Connecting with Customers and Cost Savings - Smarter Stores: The Insider's Guide to
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Technology is transforming the retail industry, making store owners ask, “How can I make the shopping experience experiential?” Mobile devices and content marketing have changed the game, promising the greatest rewards to those who create meaning beyond merchandise. Intelligence is also reshaping infrastructure, creating connected systems and the opportunity to seize control of overhead costs. Where brands go from here remains to be seen, but clearly the future belongs to the ones who bring it all together. Learn new ways to engage shoppers and drive efficiencies • Discover how data is changing store management • Test your knowledge and take a look at the latest trends • Browse a complete catalog of LED lighting options • Hear from others who are building for the future
Table of Contents Chapter 1: State of the Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-13 Chapter 2: Lighting’s Impact on the Customer. . . . . . . . . . . . . . . . . . . 14-19 Chapter 3: Energy Savings for Your Store . . . . . . . . . . . . . . . . . . . . . . . 20-29 Chapter 4: Considerations When Choosing a Solution. . . . . . . . . . . . 30-43 Chapter 5: Why GE? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44-50 Chapter 6: What Does the Future Hold? . . . . . . . . . . . . . . . . . . . . . . . . 51-61
Until recently “Open for Business” meant unlocking the door each day and little more. From the first general goods depot to the last turn-of-the-century department store, from small market shops to sprawling modern megamalls, the retail location was the destination—until digital changed everything. After all, with a world of merchandise now just building performance. From tracking inventory a couch and a click away, why go anywhere? levels, to learning shopper preferences, to What will keep customers coming in when it’s identifying the most trafficked aisles, intelligent easier to check out online? And where can store LEDs are enabling entirely new possibilities. owners turn for savings when faced with cutting costs, or closing shop? Smarter stores also promise smarter spending. Data analytics are driving dramatic It’s a new retail world, one at the intersection improvements in lighting, heating and cooling of intelligence and infrastructure, where the efficiency as more and more machines and shopping experience has come home, leaving devices are connected to the cloud. For many to wonder what role brick-and-mortar operations managers, this connectivity will buildings will play now that consumers can make it easier to identify patterns, adjust to browse, compare and pay anytime, anywhere. trends, and improve energy strategies across multiple facilities. Certainly storefronts are here to stay, but how brands connect with guests to bring value and Moving ahead, “Open for Business” will mean build loyalty will part from past approaches. And unlocking the door—and much more. Is incredibly, as many are learning, the answers inventory enough, or will crafting memorable may come from above. experiences be the key to capturing more sales? RE TAI L And who will learn to better manage costs with Indeed, intelligent lighting can form the the better tools available? Surely, the greatest framework of the connected store of the future. rewards await those who bring it all together to LED fixtures fitted with sensors and transmitters connect with customers and cost savings. have the potential to capture contextual data that delivers new insight into buyer behavior and www.currentbyge.com/intelligententerprises
5 Transformative Trends What factors are reshaping retail? How is store design different? We go around the industry for answers… 1 | Enter Analytics 3|T he Future Fulfillment Center 5 | Branding (While Saving) With Light With technologies such as Wi-Fi , Bluetooth ® ® Employees must now juggle the needs of in-store As stores create more immersive shopping and video analytics entering the market, retailers customers and those outside the store, explains experiences, space design—and lighting especially— are starting to leverage these platforms to gain the National Retail Federation. Increasingly, must accommodate these concepts. Retail lighting a deeper understanding of customer behavior consumers want to receive merchandise on their in particular is moving toward more flexible designs in the store, cites Forrester research. Intelligent terms. As a result, retail brands in every category that align more closely with the architectural vision platforms can provide insights that were previously are challenged to help their stores sell, ship, of a space, reports The Institute at GE’s Nela Park. available only in the e-commerce channel and can transfer and return merchandise for transactions Store owners want efficient and inconspicuous light affect many aspects of the business, including loss that originated in channels and locations outside sources without sacrificing color and quality, and LED prevention, marketing and merchandising. Of course, the four walls of the store. options are proving popular. the deployment of in-store analytics presents challenges, from a lack of clearly defined uses, to 4 | L ess Is More the difficulty of marrying analytics with enterprise data, to customers’ privacy concerns. “More retailers are looking for ways to do more with less—less energy and less budget,” observes Neil CH 1 Maldeis, an engineer with Trane indoor comfort 2 | Info Is “In” State of the Industry solutions. And it’s little wonder, considering the New research from Google suggests the relationship U.S. Energy Information Administration’s findings between digital and in-store shopping is more that of the almost 5 million commercial buildings | nuanced and interconnected than many realize. in the U.S., retail buildings account for the largest energy costs—nearly $20 billion each year—and are R E TA IL Foot traffic is down, online research is up and smartphones are increasingly important to the also responsible for the second largest percentage Watch 10 Examples of shopping journey. With two in three consumers of greenhouse gas emissions. “Clearly, there’s keener Augmented Reality in Retail. not finding the information they need in-store—and interest today to know how buildings are performing with 43 percent of those leaving frustrated—digital and where improvements can be made in HVAC, Source: CreativeGuerillaMarketing.com experiences present an opportunity for retailers to lighting, plumbing and insulation.” improve the shopping experience.
