Case Study

National Automotive Retailer Achieves $1.6 Million+ in Electricity Savings

National Automotive Retailer Achieves $1.6 Million+ in Electricity Savings

The opportunity

A national automotive retailer sought to reduce energy costs and improve procurement across its rapidly changing portfolio of U.S. locations.

Through a strategic partnership, Tradition Energy was introduced to a major U.S.-based automotive maintenance and aftermarket retail chain. With locations across multiple energy markets, the company faced significant complexity in managing electricity and natural gas procurement across its national footprint.

The retailer relied heavily on a single electricity supplier, incurred costly post-contractual rates, and maintained agreements that did not adequately account for frequent store openings and closures. The company needed a more competitive and flexible procurement strategy that could reduce costs while adapting to ongoing portfolio changes.

Analysis

Tradition conducted a comprehensive review of the retailer’s electricity and natural gas portfolio, identifying significant opportunities to improve supplier competition, contract terms, and procurement efficiency. The analysis provided the foundation for a more coordinated, market-specific purchasing strategy.

Tradition found that the company’s reliance on a single electricity supplier resulted in significant overpayment, even before existing agreements expired. Introducing competition created an opportunity to achieve more favorable pricing across the portfolio.

The analysis also identified opportunities to standardize key contractual provisions across suppliers. Improving terms related to usage overages and other costs helped create greater consistency and reduce unnecessary expenses.

Tradition reviewed electricity and natural gas accounts across the portfolio and developed state-specific RFPs to reflect individual market dynamics. This approach expanded supplier competition while allowing procurement strategies to be tailored to the requirements of each market.

The Result:
$1.8 Million+ in Energy Savings

Immediate Electricity Savings

Tradition secured agreements with seven electricity suppliers, generating more than $1.6 million in savings through increased competition and improved contract terms.

Future Gas Savings Expected

Tradition’s natural gas procurement strategy is expected to generate an additional $250,000 in savings across four states, bringing total anticipated savings above $1.8 million.

Streamlined Portfolio Procurement

Tradition enabled the retailer’s legal team to pre-approve multiple supplier agreements, accelerating compliant renewals and creating a more efficient procurement process as locations change. Additional opportunities are also being evaluated through sustainability initiatives.

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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 Automotive Retailer Achieves .6 Million+ in Electricity Savings