Case Study

National Retailer Reduces Energy Costs by Up to 20% Through Strategic Procurement

National Retailer Reduces Energy Costs by Up to 20% Through Strategic Procurement

The opportunity

A national specialty retailer sought to centralize energy procurement and improve cost control across its extensive portfolio of U.S. stores.

The retailer was managing numerous locations under a fragmented mix of electricity agreements, including multiple contracts and accounts operating on month-to-month pricing. This decentralized structure created inconsistencies in supplier management, pricing, and contract expiration dates across the portfolio.

Tradition Energy was engaged to establish a more coordinated procurement strategy that could leverage the retailer’s broader footprint. The company also needed more favorable contract terms, including add/delete provisions that would provide flexibility as stores opened, closed, or changed throughout the contract term.

Analysis

Tradition evaluated the retailer’s electricity accounts across multiple deregulated markets to identify where competitive supply could deliver savings and greater budget certainty. Rather than automatically moving every location to third-party supply, each market was evaluated against available utility pricing to determine the most advantageous approach.

Tradition identified opportunities to replace month-to-month pricing and multiple supplier agreements with a more coordinated purchasing strategy. In New York, dozens of locations were consolidated under a single agreement, simplifying supplier management and improving portfolio oversight.

Tradition analyzed competitive supply opportunities across California, Texas, New York, and several additional states. Where third-party supply offered a clear advantage, Tradition pursued competitive agreements; where utility service remained more favorable, the team recommended maintaining the more cost-effective option.

Tradition also focused on negotiating favorable add/delete provisions to accommodate ongoing changes within the retailer’s store portfolio. These terms provided greater flexibility to manage locations throughout the contract period while supporting a more scalable national procurement strategy.

The Result:
Lower Costs & Centralized Control

Up to 20% Energy Savings

Competitive procurement generated approximately 15% savings across 27 California locations, approximately 20% across 21 Texas stores, and more than 15% across approximately 30 New York locations.

Greater Budget Stability

Transitioning eligible locations to fixed-price agreements and consolidating fragmented New York accounts under a single contract reduced exposure to month-to-month pricing and inconsistent supplier arrangements.

Strategic Market Expansion

Tradition continues to evaluate opportunities across Illinois, New Jersey, Pennsylvania, Ohio, Maryland, and additional New York markets, pursuing competitive supply only where analysis demonstrates an advantage over utility service.

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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 Reduces Energy Costs by Up to 20% Through Strategic Procurement