The noise surrounding electric vehicles (EV) is loud, and c-store retailers are asking themselves what, if anything, they need to do about the technology. While many large operators have already begun EV charger implementation, a number of smaller chains are wondering whether or not installing chargers is in the cards for them at this time.
The biggest factor to consider is whether there is a market for EVs in the chain’s operating area.
This depends on the consumer. And there are two challenges the consumer faces when it comes to EVs: education and cost.
The Education Gap
“Despite the continued growth in EV popularity, there’s still a majority of the population that hasn’t been exposed to the technology — and it’s unlikely that they understand the nuances of EV charging,” said Trevor Walter, vice president of petroleum supply management at Sheetz.
Sheetz, operating over 700 stores in six states, has installed 680-plus EV chargers.
Aside from understanding the basics of using a battery-powered motor as opposed to a gasoline-powered engine, many consumers aren’t fully aware of the different types of chargers and how to access them.
Direct-current fast charging equipment allows for charging on the road and is the most likely type of charger in which c-stores will invest. Availability is expected to increase due to federal funding with programs such as the National Electric Vehicle Infrastructure Formula Program (NEVI), according to the U.S. Department of Energy.
“There’s an opportunity around consumer education that will not only improve the experience for current EV drivers but also foster a new pool of future EV drivers,” Walter noted.
When a consumer feels more knowledgeable about a product, especially a technological purchase, they will feel more comfortable investing in that item.
The Cost Conundrum
No amount of customer education on EVs, however, will combat their affordability, which is the biggest deterrent for many consumers.
“Not all communities can go electric. Not all use cases can go electric, and the manufacturing’s not going to keep pace with this all-electric future. We need more time, and we need transitional assistance, and we need policies and strategies that keep the eye on a ball, which is ‘let’s reduce emissions,’” said John Eichberger, executive director of the Transportation Energy Institute.
The median household income in 2022 was $74,580, according to the U.S. Census Bureau.
“(Vehicle) sales have come back after the pandemic, but before the pandemic, we were sitting at 17 to 17 and a half million vehicles sold a year. We’re below 15 million now,” Eichberger continued.
He noted the decline comes partly from difficulties with the supply chain, but also said much of the hesitancy is due to the average price of a new car costing $48,000. And EVs cost even more, upwards of $50,000.
Considering the income for many families, purchasing an EV is out of the budget.
“We’ve created a situation where changing your vehicle to buy one that’s more efficient, whether it’s used or new, is becoming economically very difficult for a lot of Americans. And that, unfortunately, is compromising our ability to reduce emissions, because we’re so fixated on this new technology that only a small percentage of Americans can really afford at this point,” Eichberger said.
For retailers, the cost of installing a charging station plays a large role.
“An investment today in a charger versus an investment a couple of years from now probably is going to be very different…” said Ed Collupy, president of Collupy System Solutions LLC.
Collupy recommended c-store retailers research available government funding, such as NEVI, that can help with the initial investment if they are considering adding chargers to their forecourts.
Again, however, before beginning the process of EV installation, it’s imperative that retailers know the EV market exists in their areas.
“If (your customers) can’t afford an EV, what’s the benefit of having a charger in your neighborhood?” Eichberger questioned.
The decision to invest may be difficult for many convenience store operators, and understanding the consumer, especially their local consumers, is important. Without knowing what the customer is thinking, there is a big hole in any decision-making process.
