August 2016

Convenience store building management systems and efficiency strategies

May 2018

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ContentsPreface ........................ 2

Convenience store building management systems and efficiency strategies ........................ 3

Equipment-level optimization ........................ 4

Store-level optimization ........................ 5

Enterprise-level optimization ........................ 6

Conclusion ........................ 7

Preface

According to the Energy Information Association, the nominal price of electricity in the United States increased by 40% between 1999 and 2009 and future regulation and grid restructuring threaten only to accelerate this cost inflation. Convenience store operators, propelled by rising energy prices and vast improvements in control technologies,are evolving and becoming more sophisticated energymanagers. This sophistication means moving from thefirst stage of simply installing efficient mechanicalequipment to the second stage, complete digital controland energy optimization.

Convenience store building management systems and efficiency strategiesAlthough retail stores vary significantly- they range insize from 2,000-150,000 square feet and offer a myriadof product lines- they inherently share many importantoperating characteristics, business processes andcompetitive dynamics. These similarities are being forcedto the foreground of the industry’s collective mind by the blurring of the superficial lines that have historicallydelineated retail competition. A notable example is theshift in store size paradigms. Supermarkets such as Tesco, Supervalu and Walmart now offer small 5,000-20,000square foot neighborhood stores that look increasinglylike convenience stores. Another example is theconvergence of product offerings. Pharmacies and dollar stores are expanding their frozen and fresh food sections, directly competing with convenience stores, in a bid tokeep shoppers in the stores longer and hopefully capture more of their disposable dollars.

While the retail universe was once marked by expansion both in store size and diversity, it is now strategicallycontracting, coalescing around key offerings more likely to attract scarce consumer spending. This convergence of store formats has lead not only to a fusion of product offerings, but also a transfer of supporting technologies and business practices. The central building management system is one such technology that has proved contagious. Building ona long history of effectiveness in large retail formats, the building management system is now finding its form in the small footprint retail environment.

Retail margins, notoriously thin to begin with, arefacing increasing downward pressure from inflationaryoperating costs. The convenience store industry has unitedand responded to these profitability threats in very positiveways- most notably by fighting to reduce chain-wideoperating expenses. Retailers can achieve improved profitability by efficiently managing energy consumption and proactively addressing maintenance issues through the use of intelligent building management technologies.

Building Management Systems facilitate enterprise management, optimize, standardize and monitor store efficiency, and generate a wealth of valuable data that can be used to further drive down operating costs. They increase visibility into actual store conditions and provide convenience store operators with an effective and scalable means of combating cost inflation. The strategies outlined in this paper discuss how to maximize the value of your building management system and increase operating profitability.

Advanced energy optimization strategies includeintelligently operating lighting, HVAC, and refrigerationsystems and interfacing with third party devices. Chain-wide, regional, and store-level operating conditions can be optimized by monitoring critical store conditions, controlling site occupancy schedules, accurately maintaining comfortable store environments and precisely managing refrigeration temperatures. This helps retailers to avoid excessive energy consumption during peak-cost time periods while also managing operating deviations and effectively controlling energy-intensive equipment. High-level, coordinated efficiency strategies such as these can potentially reduce energy consumption by 10-20%, but they require a building management platform.

Refrigeration, HVAC and lighting systems account for 80%of the average convenience store’s energy consumption. Byusing a Building Management System (BMS) to control theruntime and operating parameters of those systems,convenience store chains can potentially reduce their

energy costs by tens of thousands of dollars every year. Building Management Systems also increase visibility into store operations by aggregating and recording operational data which is used to analyze enterprise performance and improve maintenance efficiency. Furthermore, remotely triaging BMS alarms prior to maintenance dispatches helps ensure that maintenance personnel are equipped with accurate information to quickly and effectively resolve problems once they arrive on-site.

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Supermarkets have relied on centralized buildingmanagement systems to coordinate store equipmentand minimize energy consumption for almost twodecades. These controls historically focused on complex refrigeration systems which frequently accounted for over 50% of a supermarket’s energy consumption. Additionally, the supermarket control systems also manage lighting and modulate HVAC units according to ambient conditions and store occupancy. Only recently have centralized building management systems gained momentum in convenience store environments, eliminating inefficient mechanical controls and manually operated thermostats and lighting systems. The transition to controls is driven by increased refrigerated content, rising energy costs, and the desireto improve enterprise management. As a result, many convenience store operators are now leveraging intelligent control solutions that are similar to those long employed by supermarkets.

