Convenience store franchises are moving to slash energy consumption following the revision of the Japanese Act on the Rational Use of Energy, and are rapidly becoming showcases for cutting-edge energy-conservation technology. The technologies honed here will spread to other firms in the distribution industry, office buildings and more, eventually worldwide.
Convenience store chains are getting serious about new measures to reduce energy consumption. Seven-Eleven Japan Co Ltd of Japan, the industry leader, opened its first outlet in Nov 2008 using light-emitting diodes (LED) in all signs, illuminated poles, etc. The hot water heater is driven by waste heat from the refrigeration equipment, and combined with the LED lighting has slashed per-outlet electricity consumption by 12.6%. In Oct 2008, Lawson Inc of Japan opened its Kurehiro Koen outlet, featuring LED illumination, solar panels, exterior insulation, cooling air conditioner/refrigeration outdoor units with rainwater, and more.
Convenience stores demand high management efficiency, and by introducing energy-saving technology are staying in the forefront of the retail industry. The pace of opening and closing outlets is rapid, and as one person in the outlet facilities area of a convenience store chain comments, "It is tough to install new equipment into an outlet unless the investment can be recovered within three years." This rule applies to energy-conservation investments as well: they, too, demand quick results. The tough requirements make this the perfect test case for energy-conservation technology application in the near future, including in other industries, the home, and elsewhere.
Especially in 2008 and 2009, the number of convenience stores trying out LED illumination is impressive. The above-mentioned Lawson Kurehiro Koen store uses LEDs for in-store lighting, signs and elsewhere, achieving about a 34% reduction in lighting energy cost from the chain's average stores (Fig 1a). The firm has installed LED illumination on a trial basis at at least 30 outlets nationwide thus far, and plans to use LEDs for signs, in-store lighting and other illumination applications at all new outlets opening from spring 2009 on. This is the first full-fledged introduction in the industry. Seven-Eleven Japan also appears to be seriously evaluating the introduction of LED illumination with lighting manufacturers. As far as signs are concerned, FamilyMart Co Ltd of Japan has already installed LED signs at 17 outlets, on a trial basis.
Interest is being shown by companies of all sizes, though, as medium-scale regional convenience store chains also move to install LED in-store lighting, signs, etc.
The sudden interest by convenience stores in introducing LED lighting and otherwise slashing energy consumption was triggered by the revision of the Japanese Act on the Rational Use of Energy on Mar 18, 2009.
Under the revision, corporations have been obligated to handle energy management, and submit reports on energy usage, mid- and long-term plans, etc. If a business operator uses 1,500kL or more (petroleum equivalent), reports on consumption, etc, are required as a "special business operator". For a convenience store chain, this threshold translates to about 30 to 40 outlets or more, which would include all of the large- and medium-scale chains.
The act is not scheduled to be enacted until Apr 1, 2010, but business operators are required to quantify their energy consumption for fiscal 2009 (Apr 1, 2009 through Mar 31, 2010), and if data indicates they are special business operators, register with the local Bureau of Economy, Trade & Industry by July 2010. At present the act only has recommendations, but in the future it is possible that failure to meet imposed targets could result in penalties.
Convenience stores have little choice but to investigate new methods of saving energy.
Social pressure is another reason behind it all. As social awareness of environmental issues increases, Japanese convenience stores, often open round-the-clock, are perceived as wasting energy. In fact, the refrigeration systems accounting for 40% of total electricity consumption, run even when the stores are closed, and air conditioning to preserve products on open showcases is never turned off, either. As a result, the energy-savings effect of reducing business hours would be limited. Still, there is no denying that convenience stores look guilty to the average consumer, and some local governments are even asking these stores to cut back on late-night operations. Operators are being forced to get even more serious about saving electricity from the viewpoint of corporate social responsibility (CSR), too.
Convenience stores have not been ignoring the issue until now, certainly. About 70% of electricity consumption is from lighting, refrigeration and air conditioning, and operators have been working on reducing these costs for years. The Japan Franchise Association (JFA) has established its own energy consumption targets, and promoted industry-wide energy conservation. The specific energy consumption for 1990 (0.161kWh/m2h) has been adopted as the reference, and the target calls for an average 23% reduction to 0.12397kWh/m2h for the period from 2008 to 2012.
Convenience stores have always been very concerned about gaining maximum profitability from small areas. Outlets are extensively standardized, making it easier to implement energy-conservation measures than in supermarkets, etc.
For example,
lighting is handled with high-frequency (HF) fluorescent lights, most
using inverters. A source at one lighting fixture manufacturer points
out, "The fluorescents used in convenience stores have the highest
efficiency of any commercial facility lighting. There are still a lot
of commercial facilities using incandescent bulbs!" The time has passed
when people thought "bright" attracted more customers. Some chains are
gradually dropping in-store light levels as they reduce energy
consumption. The use of inverters in refrigeration equipment is more
advanced in convenience stores than in even large-scale supermarkets,
reveals a source at a showcase manufacturer. In 2002 the first
heating/air conditioning systems for convenience stores designed to
operate together with air conditioning and refrigeration systems
appeared (Fig 2).
JFA data on specific energy consumption, however, shows little change for the past few years, and in 2007 the situation even worsened a bit. The introduction of LED lighting is accelerating because of the revised legal environment, and because a comprehensive energy-conservation policy is demanded to meet self-imposed targets. In the near future, the key pillars of such a policy are likely to be LED lighting and integrated outdoor units for air conditioning and heating/refrigeration systems. Demand for energy monitoring systems is also rising. Not only do they make it possible to understand electricity usage, they also make it possible to visualize electricity consumption, promoting awareness among owners, employees and other people, which will probably contribute to lower consumption.
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