Case Study

National Retailer Saves $50,000+ Annually Through Centralized Energy Procurement

National Retailer Saves $50,000+ Annually Through Centralized Energy Procurement

The opportunity

A national outdoor retailer sought to centralize energy procurement and improve cost control across its extensive portfolio of locations.

Historically, the company lacked a centralized approach to managing energy procurement, with individual store managers responsible for overseeing utilities at their respective locations. This decentralized structure made it difficult to maintain consistency across contracts, monitor market exposure, and coordinate purchasing decisions.

With a large national footprint, the retailer had an opportunity to leverage its combined energy demand and establish a more strategic procurement process. Tradition Energy was engaged to evaluate existing agreements, identify immediate savings opportunities, and develop a centralized approach that could improve efficiency and cost management across the portfolio.

Analysis

Tradition reviewed the retailer’s existing contracts and identified a fragmented procurement structure with multiple suppliers, varying expiration dates, and several accounts remaining on costly post-contractual rates. The analysis revealed an opportunity to consolidate eligible locations and leverage the company’s broader footprint.

Tradition found numerous agreements with different expiration dates, making renewals difficult to coordinate. Several accounts had also remained on post-contractual pricing and were paying rates as high as three times prevailing market levels.

Where market conditions allowed, Tradition grouped eligible locations together for procurement. Aggregating demand enabled the retailer to leverage its broader purchasing volume rather than sourcing energy independently at each location.

Tradition conducted competitive RFPs across the portfolio to benchmark existing agreements against available market pricing. Most of these procurement events identified savings compared with the retailer’s existing energy arrangements.

The Result:
Centralized Procurement, Immediate Savings

$250,000+ Annual Savings

Tradition’s procurement initiatives generated more than $50,000 in annual energy savings during the first year of the engagement.

Reduced High-Cost Exposure

By identifying accounts paying post-contractual rates as high as three times market pricing, Tradition created opportunities to transition locations into more competitive supply agreements.

Portfolio-Wide Purchasing Power

Aggregating eligible locations allowed the retailer to leverage its national footprint, creating a more coordinated procurement process and stronger foundation for managing energy costs across its portfolio.

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For decades, organizations have trusted Tradition Energy to navigate increasingly complex energy markets. As the nation’s largest independent energy procurement and sustainability solutions advisor, we bring clients resources, market reach, and transaction activity other advisors cannot replicate.

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National Retailer Saves ,000+ Annually Through Centralized Energy Procurement