How EV charging is key to fuel retailers’ future profitability

Fuel retailers view electric vehicle charging as a critical part of their future business, according to a new survey.

Konect, an EV charging platform found that as competition grows from charging options at homes, workplaces and other destinations, 88 per cent of respondents to the survey expressed concerns about the rising challenge.

The survey found that operators are feeling pressure to adjust to a rapidly changing mobility ecosystem, driven by both consumer demand for sustainable solutions and government regulations promoting electric vehicles. According to the latest data from the International Energy Agency (IEA), 71 per cent of new passenger cars and 72 per cent of new light-duty trucks and commercial vans in the U.S. are projected to be electric by 2035, potentially reducing national fuel consumption by 2.5 million barrels per day.

This shift presents both challenges and opportunities. Boston Consulting Group has warned that 80 per cent of fuel stations could become unprofitable by 2035 if they do not adapt to meet evolving demands. The need for more charging stations has been highlighted regularly by analysts. This infrastructure will be vital for long-distance travellers, fleets and drivers who are unable to charge at home.

Convenient locations and facilities that cater to longer dwell times, such as restaurants and convenience stores, make fuel retailers well-positioned to seize this opportunity. By hosting EV chargers, forecourts can add a profitable revenue stream while supporting their existing offerings.

A study by MIT noted that businesses near charging stations see a boost in business.

The Konect survey showed that fuel retailers are already recognizing these benefits. Most (85 per cent) expect demand for charging to increase over the next five years, and 41 per cent of those who already offer EV chargers have done so to attract more customers to other on-site services, such as convenience stores and restaurants.

However, concerns about return on investment remain prominent. Retailers rank ROI as the top factor when considering new business opportunities, with 89 per cent citing price competition, 86 per cent noting the need to keep pace with technology, and 82 per cent emphasizing the importance of maintaining service levels. High investment costs (40 per cent), uncertain ROI (29 per cent), and complex installation processes (28 per cent) were identified as key obstacles by retailers who have not yet invested in EV charging.

“Our research shows fuel retailers across the United States are already making a success of EV charging by fully integrating it into their business,” said Om Shankar, Vice President & General Manager of Konect, explained. “By looking beyond selling electrons, they’re complementing existing revenue streams while enjoying the fastest possible return on investment.”

Shankar also acknowledged that the transition can seem overwhelming.

The survey of 633 American fuel retailers identified three critical strategies for successfully integrating EV charging:

Owning the infrastructure

Half (51 per cent) of respondents who offer EV charging own at least part of their infrastructure. This allows for greater control over pricing and the customer experience, along with the ability to implement loyalty programs and gather data.

Proactively managing customer experiences

EV drivers expect a charging experience that is as reliable and convenient as refuelling. Among retailers offering EV charging, more than two thirds (69 per cent) of convenience store operators and half (49 per cent) of restaurant or café owners said their goal was to boost in-store traffic, with 66 per cent using foot traffic and sales as measures of ROI.

Seamlessly integrating technology

Effective integration of charging with the wider forecourt ecosystem is crucial. More than half (55 per cent) of retailers have adopted energy management systems, while 21 per cent anticipate that smart payment systems will become a key business asset over the next five years.

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