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December 13, 2024
Sheetz and IONNA To Launch 50 EV ‘Rechargeries’ by 2026: Are Fuel Retail Stores Positioned for Success?
Well-known Midwest convenience store and fuel retail chain Sheetz has announced a partnership with EV charging network IONNA to completely reimagine at least 50 of its stores by the end of 2026.
The primary upgrade? So-called “rechargeries,” or EV charging bays protected by the brand’s signature red canopies, which target a new breed of driver. According to CSP, Sheetz is moving quickly to improve amenities at these locations due to the simple fact that charging an EV battery takes a lot longer than the average gas up. The average dwell time on an EV recharge is 23 minutes, per Peter Rasmussen, CEO and founder of Convenience and Energy Advisors, as quoted by Convenience Store News.
Those waiting for their batteries to charge will be afforded all of Sheetz’s existing amenities, including the convenience store, food and beverage selections, complimentary Wi-Fi connection, and access to restrooms.
But will those amenities need to be further expanded to account for an increase in the number of customers coming to stores with nearly a half-hour of downtime to kill?
Sheetz Already Ahead of the EV Charging Game, But Desires More
As C-Store Dive reported, Sheetz and its competitor, Wawa, were already extending operations into the relatively new EV charging business.
Sheetz recorded 2 million EV charging sessions as of April of this year and has installed chargers at more than 100 of its locations. The company indicated that it planned to deploy new loyalty programs and incentives for EV drivers patronizing its locations in the near future, in tandem with the rechargeries rollout.
Trevor Walter, executive vice president of petroleum supply management at Sheetz, recently remarked on the company’s quick pivot to welcome an entirely new avenue to its existing business, as CSP reported.
“Our mission at Sheetz is to put the Sheetz as we know it today out of business. We do this through constantly evolving our business and introducing forward-thinking solutions. As the electric-vehicle market expands, enhancing our charging infrastructure exemplifies this commitment,” Walter said.
“Our collaboration with IONNA has rapidly enabled us to bring more advanced charging options to our customers, demonstrating the power of innovation in delivering seamless, future-focused services,” he added.
The ‘Convenience Experience’ Must Be Extended or Expanded: Report
According to an August Gilbarco Veeder-Root report, fuel retail stores like Sheetz are perfectly positioned to capitalize on the market trend toward EVs.
Pointing toward built-in advantages enjoyed by fuel retail convenience stores (c-stores) — namely, strategic positioning along major highways and thoroughfares, existing grid connections, and excellent traffic — the report outlined four vital categories for these retailers:
- Food and beverage: Citing data from two studies showing a trend toward non-fuel profits, the report suggested that increased dwell times could mean an opportunity to sell customers more during their downtime. Food categories were especially profitable.
- Site design: Convenience stores are already accessible, laid out to maximize traffic capability, and are well-lit and staffed at almost all hours. These are all factors that could be further enhanced but are a great base to build from in terms of EV customer satisfaction.
- Seamless infrastructure: Fast, easy-to-use, and affordable EV charging will be the new gold standard for drivers in this segment. Fuel retail convenience stores must prioritize delivering a seamless experience to an increasingly savvy and expanding demographic.
- Beyond selling EV charging: Giving way to broader ideas such as selling carbon credits, installing a battery on-site to supply energy to the grid, and more broadly monetizing the longer dwell times faced by EV customers, the report suggested forward-thinking notions rather than falling back on established habits developed from serving an entirely different client base.
“The integration of EV charging stations into fuel retail c-stores is not just a trend but a strategic move to future-proof businesses in a time of change. The move aligns with the evolving needs of consumers and the broader push for sustainability. As technology continues to advance and the adoption of electric vehicles grows, c-stores that embrace this change will be well-positioned to attract and retain customers, drive sales, and contribute to a brighter future,” Gilbarco Veeder-Root concluded.
Discussion Questions
Given the increased dwell time of a growing EV-driver demographic, what can fuel retail c-stores do to capitalize on this opportunity?
What are the “must-have” amenities targeting EV-driving customers that may not currently exist in the space? Is it cost-effective or practical to install these before demand has materialized?
How can a balance best be struck between servicing the needs of traditional fuel retail customers and this emerging, and very different, demographic?
Poll
Loading …BrainTrust
Richard J. George, Ph.D.
Professor of Food Marketing, Haub School of Business, Saint Joseph's University
Gwen Morrison
Partner, Candezent & Retail Cities Consultant
David Spear
President, Retail, OrderlyMeds
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The need for EV charging locations will increase over time. Many of these will be in locations where people are undertaking other tasks like malls or supermarkets. However, there will be a need for dedicated stations – especially on long-distance routes. Because charging takes a while, there will be a captive audience that will want other services. It’s an ideal location for foodservice, a convenience shop and other functions.
