The shift towards electric vehicle (EV) infrastructure in the convenience store (C-store) sector was a central focus at the 2024 NACS Show in Las Vegas, where a dynamic panel of industry leaders discussed the profitability of offering EV charging stations. This year’s session, titled "Charging Your Profits with EVs," was hosted by Karl Doenges and featured speakers Sarah Clark from Casey's, Rushi Patel from RaceTrac, and Om Shankar from Konect, a Gilbarco Veeder-Root business. Together, they explored the evolving role of EV charging at traditional fueling locations and shared key insights on how retailers can make this transition profitable.
The Appeal of Monetizing Dwell Time
The panelists agreed that one of the most promising revenue streams linked to EV chargers isn't just from "selling electrons," but from "monetizing dwell time." According to Om Shankar, General Manager and Vice President of Global e-Mobility at Konect, EV drivers tend to spend more time at C-stores – often up to 30 minutes while their vehicles charge – giving retailers a significant opportunity to increase in-store purchases.
Shankar highlighted that simply offering a place to charge isn’t enough. Retailers need to ensure a seamless customer experience that encourages these drivers to step inside for snacks, beverages, or other services. This added in-store revenue is a crucial piece of the equation, helping C-stores offset the costs of installing EV chargers while creating a more compelling value proposition for retailers.
Strategic Design: Customer Convenience
Rushi Patel, Manager of Diversified Energy at RaceTrac, emphasized the importance of strategic design when setting up EV charging stations. At RaceTrac, they’ve mimicked the traditional fuel pump experience by installing EV chargers under canopies, providing familiarity and comfort for their customers. Patel pointed out that this setup not only protects customers from the elements but also provides a sense of security, particularly during the longer dwell times.
The importance of location and convenience was echoed by Sarah Clark, Fuel Category Manager at Casey’s. With limited space in parking lots, Clark noted that integrating EV chargers without disrupting existing guest operations is a balancing act. Casey’s has been mindful of making sure the EV experience doesn’t negatively impact their existing customers, thereby ensuring a seamless experience for all visitors.
Pricing and Value Proposition
Pricing emerged as a key theme in the discussion, particularly as the EV charging market evolves. Patel spoke about the willingness of customers to pay a premium for convenience. Drivers tend to value trusted locations with clean restrooms, free Wi-Fi, and a secure, well-lit environment, which justifies slightly higher charging fees. This premium experience, Patel explained, allows retailers to adjust their pricing strategies and provide value beyond just charging.
Dynamic pricing models, which adjust rates based on demand, are still being explored by Charge Point Operators but offer promising potential for retailers to maximize their profits during peak times. By offering faster charging speeds, coupled with premium amenities, C-stores have an opportunity to offer more than just an energy top-up – building customer loyalty through enhanced experiences.
Loyalty and In-Store Integration
One area that is still evolving is the integration of EV charging with loyalty programs. According to Clark, Casey’s is currently working to recognize their EV customers and identify their in-store purchasing habits. Clark mentioned that once retailers understand these behaviors, they can fine-tune loyalty programs to meet the unique needs of EV drivers.
EV customers, she noted, tend to be more tech-savvy and are strong candidates for loyalty engagement, which could enhance their overall experience. For example, by leveraging digital signage and personalized offers at the charging station, C-stores could drive more foot traffic inside.
Shankar added that the integration of loyalty programs with EV chargers represents an exciting opportunity for retailers. By incorporating digital payments and dashboard commerce into the charging experience, C-stores can seamlessly transition customers from fueling to shopping, further boosting revenue.
Futureproofing: Ensuring Reliability and Efficiency
As EV charging infrastructure continues to expand, ensuring operational reliability will be key to maintaining customer satisfaction. Clark raised the issue of brand management, pointing out that many C-stores have traditionally relied on third-party companies to manage their EV charging stations. However, this can create challenges when chargers are down or in need of maintenance, as the retailer often has little control over the repair process.
Shankar addressed this concern, highlighting Konect’s holistic approach to managing the charging ecosystem. He emphasized the importance of uptime in the EV charging space, with NEVI (National Electric Vehicle Infrastructure) funding requiring a 97% uptime rate. Konect’s integrated charging solution offers a single point of contact for repairs, ensuring that issues can be diagnosed and fixed quickly, often remotely, before they impact the customer experience.
Patel also touched on the costs and challenges associated with grid connections, trenching, and upgrades that can impact a site’s profitability. Shankar commented that as the EV charging market matures, battery storage systems and grid management tools – such as those offered by Konect – will help retailers mitigate these costs by providing peak shaving and offsetting demand charges during busy periods.
Conclusion: The Road Ahead for C-Stores and EV Charging
The panel discussion at NACS 2024 highlighted the clear opportunities for C-stores to capitalize on the growing EV market. By focusing on strategic site design, pricing, loyalty integration, and reliable operations, retailers can turn EV charging stations into profitable assets. While the upfront costs can be significant, the long-term potential for increased dwell time, in-store purchases, and loyalty engagement make EV charging a worthwhile investment for forward-thinking C-store operators.
As Shankar concluded, "Fuel retailers are uniquely positioned to offer the perfect charging experience. With the right tools, they can turn EV infrastructure into a driver of growth, transforming the forecourt for the future."
For more information about Konect and its offerings, visit here for the U.S. market and here for the European market.
Or if you are interested in insights to help you thrive in the electric vehicle era, download our whitepaper ‘Charging forward - How fuel retailers can win with electric vehicles’.