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BEST PRACTICE DATABASE
Click on a category on the right to read a summary of the case studies in that area
Energy Conservation: Multiple Practices and ROI
Of all the environmental best practice areas, reducing energy use produces the greatest measurable financial savings for retailers. According the Edison Electric Institute, the cost of energy accounts for anywhere from three to eight percent of a retailer's total operating expense.
Energy use costs are especially high for grocery stores: the Food Marketing Institute estimates that a 10 per cent improvement in energy efficiency has the equivalent financial value as a 15 per cent improvement in profit margins for the average supermarket company.
Energy Conservation and Return on Investment
Energy conservation projects by retailers are rarely done singly. The savviest retailers are implementing a combination of energy efficiency initiatives and are realizing a corresponding return on investment. The Greening Retail Best Practices database contains 47 case studies that describe the multi-pronged approaches that retailers are taking to conserve energy. Below are highlights from this section of the database presented in table form.
Of the 47 case studies with multiple practices in energy conservation, a return on investment is reported for 19 of. The most frequent type of reported return on investment is gross savings, with 13 of the case studies translating their energy reduction measures to a cash amount. A more relevant measure, which takes into account the initial outlay of the measure, is payback period. After gross savings, payback period is the most commonly reported financial savings measure. With 9 of our case studies, we are able to report on the payback period, and the average of those cases is a payback period of 2.8 years.
Three of the case studies report on rate of energy savings. Bestway Supermarket achieved a a 33 per cent reduction in energy costs with a number of strategic improvement. Eastdale Shopping Centre has achieved a saving of 30 percent off its annual energy costs through their initiatives, while LL Bean's HVAC System boasts an additional 40 per cent savings on annual energy costs than most older equipment. Business Depot report that they a 29.3 per cent annual rate of return on the original investment in energy savings, and these savings are passed on to customers in lower prices.
What retailers really want to know is how energy-savings initiatives affect the bottom line. Larry's Market is the only case study in which energy savings measured were quantified into increased profit. It was calculated to be a 20 per cent increase in net profit.
Type of ROI |
Number of Companies |
Results |
Gross Savings |
13 |
n/a |
Payback Period |
9 |
Average period: 2.8 years |
Energy Savings |
3 |
Average 34.3% |
Annual Rate of Return |
1 |
29.3% |
Increase in Net Profit |
1 |
20% |
Larger Retailers
Retailer |
Actions Taken |
Return on Investment |
BJ's Wholesale Club |
• energy efficient lighting,
• energy management systems,
• high-efficiency air conditioning
• high-efficiency refrigeration equipment,
• benchmarking its clubs across the country.
• expanded its in-house energy management staff
• created a corporate Energy Task Force to carry out a comprehensive energy management strategy. |
• immediate low/no cost improvements saved the company over $1 million in one year |
Business Depot (Staples) |
• upgraded lighting in 606 stores
• installing energy management systems,
• energy-efficient HVAC systems,
• LED exit signs and
• building envelope upgrades. |
Benefits of the $3.1 million spent:
• savings -- $985,425/year,
• a 3.15-year payback
• a 29.3% annual rate of return on the original investment.
• passing savings on to customers in lower prices. |
H-E-B |
• Central electronic controls to monitor energy usage at all times for all stores and buildings are adjusted centrally.
• Lighting is monitored, and all lights are turned off after hours.
• Computer-based refrigeration, HVAC and lighting controls ensure that systems stay within specified ranges.
• As well, HVAC (heating, ventilating and air conditioning) systems are high efficiency.
• Continuous commissioning programs or ongoing maintenance of machinery, systems, refrigeration |
• The payback on the electronic monitoring system has been between two and three years.
|
L.L. Bean |
• rooftop HVAC units has a reflective shield, specially made to reflect the heat of the sun.
• The store's HVAC equipment is a high efficiency system
• Occupancy sensor
• Lighting, equipment, etc. |
• The store's HVAC equipment is a high efficiency system, boasting an additional 40% savings on annual energy costs than most older equipment.
• Occupancy sensor investments paybacks are within one year,
• most other energy investments (lighting, equipment) receive payback within 2 years. |
Sears |
• a long-term energy-management plan (LTEMP). |
• Sears saves $1.7 million per year through retrofit activities undertaken between 1993 and 1995, and the savings continue. |
Zellers |
• Measures included:
• changes to the lighting systems,
• use of demand controls
• installation of high-efficiency motors and
• changes to the HVAC plants |
• With pilot and replication measures costing a total of about $5 million, the company is saving over $1.5 million annually in energy costs.
Payback Period: 2.9 years. |
Smaller Retailers
Retailer |
Actions Taken |
Return on Investment |
Barbra's Bakery |
Barbara's Bakery has implemented several significant projects at its 55,000-square-foot facility, such as:
• Improving efficiency of heating, ventilation, and air-conditioning systems,
• Increasing insulation levels wherever possible and
• retrofitting the building's lighting |
• As a result of upgrades, the bakery saves approximately $16,700 annually |
Bestway Supermarket |
• Converting an open freezer to an enclosed case
• Replacing standard fluorescent lighting with highly efficient metal-halide lamps
• Tuning up the store's heating and cooling system
• Insulating a hot-water tank and piping |
• The total energy savings rings up to $12,000 annually -- a 33% reduction in energy costs |
Big G Foods |
• replaced T-12 lamps with T-8 lamps and electronic ballasts,
• installed high-pressure sodium fixtures in the parking lot.
• upgraded their cold storage and retailing systems with new refrigerators and refrigerated cases,
• new coils for walk-in freezers and coolers, high-efficiency motors, and new evaporative condensers.
