Aside from Best Buy, Big-Box Stores Are in No Hurry on EV Charging
Best Buy is definitely in lead in adding free-to-consumers electric car charging to its parking lots, but it may not stay there. Other big box stores are starting to look at it, too, as a way of getting customers in the door (and keeping them there for the length of the charge, which could range from 10 minutes to several hours).
At most chains, the concept is on a slow track, but that could change as EVs become more visible by the end of 2010 and into 2011.
Costco Warehouses could be said to have a head start. As early as 2006, it had 90 charging stations at 64 locations. The hardware may need a bit of updating to be ready for the smart grid, but that shouldn't be a huge hurdle. Most of Costco's chargers are, as you'd expect, in California (traditional ground zero for EV innovation, and likely the leader in the early adopter market for 2011), but there are also some in Arizona, New York and Georgia.
Costco said in 2006 that the process was simple: Consumers park in reserved spaces, attach paddles, then "head into the warehouse." That latter part -- acquiring captive customers waiting for their cars to charge -- is why many observers think the big boxes will be leaders in offering EV charging. But aside from Best Buy (which also sells electric motorcycles, and plans to add EV chargers and, possibly, cars) the other big companies, including Costco, haven't made new commitments.
Costco chief financial officer Richard Galanti, who doubles as his company's press spokesman, did not return calls left at his office. But the company announced a vendor-supplier agreement with California-based EV company ZAP in 2004, which was to "supply the national retailer with the newest in [Zap's] line of energy efficient and advanced technology vehicles." The deal apparently went no further. And Costco stores in Mexico have sold Chinese-made vehicles from GS Motors, prompting speculation that the retailer could add EVs also sold by GS.
In this video, an EV driver charges up at a Costco near LAX, and he's grateful for the opportunity: Home Depot is willing to talk. "We have spaces dedicated to electric and fuel-efficient cars at some of our small number of LEED-certified stores," said spokeswoman Jennifer King, "but I haven't heard of us providing chargers. It's possible that we're looking into it, but it's not something we plan to roll out anytime soon. I haven't heard of serious talk of it happening."
A second Home Depot spokeswoman, Kathryn Gallagher, added, "Everything we sell is home improvement related, so I don't foresee us selling electric cars." But that has already become a growth business for Best Buy, which is selling electric scooters and the Brammo electric motorcycle. "We're pleased with customer reaction," said Rick Rommel, a Bet Buy senior vice president.
Wal-Mart is talking about EV charging as value added. CEO Lee Scott said in 2008, "Imagine your customers pulling into your parking lot, and seeing wind turbines and solar panels, and being able to charge their cars while they shop. I think that would make them feel good about shopping at your stores." Sam's Club briefly sold an electric Smart car in 2007 as a Christmas promotion.
Another big retailer that has dipped its toe into EV charging is a logical candidate, Whole Foods. In April, Whole Foods put a Coulomb ChargePoint charger into its flagship store in Austin, Texas. "To me, this is just a no-brainer," said Mark Dixon, southwest regional president of Whole Foods. He added that "we'll probably be doing more of these." Ralph's Grocery in the Los Angeles area also has charging.
Chelsea Sexton, an informal advisor to Best Buy and other players in the EV space, said that expects that Best Buy's EV charging will be free to consumers. "Personally, I expect the bulk of public charging in the next three to five years to be free. She said that the amount of investment necessary to "monetize" charging would probably outstrip the "insignificant" early return.
"EV charging will be a very cheap marketing value," Sexton said. "For a $10,000 installation cost, the companies will get years worth of loyal customers and goodwill." A big question is whether the big boxes will add Level 2 (220 volts) or Level 3 (480 volts) fast charging. The former is cheaper and will keep customers in the store longer, but four hours may be a bit much for anybody. Level 3 takes 10 to 30 minutes, but it may present safety issues.
Maybe the companies will get low-cost goodwill, but aside from Best Buy and possibly Whole Foods, they don't seem to be moving all that quickly into the space. But high-profile electric cars like the Chevrolet Volt and Nissan Leaf will be on the road before the end of the year, so they're likely to get in gear when they see rubber hit the road.
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Photo: Best Buy