Building Management Systems, specifically web-enabled platforms, represent an evolutionary leap in convenience store facility management. The sophistication progression that controls have followed parallels the broader progression that is occurring in markets all over the world. Fromautomobile repair to international shipping, mechanical equipment has been replaced by electronic devices which improve efficiency and accuracy. These electronic devices were in turn replaced by computerized devices which are capable of using multiple data inputs to intelligentlyimprove performance and can be networked into a webof coordinated systems capable of creating and sharingmassive amounts of performance data. Each evolutionunlocks increased efficiency and accuracy, but the benefits of high-level, data-driven enterprise management madepossible by networking store controllers far exceed anything the convenience store industry has ever seen before.

Equipment-level optimizationThree systems account for the vast majority of the energy consumption in a convenience store: refrigeration, HVAC and lighting. In most convenience stores these systems are either manually adjusted by on-site store personnel or they operate unnecessarily 24 hours a day, 7 days a week. Both conditions inevitably lead to energy waste. Specific examples of energy waste include:

• Lights unnecessarily left on during the daytime

• Refrigeration case door heaters and fans run inefficiently

• HVAC units run continuously, blind to store occupancy or actual ventilation requirements

• Refrigerated cases are left open to spew cold air into the store, adversely affecting the store’s conditioned space and refrigerated product

• Faulty and failing equipment runs to failure, eagerly gobbling up kilowatts and potentially leading to product loss, uncomfortable store patrons and safety issues

Earlier in this paper we cited the increasing penetrationof refrigerated goods in the convenience store space.Retailers discovered that proper category management means including a robust grocery, frozen food and dairy segment to capture consumer’s perishables shopping needs. Additionally, a robust refrigerated beverage section that includes energy drinks, beer, soda and water drives cross-category sales from the grab-and-go shopper. While refrigerated and frozen goods still account for a moderate portion of the convenience store shelf space, they require a disproportionately large amount of energy to maintain. One walk-in cooler and three walk-in freezers can consume up to 1/3 of a convenience store’s total energy consumption. For this reason, improvements in refrigeration efficiency can havea significant effect on overall store profitability.

Most medium temperature and frozen food display cases incorporate electric resistance heating coatings or wires that draw substantial wattage to prevent condensation from forming on the display doors. These anti-condensate heaters (ACH) keep the temperature of the exterior surfaces of the glass doors, cabinet sheet metal, and rub rails above the store dew point to prevent the formation of condensation. When allowed to run continuously, these heaters can consume

However, by using a building management system, convenience store operators are enabled with the ability to ensure that each system in their facility is operating efficiently and effectively, in accordance with established best practices.

Uncontrolled refrigeration systems may waste energy by failingto efficiently maintain case temperatures and ineffectively operate the refrigeration cycle. Digital controls mitigate these issues by monitoring refrigeration cases and product temperatures to accurately cycle compressors within a tighter control range. Case controllers help prevent excessive compressor cycling and can temporarily adjust operating parameters overnight to save energy while maintaining temperature affecting product viability. Typically, digital controls result in a 7-10% reduction in compressor runtime, resulting in an operational expense reduction. Additionally, when temperatures reach critical levels set by the retailer, the controls generate alarms to notify designated store personnel and help prevent food spoilage and excess energy consumption.

Condensing units that combine efficient scroll compressortechnologies and variable speed motor control with high efficiency fan blades and large condenser coils can deliver up to 40% higher energy efficiency than traditional condensing units. Yet, even efficient equipment may need optimization controllers to maximize efficiency.

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excessive amounts of energy. ACH control with an anti-sweat heater controller reduces the power input to the door heaters when the store dewpoint is low. This measure has proven to reduce annual ACH energy consumption by as much as 40%-60% in some climates.

Store-level optimizationA central building management system leverages a store’s existing equipment assets to help ensure all controlledequipment operates efficiently individually, but also,and more importantly, operates efficiently as a wholesystem. One very clear example of this coordinatedefficiency is the ability of a building management system to intelligently stagger equipment run-times to avoid peak energy usage charges.