Catalog of Terms As we explore how intelligent infrastructure can impact retail operations, here are some key terms to know: Big Data Energy Modeling LED A broad term for data sets too large or complex for Using operational data and simulation software to Short for light-emitting diode; as light sources LEDs act traditional database management tools analyze a building’s mechanical and electrical systems as semiconductors similar to silicon chips; illumination to help project energy use and determine the most is achieved by the movement of electrons through a Big Data Analytics efficient strategies semiconductor material, rather than by sending an Examining big data sets to uncover hidden patterns, electrical discharge through an ionized gas unknown correlations, market trends, consumer Industrial Internet of Things (IIoT) preferences and other useful information The integration of industrial assets (machines, Luminaire (or Fixture) equipment, devices) with Internet-enabled software A complete lighting unit consisting of a lamp (or lamps) Building Automation System (BAS) to create powerful outcomes for business; brings the and ballast or driver (when applicable) together with Automatic central control of lighting, heating, cooling, concept of the Internet of Things and Big Data together; the parts to distribute the light, position and protect the ventilation and other building systems with the goal of a term coined by GE lamps, and connect to the power supply increasing efficiency and ensuring occupant comfort Integrated Controls Omni-Channel Cloud Computing Where control of lighting, HVAC and other building Where the brick-and-mortar and online stores are Using a network of remote Internet servers to store, systems is networked to a single platform; allows facility seamlessly integrated, allowing customers easy access manage and analyze data, rather than a local server management to be more seamless and strategic to otherwise unavailable items or a personal computer; offers scalable IT services Intelligent Environments (or Enterprises) Variable Air Volume (VAV) Daylight Harvesting Where interconnected smart devices, including A system where air delivery volume varies directly with Using daylight to offset the amount of lighting needed intelligent LED light fixtures, collect and exchange data the changing cooling or heating load, thus saving energy to adequately illuminate a space; achieved with lighting within a specific environment, such as a building or city, at part-load conditions controls for the purpose of reducing electricity use to drive operational efficiencies Variable Frequency Drive (VFD) Demand Controlled Ventilation (DCV) Internet of Things (IoT) An electronic system that provides infinitely variable The automatic adjustment of ventilation needs to meet Describes a world where machines and computers— speed of three-phase AC induction motors, controlling occupant demand using sensors and controls including objects like light bulbs, appliances and other the flow of air and water in HVAC systems to save energy electronics—are connected and can interact with each Dimming other and their environments Visible Light Communication (VLC) Adjusting lumen (light) levels over a set or linear (step Wireless communication technology using ordinary or continuous) range with the goal of setting the Lamp lamps; transmits visible light pulses over the air as atmosphere or reducing energy use The term used to refer to the complete light source opposed to through optical fiber package, including the inner parts as well as the outer Edge Analytics bulb or tube The preprocessing or filtering of high volumes of data closer to its source (“the edge”), rather than having it stream back to (and possibly overwhelm) networks and data centers www.currentbyge.com/intelligententerprises
Analyze This! How digital is making broccoli better Jeff Bisberg, Chief Strategy Officer for Current, powered by GE And That?! Digital is changing the world again. The information age Smarter about shoppers Others, like The Home Depot, are using indoor is entering an era of hyper analytics as our physical and Analytics can benefit merchandising and marketing, positioning to add a layer of customer service to the virtual realities merge, making it possible to aggregate, provided the data helps make shopping fun or in-store experience. The home improvement retailer convenient again, so that people want to visit stores recently partnered with Google to produce indoor maps analyze and act on new data in new ways. Intelligent and spend more time there. The exciting news is that that include turn-by-turn walking directions as a tool devices and deployments, it seems, are everywhere from to help customers navigate their local store. Google opportunities to personalize or improve the consumer’s industrial plants to manufacturing facilities to offices and experience are everywhere. Maps™ for Android™ users can opt-in to a “My Location” yes, retail stores, though the industry remains early in its feature and find their way by zooming in on a labeled adoption of the latest tools and techniques. U.S. retailers, including Nordstrom and Family Dollar floor plan or by letting a live “blue dot” icon guide them have all experimented with indoor positioning, reports to the right department. MIT Technology Review. Some of these systems use For store owners, the prize is insight into virtually all video cameras, sound waves or magnetic fields to track Likewise, Mall of America’s mission is to spread indoor aspects of store performance, from which departments map information to visitors across many levels in shoppers, though most leverage Apple’s iBeacon™, saw the most foot traffic to which cooling units are a low-power Bluetooth® radio signal emitter that can order to keep them from feeling overwhelmed by the operating least efficiently. Be it a problem or possibility, “sniff out” smartphones. expansive space. Prior to indoor mapping, Minnesota’s if it can be quantified it can be converted to contextual, four-story, 5.6 million-square-foot tourist attraction executable intelligence at the store level or enterprise-wide. Triangulating this signal can pinpoint a shopper’s had relied on directory kiosks, customer service agents, position to within meters. Retailers can further collect a an information texting service and a mobile directory unique identifier, called a MAC address, for each phone, application to help orient visitors. However, each of these There are obstacles of course, starting with new CH 1 allowing brands to build behavioral models around methods had shortcomings; if not due to usefulness, investments in technology infrastructure and crossing State of the Industry repeat customers, such as where they go in the store, then by virtue of having a limited scope of accessibility. into consumers’ privacy concerns. And what does when, and for how long. Now, technology is bridging the information gap one do with all this information, anyway? Assuming a between shops and shoppers. | spreadsheet holds the clues, who can decipher it? Forest City Enterprises triangulates cellular signals to monitor foot traffic in many of the shopping centers Better data can also mean better video surveillance as R E TA IL Most important, how will ROI be measured? it owns or manages. It says the data helped it decide advanced tools and algorithms have the potential to where to move an escalator that was interfering with an improve loss prevention by helping identify patterns Despite these questions, many brands are actively entrance. The company also measures how long visitors of fraudulent activity. A connected store layout using seeking answers… stay after a fashion show or concert. strategically placed sensors and transmitters can even allow retailers to conduct shelf-specific A/B testing or
