Business managers will always look at a business’s balance sheet and focus on the amount of sales activity, marketing, business development and operational costs. If the business manager wants to improve the business’s revenue and profit margins, they are likely to overlook their lighting performance as a contributing factor.
The truth is, retailers never think about electricity bills (let alone their store’s lighting) when their potential customers are at the point of sale or even browsing within their store. However, studies have shown that improvements in a retail store’s lighting performance do contribute towards more sales and revenue.
Here are some reasons why retailers need to seriously consider their store’s lighting performance.
Improved lighting performance contributes to more cost savings.
There are direct and indirect savings that can be gained.
The direct savings can be attributed to the type of bulb that is installed in the store. High-quality LED lights will minimise electrical consumption costs, which will reduce overhead lighting costs and contribute towards increased profits. Depending on the type of retrofit, lighting costs can be reduced by up to 60% annually.
The indirect costs that can be saved are even more significant.
Inefficient light bulbs can contribute towards excess heating, which will require businesses to invest in cooling solutions such as air conditioning.
Lower-quality lighting can also contribute towards lower staff performance and even a reduction in the wellness of employees. Statistics from Safework Australia claim that employee absenteeism costs businesses approximately $5,100-10,100 every year. By improving the lighting performance, it minimises the risk of injury and poor health.
Improved lighting performance improves the emotional connection between products and customers.
Generally, people will understand the marketing message that is being presented to them, especially when a product is on display. But what is often one of the most defining factors is the impression that influences the desire for a customer. For example, in a food grocery store; a customer will commonly make their decision based on the cosmetic appearance of a product.
It’s common for customers to choose bananas that are bright yellow rather than the ones that have a dark spot or freckles on the skin. The same can be said with apples as customers are more inclined to choose apples that look more ‘vibrant’, rather than those that appear ‘dull’.
If you are a retailer and would like to learn more about how you can improve your store’s lighting performance, get in touch with a Savewise consultant today.