With the constantly rising number of electric vehicles (EVs), forecourts have a huge and exciting new sales funnel to tap into, though it's not an easy road ahead, Asian Trader reports.
The EV scene in the UK has been revving up like never before. By the end of February 2024, over 1,000,000 fully electric cars are cruising down UK roads, with an additional 620,000 plug-in hybrids zipping around. This electrifying growth clearly shows that the UK is wholeheartedly embracing the EV revolution.
By 2030, between 8 million and 11 million EVs are expected to roam the country’s roads. The future is electric, and it's already here!
With the rising number of EVs, the charging points are cropping up and are expected to play a crucial role in retail business as well going forward. In 2023, supermarkets across the country collectively added EV chargers to over 600 new locations, meaning drivers can now charge up at more than one-in-10 of their stores, states the figures from Zapmap and the RAC.
The total number of supermarkets offering EV charge points rose by 59 per cent last year – from 1,015 stores with charging facilities in 2022 to 1,616 in 2023. This equates to 13 per cent of all 12,839 UK supermarkets, including those that don’t have parking facilities.
Charger installations also increased by two-thirds (69 per cent) with stores adding 1,195 new charging devices last year. This brought the total number up from 1,721 at the end of December 2022 to 2,916 by the end of 2023.
Within this total, 1,107 units installed were rapid or ultra-rapid, marking a huge increase of 145 per cent from the 451 rapid chargers installed in 2022. Fortunately for end users, this means that over half (55 per cent) of all supermarket EV locations now offer higher-powered charging capabilities.
In the supermarket charging league, Sainsbury’s is taking the leap by gaining the biggest year-on-year growth thanks to the launch of its ultra-rapid network Smart Charge. After installing just 53 units in 2022, the retailer nearly tripled its total device numbers in 2023 by adding 104 new chargers to its stores.
Sainsbury’s also has the highest average number of rapid chargers per location, at four units per store across the 22 shops that provided high-powered charging.
Sainsbury’s is aiming to have over 750 charging bays across over 100 locations by the end of 2024, putting it in the top five providers of ultra-rapid EV charging in the UK. Its new charging hubs are said to be powered by the same electricity that powers the rest of Sainsbury’s estate, which is 100 per cent renewable.
Meanwhile, Tesco is also in this race with the biggest overall supermarket charging network. With 1,305 devices now in place across 4,859 shops, the retailer added 497 chargers to its stores last year.
EV and forecourts
There are 8,380 forecourts across the UK, trading in urban transient locations (40 per cent), residential locations (28 per cent), rural locations (17 per cent), commercial or industrial locations (13 per cent) and motorways (2 per cent), show the figures from local stores body Association of Convenience Stores (ACS).
On UK forecourts, there are currently around 252 electric charging devices located at 158 forecourts in the UK.
Interestingly, going further, it is anticipated that availability of EV charging points is going to play a crucial role in the retail environment as well.
According to Kantar & Virta’s EV Driver Survey 2022, while just a small proportion of UK drivers have so far gone electric, almost half intends to eventually drive a plug-in car. What is noteworthy here is that over 60 per cent of EV drivers in the country consider EV charging as a must-have feature or a key choice factor when deciding where to shop.
Installing an EV charging station comes with its own perks. Nobody is getting rich by selling EV charging alone, but it is the extra dwell time where the real magic happens.
Instead of just refueling, relieving oneself, grabbing a soda and a snack, and then zooming off, EV drivers have to hang around for about 45 minutes or longer if there is a queue. This wait time is a golden opportunity for convenience store operators to offer more premium services, like a cozy café, hot food-to-go, and an enticing array of crisps, snacks, sweets, and other essentials.
The extra dwell time increases the potential of customers spending a bit more as we know each minute counts in retail. The average amount a customer spends in a store per minute is between £0.4 to £.8, according to industry standards. As a result, the financial impact of one charging event on retail business can be up to £ 43.
For convenience stores, the rollout of EV charging stations seems even more promising as it hopes to offset the loss of foot traffic from declining gas and tobacco sales and can also further boost the momentum of grab-and-go food offerings.
In fact, quick-service restaurants and big box stores are also looking to capitalize on EV traffic. Subway, Taco Bell, and Starbucks are some big names that are gearing up in this realm.
The rush was mentioned in the ACS’ most recent Forecourt Report which states that over 8,600 public charging points were added to the UK network.
