As energy prices continue to surge and sustainability becomes a growing focus for both businesses and consumers, UK retailers are under increasing pressure to manage rising energy costs effectively. With operational expenses heavily tied to energy consumption, particularly in heating, lighting, and refrigeration, retailers must adopt smarter, more efficient strategies. In 2024, many retailers have already begun taking innovative steps to reduce their energy footprint, paving the way for future cost savings and improved sustainability. Looking ahead to 2025, further advancements in AI, renewable energy, and store design will be key drivers in helping retailers thrive in this ever-evolving landscape.

• Tesco’s Energy Management Program
  
  Tesco has continued expanding its Combined Heat and Power (CHP) program, which provides a significant portion of its stores’ energy needs while reducing carbon emissions. Currently, Tesco operates CHP units across 93 sites, contributing to its overall goal of zero carbon emissions by 2050 ​(Veolia UK). In addition, Tesco’s partnership with OLIO, a food-sharing social enterprise, has helped redistribute over 4,500 tonnes of unsold food, reducing waste and contributing to Tesco’s sustainability goals​ (British Retail Consortium).

• Screwfix’s Carbon Reduction Strategy
  
  Screwfix has invested £20 million in energy-saving projects across its stores, including the installation of air-source heat pumps, LED lighting, and improved insulation. This initiative has helped the company reduce carbon emissions by 3,800 tonnes annually, making significant progress toward their net-zero goals​ (British Retail Consortium).

• Asda’s Move to Biogas-Powered Transport
  
  Asda has taken a leading role in reducing transport emissions by transitioning its fleet to biogas-powered trucks. This shift has removed over 50,000 tonnes of CO2 from its operations​ (British Retail Consortium).

1. Adopt AI-Powered Energy Management Systems

As retailers move toward 2025, there will be a growing emphasis on AI-driven energy management solutions. Tools like EMMA AI can optimise HVAC, lighting, and other energy-intensive systems in real-time, helping retailers reduce operational costs while maintaining customer comfort.

2. Scale Renewable Energy Investments

Beyond CHP, solar, and other renewable investments, retailers should consider securing Power Purchase Agreements (PPAs) to ensure long-term energy price stability. This will reduce exposure to market volatility and contribute to their sustainability targets.

3. Energy-Efficient Retrofitting

As existing stores undergo refurbishments, retrofitting with energy-efficient windows, better insulation, and smart lighting systems can lead to immediate energy savings and improve store operations.

Retailers have already made significant strides in managing rising energy costs, but with 2025 on the horizon, the focus should shift toward scaling AI-driven solutions, enhancing renewable energy use, and improving energy reporting to meet compliance requirements. Those who take proactive steps now will not only reduce costs but also build stronger, more sustainable operations for the future.