In retail, a “captive audience” sounds promising but what is less often discussed is the cost for that outcome. In this article, I would have loved to read a deeper description of the (likely) substantial infrastructure upgrades beyond just installing chargers. Think about 5% or 10% of traffic now substantially extending their visit time. They can roam the stores, perhaps sit in a common area. They can connect to the store’s Wifi. They will consume HVAC. Have the convenience stores made the necessary investments in edge computing, enhanced WiFi networks, and robust HVAC systems to handle increased customer dwell times and digital demands. As we think about the challenges brought on by AI consumption, what are the considerations to limitations within electrical grids to support additional charging equipment? I’m sure these organizations have thought through these considerations, but from the article, I wonder if the future model needs to be purpose-built rather than retrofitted into existing convenience stores, potentially leading to a new type of retail model altogether.
The electric car is, of course, quite interesting: discussion of it’s inherent value being overwhelmed by politics from both sides of the aisle (and of course it’s foremost defacto advocate being a blowhard who denounces the very ideologies that helped make him wealthy); hence its future doesn’t seem as secure as it was a month, a year or five years ago. Still use/ownership is likely to grow…Sheetz move is reasonable, if they approach it cautiously.
Shop for 30 minutes in a C – Store? I dunno about that. Even if you check out the nutritional content of every type of jerky on the shelves, and peruse all the salty snacks, I think you’ll still have 20 minutes left over. I can barely spend 30 minutes in an apparel store, let alone a C Store.
Yes. I don’t think so -unless their stores get to be retailer centers with 50K sq ft. There is only so much jerky and salty snacks i can look at while waiting for a car to “fill-up”.
While Sheetz, Wawa & other C Stores have done a terrific job in the transition of C Stores into meaningful food service operations, 30 minute visits are still beyond their core competencies.
Plus the future of EV’s is currently in an uncertainty stage. I’d proceed with caution here.
It’s hard to imagine that if I drive an EV, I need 30 to 45 minutes to recharge. That alone, is a deal killer for me. When I pull into a gas station, the entire ordeal takes fewer than 10 minutes of my time, so, no thanks on the EV.
Even so, with 5% of cars on the road being electric, and 8% hybrids, as reported by the Auto Club earlier in the year, the volume of customers is considerable, and slowly increasing.
Considering that, C-stores represent a great opportunity. It is already common for C-stores to have a large selection of food and drinks, and most offer good quality. It will be important for stores to be re-imagined as more spacious, with faster service, as EV market shares increase, and as long layover customers increase.
The trend towards mobile phone quick-pay will likely continue to be the growing norm.
Sheetz and others see opportunity of EV drivers in their stores as they charge up. With more time to roam the format, shoppers will no doubt step into more categories than the typical “ grab and go” trip affords. Retailers can leverage this with vendor promotions and perhaps extend their offerings to serve the more affluent range of their customers.
I’ve always admired Sheetz’ leadership and certainly agree with Mr. Walter’s view on disrupting their own business models, but I’d like to understand their ROI metrics on this move a little more. Given the state of EV’s and the myriad of other dynamics surrounding charging (especially, the wait time), the captive audience combined with the availability of slots is small. Now, if you’re a Buc-ee’s with a pad that can easily accommodate 10-50 charging stations and an inside operation that is best-in-class, I get it.
This is a brilliant move to prepare for an evolution of consumer needs in the convenience retail sector. None of us know the speed at which the transition from gas to electric vehicles will take place. By creating an EV charging solution for customers now, your brand gains consumer awareness of a growing trend, and you have the opportunity to gain insights into consumer preferences earlier than your competitors. Awesome!
Increased dwell time? The technology forecast says dwell time will drop dramatically in the next five years.
In any case, bravo to Sheetz in looking to the future. It may take years for the U.S. to follow the global trends, but the progress and market shares in Europe and China suggest that the future might be now.
23 minutes to recharge your car is 21 minutes too long, assuming 2 minutes or so to fill your tank with gas. For Sheetz, if there are folks out there who do not mind 23 minutes of waiting, this is a masterstroke. 23 captive minutes gives Sheetz all sorts of time to generate loyalty and revenue.
Regarding an expanding market in EV recharging, color me skeptical. Very skeptical.
Daily commuters will likely be charging overnight at home, so the “two-minute” top up comparison is not relevant. For longer road trips, however, you’re driving 300 miles (not really different from a gas-powered vehicle range) and will need that restroom, meal break, and time to stretch your legs – in this use case, Sheetz is right on the money.
If you operate a convenience store, the name of your business category seems to demand offering EV charging.
EV charge time is a reality. Rather than sit in a car in some desolate, poorly maintained charge station, a conveniently located c-store with well-maintained EV power and access to food and beverage is an appealing option.
Due to the price of EVs, hosting a charge station creates a bit of self-selection that delivers a more affluent guest. A win for Sheetz but one that must be considered when viewing offerings.
Offering EV charge stations is a great initiative to attract new business. As noted in other comments, part of the offering should include other amenities that make a slightly longer Sheetz visit more enjoyable or productive. I’m in favor of bringing back pinball.