Releasing the report, ACS chief stated that forecourt retailers will undoubtedly have a role to play in an EV future, but the country is still not seeing a rush for all stores to put in charging points, as for many the “value that a parking space currently provides for a customer who is coming in to shop outstrips the potential value of a charging point on the site”.
It turns out that the transition or even addition here for convenience and forecourts is not so easy breezy.
Caution: Bumpy road ahead
The prospect of having EV charging points on the premises of forecourts or even at the parking lot of a convenience store is bright and tempting. However, it’s not an easy route to take.
Investing in charging is infrastructure is an expensive business. The CMA estimates that the cost of installing rapid and ultra rapid costs upwards of £25,000 apart from other costs like charge point hardware, installation costs as well as grid enforcement as retailers may need to improve the supply to their site.
Clearly, forecourt retailers need support from government to invest in charging infrastructure. Funds and grants, including the Rapid Charging Fund need be brought forward and made accessible to the forecourt sector.
The government’s Rapid Charge Point Strategy and Ten Point Plan was a welcome move as it shows the government’s commitment to improve EV charging infrastructure in the lead up to the 2030 target for the ban on sales of new petrol and diesel vehicles.
However, to achieve the target, fuel retailers will need government support to invest at the scale and speed necessary to deliver an appropriate amount of infrastructure to support and provide EV charging facilities.
ACS has been calling on the government to work with the EV charging sector to ensure consumers have clarity on compatibility of EV charge points. The government should introduce an exemption for electric vehicle charging points and the associated car parking space from the rating list to incentivise investment.
Furthermore, forecourt retailers need to install fast and rapid charging points to meet consumers’ charging needs. This requires direct connections to the National Grid which are not available at fuel retailing sites, implying fuel retailers must invest in new substations at fuel sites to deliver rapid charge points. The cost of installing substations can run to millions of pounds, implying for larger businesses, there are limited prospects to recoup these costs, while this is not feasible for smaller businesses without apt support.
ACS points out that the government are prioritising sectors other than forecourts with investments in EV infrastructure and is missing out on en-route charging opportunities, which could be offered by petrol forecourts and convenience store sites, which are located in every community across the UK.
Despite the endless advantages of EV charging stations for retail, the UK is still way behind in its ambition of having 300,000 charge points by 2030, despite a 36 per cent increase in the last 12 months. The reality remains that currently, there are not enough public charging hubs available to meet demand. Media reports estimate that the government is as much as “20 years behind schedule”.
On the retail side, there remains a great deal of uncertainty about future transport solutions, including hydrogen, making it difficult for fuel retailers to invest. It is afraid that fuel retailers will have to make multiple investments in expensive infrastructure with limited prospects for higher profitability.
Like, MFG has been very bold in its plans for EV charging but its chief executive William Bannister stated in a recent summit that getting the infrastructure in place was a time-consuming business.
Apart from money and infrastructure, there are other barriers too as gaining planning permission and meter installation that can even take up to 12 months, as reported by a few retailers.
Slow and stuttering
In the words of ACS chief executive, EV development is “stuttering, but it’s still the direction of travel”.
A Labour government confirming its policy of bringing the ICE ban back to 2030 might bring some more urgency to the shift to EVs, but there are other factors holding this back regardless of the election result, he said, pointing out cost, range and charging infrastructure as points of concern.
"Forecourts and other potential providers of charging facilities are unable to make the case for these costly investments with so much uncertainty and challenges in accessing adequate power supply.
“But if EV is limping along in second gear, other solutions like Hydrogen are in reverse. That’s not to say they won’t be part of the future, but over the next two decades the story of powering private vehicles is going to be a transition (however imperfect) from oil to electric,” stated ACS chief.
In its recent submission consultation on street works access: electric vehicle charge point operators, ACS once again highlighted the need for more funds for forecourt retailers.
“If the government is to meet its target of 300,000 EV charge points by 2030, forecourt retailers must be supported in investing in infrastructure. This should be achieved both in financial terms and by removing regulatory barriers.
“Government should also focus on other barriers, such as making it easier for retailers to gain access to the grid. A major barrier to investment in EV charging infrastructure is the difficulty in obtaining connection to the national grid. As aforementioned, the cost of reinforcing grid connection can be expensive, and it is also an intensive administrative burden.”