determine which displays draw the most interest. The “Broccoli Cam” is an invention of the British multinational building energy use. On average, 30 operating parameters Each insight can add up to offers or incentives that reach grocery and general merchandise retailer. It can analyze of a chiller can be monitored. If captured and recorded every the customer at the right time, in the right place, in a way when a produce tray is empty, which triggers a notification 15 minutes, these parameters would generate more than that he or she finds meaningful. to a store associate to restock it. This keeps customers 1 million records a year for a single chiller. on-the-go and employees focused on the task at hand, Of course, shoppers have had concerns, mainly privacy, since rather than checking on inventory throughout the day. Over time, pattern recognition and correlation between the first rumblings of “big brother” in retail. In one episode, cause and effect issues allow analytical models and energy Nordstrom ended its efforts to collect data about customer Unique as one grocer’s use of analytics may be, it demonstrates strategies—such as those governing the operation of chiller foot traffic when shoppers worried their personal information the difference a simple solution can make and how data can units—to be optimized. was at risk, which prompted a CBS news story. Despite posting impact customer satisfaction and operational excellence at the signs at store entrances explaining the technology, the lesson same time. For most retailers, however, the first aim of analytics Of course, success will be defined not by the sheer amount the retailer and others learned was to always ask consumers’ will be to dial in on efficient energy use across stores. of data mined, but by how store operators create value from permission before tapping their information. it, including: As GreenBiz.com cites, the traditional approach to • Benchmarking building/asset performance against Such instances aside, a new study by GE suggests individuals defining an energy baseline was to correlate total building industry standards are less concerned about privacy today than many might consumption with outside air temperature and (possibly) think, with only 21 percent of shoppers noting they distrust occupancy level and level of operations. However, with • Better budgeting based on better models of future brands to handle their information in a safe and secure today’s more sophisticated technologies comes a much energy needs and operating expenses manner. Still, there is no doubt transparency is critical deeper understanding of the performance of specific • Stronger cross-function collaboration (virtualization to implementing in-store analytics—brands must clearly building systems and industrial assets. of building systems brings experts together as a communicate the types of data being collected, by which connected community) methods and to what ends. As machines and equipment equipped with sensors and transmitters are connected to the cloud, it enables operational Whether connecting with a customer or connecting Smarter about stores and historical data to be captured to predict potential lighting and HVAC, digital devices, data analytics and smart Analytics can also benefit everyday operations, provided problems, conduct preventative maintenance, and push infrastructure will soon be the reality for many retailers. the data is aligned with strategic goals such as curbing new analytics back to all assets simultaneously. The technology is already in our homes, our businesses and energy use, managing maintenance cycles, optimizing staff increasingly our stores, as brands shop for the best and efficiency, evaluating marketing tactics or—in the case of Chiller units are one example. A typical HVAC system brightest solutions. Tesco—keeping the broccoli bin full. consumes about 60 percent of a building’s energy requirement, 35 percent of which is used by the chiller, notes GreenBiz.com. This translates to 20 percent of the total www.currentbyge.com/intelligententerprises
Cool-tech Many store owners find themselves at a digital crossroads, puzzling over the latest technologies and which paths lead to innovation. Below, Cross-up! we’ve identified 10 of the top trends in retail and the benefits each can bring. Challenge yourself! Can you connect these terms using the clues? (Answers below) CH 1 State of the Industry 2 ACROSS | Electronic Shelf Label – ESL 1 DOWN | Retail Merchandising Unit – RMU 4 ACROSS| Smart Badge 3 DOWN | Endless Aisle | 6 ACROSS | Augmented Reality – AR 5 DOWN | Beacon R E TA IL 8 ACROSS | QR Code 7 DOWN | RFID 9 ACROSS | Virtual Shopping 10 ACROSS | Indoor Positioning System – IPS www.currentbyge.com/intelligententerprises
1 2 3 4 5 6 7 8 9 10 ACROSS: 2 A module using an LCD display that shows the current 9 Website using high-resolution panoramic 3 Providing in-store customers with product price; prices can be updated instantaneously images, 3D software and "point, click, enhanced online access to even more across a store, saving considerable time zoom" functionality to simulate the in- goods or services store experience on a customer's computer 4 Small, wearable, electronic devices designed to help store or smartphone 5 Small, inconspicuous transmitter that can associates immediately answer customer questions communicate with smartphones and other about price, availability and more 10 A way to locate people or objects indoors connected devices in close proximity where GPS cannot operate; uses Wi-Fi® or 6 Technology that overlays computer-generated inputs Bluetooth® to actively locate mobile devices 7 System that uses radio frequencies to read (sounds, graphics, video) on a user's view of the real tags or labels embedded with a computer world; used by retailers to bring products to "life" to chip; can provide many details about a capture customer attention DOWN: single item or drastically reduce the time it 1 A module using an LCD display that shows takes to count inventory 8 Trademark for a type of matrix barcode first designed the current product price; prices can be for the automotive industry in Japan; links shoppers to updated instantaneously across a store, digital content when scanned with a smartphone saving considerable time www.currentbyge.com/intelligententerprises
