Team Henderson recently returned from the 2023 Energy & Store Development Conference. Hosted by  FMI, The Food Industry Association, this year’s event touched on a variety of topics including energy efficiency, refrigeration, sustainability, and store design. Representing Henderson at the event were:

• Joe Brauchle, Grocery & Distribution Practice Director
• Arron Cooper, Technical Director
• Dennis Hagler, Refrigeration Technical Director
• Andrew Knight, Operations Director
• Conner Meadows, Refrigeration Technical Manager
• Lidia Leon Perez, Refrigeration Technical Manager
• John Stowell, Practice Manager
• Chad Vande Velde, Practice Manager
• Tony Welter, Grocery & Distribution Sector Executive

The group returned from the event with the following key takeaways on the food retail industry:

The Store of the Future

As with many other industries, artificial intelligence (AI) is a growing trend in retail settings. As AI continues to evolve, it’s expected to become commonplace in retail settings within the next couple of years. The retail and grocery industries are already using AI to improve the customer experience, lower store operating costs, manage supply chain concerns, prevent equipment failures, control store environments, and improve sustainable practices.

Within the next five years, drones are expected to become the primary method of home delivery and, in the next 10 years, “center stores” will begin to disappear. These spaces will be repurposed into warehouse spaces used to manage fulfillment and spaces to prepare fresh meals.

Economic Factors

Extreme supply chain shortages caused by the COVID-19 pandemic have largely been solved. One exception to this is electrical materials as the electric vehicle (EV) market continues to boom. Additionally, the labor market remains tight, which is inflating wages. Most key economic indicators are trending in an upward direction.

Sustainable Refrigeration

As is the case across all building types, sustainable and regenerative practices are dominating the grocery and retail industries. Much of this discussion was centered around refrigeration and the EPA ruling on the use of HFC refrigerants. The industry is still struggling to coalesce around a solution.

Many original equipment manufacturers (OEMs) and most end users are committed to an all-natural solution such as CO2 (R744); The advantages of heat recovery from CO2 refrigeration systems are becoming more recognized and applied as a sustainability tool. However, there are still concerns among some end users about natural refrigeration solutions in regard to energy efficiency, CO2 availability, and system resiliency. The resiliency concern has initiated a request to increase the pressure rating of the system to 80-90 bar. The CO2 availability concern has initiated a request to reduce the CO2 quality.

With all the attention surrounding natural and sustainable refrigerants, the industry continues to look for ways to attract new talent to help support the growing demand. The North American Sustainable Refrigeration Council (NARSC) is providing training sessions for refrigeration technicians to help meet this demand.

Some chemical refrigerants are getting recognized as potentially viable low global warming potential (GWP) alternatives. In the United States, A2L adoption in commercial refrigeration is still in its preliminary stages. Further regulatory approvals and updates to safety standards and building codes are currently underway to enable widespread industry adoption.

Henderson Knows Grocery & Distribution

Today’s shoppers are driven by more than just stocking their pantries. Shopping has become an experience fueled by healthy lifestyle choices, food exploration, and the social component of sharing meals. We design grocery stores, food markets, and convenience stores with that customer experience in mind. In addition, we also design the “behind the scenes” facilities that serve these stores such as distribution centers and refrigerated warehouses. We know what it takes to seamlessly integrate mechanical, electrical, and plumbing systems, with other critical systems such as refrigeration, fire protection, technology (telecom/security), and lighting with a sustainability lens.