Why Is Energy Management Critical In The Retail Sector?

Retailers consume around 20% of the energy in all commercial businesses. Considering these facts, it is the fastest-growing commercial category of energy users. Managing energy costs is becoming challenging for retailers because of the rising energy prices.

The last few years have been tolling for the retail industry. Margins were constantly reducing because of the increasing energy costs and consumption. It’s a concerning issue that needs to be tackled with the implementation of advanced technology. Retail companies have started taking initiatives to reduce energy consumption, achieve sustainable results, and optimize profits up to a considerable extent.

Deploying the advanced IoT solutions will create a win-win situation for retailers in ensuring efficient energy management and fulfill the motive of going green. It allows them to take energy-reduction initiatives with full force and also reduce costs & improve profits by positively impacting the environment and bottom-line.

Increasing demand for retail energy management

 Maintaining energy efficiency in commercial buildings is becoming crucial with the new construction every year. Driving this need is even more in the retail sector. Retail energy management has become the need of the hour! It delivers energy efficiency, monitoring, analysis, and tracking energy savings in buildings.

The retail industry is ready to implement IoT-driven solutions for improving store operations, enhancing customer experience, and driving more conversions. Retailers can proactively handle day-to-day problems such as tracking energy utilization, managing in-floor navigation, detecting crowded areas, reducing check-out timings, managing product shelves, preventing theft, monitoring goods, or any other aspect with the help of smart IoT technology. Retail stores are focusing on leveraging advanced IoT technologies to enhance customer experience and fulfill these motives.

Connected wireless technologies like IoT are taking the retail industry by storm. Approximately 96% of the retailers are ready to deploy the Internet of Things solutions in their stores. IoT in retail is invaluable whether it’s about interacting with customers, delivering brand experiences, or running efficient operations.

How does IoT technology play a crucial role in the retail sector?

Retailers already have to deal with so many aspects to bring profitable results. The load is even more when the bottom line constantly deteriorates because of excess energy consumption and inefficient operations. The implementation of advanced IoT technology offers the perfect solutions for these issues. Let’s understand in detail:

1. Improve store’s energy efficiency

With the applications of IoT solutions, retailers can make sure that the energy consumption in their stores is optimal at all times. As a result, the operational costs of the stores are reduced, which increases the profit margin of the retailers. Below are some of the vital parts of the retail stores that capture a considerable portion of the energy consumption:

• Lighting

It is the core element of any retail outlet. IoT technology makes use of wireless sensors and advanced devices that give detailed data about excess energy consumption in lighting. It allows retailers to apply low-cost measures to achieve energy savings.

• Building Controls

Effective management of the building controls in retail stores ensures energy efficiency. The IoT technology drives automation in building controls and makes sure they are optimized to the most efficient level.

• HVAC

HVAC stands for heating, ventilation, and air conditioning that captures a considerable portion of energy consumption in retail stores. To maximize the energy efficiency in HVAC, IoT ensures timely maintenance of the equipment irrespective of the need. It makes the retailers aware of the systems consuming the maximum energy and detects the abnormalities that may take place in the future.

• Food cooling and refrigeration

Cooling and refrigeration account for 50% of the entire electricity bill in a particular retail store. Installation of IoT devices regulates the energy consumption in cooling and refrigeration systems. It reduces energy costs up to 40%!

2. Efficient asset tracking

Rightly tracking the assets health and energy consumption is a pain for many retailers. It demands a considerable amount of time and effort to achieve the same. IoT offers a highly effective solution called remote asset management. It smartly solves these problems that allow retailers to easily manage their assets and ensure long life of building equipment and savings money for the business.

3. Predictive maintenance of the equipment

The retailers face issues like last-minute equipment breakdowns that hamper their everyday operations. It happens because they don’t ensure predictive maintenance of the equipment. For complete equipment maintenance, it is necessary.

IoT technology delivers predictive equipment maintenance that monitors and identifies the events that can lead to damage in the future. It comes with IoT-enabled sensors that alert the retailers about the abnormalities in the equipment behavior. If there is a risk of any breakdown, the retailers can take action to prevent further damage to the equipment.

The implementation of IoT technologies can benefit the retail sector in a number of ways. It helps retailers to strengthen their competitive advantage, elevate the customer shopping experience, streamline their services, etc. Connect with Zenatix to get the most advanced IoT solutions.