Report on Energy Conservation in Supermarkets
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REPORT ON ENERGY CONSERVATION IN SUPERMARKETS by R. E. Young Industrial Engineer - Retail Operations Dominion Stores Limited Thank you for your invitation to Our effectiveness in reversing these ad- speak on energy conservation, the hotest verse trends will hopefully have signi- topic in retailing. In our company energy ficant impact on future generations. costs were up twenty-eight percent last Energy conservation is one facet of the year. I must say; however, that we do overall problem, other elements are not have the energy costs faced by super- population control, recycling, and en- markets in the New York City area. As a vironmental protection. We in the super- result of this difference, the economic market industry can only significantly justification of energy conservation impact energy conservation and recycling. capital projects is more difficult in We can be proud of our leadership in Canada. My comments will be tempered by energy conservation and attempts in this fact. The highest Canadian energy Canada to introduce generic returnable rate in large supermarkets is three cents bottles for soft drinks, thus aiding re- per kilowatt-hour found in Nova Scotia. cycling. It must be realized by the This results from the fact that Nova public and legislators that the func- Scotian power is all fossil fueled. The tion of supermarkets is to sell groceries average rate across Canada is about two and related items which satisfy public cents. As a result Canadian experience demands for a reasonable return on in- will lag most American experience. vestment. The first widely accepted analysis Competition forces us to be respon- of shrinking resources was the report sive to public tastes. It is therefore, “Limits to Growth” prepared by the Club essential that public tastes and habits of Rome which was an assembly of scholars be changed. This can only be done through convened by the Chairman of the Fiat education of the public and if the public automobile company. This report outlined is not responsive, then legislation,but in broad terms the interaction of selected only as a last resort. I do not believe items such as population, arable land, that it is reasonable to expect a private energy sources, critical metals and non- company to disadvantage itself by pioneer- metals, pollution and the like. The ing energy conservationmethods which depletion of resources and increase in will alienate customers or not provide pollution and population portrayed in the adequate return on investment. There are book, although presently in dispute, known ways to reduce energy consumption, made a profound impact on many readers. the question to be answered is what actions It certainly did on me and I recommend are economically justifiable. that the study be read. Canada is the highest consumer of It is difficult to imagine the energy on a per capita basis. This is heritage being left to future generations. because we have similar life styles to February 78/page 62 Journal of Food Distribution Research Americans in a colder environment with action! When we realize that stores greater lighting needs because of our being planned today will possibly be latitude and lower population density operating thirty years from now, the which increases transportationcosts. In need for a long term perspective is spite of scarcer resources; media impact, apparent. prevailing life styles our society has grown accustomed to and development of Refrigerated equipment suppliers the Third World cultures will result in a have developed various techniques of cultural inertia which will resist reduc- saving energy and supermarket operators tion in standards of living around the will be pushing for more since the world. It is only human to be selfish. refrigeration system uses 60 percent of total supermarket energy. In addition to the social inertia of change, is the physical inertia of change The design criteria must include: caused by engineering and financial limitations and expense of retrofit re- 1. Product appearance and accessibility visions to an existing retail store’s energy system. The supermarket of today 2. Capital cost is a long way from those of even ten years ago. They are larger, brighter, 3. Labor cost include scratch bakeries, more refriger- ated merchandiser footage and electronic 4. Energy cost point of sale terminals. As a result the total system is not just larger but also 5. Repair and maintenance cost more complex. In addition, customers caused both supermarket chains and various Generally, pay back has been used governmental agencies to either raise to decide on equipment purchases and standards or enforce existing law more lowest capital cost, given that equipment strictly. This applies to the areas of was generally acceptable, was the deciding product quality, employee safety, sanita- factor. The important factor should be tion, sewage disposal, noise and the like. the total life cost per unit sold or The pressures on chains and individual dollar margin of sales. Product appear- store managers have never been greater ance and accessibility is still the most but the pressures will increase, not important consideration in choosing mer- lessen. Anything which can be done, with- chandisers since their prime function is in reason, to lighten the store manager.’s to sell product. The fact that the load should be done to allow maximum product is refrigerated is presently of time for dealing with people including secondary importance. However, as power customers, inspectors, office support costs rise in relationship to capital staff and store employees. and labor costs, we will have to reeval- uate our purchasing decisions based upon I have laid out this broad outline as total life costing. Financial analysis a basis for projecting what the next five techniques,which make expenditure com- years hold with respect to retail super- parisons possible on a present value market development. In reading various basis, are necessary and calculators are authors I have found a commonality of available which make this calculation thought but note that any attempts to quite easy. It will be necessary; there- estimate time are usually wrong. People fore, for case manufacturers to design assume that things will happen faster refrigeration systems, considering the than they actually do. Social inertia in five elements mentioned, to provide Journal of Food Distribution Research February 78/page 63 .