Shopko saves energy with Intelligent Operations
Accenture helped a U.S. retailer optimize in-store lighting, temperature and control and reduce power usage and costs with applied intelligence.
Traditional bricks-and-mortar retailers, under relentless pressure from low-overhead digital competitors, must rigorously control costs.
Energy for in-store lighting, heating and cooling is a major expense. Like many retailers, our client, Shopko Stores Operating Co., had limited visibility into what it was spending to keep the lights on.
The retailer, which operates more than 350 U.S. stores, sought greater insight into store-by-store energy consumption to minimize costs and drive sustainability. The company also recognized its competitive position hinged in part on getting a better handle on energy spending.
Accenture helped coordinate a store-wide energy optimization program, without compromising customer comfort.
“Our partnership with Accenture helped us optimize customer operations by identifying energy consumption patterns in highly-fluctuating markets.”
Facilities Manager for U.S. retailer.
We deployed a team of energy and procurement experts in applied intelligence.
The objective? Provide pinpoint control over individual stores’ heating, lighting and cooling, with sophisticated sequencing of systems.
We met our objectives through:
Accenture talent and machine-learning algorithms enabled continuous tests and shifts in operating parameters without changing store temperature.
Through the Center of Excellence, we created an Internet of Things platform to leverage cloud and advanced analytics to validate savings achieved.
After the success of the pilot, we rolled our solution out more widely, connecting more than 2,000 in-store air-conditioning units in the first phase.
Shopko applied insights from advanced energy analytics to identify emerging trends and delivered twice the estimated program savings in the first six months.
Shopko now pursues new opportunities with a more aggressive approach to equipment controls.
Improved demand control and reduced peak demand charges helped Shopko cut energy costs by 9 percent (equivalent to over $1 million each year).
Shopko has already seen a 70-percent reduction in losses from faulty equipment, with a workflow system immediately dispatching teams to make repairs when problems are identified.
With intelligent operations, Shopko expects to boost total savings by 25 percent to 30 percent through repair of bad sensors and improperly configured control systems.