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Shoppers Drug Mart

Shoppers Drug Mart Case Study

Energy Efficient Lighting Helps Shoppers Drug Mart Save Over $400,000 in Electricity Costs Annually

Shoppers Drug Mart, the leading drug store retailer in Canada, used financial incentives through the Save on Energy Retrofit Program refrigerator doors of more than 280 stores across Ontario. The new LED lighting generates less heat to reduce refrigeration requirements, which has helped the corporation realize significant energy savings.
 
BACKGROUND
With the goal of lowering operating costs, Shoppers Drug Mart focused on controlling and reducing electricity use through initiatives that included the installation of LED Lighting.
 
As it builds new stores, Shoppers Drug Mart has been increasing its retail sales footage (to an average of 14,000 square feet from an average of 7,000 square feet) as well as adding refrigeration and lighting. The company focuses on energy-efficiency to drive costs down.

“The total spending on electricity is going down, so it is working for us,” said Tammy Smitham, Vice President Communications & Corporate Affairs, Shoppers Drug Mart. “We’ve doubled our selling space in our stores but haven’t increased our hydro costs.”

Shoppers Drug Mart Corporation, with annual sales of more than $10 billion, is the licensor of a Canada-wide network of more than 1,100 associate-owners of Shoppers Drug Mart/Pharmaprix stores.
 
“In Ontario, where there are more than 600 Shoppers stores, the company’s energy-efficiency program continues to advance aggressively because of the financial incentives available through the Save on Energy Retrofit Program and its simplified application process for National Accounts, which provides businesses with multiple locations across Ontario with one point of contact,” said Tariq Qurashi of Sandcastle Energy Systems Alliance Corporation, an energy management advisor to Shoppers Drug Mart.

PROJECT
Under the Save on Energy Retrofit Program, financial incentives are available to businesses for new energy-efficient technologies and systems in their facilities.

In Ontario, Shoppers installed LED lighting in the refrigerator doors of more than 280 stores. The new lighting reduced electricity demand because LEDs are more energy efficient and generate less heat, to reduce refrigeration requirements. In addition, Shoppers also retrofitted signage and interior downlights to LEDs to further reduce electricity consumption.

RESULTS
“Incentives are an integral part of Shoppers Drug Mart’s energy-efficiency initiatives,” said Mr. Qurashi. At the corporate level, the Save on Energy incentives also helped meet the company’s payback-period guidelines of 24 to 36 months.

“Rather than wait until older lighting systems had reached the end of their life cycle, with the incentives we could move to premium technology sooner and reduce our electricity use,” Ms. Smitham said.

SAVINGS, MULTIPLIED
Another factor that helped Shoppers advance its energy-efficiency measures across Ontario stores was the program’s application process for National Accounts. The program allows businesses with multiple Ontario locations to establish one point of contact to help manage all the energy-efficiency retrofit projects, regardless of the number of buildings or their locations.

Businesses complete one application on the Save on Energy website through one local electric utility for their energy-efficiency projects. This one point of contact works with all other local hydro companies in the communities where the businesses operate to co-ordinate project reviews, and approvals, including receiving the final incentive payment.

“A key factor in the ongoing effectiveness of Shoppers’ retrofit project was the decision to use a facilitator to act as an administrator in the application and approval process for all its Ontario store locations,” said Rick Tomson of Aladaco Consulting, who co-ordinates the Save on Energy program for Burlington Hydro. “The National Accounts application process gives a single point of entry for the customer.”
 
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