Wanted: Actions to Support Innovation “Don’t like data? You won’t like the future. Disruptive Forces Several forces are shaping how executives approach innovation, creating Many new jobs will require being equally opportunities for internal and external disruption. These forces include adept at hardware and software.“ collaboration, big data and the Industrial Internet. —Beth Comstock, Vice Chair, GE Collaboration is now mainstream. The risk associated with the lack of IP protection was a prime concern in 2013, leaving just 38 percent wanting to increase Innovate or sink. In short, that’s the key takeaway from more than 3,200 collaborative efforts; 77 percent now believe that risk is worth taking. At the same business executives from 26 countries who took part in GE’s latest Global time, two-thirds of those who collaborate have seen associated revenue grow Innovation Barometer. Yet as we enter a new age of business disruption driven as a result. by unprecedented numbers of startups and game-changing technologies, the path to success remains challenging. Meanwhile, big data has evolved from a buzzword to an important tool in the innovation process, albeit one that poses certain difficulties. While 70 percent Embracing Innovation of businesses see big data as critical to optimize business efficiency, 61 percent Back in 2011, the Barometer’s first year, executives agreed that innovation was believe it will be a real challenge to implement. For those who utilize it, 69 percent necessary, but nine out of 10 were shy about moving ahead in a sinking economy. see added value for the innovation process. In 2013, many experienced “innovation vertigo”: anxious over global economic instability, they were unsure how to move forward with disruptive ideas, products The Industrial Internet is an emerging concept but also positively received, and services. with half agreeing that it will drive innovation success in the future. But only one in four feels prepared to use it. A significant majority now say they want to embrace innovation that disrupts markets—even if that deals a blow to their own established business models. They are using data and analytics to better understand customer and market dynamics. The Future Workforce These forces are also shaping the future workforce. Talent is a bigger priority; And they are searching for the new kinds of talent, technology and partners that they 79 percent of global executives say it is a crucial asset for successful innovation— need to gain a competitive advantage and become “disruption ready.” six points higher than in 2013. However, only a third believe their company excels at acquiring and retaining the right talent. Two-thirds of executives surveyed believe businesses have to encourage creative CH 1 behaviors and must disrupt their internal processes in order to do so. They are To aid here, executives clearly expect their governments and policymakers to taking action, embracing the need to transform and adapt to an unprecedented— State of the Industry better align students’ curricula with the needs of business. This is viewed as a and at times undefined—reality. critical priority for 85 percent of respondents. These types of workers—those who can marry the physical and digital worlds, and who can extract and translate | Though many confess they have yet to find the perfect business model, analytic insights into actions—will come at a premium to businesses wanting executives concur that efficient and successful innovation hinges on three R E TA IL to drive change. factors: understanding customers and anticipating market evolutions (84 percent); attracting and retaining the most talented and skilled employees (79 percent); and quickly adopting emerging technologies (67 percent). Conclusion Innovation executives are enthusiastically taking action to harness and capitalize on the disruption occurring throughout the global marketplace. Once overwhelmed by options, executives are now showing clear determination to gain control—actively seeking the talent and technology necessary to make innovation more than an idea.
What Shoppers Want While some contend the rise of digital commerce could make the local retail store obsolete, new research from Google, conducted with Ipsos MediaCT and Sterling Brands, suggests the relationship between digital and in-store shopping is far more nuanced than that. Foot traffic may be down, but are customers willing to deepen their connection with stores? Put your perceptions to the test! Guess below, then learn what Google found: 1. ___ of 4 consumers is/are more likely 3. ___ percent of consumers say 5. ___ percent of consumers are more to visit their local store after finding they’d be more likely to shop in places likely to shop in stores that make helpful information in an online search. that offer personalized coupons and specific product recommendations: a. 1 b. 2 exclusive offers in-store. a. 50 b. 64 c. 3 d. 4 a. 85 b. 67 c. 33 d. 20 c. 30 d. 55 2. ___ percent of shoppers search for information online while in the store. 4. Shoppers find this information to Methodology: be the most helpful in search results Google, Ipsos MediaCT and Sterling Brands research a. 28 b. 15 study from March to May 2014. Survey conducted c. 60 d. 42 for an item: among 6,000 smartphone users aged 18–54 who a. If the item is in stock have influence in the purchase decision-making b. Photos/video/more detail about process of retail, CPG or tech products and have used the item the Internet to look for shopping-related information. c. A map to locations with the item d. The price of the item Answers: 1) C - Despite the myth search results only send consumers to e-commerce sites 2) D - Nearly half, making retailers’ search results, mobile site and app increasingly important 3) A - A strong indication that customization matters to customers 4) D - Price remains the first consideration for 75 percent of shoppers 5) B - More than 6 in 10, proving shoppers still look to retailers for their expertise www.currentbyge.com/intelligententerprises
Data for Discounts? Would you be willing to trade your data for discounts? The full results of the survey are available in a downloadable report. In today’s digital society, the interaction between consumers only are consumers far happier to share private data such as and brands is becoming ever more complex. Over-the-counter their mobile phone location than previously imagined, but that purchases were once a relatively simple transaction, but there is a real desire for the kind of in-store connected services bargain-conscious shoppers are increasingly moving online this information could support. where a wealth of product information is available at the touch of a button. The research, which was conducted by Current, powered by GE, in partnership with Retail Week, revealed that 79 percent The growth of mobile technology enables consumers to of shoppers were willing to share their data or willing to share research, compare, purchase and review products anywhere it with some reservations, suggesting that concerns about and at any time—often without going anywhere near a physical privacy and information sharing may have been overstated. store. For retailers, this has presented some real challenges, as competing with the level of interaction and personalization The survey asked 1,000 consumers across a variety of age offered online is problematic. ranges about their opinions of indoor positioning systems (IPS) within their retail experience. This type of system works by using However, despite the increase in online and mobile spending, technology such as Bluetooth® beacons, cameras or Visible it seems that the brick-and-mortar store’s reign is far from Light Communication (VLC) to communicate with customers’ over. Rather, many shoppers are growing to expect a more phones. Normally integrated into existing infrastructure, interactive relationship with retailers throughout all stages of the such as the lighting fittings, IPS enables retailers to pinpoint purchasing journey, with a shifting focus