H&M Closing Doors to Open Savings (RILA Retail Energy Management Program)

H&M, the international clothing retailer, has more than 4,500 retail stores worldwide, including over 20 stores in New York City alone. Prior to 2015, H&M stores often kept exterior doors open to promote store foot traffic. It was assumed that on a hot day, feeling air conditioning coming from a store would encourage customers to enter. However, in 2015 New York City passed legislation requiring stores and restaurants to keep front doors closed while building air conditioning is running. The following year, H&M decided to use the operational change mandated by the new closed-door law as an opportunity. They decided to examine whether closing the New York City doors had decreased foot traffic as well as estimate the typical additional energy costs from leaving doors open, so that a cost benefit decision could be made for other locations. To view the full PDF version of this implementation model, click here.

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H&M determined that closing exterior doors resulted in approximately $10,000 in energy cost savings a year on average per store with no discernible impact on foot traffic, leading to the establishment of a company closed-door policy.

BARRIER

Open exterior store doors increase energy costs but are considered a way to encourage customer foot traffic.

SOLUTION

Examine the impacts of open versus closed exterior doors on foot traffic and energy use.

OUTCOME

H&M determined that closing exterior doors results in approximately $10,000 in energy cost savings a year on average per store with no discernible impact on foot traffic, leading to the establishment of a company closed-door policy.