Retail Store Natural Gas Solutions

Natural Gas for Retail Operations

Retail businesses—from standalone stores to shopping centers—use natural gas primarily for heating and hot water. In deregulated markets, retailers can reduce energy costs significantly through competitive procurement, especially when coordinating across multiple locations.

Smart energy procurement supports the slim margins that characterize retail operations.

How Retail Businesses Use Natural Gas

Natural gas serves several key functions in retail:

Space Heating

Customer and employee comfort drives sales:

• Sales floor climate control
• Dressing room heating
• Storage and back-of-house areas
• Entry vestibules and receiving areas

Hot Water

Essential for operations and customer facilities:

• Employee restrooms and break rooms
• Customer restrooms
• Cleaning and sanitation
• Food service areas (if applicable)

Kitchen Operations

Many retailers have food service:

• In-store cafes and restaurants
• Food preparation areas
• Bakery operations
• Demonstration kitchens

Loading and Receiving

Back-of-house operations:

• Receiving dock heating
• Warehouse/stockroom climate control
• Vehicle maintenance areas

Typical Retail Gas Usage

Application	% of Total	Peak Demand
Space Heating	60-80%	Winter months
Hot Water	10-20%	Business hours
Food Service	5-15%	Operating hours
Other	5-10%	Variable

Cost Reduction Strategies for Retail

1. Multi-Location Procurement

Retailers with multiple stores have significant leverage:

Portfolio Aggregation

Combine usage across locations for better pricing:

• Corporate-owned stores
• Franchise networks (with coordination)
• Regional groupings
• National accounts

Coordinated Contract Timing

Align renewal dates across locations:

• Maximize purchasing power
• Simplify administration
• Consistent budgeting
• Single supplier relationship option

2. Competitive Supplier Selection

In deregulated markets, choose your gas supplier:

Fixed-Rate Contracts

Budget certainty for retail operations:

• Lock in rates for 12-36 months
• Protect against winter price spikes
• Support consistent store operating costs

Index-Based Pricing

Market-based rates for sophisticated buyers:

• Potential savings in favorable markets
• More price variability
• Requires monitoring and flexibility

3. Operational Efficiency

Reduce consumption without impacting customer experience:

HVAC Management

• Programmable thermostats aligned with store hours
• Night and holiday setbacks
• Vestibule and entrance air curtains
• Regular maintenance and filter changes

Building Envelope

• Weather stripping and sealing
• Loading dock door maintenance
• Storefront glass insulation
• Roof and wall insulation

4. Shopping Center Strategies

Large retail properties have additional options:

Master Metering

• Single meter for entire property
• Landlord procures at volume rates
• Allocation to tenants
• Administrative simplicity

Tenant Submetering

• Individual tenant accountability
• Landlord still aggregates procurement
• Usage-based billing
• Encourages conservation

Retail-Specific Considerations

Seasonal Demand Patterns

Retail gas usage varies significantly:

• Holiday season: Extended hours increase usage
• Winter heating: Peak demand period
• Summer: Minimal gas usage in many locations
• Store openings/closings: Transitional periods

Lease Considerations

Energy costs depend on lease structure:

• Triple net (NNN): Tenant pays utilities directly
• Modified gross: Shared utility costs
• Full service: Landlord handles utilities

Understand your lease before optimizing procurement.

Franchise Operations

Franchise networks can coordinate:

• Leverage franchise buying power
• Maintain individual store flexibility
• Share best practices
• Coordinate with franchisor programs

Industries We Also Serve

Retail businesses often have related operations:

• Restaurant Natural Gas Solutions - In-store dining
• Warehouse Natural Gas Solutions - Distribution centers
• Office Building Natural Gas Solutions - Corporate headquarters

Get Your Free Retail Energy Analysis

Natural Gas Advisors helps retail businesses reduce energy costs. Our services include:

1. Multi-Location Analysis: Review usage across your store portfolio
2. Supplier Comparison: Obtain competitive bids for your volume
3. Contract Coordination: Align renewals and optimize timing
4. Negotiation Support: Secure favorable terms and pricing
5. Ongoing Management: Monitor markets and manage renewals

No cost to your business—suppliers compensate us directly.

Whether you operate a single store or a national retail chain, Natural Gas Advisors can help you reduce energy costs while maintaining the comfortable shopping environment your customers expect.

Contact us today for your complimentary retail energy analysis.