Clearly, cost, infrastructure and other barriers are prohibiting at the moment for small and medium independents to enter the EV charging market. The change is inevitable but whether that change can happen on every other forecourt or convenience site is another story altogether owing to multiple and back-breaking constraints around money, space and the ability to get the electricity supply.
UK retail sales rose less than expected in the runup to Christmas, according to official data Friday that deals a fresh blow to government hopes of growing the economy.
Separate figures revealed a temporary reprieve for prime minister Keir Starmer, however, as public borrowing fell sharply in November.
The updates follow news this week of higher inflation in Britain - an outcome that caused the Bank of England on Thursday to leave interest rates unchanged.
Retail sales by volume grew 0.2 per cent in November after a drop of 0.7 per cent in October, the Office for National Statistics said Friday.
That was less than analysts' consensus for a 0.5-percent gain.
"It is critical delayed spending materialises this Christmas to mitigate the poor start to retail's all-important festive season," noted Nicholas Found, senior consultant at Retail Economics.
"However, cautiousness lingers, slowing momentum in the economy. Households continue to adjust to higher prices (and) elevated interest rates."
He added that consumers were focused on buying "carefully timed promotions and essentials, while deferring bigger purchases".
The ONS reported that supermarkets benefited from higher food sales.
"Clothing stores sales dipped sharply once again, as retailers reported tough trading conditions," said Hannah Finselbach, senior statistician at the ONS.
Retail sales rose 0.2% in November 2024, following a fall of 0.7% in October 2024.
Growth in supermarkets and other non-food stores was partly offset by a fall in clothing retailers.
The Labour government's net borrowing meanwhile dropped to £11.2 billion last month, the lowest November figure in three years on higher tax receipts and lower debt-interest, the ONS added.
The figure had been £18.2 billion in October.
"Borrowing remains subject to upside risks... due to sticky interest rates, driven by markets repricing for fewer cuts in 2025," forecast Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics.
Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, commented that the later than usual Black Friday weekend meant November’s retail sales figures saw only a slight uptick as cost-conscious consumers held off to bag a bargain.
“Despite many retailers launching Black Friday offers early, November trade got off to a slow start which dragged on for most of the month. This was driven by clothing which fell to its lowest level since January 2022. The only saving grace was half-term and Halloween spending helped to slightly offset disappointing sales throughout November,” Baker said.
“As consumer confidence continues to build and shoppers return to the high street, this should translate into more retail spending next year. However, there are big challenges coming down the track for the sector, so retailers will be banking on a consumer-led recovery to come to fruition so they can combat a surge in costs.”
Thomas Pugh, economist at RSM UK, added: “The tick up in retail sales volumes in November suggests that the stagnation which has gripped the UK economy since the summer continued into the final months of the year.
“While the recent strong pay growth numbers may make the Bank of England uncomfortable, it means that real incomes are growing at just under 3 per cent, which suggests consumer spending should gradually rise next year. However, consumers remain extremely cautious. The very sharp drop in clothing sales in particular could suggest that consumers are cutting back on non-essential purchases.
“We still expect a rise in consumer spending next year, due to strong wage growth and a gradual decline in the saving rate, to help drive an acceleration in GDP growth. But the risks are clearly building that cautious consumers choose to save rather than spend increases in income, raising the risk of weaker growth continuing through the first half of next year.”
Dutch dairy collective FrieslandCampina has agreed to merge with smaller Belgian rival Milcobel, creating a leading dairy cooperative.
FrieslandCampina, whose brands include Yazoo and Chocomel, said the merger will provide the foundation for a future-oriented organisation that has dairy front and centre for member dairy farmers, employees, consumers, and customers.
The proposed merger is subject to approval by FrieslandCampina’s members’ council, Milcobel’s extraordinary meeting of shareholders, and antitrust authorities. The companies said member dairy farmers, employees, works councils and trade unions have been informed about the merger proposal.
Both companies, owned by dairy farmers for many generations, complement each other well in market positions and product portfolios. The merger offers further business development opportunities in market segments such as consumer cheese, mozzarella, white dairy products (such as milk, buttermilk, and yoghurt), and ingredients, as well as benefits in efficiency and expertise, for example in the area of sustainability.
