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Supermarkets & Grocery Stores
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According to the 2002 Economic Census, there are 95,362 grocery stores in the U.S., of which 66,150 were supermarkets (stores generating at least $2 million in sales annually). Total grocery store sales in 2002 were $456.9 billion.

In 2004, the South Central region of the country, comprising the states of Texas, Arkansas, Louisiana, Oklahoma, Kansas, and New Mexico, constituted a dynamic, growing, and prosperous market with a consumer base of approximately 38 million people, almost 13% of the total US population. The majority of growth in the region lies in Texas where the grocery market is highly competitive between national chains and independent retailers. Overall, the retail grocery market is fairly mature, yet it continues to rejuvenate its image in order to meet changing consumer demands. In addition, stiff competition in the grocery industry is expected to heighten with the increasing strength of supercenters and alternative grocery store formats.1

Gulf Coast Regional Overview
As of 2004, the Gulf Coast region was home to a total of 3,138 supermarkets with a total market value of $46.7 billion.1

Louisiana
  • 577 supermarkets with a total market value of $6 billion and ranked 25th in country's top retail grocery sales by state.
  • Top 3: Wal-Mart has 56 stores and 36% market share; Winn-Dixie has 78 stores and 15% market share; and Brookshire Grocery has 40 stores and 7% market share.
  • Per capita personal income $26,038, ranking it the 44th state overall.
  • New Orleans has the most supermarkets of the state's urban centres with 141 stores, holding a sales value of $2 billion.
  • Approximately 2,900 convenience stores in the state.
Oklahoma
  • 423 supermarkets with a total market value of $5.2 billion and ranked 29th in country's top retail grocery sales by state.
  • Top 3: Wal-Mart Super-centers has 49 stores and 39% market share; Albertsons has 31 stores and 9% market share; and Homeland has 46 stores and 7% market share.
  • Per capita personal income $26,567, ranking it the 40th state overall.
  • Oklahoma City has the most supermarkets of the state's urban centres with 115 stores, holding a sales value of US$1.7 billion.
  • Approximately 2,500 convenience stores in the state.
Texas
  • 2,138 supermarkets with a total market value of US$35.5 billion and ranked 2nd in country's top retail grocery sales by state.
  • Top 3: Wal-Mart Super-centers has 219 stores and 27% market share; H.E. Butt has 277 stores and 22% market share; and Kroger has 207 stores and 11% market share.
  • 19.6% of stores are Independents which control 5.5% of state retail grocery sales.
  • Per capita personal income US$29,076, ranking it the 30th state overall.
  • Houston has the most supermarkets of the state's urban centres with 474 stores, followed by Dallas (382), Fort Worth (200), El Paso (54), and San Antonio (114).
  • Approximately 13,725 convenience stores in the state, far more than any other state with 10% of stores in the country.
Typical Energy Consumption Profiles

As these pie charts show, in a typical grocery store, just three energy users contribute about 95% of the electric use: Refrigeration at 60%, Lighting at 18% and HVAC at 15%. Similarly, when it comes to gas use, there are really just three systems that consume 94%: Space heating at 56%, Water heating at 22%, and Bakery at 15%.2

Why might CHP be attractive to this market sector?2
  1. Energy's effect on the bottom line. The supermarket and grocery store industry operates on very thin profit margins - typically about 1% of sales. This means that a 10% reduction in energy costs for a supermarket facility can translate into as much as an 8% increase in gross profit.
  2. Aggregation. Buyers in this segment are likely to take advantage of combined purchasing power by aggregating their loads across stores.
  3. Equipment replacement. The on-going phase-out of CFCs and other ozone-depleting substances has accelerated the turnover of commercial refrigeration equipment in this industry.
  4. Reliability and self-generation. Even short-term refrigeration malfunctions or outages can impose large costs on operators due to lost sales and product waste.
Current Status of CHP
There are about sixteen supermarkets in the United States currently operating CHP systems. These stores account for approximately 3,340 kW of CHP capacity in the country. The majority of the CHP systems fall within the 100-150 kW capacity range. All systems run on natural gas.3

In the Gulf Coast region, there was a single demonstration project using a 60-kW micro-turbine and a single-effect absorption chiller was conducted at an HEB Supermarket in San Antonio, TX. Data collection began in December 2004 and ended one year later. The system has since been dismantled and removed from the site.

Case Studies
Adobe PDF HEB Supermarket - San Antonio, TX
(7.54 MB - Large File)
One 60-kW microturbine with an 18-ton single-stage absorption chiller
by Richard Sweetser, President of EXERGY Partners Corporation, 2004
Four microturbines with a double-effect absorption chiller
Oak Ridge National Laboratory
Two 200-kW reciprocating engines with an 110-ton absorption chiller
One 60-kW microturbine with a Munters Drycool air-handling unit that includes a desiccant section for dehumidification

Publications

Page Updated/Reviewed: 08/15/2007 11:49 AM