Grocery and Food Retailers
Grocers of All Sizes Increase Profit Through Energy Savings and Facilities Maintenance
The average U.S. and Canadian grocer spends about twice the amount of money on energy and maintenance as it earns in profit.
Energy and maintenance costs are a grocer’s highest general and administrative (SG&A) costs after salaries and benefits, according to a study by the Food Marketing Institute (FMI) in 2010. This data indicates that the average grocer can increase net profit by 20% or more by cutting energy and maintenance costs by just 10%.
Setting a High Standard for Energy Efficiency
Fresh & Easy, a 200-store U.S. grocery chain, uses 32% less energy per square foot than the U.S. industry average. If the average U.S. supermarket pays about $5.60 per square foot for energy, this grocery chain pays about $3.80 per square foot. Overall, Fresh & Easy pays about $3.96 million less for energy than the average supermarket occupying the same amount of retail space.
Facilities Maintenance Offers More Ways to Save
Tesco, a leading European grocer with thousands of stores, saves the equivalent of about $1.58 million a year by automating maintenance processes. Another big European grocer of equal size installed metering and monitoring devices to signal when problems arise in their refrigerated cases. This grocer has saved millions each year through dramatically reducing false alarms and unnecessary service calls.
Learn how to cut SG&A expenses or to increase net profit be 20% or more.