Case Study: Sleep Country Deploys AI-Enabled Thermostats in 200+ Stores

Welcome to our Case Study series, where we dive into case studies of real-life, large-scale deployments of smart building technologies, supported by our Marketplace.

I emphasize “real life” because this isn’t a marketing fluff story. We're here to share real lessons from leaders who have done the work to integrate smart building technology into their operations. I also emphasize “large scale” because we're not here to talk about pilot projects. We're here to talk about deeper commitments to changing how buildings are operated.

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Case Study Data: 

• Technology Categories Mentioned: Supervisory Control, HVAC Control 
• Vendor: Brainbox AI
• Number of Buildings: 214
• Total square footage: 1.1 million square feet
• Project Has Been Active Since: 2021
• Results: In the first 49 of the 214 locations, the deployment delivered a 24% cut in energy consumption and a 25% reduction in GHG emissions

Case Study Outline: 

• Introduction 
• Background
• Technical overview
• Challenges and Lessons Learned
• Playbook for retail stores

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In today's retail landscape, traditional brick-and-mortar stores face many challenges. The rise of online retailers, rapidly evolving consumer preferences, and the pressing need for sustainability have combined to create substantial headwinds. Among these challenges, the relentless competition from e-commerce giants has pushed traditional retailers to seek innovative ways to reduce operational costs.

Operational costs are a crucial concern in the retail industry, encompassing expenses related to real estate, employee wages, supply chain logistics, and utilities, with energy consumption playing a significant role. As consumers increasingly prioritize sustainability, retailers must cut costs while minimizing their environmental footprint.

This case study explores how Sleep Country responded to these challenges by deploying “AI-enabled thermostats” in its 214 stores.

“Sleep Country is focused on decarbonizing its operations and creating a climate-resilient business for the future in alignment with the Company's goal of becoming net zero by 2040." —Sleep Country’s Inaugural ESG report

By embracing new technology to optimize in-store climate control, Sleep Country is improving the shopping experience while significantly reducing operational costs and carbon emissions. This innovative approach allows Sleep Country to exemplify responsible retail practices in a dynamic marketplace. This case study offers valuable insights for retailers navigating similar challenges and striving to enhance sustainability in their operations.

Background

Sleep Country, a Canadian mattress and bedding retailer, is deeply committed to addressing the climate crisis and achieving net-zero carbon emissions by 2040, as Mary De Guzman, Director of ESG at Sleep Country, emphasized in a recent Nexus Podcast conversation.

Mary De Guzman stated, "Our overall goal is to be net zero by 2040 and more broadly to play our part in battling our planet's climate crisis."

To achieve this ambitious goal, Sleep Country is pursuing a multifaceted approach aimed at reducing carbon emissions and enhancing sustainability across various aspects of their operations. Key initiatives include:

• AI-Enabled Thermostats: Sleep Country has collaborated with BrainBox AI to install AI-enabled thermostats in its retail stores. This technology optimizes in-store climate control, minimizing energy consumption and associated emissions.
• Vehicle Electrification: The company is exploring the electrification of its vehicle fleet. This move towards electric vehicles (EVs) helps reduce carbon emissions associated with transportation.
• EV Charging Stations: Sleep Country is installing electric vehicle (EV) charging stations for its associates, thereby promoting the adoption of EVs and contributing to the reduction of greenhouse gas emissions.
• Energy-Efficient Technologies: The retailer embraces energy-efficient technologies in its warehouses and retail locations. These include LED lighting and occupancy sensors, which ensure equipment is only active when necessary, leading to reduced energy consumption and a lower carbon footprint.

The realization that their HVAC systems accounted for a significant portion of energy consumption and the inefficiencies in these systems prompted Sleep Country to take action. Mary De Guzman highlighted this issue, stating that HVAC systems account for about 40 percent of a building's electricity consumption. To address this, Sleep Country installed “AI-enabled thermostats” for their HVAC systems, reducing energy wastage and associated emissions.

The project began with a successful pilot phase in one store and has since expanded the initiative to its entire retail portfolio across Canada. Looking forward, Sleep Country plans to extend this technology to their distribution centers and explore the integration of heat pump technology.

Technical and Operational Innovation

This solution pairs internet-connected thermostats—which produce efficiencies on their own through the ability to schedule equipment— with BrainBox AI’s cloud-hosted supervisory control software that can control equipment even better. Omar Tabba, Chief Product Officer at Brainbox AI, shares valuable insights on the technical aspects of this system:

• Integration Process: Omar explained the integration process, stating, "In the store, prior to the deployment, you have to imagine there are typically two to three rooftop units per store. Each store had a standalone thermostat on the wall, a non-communicating thermostat. The new thermostat connects via the store Wi-Fi and dials out to the Brainbox cloud automatically. They're pre-programmed to auto-connect, which aligns with IT and cybersecurity requirements."
• Data Augmentation: "The algorithms augment the data with weather data from the closest weather station to the building, utility tariff structure of each individual store, emissions factor for the energy being consumed by the store, and the occupancy pattern of the store."
• AI for Thermal Behavior: Omar provides a concrete example of AI's prowess in predicting thermal behavior: "A good example of where AI really shines is the modeling of the thermal behavior of the store and being able to predict space temperature in every zone of the store two hours in advance with over 95 percent accuracy."
• Dynamic Control: He elaborates on the practical application of AI in optimizing energy consumption, explaining, "The algorithm will dynamically write to each rooftop unit in each zone in every store every day to figure out the exact right start time and the exact right stop time."
• Autonomous Adaptation: Omar underscores the technology's adaptability, stating, "Our algorithms are good at figuring out automatically, when to engage specific features, such as economizers, depending on the capabilities of each rooftop unit."

