80% (food) and 66% (nonfood) of energy consumption is tied to electricity.
Studies & Reports

Retail Investing in Energy Efficiency

A recent EHI study analyzed energy optimization measures in the retail sector.

Retailers’ investments in energy efficiency measures remain at a high level, according to the latest EHI study “Energy Management in Retail 2017.” Above all, high-turnover chain stores in Austria, Germany, and Switzerland have spent a lot of money on it over the past five years.

This is noticeable in constantly decreasing energy consumption, which currently stands at 405 kWh/sq m of sales area per year in the food sector and 157 kWh/sq m of sales area per year in the nonfood sector.

Average energy expenditure per year and square meter of sales space are currently €55.24 in the food trade and €28.95 in non-food stores (excluding DIY stores). They thus account for 1.6% (food) and 1.3% (nonfood) of net sales.

Big differences in electricity costs

80% (food) and 66% (nonfood) of energy consumption is tied to electricity, the rest is for heat. Much of the consumption is due to refrigeration and lighting (food) and lighting and building technology (nonfood). Accordingly, most energy efficiency measures are taken in these areas.

The resulting decline in consumption and the trend in electricity prices, which are generally on the rise due to a growing tax burden, make it impossible to draw any conclusions about the overall development of energy expenses in retail. These vary greatly from retailer to retailer due to the complexity of the electricity market.

Depending on the time of purchase, there are major differences in electricity prices on exchanges and network use charges vary depending on the region. In addition, there are individual prices based more on negotiated supply contracts and quotas than on actual market price developments.

Heavy investment

56% of the largest-turnover retailers have invested more than €25 million in energy efficiency measures in the last 5 years. Even in the revenue class between €501 million and €2.5 billion, however, the financial commitment is very high. 23% of retailers claim to have invested more than €25 million in the past 5 years.

The group of companies with net annual sales of up to €500 million, the majority of which are also subject to auditing, remains largely stable in its investment behavior.

In food retailing, 45% see the largest share of energy efficiency investments in refrigeration, while in nonfood retailing, 67% of investments are accounted for by lighting technology.


Basis of accounting

52 leading retail companies from Germany, Austria, and Switzerland participated in the study “Energy Management in Retail 2017.” This corresponds to over 29,000 retail outlets or about 46 million square meters of retail space. 48% of respondents hailed from the non-food sector, with 52% from the food sector.

Follow ACROSS

Download

fb-art 150

Share this article
Sign up for our ACROSS Newsletter. Subscribe to ACROSS Magazine.

Studies & Reports MORE

European Retail in 2019

GfK study on key retail indicators: 2018 review and 2019 forecast

Study from Deloitte | Global Powers of Retailing 2019

Deloitte’s latest “Global Powers of Retailing 2019” study has listed the 250 top-selling retail companies for the 22nd time.

PWC: Customers Want Better Retail Service

According to a recent study by PricewaterhouseCoopers (PwC), more and more Germans are returning to shops – where they often find a range of services with room for improvement.

Taking a closer look at the retail market of a relatively young capital

The ultimately 382-meters high “Abu Dhabi Plaza” in Astana is about to become the highest building in Central Asia. It also accommodates a shopping center, among many other things.

BRICKS DRIVE CLICKS

A Physical Presence is Key to Consumer Engagement and Success.

STEP AWAY FROM THE DESK: WHY ATTENDING A CONFERENCE IS MORE IMPORTANT THAN EVER

In a time-poor working week, we may find ourselves wondering how we can justify the expense and time away from the office that inevitably come with attending industry events. ICSC Europe Managing Director, Bill Kistler, interviews leading consumer behaviouralist, Ken Hughes, to ask “Are conferences really worth it?”