Most electric utility companies bill their customers based on two components: total kWh consumption and peak kW demand. This means that a momentary demand spike increases the price that a retailer must pay on every kW they consume during that billing period and, in some cases, for the next 12 billing periods. To avoid higher demand charges, building management systems intelligently staggerequipment runtimes to help prevent new peak demand levels.For example: it is the middle of the afternoon and a store is simultaneously running all of its cooking equipment, its HVAC, partly dimmed lighting and all store signage. As energy demand trends towards a new peak, the building management system will cycle HVAC rooftop unitsor partially reduce their load to avoid breaching theprogrammed demand (kW) threshold. This helps the store remain in a lower demand (kW) rate tier without affecting the store environment.

An intelligent controller can also stagger equipment start-ups to keep multiple devices from starting at once. An example would be staggering individual HVAC units to occupied startup mode or to an unoccupied off mode before enabling lighting control schemes. This capability, often referred toas Optimized Start/Stop (OSS) allows rooftop units toeffectively condition the store before staging individualstore lighting loads. OSS strategies are designed to handle pre-starts and pre-stops in the most energy efficientmanner possible. Every time an OSS strategy occurs, the building management system measures the amount of time it takes to bring the store temperature from the previoussetpoint to within the defined operating parameters of the new setpoint. In this way, the system is continuously learning and alters its function to match evolving store conditions.

By scheduling and operating equipment with the fullknowledge of other systems in the store, buildingmanagement systems can attain an entirely new level ofoperational efficiency. This enhanced functionalitytranslates into more than just lower energy consumption.

Energy efficiency in HVAC, as in refrigeration, means notonly installing efficient equipment, but also operating iteffectively by accurately controlling temperature andestablishing schedules that reduce unnecessary consumption. Consumption habits of HVAC systems vary by season and regional weather pattern, but they generally consume approximately 20% of a convenience store’s electrical demand. By cycling rooftop fans according to discharge and return air temperatures, HVAC controllers reduce compressor runtime and ensure a balance of consumer comfort and energy efficiency. When store occupancy is low and ambient humidity is low, the controllers will scale back the HVAC one or two degrees to save on efficiency. Store temperature setpoints can also be raised overnight when the store is rarely occupied, saving a significant amount of energy without impacting operations.

Lighting systems generally account for between approximately 25 and 40% of a convenience store’s electricity consumption. As a result, hefty savings are potentially obtainable by utilizing intelligent control strategies. Advanced lighting control relies on multiple types of control inputs- ambient light levels, motion detection, occupancy schedules, sunrise/sunset times and/or occupancy triggers such as a security system. These inputs, used individually or combined into an enhanced control logic, enable lighting output to be effectively tailored to store needs. The underlying savings mechanism for lighting control is turning lights off when they are not required or dimming lighting levels when full lighting is not necessary. Utilizing lighting schedules and light level sensors offers a more dependable solution than relying on store personnel or mechanical time clocks to turn off or reduce store lighting (or portions of store lighting). Additionally, electronic controllers enable complex lighting control strategies which automatically adjust schedules for holidays and allow managed overrides when required by a temporary condition. For example, many BMS platform schedules are capable of receiving site-specific sunrise and sunset data to efficiently control outside lighting. Different lighting zones such as wall packs and canopy lights can be controlled on either a schedule, a light level sensor, or both. A good system of automated lighting control reduces local tampering and standardizes efficient lighting practices across an enterprise.

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With a building management system, total cost, customer experience and employee productivity all enter theoptimization purview.

This holistic concept of using data-driven control strategies to manage the total cost of operation delivers an innovative platform for enterprise site management.

Enterprise-level optimization Savings from data proliferation, information management and systems analysis can significantly augment savings from reduced energy consumption. In-store buildingmanagement systems provide facility operators with a bidirectional gateway for enterprise visibility. Firstly, the BMS pulls operating data from store assets to make it availableto key decision makers, and secondly the BMS allows thosedecision makers to remotely implement actions on a per store, regional, or enterprise level.

