The New Retail Landscape Part 2

In my last article, I elaborated on how our newenergy on lighting as well as cooling. Recently, studies
economic market will actually be a good thing for thehave discovered that replacing incandescent bulbs in
smaller retailer and consumer of the long run. We'llenclosed housings tends to burn out CFL's faster
see these benefits around 2010. That means that wethan their expected life term. It's best to use these
need to take action so that we can survive throughin open fixtures where their small amount of heat can
the next 16 months.dissipate.
In a moment, I'll give you a handful of ideas on how3) Unplug all parastic loads in your store. Go through
to cut your energy costs. I recently predicted thethe premises and unplug that TV and DVD player in
downturn of the U.S. dollar and explained whythe staff room unless you're using it. Even though
speculators needed to buy U.S. dollars to pay offthey're off, they will consumer about a hundred
their bad margins. The dollar is actually falling fasterwatts apiece day in and day out, 24 hours a day. Do
than even I predicted! My other prediction was thatyou have an extra desk top computer running in the
in spite of a $2.20 gallon of gas by then end of themanager's office? It's drawing a minimum of 500
year, energy costs will skyrocket in 2009. Oil will gowatts every hour, likely more with the printer
way up in a recession and not as a result of supplyplugged in and on as well. These parasitic loads can
and demand. The bankers who scooped all thosecost hundreds of dollars a year.
buckets of money from the American Taxpayer toAt 16 cents a kilowatt hour (This rate will double
supposedly reinvest and stimulate the economy hadsoon), the desktop computer and its peripherals is
done just as I had predicted.costing you about $2 a day in hydro. That's 16 cents
They're NOT creating jobs or lending out muchtimes (500/1000) times 24 hours in a day. Running a
money. They say credit is tight. So where is the $1.4computer like that is about $730 a year in hydro.
trillion dollars going? Foreign investments, primarily in4) Reduce your water heater to 120 to 130 degrees.
oil, that will drive the prices up to levels that willMost stores have a water heater for a washroom
boggle the mind in 2009. If you think it can't happen,for employees and customers. Most water heaters
it already has. Earlier this year, when oil hit $140 aare set to 160 degrees and then forgotten. Unless
barrel and more ( and U.S. gas was almost $4 ayou run a restaurant and need that temperature for
gallon...), it wasn't driven my supply and demand.washing dishes, 120 degrees will save you a bundle
Speculators artificially drove the price up, and they'lland is warm enough for washing hands and other
do it again with the money they were supposed tothings. While you're at it, put in a low flush toilet.
plow back into the U.S. economy. The government isYou're paying a fortune for water and that will be
already grumbling about how the banks have notalso going up soon as well.
kept their word and have not used the funds to5) Replace store lighting with energy efficient
benefit the economy, but are making investmentsfluorescent tubes. Ask your electrician (while he's
out of the USA to their benefit and self interest.turning down your water heater) about the most
Now you know why in simple terms, how oil will goefficient lighting units for your store signs. Most are
back to $140 a barrel and actually much higher inilluminated with 40 watt tubes, that are largely
2009.replaced now with more energy efficient 32 watt
The smaller retailer needs to take steps now in orderunits. That's 20% less in consumption.
to reduce energy costs. Here are a number of things6) Examine your vehicular patterns. Do you have a
you can do, that can cut your energy costs by asvan for stock deliveries to stores or between
much as 30 percent. The higher energy costs go, thestores? Can you consolidate shipments and reduce
more you can save.the frequency of trips?
1) Adjust heating down to 67 or 68 degrees and airAs we enter these challenging times, retailers can
conditioning to 78 in the summer. Every degree eithersave costs and enhance profits through more
in heating or air condtioning can reduce your costs byefficient and frugal use of energy without
as much as 5%, depending on weather conditions.compromising the customer experience.
Employees and customers won't even feel theTAKE ACTION TODAY
difference. Overheating or overcooling costs a1) Review this list of tactics with your team and get
fortune.started on reducing one of your major expenses.
2) Replace lighting with Compact FluorescentEvery bit you reduce as energy costs go up will
Lightbulbs (CFL's). These units are far more efficientenhance your profits during these challenging times.
and direct much more of the energy they consume2) Ask your team for ideas on how to reduce
into actual light instead of heat. In the summer,energy as well! HANG IN THERE!
expensive air conditioning will work less. You'll save