Why Retailers Are Outsourcing Energy Management to Fight Mounting Financial Struggles

It’s a tough time to be a retailer. Increasing operational costs paired with decreased consumer spending has made running a retail business an uphill battle. One recent report shares that 91% of retailers suffered revenue losses in 2025. Experts predict it won’t be any easier in the coming year. 

For owners and franchisees of chain retail outlets, driving down energy usage has become paramount. Becoming more efficient helps keep growing costs in control and future-proofs businesses against energy volatility. Plus, becoming a more sustainable business opens up new marketing opportunities to attract increasingly shrewd shoppers. What began as a trend to “go green” is now making real differences in improving operating costs and the way consumers see brands. It can really be the difference between “going green” and “going out of business.” 

A Crisis at Traditional Retail 

Chain retailers face fierce competition today on many fronts. Tariffs have disrupted supply chains and increased operational costs, and experts predict that these issues won’t let up anytime soon. At the same time, tariff-related price hikes on top of inflation and overall economic instability means consumers are spending less, especially on non-essential products. That’s why several iconic retail chains have recently begun to close large percentages of their storefront locations, including Walgreens, Macy’s, J.C. Penny, Claire’s, Party City, and more.  Smaller retails chains are struggling even more. 

Adding to these problems, retailers also face growing operational costs enhanced by increasing energy prices. Creating a visually appealing and comfortable environment is more important than ever for retail stores, but the cost of lighting, air conditioning, and even refrigeration has become a significant burden for owners and is making profitability even more challenging. Retail stores are often open for long hours, with equipment running around the clock, and their busiest hours coincide with peak energy demand, which leads to even higher energy bills.  

Lowering energy usage at retail stores isn’t simple. Stores can’t just turn off the lights or heating to save a few dollars. Usually, what’s needed are infrastructure-level facility upgrades to install more energy efficient equipment that lowers usage without compromising the environment.  

These types of upgrades come with significant benefits, yet a struggling retail shop is unlikely to have the capital to invest in these types of projects. That’s why more and more chain retailers are outsourcing their energy upgrades to an energy-as-a-service (EaaS) company, so they can save money while updating their shops—typically with no upfront capital needed.  

Partnering with an EaaS, retailers can get new equipment, such as LED lighting, high-efficiency HVAC, refrigeration controls, solar, and more to achieve long-term savings while enhancing the customer experience and differentiating their shops in a hyper-competitive landscape. 

The Benefits of Energy Efficiency at Retail Stores 

Energy Savings 

Retail stores use more energy per square foot than the average commercial building. Thanks to bright lights needed to highlight products, constant HVAC use to maintain perfect temperatures, and often refrigeration to keep perishables safe, energy costs can be one of the top operating expenses for retailers. At the same time, energy costs have been growing twice as fast as the rate of inflation with no sign up letting up. By outsourcing energy efficiency, retail stores can lower their energy usage and keep energy costs in control. 

Consumer Appeal 

Lowering your energy consumption also lowers your carbon footprint and makes you more sustainable. Retail stores that do so can appeal to more eco-conscious consumers. Research has shown that 80% of American consumers consider sustainability when making some purchases, while 70% say they would change their shopping habits if they discovered that a store or brand wasn't operating sustainably. Reducing your negative impact on the environment is shown to have a positive impact on the bottom line. 

Being able to show numbers around your improved footprint is essential when marketing with sustainability. Watch to see how an EaaS like Budderfly helps you tell compelling stories with data:  

Longevity and Lower Risk 

An up-to-date facility can eliminate energy waste. Not only is energy saved, but money is saved as costly repairs of aging equipment and business-disrupting outages are avoided. By preserving capital and streamlining operations, energy efficiency is a critical way to minimize risk and to keep a retail business running long into the future. 

Often today, there is a will but no way to begin a comprehensive strategy that truly makes an impact on both the bottom line and on enhancing customer perceptions that increase retail traffic. In identifying retail operating costs, energy is one of the top three expenses retailers incur. 

Lighting accounts for 50% of energy costs for non-food retailers. The typical retail store costs $0.71/SF year. This becomes exponential for chains. Renovation that utilizes daylight and other natural sources through windows and skylights is one way to reduce lighting costs. Installing today’s LED and T8 fluorescent draw less heat and electricity, potentially leading to 10% savings in monthly energy costs alone. 

Installing occupancy sensors to reduce lighting loads in storage rooms, back offices, and other low-traffic areas can contribute greatly to overall energy savings in lighting management. 

HVAC accounts for approximately 45% of the energy consumption in an average retail business. Here, point of consumption smart meters, sensors and control technologies automate what most operations cannot, allowing for 24/7/365 monitoring and management. 

Working with an energy efficiency company to establish comprehensive, integrated sensors and controls in these energy-using systems virtually ensures the beginnings of success for an energy efficiency program across the enterprise. 

As we say at Budderfly,  “You can’t manage what you don’t measure.” 

Automated controls and monitoring vastly improve energy efficiency and operational management. This enhances the customer experience both in aesthetics and comfort, as well as elevating retail brands in the eyes of today’s consumer. 

Choosing an Energy as a Service Company 

As with most products and services, not all providers are created equal.  As EaaS pioneers, we at Budderfly have developed and refined our smart technologies to provide comprehensive, effective energy management systems that provide all these benefits of unprecedented retail energy savings in a system that if effortless for our customers. 

Budderfly removes obstacles to help retailers achieve real energy savings by providing proprietary technologies, monitoring, maintenance, and sourcing into an easy, one-stop solution. 

What can you get when you partner with Budderfly? 

• New high-efficiency HVAC systems 

• Refrigeration enhancements & controls 

• LED lighting 

• Water conservation solutions 

• Renewable energy like solar 

• Customer portal with operational and sustainability data 

• Metering/Monitoring 

• And more! 

And for most standard installations, you can access all these solutions without having to spend any upfront capital. Budderfly assumes all project risk, installation, maintenance and monitoring responsibilities. This allows our customers to focus on their business at a time when they have so many challenges on their plate. 

To learn more about achieving real energy efficiency and operational impact and profitability starting day one and for years to come, contact Budderfly. Take control of your retail energy journey today.