Beyond the technology, there’s also operational innovation that drives results for Sleep Country. James Dice, the podcast host, emphasized that Sleep Country's stores, smaller in size, had very limited access to digital systems and remote management capabilities. In contrast, larger and more upscale facilities often have sophisticated building automation systems, granting them the ability to monitor and control their environments from a distance. The absence of such capabilities in Sleep Country's stores, plus the sheer number of them, underscored a unique challenge in building operations.

Mary de Guzman revealed the essential role played by Sleep Country's two dedicated facilities management team members responsible for maintaining nearly 300 stores and 20 distribution centers spread across the country. What's truly remarkable is that before the project, there was essentially no data available for the HVAC units in these stores. However, with the installation of AI-enabled thermostats, the facilities team gained access to remote dashboards, which enabled them to monitor store performance, address issues, and optimize both customer comfort and the functionality of Sleep Country's products.

Omar underscored the substantial number of smaller buildings in Canada and the US, each equipped with standalone HVAC units that typically lack connections to control systems. These buildings represent a significant opportunity for energy efficiency and decarbonization. 

Omar emphasizes that while manually adjusting temperatures for individual units is feasible, it becomes impractical when dealing with many buildings. This is where cloud-based supervisory control applications shine. 

In essence, Sleep Country's project is more than just an environmental initiative. It also revolutionizes the way their stores are managed. The operational innovation it brings empowers smaller buildings with the same level of control, responsiveness, and energy savings typically reserved for larger, more technologically advanced facilities. It exemplifies how technological innovation can level the playing field, making energy efficiency and sustainability accessible to a diverse network of retail establishments.

Challenges and Lessons Learned

Sleep Country's experience with connected thermostats and supervisory control software revealed practical challenges and valuable lessons. Overcoming Wi-Fi issues, addressing occupant behavior, and prioritizing education were critical steps.

Wi-Fi Connectivity Issues

Among the challenges faced, Wi-Fi connectivity issues emerged as a significant obstacle. Some of Sleep Country's thermostats struggled to establish reliable connections to the Wi-Fi network in select locations. If they couldn’t connect to the cloud, then they couldn’t be managed by BrainBox AI’s cloud-based supervisory control software. 

The Resolution: To overcome this challenge, Sleep Country worked with its Wi-Fi vendors to upgrade the Wi-Fi systems in the affected stores. This upgrade ensured stable and seamless connections for the AI-enabled thermostats, allowing for remote management and control.

The Lesson Learned: The key lesson learned here is that future buyers of similar solutions should be prepared to address potential connectivity issues and collaborate with technology providers and vendors to maintain a reliable connection. A robust Wi-Fi connection is essential for the success of AI-driven building management systems, enabling real-time data access and control.

Change Management and Education

Another notable challenge that Sleep Country encountered in their project was related to behavioral issues and education. The implementation of AI-enabled thermostats meant that the HVAC systems would autonomously adjust building temperatures based on occupancy and predicted needs. Sleep Country faced instances where building occupants arrived earlier than predicted by the AI algorithms, leading to initial discomfort as the system adapted to their schedules. 

The Resolution: By proactively educating both building occupants and facilities management teams, Sleep Country successfully addressed these behavioral issues. Stakeholders were informed about the technology's work and the need for behavioral adaptation. Building occupants became aware that the system needed time to learn their behavior and optimize the environment according to their schedules.

‍The Lesson Learned: The valuable lesson learned is that future buyers should prioritize proactive education of all stakeholders, including building occupants and service contractors. Effective communication about the system's operation and its impact on behavior is essential for a smooth transition to AI-enabled building management.

Playbook for Future Buyers

Mary and Omar, through their collaboration and experience, have outlined a practical playbook for other organizations seeking to replicate their successful journey in enhancing energy efficiency and sustainability in their retail buildings. Their insightful approach spans various stages, from engaging with stakeholders to creating a compelling business case, all the way through implementation and ongoing collaboration. This playbook not only underscores the importance of data and technology but also the significance of educating building occupants and engaging various stakeholders throughout the process.

Step 1: Develop use cases and select the technology category

Begin by selecting the technology category that solves the business problem. Sleep Country recognized they needed to replace their manual, stand alone thermostats. They chose to replace them with a combination of new hardware and supervisory control software. 

Step 2: Vendor Engagement

Engage with reliable vendors from that category who can adapt to your schedule and collaborate with your team effectively.

Step 3: Business Case Creation

Develop a business case by collecting utility data and calculating metrics like ROI and projected emissions reductions. Present the business case to gain buy-in from the C-suite.

Step 4: Data Collection and Baseline

Collect utility consumption and emissions data to establish a baseline for measuring the project's impact.

Step 5: Pilot Testing

Start with a pilot project to validate the technology and identify compatibility issues. It's a crucial step before full-scale implementation.

Step 6: Stakeholder Engagement

Begin by engaging with stakeholders such as building occupants and operations teams to ensure open communication throughout the project. 

Step 7: Scheduling and Rollout

After a successful pilot, plan a rollout schedule in collaboration with contractors and vendors to ensure a smooth and timely implementation.

‍Step 8: Ongoing Education

Maintain ongoing collaboration with vendors, internal teams, and stakeholders, ensuring continuous communication to optimize the system.

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The partnership between Sleep Country and Brainbox AI reflects a noteworthy success story in achieving energy efficiency and sustainability in retail buildings. This playbook not only offers a step-by-step guide but emphasizes the importance of education and communication in implementing supervisory control across a large portfolio.