“The combination of FrieslandCampina and Milcobel is bigger than the sum of its parts. It creates a future-oriented, combined dairy cooperative that is resilient and capable of capitalising on opportunities in the dynamic global dairy market,” said Sybren Attema, chair of the board of Zuivelcoöperatie FrieslandCampina.
“This strengthens our appeal to member dairy farmers, business partners and employees. Moreover, this step supports us in realising a leading milk price for our member dairy farmers, now and in the future.”
Betty Eeckhaut, chair of the board of Milcobel, said: “The cooperative philosophy, which is deeply rooted at both Milcobel and FrieslandCampina, is the bedrock for this proposed merger. Our goal remains to create added value for our member dairy farmers.
“Through our regional complementarity we will become the cooperative dairy partner of choice for current and new members, with a solid milk supply for a successful future. For employees, the new organisation provides great opportunities to grow in an international environment. For customers, this merger means more innovation, an expanded product portfolio and further professionalisation of our services.”
Based on the combined 2023 annual figures of FrieslandCampina and Milcobel - excluding Milcobel's Ysco business, which is in the process of being divested - the new, combined organisation has a pro forma revenue of more than €14 billion (£11.6bn) , operates in 30 countries, employs nearly 22,000 staff worldwide, and processes a total volume of approximately 10 billion kilograms of milk.
The boards of the cooperatives and executive management of the two parties have signed a framework agreement regarding the proposed merger. The companies aim to finalise a detailed merger proposal in the first half of 2025, which will then be discussed with the members of FrieslandCampina and the shareholders of Milcobel.
The UK government has pledged stronger measures to combat anti-social behaviour and shoplifting, which it acknowledges as serious crimes that disrupt communities and harm businesses.
Addressing a House of Lords debate on Monday, Home Office minister Lord Hanson detailed plans to abolish the controversial £200 shoplifting threshold and to introduce a new offence for assaults on retail workers.
“Anti-social behaviour and shop theft are not minor crimes. They cause disruption in our communities,” Lord Hanson stated.
“Shop theft in particular costs retailers across the nation millions of pounds, which is passed on to us as customers, and it is not acceptable. That is why, on shop theft, we are going to end the £200 effective immunity. For shop workers, we will protect them by introducing a new offence, because they are very often upholding the law in their shops on alcohol, tobacco and other sales.”
He also emphasised the government’s commitment to restoring visible neighbourhood policing, with 13,000 additional officers and Police Community Support Officers (PCSOs) planned, as well as piloting new “respect orders” to ban repeat offenders from town centres.
Later on Wednesday, the home secretary announced a £1 billion funding boost for police across England and Wales to restore neighbourhood policing. The money will include new funding of £100 million to kickstart the recruitment of 13,000 additional neighbourhood officers, community support officers and special constables.
The debate was initiated by Labour peer Baroness Ayesha Hazarika, who painted a vivid picture of the toll anti-social behaviour takes on workers and communities. “Many people who work in shops feel like they are living in a war zone,” she said. “Anti-social behaviour can so often be the canary down the coal mine and tell a wider story about what kind of society we are living in.”
Baroness Hazarika also urged the use of technology such as facial recognition to target hardened criminals responsible for terrorising shops and local residents.
Lord Hanson agreed, adding that the government is equipping police with the resources to better address persistent offenders, including funding initiatives like Operation Pegasus, which targets organised retail crime.
Retail trade union Usdaw has welcomed the Lords debate tackling anti-social behaviour and shoplifting.
“We very much welcome that Baroness Hazarika has raised this hugely important issue for our members. It is shocking that over two-thirds of our members working in retail are suffering abuse from customers, with far too many experiencing threats and violence,” Paddy Lillis, Usdaw general secretary, said.
“After 14 years of successive Tory governments not delivering the change we need on retail crime, we are pleased that the new Labour government announced a Crime and Policing Bill in the King’s Speech and all the measures that it contains, as set out by Lord Hanson.
“The chancellor announced in the Budget funding to tackle the organised criminals responsible for the increase in shoplifting, and the government has promised more uniformed officer patrols in shopping areas. It is our hope that these new measures will help give shop workers the respect they deserve.”
In response to the mounting pressures faced by postmasters across the UK, the Post Office has unveiled a centralised wellbeing platform aimed at simplifying access to support resources.
Post Office said the surge in shoplifting and violent incidents, documented in the 2024 ACS Crime Report, has only intensified the demand for comprehensive support.
