— By Jay Fiske —
Achieving winter savings through effective energy management.
[EDITOR’S NOTE: This article originally published in winter 2025 as part of the December/January magazine issue.]
It’s cold outside, and the temperature may drop even further. According to The Weather Channel, “from the Northern Plains to the Midwest, Southeast and Northeast, the last 2 weeks of January are typically the coldest times of the year.”
This frigid weather puts pressure on multi-unit retail facility managers (FMs), who juggle two conflicting priorities: (1) providing shoppers with an exceptional in-store experience and (2) saving energy costs. Regardless of how cold it is outside, every store in their portfolio needs to be warm and inviting. At the same time, the energy required to provide an optimal shopping environment is expensive. The U.S. Energy Information Administration (EIA) predicts a 16% increase in natural gas prices from 2025 to 2026. Electricity rates, which have grown faster than inflation for the past several years, will also rise in 2026, EIA says.
FMs responsible for 100 or more locations wrestle with those competing priorities every time a store manager calls and says, “It’s too hot in here,” or “It’s too cold in here. Fix it.” Ideally, FMs want to deliver an immediate resolution. At the same time, they need maximum visibility into the root causes — from faulty equipment to human error — to do so.
Energy management systems (EMS), based on Internet of Things (IoT) technologies, provide the analytics, alerts, diagnostics, troubleshooting and process automation capabilities FMs require. Once they connect their energy infrastructure to the cloud using sensors and smart thermostats, FMs gain immediate visibility into the condition of their HVAC and lighting equipment, including any red flags, so they can save costs while keeping shoppers comfortable (and browsing and buying).
From Sweltering Stores to -9 Degrees
These same systems also let them automate their HVAC and lighting setpoints to optimize energy usage. If something still goes awry, the systems immediately alert them.
Imagine this scenario: It’s Presidents’ Day weekend, and a national clothing retailer is having a major sale. Customers jam the checkout lines to take advantage of the discounts. Employees barely have time to eat, but one feels chilly, and takes a few minutes to turn up the heat, overriding the temperature setpoints. One day later, the team is sweltering before the store opens. EMS software alerts the facilities team to the override, and they make a quick adjustment before customers walk in.
In another scenario, imagine seeing a temperature forecast of -9 degrees Fahrenheit, which Massachusetts experienced just a few years ago. FMs can use their EMS software to prepare for this extreme weather — automatically reducing temperature setbacks to keep unoccupied stores warm enough to prevent burst pipes from the extreme outdoor temperatures.
Uncovering the Hidden Cracks
In many situations with uncomfortable store temperatures, the causes are obvious. For FMs, though, many emerging issues are hidden until it’s too late. When retailers install an EMS, they’re struck by the many hidden “cracks and fissures” they uncover in time to take preemptive action — from short cycling compressors to malfunctioning RTU relays.
EMS data helps them:
• Improve preventive maintenance while problems are still in their early stages and avoid costly equipment failures. For example, repairing an RTU motor that has been running continuously for 24 hours might cost $500 — compared to a full replacement cost of $15,000.
• Improve reactive maintenance and achieve first-call resolution. Is the heat staying at 65 degrees when it should be 68 degrees? FMs use their energy management system’s diagnostic and troubleshooting capabilities to isolate the issues, identify parts they need to fix or replace and ensure that technicians arrive with those components in hand.
• Resolve contractor issues. When technicians claim to have fixed a problem, and retailers find otherwise, EMS data serves as the “single source of truth” — keeping technicians accountable until they fully address every issue.
Calculating the Financial Improvements
When FMs capitalize on energy management systems’ full capabilities, they report significant savings. One value retailer with more than 1,000 locations leverages EMS software to control heating, cooling and lighting. Specifically, the facility management team:
• Remotely controls every RTU to keep stores comfortable when they’re open and deliver efficient setbacks when they’re not.
• Tracks RTUs’ supply air temperatures and real-time power consumption and identifies any maintenance needs.
• Automates lighting schedules and makes changes during key periods, such as the December holidays.
These applications help the retailer save over $2 million per year on energy costs and improve its margins while adding new stores.
Building on Current Savings with AI
How might FMs continue to drive down costs? Watch for energy management systems to incorporate more AI and predictive learning for that purpose. If an HVAC unit isn’t reaching the required temperature, these enhanced systems will recommend a truck roll and replacement parts — delivering them before store managers report a problem.
That functionality is closer than you think, and it’s sure to take the chill out of winter for cost-conscious FMs.
— Jay Fiske is president of Powerhouse Dynamics, a leading Internet of Things (IoT) solutions provider for eliminating waste in the operations of multi-site foodservice and retail facilities. The company’s IoT platform, sold under two different brands—SiteSage® for retail and other commercial operators and Open Kitchen® for foodservice operators—provides control over key equipment for reduced waste and increased cost savings, actionable insights for more informed decisions on equipment and operations, and improved processes for consistent, positive experiences in their facilities. The platform is connected with over 50,000 pieces of equipment across 15,000+ locations. Email jay@powerhousedynamics.com.