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Energy is the fourth largest in-store operating cost for US retailers. While overall energy costs differ by type of retail format—between about 4 and 9 percent of in-store operating costs—they also vary widely between stores of the same age, type and size. That suggests a significant opportunity for cost reduction. When we looked at energy consumption across the network of one large retail chain, for example, we found differences of up to 40 percent between otherwise similar stores.

Indeed, when retailers conduct energy audits on their stores, they typically identify opportunities to reduce energy consumption by 20 to 30 percent, and sometimes by up to 50 percent.

Levi Hetrick, Steve Hoffman, and Steven Swartz, McKinsey