toward omni-channel the customer’s location within one or two meters accuracy. customer experiences both online and in-store. Not only were the majority of respondents happy to share This requires retailers to think more creatively about how they information, 75 percent of shoppers commented that retailers interact with customers, by leveraging existing mobile behavior could actually do a better job of providing navigation support to drive engagement. Intelligent data-gathering technologies around the store. Increasingly, it seems that customers are CH 1 that can be integrated into the store’s infrastructure have quite happy to engage with brands, as long as they receive State of the Industry created a host of new channels for customer communication— something in return. For retailers, this can provide a vital means capitalizing on a growing willingness from customers to interact of clawing back some of the revenue lost to the Internet. with brands in-store through their smart devices. | Illuminated Minds promotes energy-efficient lighting’s This raises some pertinent questions about the level of privacy contribution to sustainable business practices by bringing R E TA IL consumers are willing to give up in exchange for personalized together leading thinkers and practitioners to demonstrate, promotions and the value they would need to receive in return. educate and challenge. Interestingly, a major piece of research has indicated that not www.currentbyge.com/intelligententerprises
Chapter 2: Lighting’s Impact on the Customer
Retail Lighting 101 Light touches all corners of your environment—and it pays to know the basics. This resource discusses technology, terminology and different lighting applications to help you better understand your lighting systems and make the best decisions for your facility. Lighting’s Impact on the Customer CH 2 | R E TA IL
It pays to know lighting. In the parking lot, up and • Appraisal. Customers make a flurry of buying decisions from the time they walk through your doors;―does your lighting give you the down aisles, and even behind the scenes; from best chance that these decisions will result in sales? warehouse storage to employee work areas—lighting • Atmosphere. Lighting can elevate your store’s brand and image, touches all parts of a major retail facility. It affects and can leave a positive impression that lasts. employee mood, energy use and the consumer’s These principles can help answer the most critical questions when it perception of your product, necessitating important comes to lighting and can pave the way to a clear set of goals for your lighting system to accomplish, including: decisions and questions to ask when it comes to the • Lighting that meets basic visibility requirements while satisfying lighting inside your store. aesthetic and economic concerns at the same time. • High-quality light that provides uniform illuminance and Does my merchandise truly look its best? Do my customers feel secure minimizes glare. when shopping at night? Is my store environment properly aligned with the brand image? How efficient is my lighting system, really? • Lighting that is optimized for the current structure but that can easily adapt to the changing needs of a growing business. No two retail facilities are the same, but there are three guiding principles every retail lighting decision maker should know: • Attraction. The lighting throughout your store should be enticing, guiding customers to special displays and throughout the entire space. www.currentbyge.com/intelligententerprises
Are You Leaving Lighting Options (and Sales) on the Table? Lighting’s Impact on the Customer CH 2 | R E TA IL
Despite the current fashion for neuromarketing (the study of techniques that, either consciously or unconsciously, influence consumers’ behavior through their senses), the retail sector has yet to take full advantage of lighting (or the lack of it) as a resource. According to experts in retail visual merchandising and lighting, stores are already switching traditional, incandescent lights for LEDs in the search for economy, but they have yet to change the number of spotlights or redesign their layouts. Both large department chain stores and smaller outlets • The color temperature of the lighting can also Shopping centers are normally plain and well-lit. This usually fail to take advantage of the different options enhance a product’s characteristics. Bright lights general lighting allows the stores and brands to play with for interior and exterior lighting. Changes in brightness, and cold hues are associated with cleanliness and their own lighting strategies to make their products stand filters, and the temperature or positioning of lights can are used in jewelry stores, for example, where a out. A prime example is the case of Carolina Herrera increase sales by emphasizing one product above others, cold LED would enhance the brightness or whose sections within large department stores have their or highlighting its color characteristics. Different lighting properties of a diamond. own furnishings and lighting, emphasizing the unique causes consumers to feel different emotions: feelings of personality that the brand wants to transmit. comfort, perceptions of freshness, etc. Spatial perception In Europe, one example of a fashion store that has can be altered using variations in the color temperature, embraced the benefits of good lighting is Desigual, whose brightness and intensity of lighting. The same factors distinctive clothing has clear personality that emphasizes can also be used to create different emotions, inviting different colors and styles and requires flexibility from one This article was previously published in LED Inside. consumers to buy. season to another. Desigual uses specialized lighting in all its stores, in line with the image it wants to portray, Lisardo Mendo is a visual merchandiser who has been Playing with the illumination can create different therefore giving the store character and making the designing windows for 30 years. Owner of the company atmospheres, feelings and perceptions, and in turn: brand easily recognizable all over the world, either from Vitrina in Barcelona, he has created spaces for such the inside or the outside. prestigious brands as Levi´s®, Dockers®, Tommy Hilfiger®, • Certain products can be showcased to assist the Nike® and Montblanc™ among others. sale of surplus stock before the change of season Another part of the retail sector, which is paying more in the fashion trade or during a sales period… attention to lighting, includes supermarkets and large • Although in general, corridors and passageways department stores. Large supermarkets, such as should have lower intensity lighting in order to Carrefour or Sainsbury’s, are compartmentalizing their ensure there are no distractions, specially designed product zones more and more, differentiating clothing lighting can create specific routes for customers to from pharmaceuticals from food, emphasizing the follow, leading to particular areas or products… positioning of furnishings and products by the use of lighting. The aim is to draw customers in and make them feel that they are really in a clothes store or pharmacy. www.currentbyge.com/intelligententerprises
