Retail Case Study: Use a Seasonal Campaign to Fund an LED Retrofit — The Numbers

Hook: Turn a slow winter month into the cash engine that funds your LED retrofit

High energy bills and unpredictable overheads are squeezing margins in retail. At the same time, January is a make-or-break month — footfall dips, customers hunt bargains, and many retailers struggle to meet budget. What if you could run a short, targeted winter campaign (inspired by Dry January's wellness push) that both boosts sales and generates the cash to fund an LED retrofit—with payback in months, not years?

Executive snapshot (most important points first)

• Scenario: A single 250 m² high-street store runs a 4-week “Bright January” campaign that generates extra margin and direct product sales of LED lamps.
• Numbers: Retrofit cost £16,900; campaign contributes £5,600; remaining capex £11,300.
• Energy & maintenance savings: ~£6,043/year.
• Post-retrofit sales uplift: Conservative 2% improvement in store sales adds ~£9,600 gross margin/year.
• Result: Combined savings and uplift pay back the remaining retrofit cost in ~1.1 years. Total ROI is substantial and ongoing.

The retail case: “Bright January” — a practical, revenue-first route to fund your LED retrofit

This is a hypothetical but realistic case built from current market behaviour in late 2025 and early 2026: customers respond to wellness and cosiness themes, retailers run promotional calendars around Dry January-style themes, and LED products (from shop-fit fixtures to smart lamps) are widely available at competitive prices. The plan uses a short winter campaign to create a funding tranche and capture both short-term margin and lasting operational savings.

Store profile & baseline assumptions

• Store: single high-street apparel outlet, 250 m²
• Existing lighting: 120 fixtures at 60 W equivalent (traditional lamps/halogen/older fluorescents)
• Operating hours: 12 hours/day, 360 days/year
• Electricity price for calculation: £0.25/kWh (example commercial rate in 2026 — substitute your actual tariff)
• Baseline monthly sales: £80,000 (seasonal January baseline)
• Gross margin on retail goods: 50%

Technical retrofit assumptions

• Replacement LED fixtures: 120 × 18 W commercial fixtures (good-quality LED track/spot equivalents)
• Installed cost per fixture (supply + install + controls integration): £120
• Additional controls (sensors, basic DALI or wireless zoning): £2,500
• Estimated total retrofit capex: £16,900
• Maintenance and lamp replacement savings: estimate £600/year (labour + lamp cost avoided)

Step-by-step energy & cost calculation

1) Baseline annual lighting energy use and cost

Baseline load = 120 fixtures × 60 W = 7,200 W = 7.2 kW

Annual kWh = 7.2 kW × 12 h/day × 360 days = 31,104 kWh

Annual cost = 31,104 kWh × £0.25/kWh = £7,776

2) Post-retrofit energy use and cost

LED load = 120 × 18 W = 2,160 W = 2.16 kW

Annual kWh = 2.16 kW × 12 × 360 = 9,331 kWh

Annual cost = 9,331 kWh × £0.25 = £2,333

3) Annual saving

Energy saving = £7,776 − £2,333 = £5,443/year

Plus maintenance saving ≈ £600/year ⇒ total annual operational saving ≈ £6,043

How the “Bright January” campaign supplies initial funding

During January, the store runs a campaign themed around wellbeing and cosiness — think “Bright January: Feel Better, Shop Brighter”. Campaign elements:

• Promotions on winter ranges emphasizing comfort and mood
• In-store lighting demos showing the difference between old lamps and new LED lamps
• Sale of domestic and decorative LED lamps as add-ons (smart lamps included)
• A limited-time offer: customers can purchase a “Lighting Pack” (LED lamp + £5 donation) that contributes directly to store upgrades

Campaign revenue math (conservative)

• Campaign uplift: conservative 12% increase on monthly baseline £80,000 ⇒ incremental revenue £9,600
• Gross margin on uplift (50%) ⇒ uplift margin = £4,800. Allocate 50% of that margin to the retrofit fund ⇒ contribution = £2,400
• Direct LED product sales: sell 200 LED lamps at an average price £35 ⇒ revenue £7,000. Cost of goods approx £15 each ⇒ gross margin per lamp £20 ⇒ margin total £4,000. Allocate 80% of that margin to fund retrofit ⇒ contribution = £3,200
• Total campaign funding available = £2,400 + £3,200 = £5,600

Net capex after campaign and payback

Retrofit cost £16,900 − campaign funding £5,600 = £11,300 remaining

Annual savings from retrofit = £6,043

Simple payback on remaining outlay = £11,300 / £6,043 ≈ 1.87 years

Factor in post-retrofit sales uplift from improved lighting

Good lighting improves perceived product quality and conversion. Conservative industry-anchored estimates put sales lift after a retail lighting upgrade at 1–3%. Using a conservative 2%:

Annual revenue baseline = £80,000 × 12 = £960,000

2% sales uplift = £19,200 additional revenue per year

At 50% margin ⇒ additional gross margin = £9,600/year

Combine operational savings and sales uplift: £6,043 + £9,600 = £15,643 annual benefit

Payback on full retrofit cost (£16,900) = £16,900 / £15,643 ≈ 1.08 years

Summary of financial outcomes

• Campaign-funded tranche reduces immediate capex by ~33%.
• With conservative assumptions, the full retrofit pays back in about 1.1 years when you include the sales uplift effect.
• After payback, the building yields recurring cost savings and improved sales — increasing store profitability long-term.

