Star Energy Solutions Star Energy Solutions

Major Retailer Case Study

A major retailer saves multi-million dollars in energy and maintenance costs

Background

North American retail companies spend approximately $20 billion on energy each year. A 10 percent reduction in energy costs for the average full-line discount retailer is equivalent to an increase in sales of $25 per square foot. Confronted with stiff competition from unconventional retail outlets, such as Amazon and ebay, and rising energy prices, conventional retail outlets are fighting an uphill battle to survive. Given the increased cost effectiveness of the unconventional retail business model and the increased value add in adapting new technology, conventional retail outlets are seeking out ways to decrease their costs and increase their bottom line. 

The Problem

Our client is a major high-end North American retailer with over 200 stores. They have an annual energy spend of $50 million and a maintenance spend of $60 million. We were approached by a major retail consulting firm to help them in identifying and implementing energy savings opportunities for their client.  

Solution

Retailer-Gap-Analysis


We identified ways to help them reduce their energy and maintenance consumption at 120 of their locations across the country. Our first step was to internally and externally benchmark their store-wide energy consumption. After conducting a gap analysis, we conducted energy audits at the locations with maximum energy gaps. Various energy efficiency measures were identified that when implemented resulted in approximately $5 Million in annual savings with an overall payback of less than 4 years. We also identified major maintenance improvement opportunities. 

Retailer-Interval-Meter-Data-Graph