Is LED Disruptive in Retail Design? By James Fleet, Retail Sales Leader for Current, powered by GE. Prior to joining GE in 2002, he ran his own lighting business. LEDs have often been described as a disruptive able to devise tightly optimized layouts that greatly case clarity, supplier confidence and board/director technology, but to what extent has the growth in reduce the number of fittings required. Reducing the engagement. Capital expenditure constraints can LED popularity challenged conventional thinking luminaire count delivers on two fronts: lowering the be eased through funding agreements (where in retail lighting schemes? I would say that while capital expenditure while simultaneously boosting repayments are based on expected monthly energy great progress has been made, there are still some the energy savings. savings, for example), providing a cost-effective challenges to be overcome. However, as we move means of delivering the required upgrades. toward the second half of the decade, I believe However, to answer the question of how much LED the rate of change is going to accelerate rapidly lighting technology has disrupted the status quo LEDs have certainly shaken up conventional thinking as retailers rush to meet their 2020 sustainability in the retail lighting sector, we must break down when it comes to lighting design, and while they may commitments. its adoption into two distinct camps. Within the not have completely displaced traditional light sources new build portion of the sector, LEDs are very much just yet, the ever-expanding scope of LED technology A disruptive technology is one that changes displacing traditional lighting solutions. Retailers means the future is bright for retail lighting. the status quo in a market by providing a more are under strict pressure to achieve extremely Lighting’s Impact on the Customer effective solution that eventually displaces an earlier high levels of sustainability within their new build Illuminated Minds CH 2 technology. As a highly energy-efficient choice, LEDs property portfolios, so energy-efficient LED lighting are certainly gaining ground on traditional lighting has been the mainstay of new store designs for some sources, but it’s not just the energy savings that time now. Within the retrofit portion of the sector, makes them popular with retailers. progress has been somewhat slower, but there has | certainly been a move toward incorporating LEDs R E TA IL One of the key benefits is the versatility of LED into existing property portfolios. lighting, which has enabled retailers to work smarter in the way they apply lighting schemes to their Proactivity and capital expenditure availability are, properties. LEDs deliver an extremely directional unsurprisingly, the two biggest drivers to retrofit light, so with a bit of creative design, retailers are adoption. Proactivity is enhanced through business www.currentbyge.com/intelligententerprises
Chapter 3: Energy Savings for Your Store
Innovations in HVAC Xcel Energy, a major U.S. electricity and natural gas company, shares energy-saving innovations that can help you cut the operating costs of the HVAC equipment your building uses. Following are four emerging technologies worth investigating: #1 – Demand-Controlled Ventilation (DCV) #2 – Direct Digital Control (DDC) Systems the air handling unit, chillers and boilers to run a partial During a building’s operating hours, the airflow (or A DDC system is a control system that uses digital load, they enable better overall energy efficiency. ventilation) provided to spaces is the amount required for processors to directly control HVAC equipment. This kind fully occupied stores, whether or not traffic is light. When of system may be specific to the equipment controlled A retail store is a good application for a VAV system, you install a DCV system, you can alter your ventilation with preset programs; it can be a separate system that where pressure concerns are not critical and needs to fit your occupancy levels. Demand-controlled has customizable programs. For multizone systems, the temperature needs vary around the clock. The ability to ventilation can save the most energy in colder climates, DDC system must “report to a central control panel” or grant independent temperature control also makes VAV where ventilation air requires more heating. bring together information from each zone. Direct digital systems a good fit for multizone facilities. control systems ultimately provide users enhanced Reducing the speed of the fans to match the number of abilities for monitoring and manipulating their HVAC #4 – Variable Frequency Drives (VFD) occupants in ventilated spaces can save a lot of energy, equipment, resulting in more appropriate use of systems A VFD is a device that reduces motor speed to match a and there are a few ways you can do this. Carbon dioxide and better energy efficiency. driven load by controlling the frequency (Hz) and power (CO2) sensing is the most common method. Such systems (Volts/Hz) ratio supplied to the motor. They’re a good idea have a CO2 sensor in each space or in the return air and DDC systems can be paired with software that lets for HVAC systems where motors do not need to run at adjust the ventilation based on CO2 concentration. operators monitor, control, alarm and diagnose building full speed for optimal performance. People breathe out CO2, so the higher the level, the more equipment remotely. Some DDC systems are accessible people it detects that are in the space relative to the via the Internet, meaning users can log in to their HVAC In addition to their energy-saving benefits, VFDs offer ventilation rate. Other occupancy sensing techniques dashboard from any Web-enabled device. improved process controls, protection from overload use lighting or dedicated occupancy sensors to detect if currents and extended motor equipment life. For more anyone is in the space or if the space is vacant. #3 – Variable Air Volume (VAV) Systems information about VFDs, visit the Motor Decisions VAV systems supply a fluctuating rate of airflow to HVAC Matter website where you’ll find helpful tools, including According to a report by researchers at the Department systems that keeps the air temperature constant. By their motor planning kit or sponsored calculator to of Energy’s Pacific Northwest National Laboratory, regulating the volume of air delivered, a VAV system can estimate annual energy cost, capital investment, sensors are now being developed that will be able to control the temperature of a space without changing payback and more. count the number of people in a space to control the the temperature of the supply air. The system monitors rate of airflow. The report projected that, on average, the heat gains or losses within a space and adjusts Xcel Energy conducts regulated operations in large buildings across the country would save 18 percent accordingly. This provides several benefits over constant- eight Western and Midwestern states, providing a of total energy consumption by making this change, with volume systems, including more precise temperature comprehensive portfolio of energy-related products a small portion of that savings tied to occupancy sensors control, reduced compressor wear, lower energy and services to 3.5 million electricity customers and to also turn the building’s lights on and off. consumption by system fans, less fan noise and additional 1.9 million natural gas customers. It is headquartered passive dehumidification. Because a VAV system allows in Minneapolis.
