With energy prices skyrocketing and the need to replenish gas reserves before winter, everyone is doing their part, and global energy conservation measures have already been taken in the retail sector. While customer service and satisfaction are top priorities in retail, stakeholders may be reluctant to engage in actions that may be perceived as limiting convenience, comfort or brand experience. However, figures from the British Department for Business Energy and Industrial Strategy (BEIS) show that retail accounts for around 17 percent of the energy used by U.K. buildings. According to the U.S. Energy Star program of the Environmental Protection Agency, of the almost five million commercial buildings in the U.S., retail buildings account for the largest energy costs – nearly $20 billion each year – and are also responsible for the second largest percentage of greenhouse gas emissions. In sports and fashion retail, exterior and interior lighting and temperature management are the largest items in energy consumption.
Efforts to reduce energy consumption in the retail sector have been ubiquitous, not just since Russia’s war against Ukraine. Even now, the measures and regulations being implemented in most countries around the world are supported by local retail associations and other organizations. For example, the BRC Climate Action Roadmap has just published its new “Step-by-Step Guide to Energy Efficiency and Carbon Reduction in the Retail Industry” to support retailers in operating efficient sites powered by renewable energy. Various European governments have already passed ordinances to this end.
Here is an overview of the current decisions and measures:
- France: Most of the measures are still in the draft stage and are expected to be presented towards the end of September. The plan is to slash French energy consumption by 10 percent compared to 2019 by 2024. One of the measures is to ban stores from leaving doors open while air conditioners and heaters are running. Illuminated signs are to be turned off between 1 am and 6 am in all cities, a measure that has been in place for years and is applied to cities with a population of less than 800,000.
- Germany: The German regulation stipulates that store doors may not remain open permanently in the future, which the local trade association supports, but at the same time points out that this will reduce the frequency in the stores. To make customers aware of the measures, the retail climate protection campaign of the German Retail Association (HDE) has therefore developed posters saying “Doors closed, stores open,” which retailers can print out and display on their doors. The new ordinance also provides for illuminated or luminous advertising installations to be switched off between 10 pm and 6 am, which firstly led to confusion among retailers, but made clearer lately as not being relevant for shop windows. The regulations are valid until Feb. 28, 2023, which HDE criticizes as too early.
- Spain: Since Aug. 10, 2022, businesses have to curb air conditioning at 27 °C in summer and heating to 19° C in winter, as well as switch off shop front lights by 10 pm. Stores must also install automatic closing doors to ensure that the energy from running heating or cooling systems is not lost.
- Italy has not decided on any concrete measures yet but is said to be planning to adopt similar actions taken by Spain.
- For the U.K., a parliamentary briefing published in May 2022 summarizes the situation and outlines implications, none of which are yet binding for retail businesses.
In a nutshell, actions will most probably be taken that will affect retail business, the lighting and temperature management being a central part of them. At least in Germany, the warning voices against completely switching off store lighting in city centers during the upcoming fall and winter nights were heard, as the specified rules now exclude store windows from the regulations. “With shop window lighting, we also ensure safety and social responsibility in the cities, especially in the less frequented times at night,” said Stefan Genth, CEO of German HDE, to newspapers of the Funke Mediengruppe. But there are others who would welcome the new darkness: The French Association nationale pour la protection du ciel et de l’environnement nocturne, which is fighting for less lumination to protect wildlife, biodiversity and healthy sleep, is calling for clearer and stricter rules and sanctioning against those who fail to switch off.