• (HVAC) system was upgraded to work synergistically with the cooling system, including a heat reclamation system.
• The store's lighting and HVAC were connected to a state-of-the-art energy management system to allow precise control of this equipment. |
• Big G Foods saves almost $22,000 per year on upgrades
|
Boulder Bookstore |
• Bolduc upgraded lighting to energy-efficient 32-watt T-8 flourescent lamps with electronic ballasts.
• low-emissivity (Low-E), super-insulated, double-paned windows,
• an energy-
• also implemented water-conservation measures by installing efficient toilets and aerators in faucets. |
• When store moved from 7,000-sqare-foot space to a facility three times its size, the electricity bill only increased by one-third.
• annual savings from energy savings measures are $4,800.00
• implemented several energy-efficiency measures into the design of the new space that now save him almost $2,000 annually.
• Payback period: 3 years |
Calgary Co-op |
• The retrofits included:
• improvements to the freezer section and walk-in coolers,
• installing track lighting,
• replacing indoor lighting fixtures,
• installing motion sensors in sporadically- used rooms
• and replacing outdoor lighting
• refrigeration upgrades, s
• De-lighting
• Additional savings were found by grouping sales-floor lighting in zones and installing switches. |
• two fluorescent tubes were removed from each of the four-tube ceiling light fixtures, saving about $2,500 a year.
• $230,000 investment per store, savings of $57,000 per year, payback in 4 years |
Community Mercantile |
• replacing the HVAC high-efficiency models
• programmable thermostats,
• added a white, reflective roof with added insulation,
• replaced all T-12 fluorescent lamps and magnetic ballasts with T-8 lamps and electronic ballasts,
• replaced old windows with low-E insulated windows,
• installed covers on all open refrigerated cases to increase efficiency at night,
• installed tankless water heaters,
• installing LED exit lights,
• replaced incandescent lights with compact fluorescent lights |
• anticipates cost savings on utility bills of more than $55,000 each year. |
Eastdale Plaza Mall |
• replacing the heating and air conditioning units with energy efficient models,
• improved roof insulation,
• replaced 85 percent of the interior lights with energy efficient T-8 fluorescent lamps
• other conservation measures. |
• saving 30 percent off its annual energy costs. |
Gregory Supply Company |
• building and equipment upgrades,
• train staff operating and maintaining their facility and equipment for efficiency.
• took part in Burlington's Alliance for Climate Action 10% Challenge.
• tracking energy performance with the help of the Challenge's Kilawatt Partners and posting the results throughout the building to encourage employee awareness. |
• saving approximately $10,000 per year electric bills in 24,300 square-foot location. |
Larry's Markets |
• upgraded HVAC systems
• the new unit is controlled digitally, and all systems are remotely controlled.
• from T-12 lights to T-8 lights,
• skylights |
• The company anticipated the total savings in one store to be approximately $750,000 between 1990 and 2000.
• essentially achieving a 20% increase in net profit." |
Rocky Mountain Chocolate Factory |
• volunteered to have the Delaware Department of Natural Resources and Environmental Control (DNREC), Pollution Prevention Program conduct a Delaware Green Gold Business audit of its store.
• store is lit by GE Watt Miser T8 ballasts, saving 76% over incandescent ballasts, and an additional 6% over other T8 ballasts.
• HVAC system is a 10 SEER unit, which is 40% more efficient than equipment most widely used
• HVAC system is cleaned and maintained monthly
• Some of the store's computer equipment is Energy Star
• to purchase additional Energy Star equipment as older equipment needs to be replaced. |
• Lighting has an approximate 2-year payback period, depending on the size of the investment.
• Energy Star computers are the same price as other computers;?, the payback period is almost immediate. |
Shaw's Supermarket |
• comprehensive lighting retrofits,
• detailed tracking of energy use, |
• incentives from utility company rebates accounted for more than 17% of the total project cost, and lowered the payback to just over 2 years |
Vic's Market |
• replaced interior lights,
• installed a new compressor |
• Annual Cash Savings: $48,000 from energy upgrades.
• Annual Energy savings: 685,715 kWh
• Payback period: 3 years
• increased sales by 15% since the upgrades. |
World of Carpets |
• replaced T12 fluorescent lamp and magnetic ballast lighting system with t T5 fluorescent lamp and electronic ballast system.
• replaced incandescent flood lamps with ENERGY STAR qualified compact fluorescent lamps (CFLs). warm natural looking light that has resulted from the upgrade "shows off our fabrics and carpets in their true colors
• educates and encourages its employees to turn off lights when not in use and
• uses electric fans to improve air movement and reduce air conditioner use. |
• These improvements have resulted in the facility saving more than 43,700 kWh of electricity and $5,500 a year, while preventing the emission of 69,900 pounds of carbon dioxide annually. |
Resources: Natural Resources Canada: Retail and Shopping Centre Sector Saving Energy Dollars in Stores, Supermarkets and Malls
This synopsis was compiled from case studies in the Greening Retail Best Practice Database. Sources for the information in the case studies are cited in the database.
This database contains links to case studies of environmental best practice from retailers around the world. You can search this database by the name of the company only, or you can find case studies that match one or several specific criteria, such as the type of retailer, the type of best practice, the company's country of origin, and/or project return on investment.
Simply select your search criteria in the spaces provided and hit the "search" button to come up with a list of the kinds of case studies you're looking for.
Please note that we cannot include all the practices of every retailer; therefore, the non-inclusion of a company, or of a certain area of practice for a company, does not mean that they do not presently have progressive environmental initiatives in these areas.
If you would like to submit a case study to be added to the database,
please contact greeningretail@trca.on.ca.
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