Energy-Saving Ideas for Retailers E Source has been providing objective research and advisory services to over 300 utilities and large energy users for more than 25 years. Interested in boosting your bottom line while elevating the shopping atmosphere of your store? E Source offers retailers these tips to save significant amounts of energy while maintaining or even improving customer comfort… 1 | Turn things off 3 | Maintain your HVAC system direct light downward. Even with less total light output, a According to the U.S. Department of Energy, Making sure that your HVAC system is regularly retail store often can safely use fewer lamps if this choice lighting accounts for more than 50 percent cleaned and serviced can help to prevent costly is made. For all applications, have a lighting consultant of all electricity consumption in retail buildings, so it’s heating and cooling bills. Two simple ways to improve review your layout to ensure it provides appropriate light a great idea to turn lights off when they are not in use. the efficiency of your system are to change your filters levels, light quality and energy performance. When properly installed, occupancy sensors and timers regularly and to check your condenser coils for any can help to achieve this. A no-cost option is to simply debris that they may have collected. If your system uses 5 | Commission your building train staff to include turning off lights as part of store- an economizer, have a licensed technician check, clean, Commissioning is a process in which engineers closing procedures. In addition to lighting, many retail calibrate and lubricate it about once a year, as economizer systematically check and tune up building stores have electronic displays that are left on even failure can increase heating and cooling costs by up to systems to ensure that they are operating appropriately when the store is closed. At the end of the day, these 50 percent. and efficiently. Studies have shown that commissioning displays can be shut off manually or with simple timers. a building’s energy systems can lead to reductions of 4 | Improve your lighting around 16 percent in annual energy bills. In addition to Chapter 2: Lighting’s Impact 2 | Change HVAC settings Proper display lighting is critical for gaining providing energy savings, commissioning often increases HVAC is one of the biggest sources of energy sales and preventing returns. LED, compact comfort for occupants because the majority of problems on the Customer consumption in retail buildings. During closed fluorescent and metal halide all are efficient alternatives identified tend to concern HVAC systems. If your building hours, turn temperature settings down in heating seasons to quartz halogen track and spot lights. Don’t forget was previously commissioned, consider investing in and up in cooling seasons. You can automate these about T12 fluorescent lamps—relamping with modern T8 recommissioning every three to five years. settings with programmable thermostats. Additionally, tubes and electronic ballasts can reduce lighting energy make sure that HVAC settings in stockrooms, offices and consumption by a third. Meanwhile, most parking lots are Source: © 1986-2014 E Source Companies LLC. All rights reserved. other peripheral spaces are at minimum settings. designed with far more lighting than is necessary. When designing for a new lot, consider low-wattage fixtures that www.currentbyge.com/intelligententerprises
Confessions of an LED Convert (and other energy-saving admissions) Q&A with Brookshire Brothers’ Eric Johnson, Director of Store Planning & Efficiency LED was unproven to were doing everything they could to cut costs, to cut replace a couple of lights. These were real issues. Eric Johnson when expenses, and with us being the little guy, we had to Parking lot lights combined with ongoing exterior sign he was determined keep up. We were going through several remodels, so maintenance made it clear we’d reached the point we to make Brookshire everything was on the table, and that’s when lighting needed to make a significant improvement. Brothers’ supermarkets stood out in terms of potential savings. But we needed more energy efficient the confidence that when we chose a path, it was going Why did you consider LED? several years ago. to be right, because when you’re going against the big Well, I think at first, like many others, we were most Faced with cutting brands, the money isn’t there to fix mistakes. comfortable with what we knew. That included costs or falling behind the competition, the long-time fluorescent tubes over the aisles and in refrigerated Director of Store Planning & Efficiency set a long-term Why did lighting stand out? cases, your standard HID fixtures outside and a lot of lighting strategy to bring savings to more than 100 stores For example, my electrical contractor once told me, neon in signs. Updating our stores gave us opportunities throughout Texas and Louisiana. “You wouldn’t believe how much of the work we do for to look closely at lighting and, through research, learn you to repair fluorescent lighting in frozen food door where the market would be in five to 10 years. What we Like so many facility managers, Johnson had concerns cases.” He was right, because I could walk into too found was that everything was pointing to LED. Back Energy Savings for Your Store CH 3 about LED and questioned the impact it could make. many stores and find at least a few doors that weren’t then, we had heard about some good experiences, and Over time, however, he discovered the technology had lit for one reason or another. some not so good, but we felt we needed to learn more. grown integral to his goals. Today, enterprise-wide, Brookshire Brothers is a model for retail lighting and Another of my pet peeves was the cost we had when How did you learn? | other energy improvements with a focus on the future. parking lot lights went out. In some places, we don’t We have fantastic partners that help educate us. have an abundance of lights to begin with, and if you The representative from our local distributor, Elliot R E TA IL When we met, a lot was going on—take us back. have only eight fixtures and just a couple go out, that’s Electric, is tremendous, does incredible legwork and It was several years ago that we launched a facility- a pretty substantial ratio of your total lighting. So you works his tail off for us to explain the technologies and wide energy program, and that included a lighting can’t sit there and just let it go, you have to send the what our options are. I think it’s invaluable to have a real update with LED in parking lots, exterior signage and bucket trucks, and being rural, they’re not nearby, so expert you can turn to anytime. We depend on the Elliots refrigerated door cases especially. Our competitors you rack up a lot of mileage and a lot of expense to go of the world for the knowledge they have on staff.