Advances in economical communication technologiesenable high-speed connections to BMS platformsthroughout a retailer’s enterprise. By combining high-speed web connections with enterprise cloud computing,facility managers now have access to web portals thatincorporate analytic tools, detailed reports and taskmanagement programs. This functionality providesseamless, time-saving remote access by which managers can apply updates to BMS parameters, schedules, and setpoints. Before enterprise management, BMS parameter updates were programmed store by store, wasting time and valuable resources. Efficiently managing stores at the enterprise level means increasing visibility into store operations and acting on those insights across the entire fleet of stores.

Web portals also allow facility managers to analyze their store operations and identify their poorest stores andtarget improvement initiatives- locations that deviate from corporate settings, stores with unusually high energyconsumption, and stores with recurring maintenanceexpenses. The value of this data stream is just now beginning to be realized, and many retailers are yet to capitalize on its existence. Chains that are taking advantage of enterprise management tools are reducing their maintenance costs, making more informed repair/replace decisions, improving the ROI of optimization initiatives, and gaining new insights into their facility operations.

One example of data-driven action is seen in maintenance optimization. Without store level visibility, maintenancepersonnel are generally dispatched whenever storepersonnel notify their facility management team of anin-store issue.

This leads to unnecessary dispatches and multiple trips to the same store when problems are insufficiently corrected. A BMS with enterprise management capabilities provides retailers with remote access to alarms and triage supportto help determine:

1. If the condition is a valid dispatch event or if it can be remotely resolved to avoid an immediate dispatch

2. The appropriate severity level and when to dispatch someone to the site- emergency condition, next business day, next routine maintenance dispatch

3. What information will help the dispatched technician pinpoint and resolve the issue- operating history, alarm status, required equipment

Another example of remote enterprise visibility that drives down energy costs is the growing use of continuouscommissioning tools such as setpoint verification. A storeis never more energy efficient than the day after it is builtor commissioned. Facility experts commission stores forefficiency in part by setting store setpoints and allequipment to standardized, efficient levels, but overtime system setpoints tend to deviate from theseoptimized levels. Whether due to temporary setpoints that do not revert or mechanics tweaking systems to cover equipment issues, setpoints inevitably drift away from energy efficiency. Remote oversight of these setpoints allows retailers to continuously commission their stores, protecting savings achieved from efficiency initiatives. When a setpoint is changed, online enterprise tools identify the deviation and the potential financial impact of the change and email the responsible party to inquire as to the reasons for the change.

This holistic approach helps preserve optimized setpoints and allows facility managers to understand all aspects of the change so they can make intelligent decisions and either revert the setpoint or establish a new operating parameter. Setpoint management, like smart dispatching, applies site level, regional and chain-wide information to help drive moreaccurate decisions and improve enterprise efficiency.

In summary, enterprise level smart dispatch tools help allowretailers to delay unnecessary dispatches, bundle maintenance calls into one ticket, and streamline their asset maintenance processes. Furthermore, proactive trending can provide exception reports to help highlight equipment performance issues before failure and avoid expensive emergency repair expenses, product losses and equipment downtime.

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ConclusionImplementing a building management system with an enterprise management platform is a proven way to reduce operating expenses. While savings vary by region, controlled equipment, and operating standards, convenience store operators have experienced annual savings in energy,maintenance and other operational expenses of up to $10,000 or more annually per store.

Building management systems provide the convenience store market with a high-level solution to intelligently control store operations and improve efficiency. However, simplyinstalling a system carries no promise of lower costs and higher profits. Building management systems must beproperly programmed and utilized to ensure maximumsavings. The convenience store manager of the future needs to be in tune with the constant stream of data that is flowing from his or her enterprise and be able to quickly andeffectively act on that data to optimize operations andmaximize profitability.

Integrating facility hardware with Emerson’s ProAct™ service offerings allows retailers to capitalize on their infrastructure investments and further reduce operational costs. Over time, efficiencies gained from infrastructure investments will erode if not properly maintained. Emerson’s facility experts offer free analysis of operational data and prescribe a customized set of solutions to target areas needing improvement. For free operational cost analysis, contact us at RetailSolutionsMarketing@Emerson.com. For more information on Emerson’s ProAct services,visit Emerson.com

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