How the retail industry can save energy and reduce its large carbon footprint

Frozen food aisle in a supermarket
The big chill: refrigeration can be a major energy cost for grocery supermarkets Credit: Getty

The retail industry can lower energy bills and reduce its carbon footprint by following these five simple tips.

Retailing uses enormous amounts of energy, much of it incurred by keeping products fresh in warehouses and employing fleets of vehicles to fill retail premises.

For online businesses such as Amazon, Ocado and Asos with their huge warehouses, energy consumption can create a large carbon footprint and high energy bills.

The UK’s 40 largest shopping centres consume £40m worth of energy a year and the top 15 alone emit 5.5 million tonnes of CO2 a year.

Just a degree centigrade reduction in the thermostat setting can result in an 8pc reduction in heating costs

Saving energy is therefore one of the simplest ways for retailers to increase profits because, according to the Carbon Trust, a cut of 20 per cent in energy costs can be equivalent to a 5pc increase in sales on the balance sheet.

The average retailer’s energy bill can be cut by three simple methods, namely switching off any unused equipment, improving maintenance and the refurbishment of premises.

Switching off all unused equipment is a low-tech, easy and fast way to cut energy bills, while undertaking regular maintenance of lighting, heating and cooling systems makes for optimal operations. Fundamental store refurbishment is the longer-term way to plan and implement more expensive energy-efficiency measures.


Easy to install, relatively cheap and very effective, efficient LED bulbs use 90 per cent less energy than traditional incandescent bulbs and can last 40 times longer, according to the Green Age website.

To reduce lighting costs even further, sensors triggered by daylight or movement can contribute to saving energy.

Daylight sensors, as their name suggests, will switch on when it becomes dark, a feature which is particularly valuable in a store’s car park or for illuminating signage.

Occupancy sensors are sensitive to movement and will switch on lights in response to activity, a feature that is increasingly popular for use in offices, storage areas and toilets.


An easy energy-cutting task is to check the in-store and office temperature settings, because very often the thermostat is set too high.

Reducing the temperature can pay substantial dividends – just a degree centigrade reduction in the thermostat setting can result in an 8pc reduction in heating costs.

Better management of existing heating and ventilation operating times can also contribute to savings. There should be a gap between the closing down of one system and the start-up of the other.

Ideally, the heating system should switch off when the internal temperature reaches 19C, while the air-conditioning should only start operating when the temperature reaches 24C.

A typical non-domestic building can spend 29pc of its operating expenses on energy costs. To make serious savings on the energy bill, install a smart heating, lighting and air-conditioning system that is more responsive to fluctuations in temperature. These can cut heating costs by up to a third, despite their up-front cost.

Cooling appliances

Refrigeration is a major energy cost for grocery supermarkets and shops. Savings can be made in this area by implementing small and relatively simple measures to ensure the fridges, freezers and chiller cabinets are managed correctly.

Energy-efficiency savings can be made by avoiding over-filling the appliances and ensuring that frozen food is kept at the correct temperature.

High costs: shopping centres consume millions of pounds worth of energy Credit: Alamy

The placement of fridges, chill cabinets and freezers out of direct sunlight reduces the energy they consume and is an easy measure to implement, while installing night blinds on open chiller cabinets prevents their chilled air from escaping into the rest of the store and thus reduces the need for heating.

For instance, Roberts Supermarket in Coventry made a series of energy-efficiency measures, including switching light bulbs to LED lights and installing thermostat-controlled fans in their fridges, after using E.ON’s energy toolkit. As a result, owner Amrit Singh says, “We are saving a massive £600 a month, thanks to E.ON.”

Building insulation

Typically, two-thirds of a store’s heat can be lost through the building fabric (with the remainder through air infiltration and ventilation) – including 26pc via the windows, 22pc via the roof, 9pc through the walls and 8pc through the floor.

As around 30pc of a building’s heat can escape through an uninsulated roof and the walls, it makes sense to insulate these areas by spraying or lining them. Heat loss via delivery doors, docking bays or exits can also be reduced by installing air locks and automatic doors, and PVC or warm air curtains.

Energy management

Energy management pays. A prime example is Camberley Mall, which made total energy savings of £180,000 over a five-year period.

More typically, retailers that have implemented an effective energy management system have reduced their energy consumption, thereby not only saving money but also cutting their carbon footprint.
