Energy Reduction Service a Big Hit with

Faros helps Somerfield Stores Ltd achieve substantial savings by reducing their energy consumption.

Somerfield are a leading retailer which has a significant number of stores throughout the UK with an annual energy bill in excess of £40 million. Somerfield, like all businesses, have seen energy costs, public perception, the media and government pressure increase. A long term solution was needed to reduce energy consumption and limit the impact of future government legislation, whilst maintaining the focus of the core business.

• Somerfield have a variety of store formats, each with differing sales square footage and installed equipment, all requiring a unique approach.

• Staff were aware of Climate Change and Energy Saving, but (as with society generally) did not associate this with being energy efficient themselves on a day to day basis.

• Energy usage visibility at store level was limited to a published single combined utility cost every 4 weeks.

• Working closely with Somerfield’s Energy Manager, Faros formed a dedicated energy team.

• Faros developed a bespoke database which collated information including format, sales square footage and equipment. In addition, the database was used to log the energy team’s activity and to prompt actions and next contact date.

• A key driver was to provide stores with visibility of their consumption. Faros developed a website linked to Somerfield’s intranet that enabled store managers to view the previous day’s energy profiles. This assisted the energy team to encourage saving at the store level and any changes made in store (energy initiatives) could be seen in monetary terms the next day, which maintained momentum.

• As most employees do not understand what kWh are, Faros used terminology common to Somerfield (using average profits per customer) to increase understanding and awareness throughout the business, thereby demonstrating the savings from turning a light switch off or changing an operational process.

• Processes were reviewed, using traditional M&T analysis. From this good practices were identified and rolled out across the portfolio. Tips and advice were regularly sent to stores for discussion amongst staff within their daily meetings.

• Faros conducted surveys on stores where energy reduction was difficult to achieve. Works were subsequently identified, costs calculated and business cases provided to Somerfield demonstrating payback period. Faros managed and audited all works undertaken.

• A senior member of the energy team regularly attend Regional meetings with Divisional Managers, to ensure energy awareness is maintained.

• All stores are categorised by performance and contacted via telephone accordingly, ensuring existing savings and awareness are maintained.

• Surveys (where required) are undertaken. Following which, business cases are raised and all completed works are managed and audited by Faros.

• Identify new technology, assess payback, provide business case and if accepted, manage implementation.

• A 7% (£3 million per year) reduction in energy costs in real terms without accounting for longer trading hours, store expansions, temperature and additional equipment.

• Visibility of up to date energy profiles, via the Faros designed website, has assisted staff to become more focussed and pro-active in energy reduction.

• Faros have collated a comprehensive database which holds information pertaining to each individual store. The contents of the database are used to analyse store variables (e.g. size, opening hours, equipment, etc) and Faros are able to benchmark on a true like for like basis.

Somerfield Head of Energy quotes:

“Traditionally the strategy for energy saving has required extensive capital expenditure. Faros’s approach was different; working in partnership, they raised awareness throughout the business from director to shop floor assistant, changing working practices and encouraging energy efficiency. The results have been outstanding and Faros has become our strategic partner, sharing our long-term goals.”