Tuesday, August 2, 2011

What If You Could Buy Energy From Your Favorite Department Store?

As the economy is still trying nurse itself back to health, all types of businesses are looking for new revenue models not only to stay competitive, but to survive. A new phenomena is starting to catch fire in the energy world, starting in the UK. Marks and Spencer, a well known retail chain (similar to Macy's) has become an electricity seller. M&S Energy, which is the company's energy division has a website that almost rivals well established utility companies. M&S seems to be a fish in water as they use their marketing and customer service prowess to attract their already loyal customer base to their energy services. This idea is quite ground breaking and actually makes a lot of sense. Most customers who live in deregulated energy markets are unaware that other alternative energy providers even exists because these providers don't have the marketing dollars to penetrate established utilities' market shares. Companies like M&S are well positioned to take advantage of deregulation because of their large capital, marketing savvy, customer loyalty, and growing disdain/distrust of utility companies. We see hints of this business model forming in the US. Retail juggernauts such as Amazon.com and Costco sell solar roof panels.Who wouldn't want to buy energy from their favorite retailer anyway? Being able to pick up a brand new pair of Hugo Boss loafers and pay my energy bill in tandem sounds sort of appealing.

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