LED lighting is a crucial, yet easy way to lower utility costs. The added benefits are a brighter store where customers feel safer and spend more money.
The convenience store industry continues to grow sales at record numbers, but the stakes have never been higher as convenience store owners face competition from multiple retail channels and growing online shopping trend, where customers can order everything from a cup of coffee to a car and have it delivered in hours, not days.
As competition increases across the board, savvy retailers are learning to take costs out of their operations to run lean, efficient businesses. This includes reducing operating and utilities costs.
A simple, but smart approach to making your store safer and more efficient is LED lighting. LED lighting is brighter so customers — women in particular — feel safer at night. It’s been a tactic used by grocers and drug stores for decades. LED lighting is much cheaper than traditional bulbs and will have an immediate positive impact on your utility bills.
To further increase safety in independent stores, a panic alarm button in the point-of sale-system can discreetly alert the police and simultaneously open the cash drawer.
Lepro, a provider of lighting products, outlined three key reasons to install LED lights in stores: energy savings, better customer shopping experience and better task lighting.
Energy Savings
The efficiencies of LEDs continue to increase. Why are LED light bulbs so energy-efficient? Just 5% of the energy produced is heat-wasted; the remaining 95% is changed into usable light. Halogen lights have a 30% efficiency; 70% of the energy is wasted in the form of heat. On top of that, LED lights have a lifespan that is 10 times longer than halogen lights, which is why they are considered a worthwhile investment.
A switch to LED lighting will also reduce your overall carbon footprint. LED lighting fixtures use 60% less energy to power, which is a lot more sustainable than any other lighting options. The average lifespan of a traditional light bulb is 1,200 hours. The average lifespan of an LED light bulb averages 25,000 hours. LED lights are environmentally sound solutions and produce almost no UV emissions.”
Furthermore, LED’s have the ability to use a dimmer switch, which increases their lifespan even more. LED lighting fixtures do not shatter as easily as fluorescent and mercury-vapor lights. Fluorescent and mercury-vapor lights require special handling and disposal.
Better Customer Shopping Experience
Besides the cost savings, business owners could expect to see an uptick in sales. LED lights, whether it is LED shop lights or LED lighting panels, allow you to choose the light’s color temperature. For instance, Cool White and Daylight are ideal options for retail stores. Studies show that these lights’ brightness can awaken people, improve their mood and make them stay longer.
Without that sense of urgency of wanting to get out, they are more likely to wander around and do more impulse shopping for snacks and foodservice items.
According to a study conducted by Merchant Mechanics at GNC health and nutrition stores, 3.7% of people who passed by were enticed to come in when brighter lights were used. Only 2.1% of customers entered the store with dimmer lights. A study by the National Lighting Bureau noted that after the installation of new lights, there was a one-third increase in traffic, a 38% increase in sales and a 19% increase in profits.
LED technologies continue to evolve and help retailers enhance customer service. They have done this while decreasing the cost of lighting products, which has reduced operating costs. There are also many more LED manufacturers today, so take some time to understand what each one offers and who can help to make your transition as smooth as possible with rebates and project management. The kind of warranty a company offers, like utility rebates, should be examined closely. It indicates how strongly they feel about their products.
Better Task Lighting
Lighting also plays a crucial role in bringing your store’s products to life. The right type of light can catch a shopper’s eye and make them look twice at the offering, especially around the coffee and foodservice counters.
Get creative with small displays by using a spotlight. With more extensive displays, you could also generate excitement among customers with a colored spotlight on a display but only do this occasionally. Too often, and the customers come to expect it.
One other factor retailers with walk-in coolers should consider is that LED lights are practically heatless. Traditional incandescent bulbs convert 90% of their energy to heat. The production of so much heat is the No. 1 hazard with conventional lighting. LED lights, on the other hand, do not create additional heat in a room, which is extremely important when it comes to beer caves and freezers.
If LED lighting is right for you, begin by reaching out to your local utility company before taking additional steps. Utilities typically offer a range of programs depending on the size of the customers and the number of lights they’re looking to convert.
Costs are going up across the board for storeowners, especially on the operations side. Every little bit of savings is going to create a big savings in the overall big picture, so these are important opportunities to take back some control over rising costs. LED cost-savings add up quickly, and the savings on an annual basis can be eye-opening. Do your homework and enjoy the benefits of this growing technology.
Elie Y. Katz is the president and CEO of National Retail Solutions (NRS).