How does that knowledge help? optics still improving over what we bought four years ago, A company our size has many of us who wear multiple hats there’s no doubt about that. We made a smart choice. and have a full plate at all times. What Elliot Electric does in particular is, if we have an issue at a store, they will go Is LED always the answer? to that location, examine the lighting and develop a plan Not in all spots.―I’ve done studies in the past year where for what is needed. They are very good at assessing the I’ve compared stores to converting to LED or remaining situation and recommending a solution. Actually, a lot of fluorescent. An existing fluorescent store is usually more things would go undone or wouldn’t happen as soon, cost-effective to stay fluorescent with the right lamp but they’re able to assist in order to expedite things. and ballast. The 28-watt extended life lamp being used, combined with the high-efficiency ballast, is driving the Refrigeration is a key component of our energy usage. Where are you ahead today? payback, and going to LED just isn’t there yet. But when We have replaced 400- and 1,000-watt fixtures in many of buying new fixtures, LED can be justified. our parking lots with LEDs. We also use wall packs on many buildings because we like having the extra visibility around the You looked at more than lighting—what else did you learn? building. Much of the neon in our signs has been swapped out With HVAC, I keep an eye on what our industry and our for LED too, so that’s not as much the same concern it used regional market in particular does. A lot has to do with to be. And in our refrigerated cases of course, that’s where we the building type, which may dictate what you can handle started with LED and where we’ve seen the biggest benefit. at that location. A lot of our buildings are in rural, smaller The cases look amazing, and we’re actually saving as a result; towns, are metal, and may not have the structure for roof- because shoppers can see clearly inside, they’re not opening top units. Most of these stores have single, large units in the doors as much, which keeps the cold air in, which means the back, which require a lot of duct work, but fit the need. One lesson learned is that LEDs really like the cold. the compressors don’t have to work as hard. For refrigeration, they’re low maintenance and thrive in that A lot of this is by observation and paying attention to what environment. The quality and dependability of the lighting When you add it up, we’ve cut our lighting energy requirement the trends are. For instance, multiple smaller roof-top units is far superior to what we had in the past. Our customers by about 2.4 million kilowatt hours, which saves us close tend to cost less than the larger tonnage ones we’ll use, can see much better now, and many have actually thanked to $250,000 a year. On top of that, you have maintenance but are more disposable and may be not quite as efficient. us for that. savings that are harder to quantify, but when I’m not sending These also may be replaced sooner than our large units, trucks or service crews out, I know that’s money we can which are expected to have a longer service life. One thing Have any last advice for store operators? better spend elsewhere. It’s not just energy efficiency that we’ve been doing for a few years now is using a lot of variable- Competition for project funds is something most deal LED has brought but reduced maintenance too. speed equipment to make them as efficient as we can. with. You have to make good strategic choices in order to make the most impact. Our corporate culture and upper So LED was the answer? What other concerns did you have? management is positive about doing the right thing while About six years later, I can say that converting to LED is a Refrigeration is the heartbeat of the whole store. achieving business goals. Adding a couple of LED light success for Brookshire Brothers. We looked at long-term cost There’s a lot going on with the ongoing phaseouts of poles and some wall packs to a rural store is positive for of ownership relative to performance, and in most cases, refrigerants. What refrigerant is the norm today typically the community and our image while contributing to our it met our value threshold. With LED you get the consistency already has an expected lifespan, and the next one to business goals. One store at a time, one parking lot in and the reliability. It doesn’t go out, and to be honest has replace it is being developed. On the case side, lighting has this case, enables us to chip away at the long-term goal affected our electrical contractors. The repair business been huge. We have been using vertical LEDs in door cases of converting all stores and accomplishes multiple goals. is down, but at the same time, money saved is being for just over six years and horizontal LEDs in multideck reinvested in converting other locations away from the old cases the past three years. To meet DOE efficiency You may not be able to outspend the other guys, but you lighting, so they stay busy. For me, it comes down to putting requirements, most new cases come standard with LED can try to outsmart them. those dollars into something constructive rather than repair. now. Also, extensive use of glass-door cases in medium- and low-temp applications, whether in a new store or The bottom line is we’re getting more compliments on our an equipment upgrade in a remodel, greatly reduces lighting than ever before, and that really says it all. The horsepower requirements, ultimately, reducing our energy savings are there, and we see the product efficiency and usage and expense. www.currentbyge.com/intelligententerprises
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