Wholesale costs of goods (63 per cent), business rates (38 per cent), and energy costs (30 per cent) are the three biggest concerns for UK retailers ahead of an uncertain 2020.
According to new research by E.ON, more than half (56 per cent) of UK retailers expect their energy costs to rise next year, but two-fifths (38 per cent) have not yet implemented energy management solutions to improve efficiency, cut their consumption and reduce operating costs.
A third (30 per cent) of retail leaders went as far as saying that energy costs affected their business competitiveness, more so than paying rent (29 per cent) or insurance (20 per cent). To combat this, many retailers are implementing lower cost measures to help reduce their energy usage. In the last year alone, almost half (46 per cent) have installed LED lighting and more than a third (35 per cent) have asked staff to be more energy efficient.
Iain Walker, director of energy sales at E.ON, said: “With financial pressures from increased wholesale costs and business rates – not to mention the uncertainty caused by Brexit and the recent election – energy efficiency is not at the top of many retailers’ to-do lists.
“Yet, at a time of unprecedented disruption, energy technologies and efficiency measures offer retailers not only a genuine opportunity to help protect their margins, but also help in meeting carbon reduction targets and in improving the air we breathe.
“Our research shows that small and important steps are being taken, but that retailers need to be much bolder and recognise that improving energy efficiency is an investment in the future of our businesses and our planet – not just another cost.”
Retailers have a number of measures available to improve the sustainability of their operations, including on site energy generation through rooftop solar or heat pumps, purchasing electricity from 100% renewable sources, or installing a building energy management system(BEMS).
Despite these options, E.ON’s survey of 100 senior retailers reported a continued hesitancy to invest in more impactful measures: only ten per cent have upgraded their buildings energy management system or implemented building control strategies. Meanwhile, only three pre cent have invested in on site energy generation with the help of their energy supplier.
