When you walk into a store, you notice the lighting, the products, and the overall brand experience. You usually don’t notice the HVAC system, unless it’s failing. But behind the scenes, many retailers are wrestling with aging equipment, rising energy bills, and growing pressure to operate more sustainably, all while trying to deliver a consistent in-store experience.
For years, HVAC decisions were often driven by lowest upfront cost and a “fix it when it breaks” mindset. Today, that approach is getting harder to justify. Utility rates are climbing, ESG goals are becoming more concrete, and store formats are changing faster than building systems were ever designed to keep up with. Add in higher expectations around indoor air quality from both customers and employees, and HVAC is no longer something retailers can afford to ignore.
That once “invisible” system is quickly becoming a primary driver of the bottom line. It plays a major role in shaping customer comfort, controlling operational costs, and hitting long-term sustainability targets. And according to Chris Bellshaw, VP of Commercial Strategy and Business Development at Daikin, a major shift is already underway in how retailers think about heating, cooling, and air quality across their portfolios.
We caught up with Chris ahead of his session at RetailSpaces to unpack why inverter-based HVAC systems are gaining traction and what retailers should know as they rethink their approach to the built environment.
Retailers face converging pressures from rising operating costs and escalating ESG mandates. This is driving a shift from “first-cost” thinking to “lifecycle value,” as total cost of ownership and long-term ROI now outweigh upfront savings. Post-pandemic expectations have also raised the bar for indoor air quality for customers and retail employees alike. Stores are no longer just points of sale; they are brand experiences. When comfort and air quality fall short, brand perception suffers. HVAC has become a strategic lever for both decarbonization and customer retention.
Think of a traditional HVAC system like a light switch - it’s either 100% on or completely off. This on/off cycle creates "blasts" of hot or cold air, wasted energy, and inconsistent comfort. Inverter technology, like what we use in our new NEXIO MAX Daikin Light Commercial Rooftop Units (RTUs) and VRV systems, operate more like a dimmer switch. These systems modulate output to meet real-time demand. It’s smoother, quieter, and significantly more efficient by eliminating wasteful cycling. In addition, having inverter technology in a heat pump system allows powerful and efficient heating performance down as low as -22F without the need for fossil fuels.
You can’t hide the energy bill anymore, and with rising utility cost this is only going to grow. HVAC often makes up 40-60% of a retail store’s energy use. When a CFO sees an opportunity to cut that by 20-40% while hitting sustainability goals, it moves from a routine maintenance concern to a strategic business priority. As smaller, more complex store layouts are on the rise, the modular design of VRV systems gives individual flexibility for both front and back of house that traditional systems simply can’t match.
We’re delivering two strategic wins: precision and profitability. In retail environments with high foot traffic, our VRV systems adapt instantly to changing loads, eliminating hot spots at entrances and cold zones in aisles. Financially, the impact is clear: integrating inverter technology reduces OpEx, optimizing operations, and protecting customer comfort. These savings can go to the bottom line or reinvest back in the the store for more revenue generation.
The biggest hurdle is viewing HVAC as a "sunk cost" rather than a strategic asset. Many executives miss the 20-40% OpEx savings and rapid ROI that modern, inverter-based systems deliver. Furthermore, a "run-to-fail" mentality persists, which ignores the looming financial and customer experience risk of emergency downtime. Another view we see is using differed maintenance as a way to save cost. Simple regular maintenance like changing or cleaning filters can have a significant impact on operation costs, air quality in the store and lifetime of the HVAC system.
Smaller footprints require high-density efficiency. You don't have room for massive mechanical closets or clunky and loud equipment. This is where VRV (Variable Refrigerant Volume) systems come in. They allow you to run multiple indoor units off a single outdoor heat pump, saving valuable square footage. For next-gen environments, HVAC needs to be connected, adaptable, and invisible to the customer.
Reframe HVAC modernization from a routine maintenance cost into a strategic driver of profit protection and risk reduction. By transitioning away from outdated systems and obsolescent refrigerants, you can proactively mitigate emergency repair costs that threaten the bottom line while simultaneously meeting ESG mandates. Deploying connected and adaptable systems like VRV technology allows you to reclaim high-value square footage for sales while boosting customer satisfaction and employee productivity.
HVAC will become the "lungs" of the smart store. By integrating with IoT sensors and building management systems, the HVAC will "know" when a surge of customers enters the store and adjust the fresh air intake before the room even gets stuffy. It’s moving from a reactive box on the roof to a proactive, data-driven partner in the retail industry.