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Mobility Portal, Spain
Date: October 3, 2024
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By Javiera Altamirano
Europe

How can retailers drive charging and maximise profits? Kempower has the answer

In conversation with Mobility Portal Group, Kempower reveals how retailers can leverage electric vehicle charging to enhance profitability and customer retention. Below are the details.
How can retailers drive charging and maximise profits? Kempower has the answer.

More and more users prefer to use public charging points instead of private ones.

“Trends are changing. New electric vehicle drivers are increasingly charging less at home, either because they live in apartments or because installing a wallbox is expensive,” explains Oscar Sánchez, Global Marketing Manager for Retail at Kempower, in conversation with Mobility Portal Group.

Oscar Sánchez, Global Marketing Manager for Retail at Kempower.
Oscar Sánchez, Global Marketing Manager for Retail at Kempower.

In this sense, various sectors are betting on electrifying their facilities and retail stores, known as retailers, are no exception.  

“Users want charging their electric vehicle not to affect their routine, to be a secondary activity,” says Sánchez.

“This changes the previous paradigm, where charging hubs were created in very strategic locations and minimal services were offered to customers, since the stop time had to be short to continue the journey and users did not demand additional activities,” he adds. 

Given these shifts in preferences, demand for public charging at retail locations is expected to increase and become one of the largest segments by 2030.

The interesting thing is that marketing other services –and not just energy– allows for generating income in a different way. It also allows for greater flexibility when setting prices.

Although investing in the installation of charging infrastructure represents an opportunity for retailers, the truth is that during the first year, the use of the stations is usually low. 

“This is practically inevitable, unless the charging infrastructure is installed in locations where there is a great need for public charging,” says Sánchez. 

Kempower suggests that retailers, such as fast food chains and restaurants, start with low potencies and multiple shots.

“This is more cost-effective in the short and medium term than having a lot of power and few outlets. Obtaining large amounts of power is usually expensive and takes a long time,” says Sánchez.

“The ideal is to adjust the capacity to the time that customers spend in the retail store, to avoid oversizing the installation and thus achieve a greater return on investment,” he adds.

For gas stations, however, the situation is quite different, as they often need a lot of power to allow users to quickly charge and continue their journey.

It is worth remembering that it is important to have an adequate number of sockets, since having too much power and too few sockets can create queues and lengthen waiting times.

This has a negative impact on EV drivers, who often have a low tolerance for waiting.

“Whether it is a petrol station, a service station or a shopping centre, Kempower charging solutions make it possible to optimise the available space, which is usually not much in these facilities,” says Sánchez.

The distributed charging system allows the power unit, which supplies eight satellites, to be installed where it is not very visible or in the way. 

Kempower chargers.
Kempower chargers.

“The charging infrastructure is thus installed in the most efficient way, without affecting traffic and without the need to remove parking spaces, the value of which is very high in these locations,” says the Kempower representative. 

He continued: “Furthermore, Kempower satellites are small, so they can be placed in any location without losing space and allowing any type of vehicle to be charged.”

Kempower’s distributed system also allows for dynamic management of the network power available at any given time and according to the needs of each connected vehicle. 

“This means significant savings in energy costs and encourages more charging sessions, as it is more efficient and therefore faster,” explains Sánchez.

Kempower reveals: Why is AC charging “no longer an option” for many retailers?

In retail, the goal is to align the expected charging time with the duration that users typically spend inside the establishment shopping or dining.

“For example, people usually spend about 20 minutes shopping in a supermarket. If the vehicle charges in five minutes, because it uses a lot of power, and the user is asked to free up the charging space for another car, they will not like that,” explains Sánchez.

Not only that, but batteries are also getting bigger and bigger, so “AC charging is no longer convenient.”

“If you install a slow 22-kilowatt charger, most cars will not use that power, but 11 or even less. Therefore, 20 minutes of charging will only allow you to drive between 16 and 20 kilometres. So, the user will not choose it, given the effort it takes to pull out the cable, identify themselves at the charger and plug it in,” says Sánchez.

He continues: “We see that some supermarket chains have spaces that are not used if they have AC equipment. It is no longer a solution for these customers.”

What other advantages does installing chargers offer to retailers?

One of the advantages of investing in electric vehicle charging is that it offers visibility

“When an operator or a supermarket chain installs charging points, the news begins to spread and, in this way, new customers are attracted,” says Sánchez.  

The truth is that offering the charging service allows for an improved user experience.

But how can retailers promote their services? 

One of the challenges they face when installing chargers is “making themselves known” among electric vehicle users.

“It may be that some drivers are waiting for stations in their area and don’t mind changing supermarkets if they have a charger,” says Sánchez.  

And Kenpower chargers are now marked on all major online and in-vehicle navigation systems.

 “If you work with Kempower, you can have your chargers appear on these navigation systems, which works really well because if the customer doesn’t know that the establishment has stations, they won’t stop,” he says.

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