Leaner and greener

Learn how Keystore retailer Chris Cobb cut energy costs by investing in more efficient equipment.

The price hikes that hit the industry in April have led many convenience retailers to take drastic action to keep their businesses afloat. For some, this has meant cutting staff hours, reducing shop opening hours, and increasing prices. But for Chris Cobb of Cults stores Keystore in Aberdeen, the decision was made to invest in a refit to make his store more energy efficient and save money.

“We had an open deck chiller and our electricity costs for the whole shop were really quite high,” he claims. So he got in touch with Business Energy Scotland (BES) to see how the store could try and reduce its energy consumption by investing in new equipment that would lower its carbon footprint.

“In the years before, you would never really be worried that much about it, but nowadays it’s a major factor,” he says. “So that’s when we knew we were going to change the chiller and we thought let’s do the ceiling and lighting as well.”

The group’s report showed that investing in energy efficiency could save the store £400 a month on electricity costs.

“Everything has to be streamlined with the minimum wage going through the roof and the national insurance kicking in, that’s going to hit your bottom line, so I was thinking if we can save £400 a month, that’ll offset the increased cost,” he says.

He invested £29,000, plus VAT, on new refrigeration, lighting and ceiling panels. “We managed to get a grant for energy efficiency, so that helped towards it,” he says. He also put part of the £5,000 he had been awarded from National Lottery operator Allwyn – as part of its Local Retail Champions initiative – towards the refit.

His 3.25m open chiller was replaced with a 5m chiller with doors. “We went for a more advanced Arneg fridge, which blasts in cold air when it’s required, instead of it running the whole time, and it’s supposed to be 37% more energy efficient than the next best thing.”

Expanded offer

The extra chiller space has enabled Chris to expand his offer, stocking more products from the local bakers and butcher. “We have a big Sainsbury’s local 100 yards away and a big Tesco Express 300 yards away, so that gives us a point of difference,” he explains.

Previously, the store had one upright freezer, which was about 850mm, and a small, three-tier Wall’s ice cream freezer. “They use an extortionate amount of electricity,” he says. “It took up quite a bit of space too. You don’t realise until it’s gone how much is taken up. Now it’s all integrated into the one big 2m and 1m freezer.”

Chris has taken advantage of the extra room to improve his frozen range and has introduced new lines, including large bags of ice.

In addition, he had new white gloss ceiling panels installed, some of which boast edge-lit LED strip lighting. “Most people are going for grey and black [tiles], but that would have really enclosed the shop because we’ve got a low ceiling,” he says.

The lighting and panel combination has vastly improved the store’s overall appearance and ambience, with many customers believing that the shop has had a full refit. “It’s just amazing how the lighting has changed things, it makes it look a lot fresher,” he says. “We’re only 850sq ft, so we’re not a massive shop, but it has made a big difference and our sales have been better too.”

Keystore supported Chris during the process by sending two members of staff to help rebuild the shop, restock and remerchandise.

He claims that investing in energy efficient equipment is a fantastic way to reduce energy costs. “It’s a win-win. You’ll save money and you know you’re reducing your energy costs and your carbon footprint.”