperature changes. As a result, a garment stretches without being worn. However, an EMS solution can extend clothing’s shelf life by making the product retain its original craftsmanship. Other products, like oils, medications, linens and metallic objects, all benefit from having a consistent temperature, especially when such items do not have a higher sell-rate.
Get Your Piece of That $3 Billion Now
Your company can reap these savings too. But, you must first create a plan of how to approach EMS implementation and any necessary upgrades. Fortunately, ENTOUCH can help you through the entire process, including initial assessment, equipment upgrades and after-the-sale system support. to learn more about retail energy management today.