"Use short seasonal campaigns to convert slow months into a funding source for long-term efficiency — the numbers often pay for themselves in under two years."

Why this works now: 2025–2026 trends that make the strategy timely

• Customer behaviour: Late 2025 saw retailers lean into Dry January-style wellness and cosiness programming to pull customers into slow months. Shoppers are looking for value and wellbeing — perfect for a lighting-led narrative that links ambience to feel-good purchases.
• LED maturity: By 2026 many commercial LED fixtures exceed 140–150 lm/W, lowering wattage without sacrificing light quality. That drives bigger energy reductions than previous retrofits.
• Controls and sensors: Wireless controls and occupancy sensors became mainstream in 2025, enabling further savings via zoning, dimming and daylight harvesting without rewiring boilers of complexity — pair that with smart plugs and energy monitoring for better M&V.
• Supplier financing: Late-2025 manufacturer and installer offers increasingly include leasing, performance contracts, or staged payments aligned to energy savings — useful if you want to preserve working capital.

Actionable steps: run a “Bright January” and retrofit with confidence

Before the campaign

1. Run a quick lighting audit: count fixtures, measure wattages and operating hours, and get an installer quote for LED equivalents and controls.
2. Set measurable campaign targets: incremental revenue %, number of LED lamps to sell, and funds allocation percentage.
3. Negotiate supplier terms: ask vendors for trade prices on lamps and a staged invoicing plan for store retrofit — consider using a field toolkit and group procurement approach to reduce costs.

During the campaign

1. Train floor staff on the lighting story: demonstrate lamp differences and how lighting improves product look and wellbeing.
2. Use in-store demos and before/after signage to make the benefits tangible. Pair product bundles with LED lamp add-ons.
3. Promote the retrofit fund transparently: customers like to feel they’re contributing to a greener store.

After the campaign

1. Complete installation in a scheduled shut/after-hours window to avoid sales disruption.
2. Measure and verify: log monthly kWh and sales to confirm savings and sales uplift against baseline — use budget energy monitors and smart plugs to improve M&V confidence.
3. Reinvest a portion of ongoing savings into additional sustainability projects or replicate the model across other stores.

How to model this for your business — a compact ROI calculator (plug-and-play)

Use these formulas and replace values with your own figures.

• Baseline lighting load (kW) = number_of_fixtures × existing_wattage (W) / 1000
• LED lighting load (kW) = number_of_fixtures × LED_wattage (W) / 1000
• Annual kWh saved = (Baseline_kW − LED_kW) × hours_per_day × days_per_year
• Annual energy saving (£) = Annual_kWh_saved × electricity_price_per_kWh
• Total annual benefit = Annual_energy_saving + maintenance_saving + (annual_revenue × post_retrofit_sales_uplift% × margin%)
• Campaign funding = (monthly_baseline_sales × campaign_uplift% × margin%) × percent_allocated_to_retrofit + LED_product_margin_earnings
• Net capex after campaign = total_retrofit_cost − campaign_funding
• Payback_years = net_capex_after_campaign / total_annual_benefit

Practical procurement tips and risk management

• Specify light quality (CRI and CCT): Don’t pick LEDs just for wattage. For apparel, target CRI ≥ 90 and CCT 3000–4000K depending on brand tone.
• Get three quotes: Ask vendors to include photometric layouts so you can see predicted lux levels and how many fixtures are needed — read a pop-up kit review to understand common pricing traps.
• Insist on warrantees: Commercial LED fixtures should carry at least a 5-year warranty and clearly stated lumen depreciation curves (L70).
• Plan for M&V: Baseline metering (sub-meter or smart meter) enhances confidence in reported savings and helps if you use external financing.

Potential objections — and responses

“Lighting won’t increase sales materially.”

Even modest lighting improvements change product perception and can lift conversion. Our case used a conservative 2% uplift — many retailers report 1–5% depending on category and execution.

“We can’t afford the upfront cost.”

Use a short campaign to supply a portion of funding. Combine that with supplier leasing or energy performance contracting; with the savings you often reach cash-positive within 12–24 months.

“Disruption will hurt trading.”

Schedule installs out of hours or in phased program. Many installs are completed overnight for a single store and don’t require a full closure.

Scaling the approach: single store → multi-store rollout

If you manage multiple stores, run a pilot (one or two stores) using the campaign model. Use real pilot results to refine assumptions, then leverage group buying to reduce per-fixture costs across the estate. Group rollouts can push payback under 12 months when you combine procurement savings with aggregated campaign revenues.

Final takeaways — what to do next

• Design a short winter campaign that pairs product promotions with LED lamp sales and a transparent “retrofit fund” message.
• Get a lighting audit and supplier quotes before the campaign so you know your target funding and can market exact upgrade benefits.
• Model conservatively but include both operational savings and sales uplift — you’ll usually find payback faster than you expect.

Call to action

Ready to run a “Bright January” and fund an LED retrofit with real numbers? Use our simple ROI spreadsheet or contact our team at Powersuppliers.uk for vetted installers, bulk pricing and an on-site audit. We’ll help you model the campaign for your estate and forecast payback with your exact tariffs and sales data.

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