According to the 2002 Economic Census, there are 95,362 grocery stores in the U.S., of which 66,150 were supermarkets (stores generating at least $2 million in sales annually). Total grocery store sales in 2002 were $456.9 billion.

In 2004, the South Central region of the country, comprising the states of Texas, Arkansas, Louisiana, Oklahoma, Kansas, and New Mexico, constituted a dynamic, growing, and prosperous market with a consumer base of approximately 38 million people, almost 13% of the total US population. The majority of growth in the region lies in Texas where the grocery market is highly competitive between national chains and independent retailers. Overall, the retail grocery market is fairly mature, yet it continues to rejuvenate its image in order to meet changing consumer demands. In addition, stiff competition in the grocery industry is expected to heighten with the increasing strength of supercenters and alternative grocery store formats.(1)

Typical Energy Consumption Profiles

Source: http://www.energystar.gov/index.cfm?c=grocery.sb_grocery

Source: http://coastepa.apogee.net/ces/library/business_5.asp

As these pie charts show, in a typical grocery store, just three energy users contribute about 95% of the electric use: Refrigeration at 60%, Lighting at 18% and HVAC at 15%. Similarly, when it comes to gas use, there are really just three systems that consume 94%: Space heating at 56%, Water heating at 22%, and Bakery at 15%. (2)

Why might CHP be attractive to this market sector? (2)

1. Energy's effect on the bottom line. The supermarket and grocery store industry operates on very thin profit margins - typically about 1% of sales. This means that a 10% reduction in energy costs for a supermarket facility can translate into as much as an 8% increase in gross profit.
2. Aggregation. Buyers in this segment are likely to take advantage of combined purchasing power by aggregating their loads across stores.
3. Equipment replacement. The on-going phase-out of CFCs and other ozone-depleting substances has accelerated the turnover of commercial refrigeration equipment in this industry.
4. Reliability and self-generation. Even short-term refrigeration malfunctions or outages can impose large costs on operators due to lost sales and product waste.

Publications

The Market and Technical Potential for CHP in the Commercial/Institutional Sector
(312 KB)
Energy Efficiency Opportunities: Big Box Retail and Supermarkets
(468 KB)
Ecology of Your Market Workshop
(1.47 MB)
2 - Sacramento Municipal Utility District Energy Information Library