With shoplifting on the rise year-on-year since 2021, and the Christmas trading period presenting heightened risks due to increased footfall and stock levels, the wellbeing of postmasters has become a pressing concern.
The new wellbeing platform, accessible via the Branch Hub app, provides a single point of access to a range of resources designed to meet Postmasters' immediate and ongoing needs. It is divided into three sections:
‘I Need Help Right Now’: Offers urgent support, including access to emergency services, mental health first aiders, , area and business support managers and organisations like Samaritans.
‘More Support and Guidance’: Provides practical tools such as security advice, social media abuse resources, and connections to organisations like Citizens Advice and Mind.
‘Access Community Support’: Encourages peer connections through WhatsApp and Facebook groups, as well as in-person meetings.
The initiative, a collaboration between the Post Office, the National Federation of Sub-Postmasters (NFSP), and Voice of the Postmaster, underscores a shift towards a more cooperative approach between historically independent groups, and creates a shared wellbeing network that is accessible to all postmasters, regardless of affiliation.
Mark Eldridge, postmaster experience director at Post Office, said the initiative will ensure that anyone who needs help can find it quickly and easily.
“It’s about creating a culture of care and resilience in the face of the challenges our postmasters face every day. If the initiative means helping just one postmaster, then we have done our job successfully,” Eldridge added.
Tony Fleming, postmaster at Thorne Post Office, shared how the initiative provided vital support following a traumatic armed robbery at his branch.
“It was incredibly difficult for the person faced with this violent threat, as well as the wider team. It’s a traumatic experience to go through as part of your day job and having the immediate support of the Wellbeing resource was invaluable – it really was wellbeing personified and gave me and everyone in the branch the support to get back to doing what we do best, serving our fantastic community in Thorne,” Fleming said.
Paul Patel, a Hampshire-based postmaster, echoed this sentiment, highlighting the platform’s ability to combat isolation and foster collaboration:
“It has been a difficult time for all postmasters who continue to serve their communities every day often feeling alone in their daily work life. It’s such a privilege to collaborate across the network to support Postmasters wellbeing from forming friendships to guiding for more professional support.”
Christine Donnelly of the NFSP highlighted the initiative’s accessibility and symbolic value.
“From a postmaster perspective this works on several levels. It is an easily accessible resource that offers advice and facts, but it also says by implication that we care, that participants from different areas of the business recognised a need and worked together to make it the best it could be,” Donnelly noted.
“It says you are not alone or the only one - how can you be if there is a whole site available?”
The Post Office plans to evolve the platform based on postmaster feedback, ensuring it remains relevant to emerging challenges.
Earlier this week, Post Office has announced a £20 million boost for postmasters to address their concerns that their income has not kept up with inflation over the past decade.
Both independent postmasters and Post Office’s retail partners that operate branches on its behalf will receive the top-up payment ahead of Christmas. The top-up payment will be based on both the standard fixed and variable remuneration the branch received in November.
Independent retailers have weathered one of their most challenging years in 2024, with multiple headwinds affecting the sector, according to the British Independent Retailers Association (Bira).
With pressures mounting throughout the year, independent retailers have faced an increasingly difficult trading environment marked by changing consumer behaviour and economic uncertainties.
"2024 has presented unprecedented challenges for independent retailers,” said Andrew Goodacre, CEO of Bira. “Consumer spending on non-food items has declined significantly, while persistent footfall problems and fragile consumer confidence have impacted high streets nationwide. Despite inflation coming under control, interest rates are falling slowly, affecting both business and consumer spending."
"The retail landscape has become increasingly competitive, with large chains implementing deeper and longer discount periods. The rise of ultra-fast fashion retailers like Shein and Temu has created additional pressure on margins, whilst deflation on non-food items has further squeezed profits," he added.
The sector has also grappled with retail crime, with Bira's latest survey showing 78.79 per cent of businesses reporting increased frequency or severity of theft incidents.
Research from PwC earlier this year also highlighted the scale of the challenge, with 6,945 outlets shutting – equating to 38 store closures per day, up from 36 per day in 2023. The figure outnumbered the rate of new store openings, which rose modestly to 4,661, averaging 25 openings each day.
Mr Goodacre said: "The key difficulties independent retailers are grappling with include low consumer demand, as consumer confidence remains fragile and shoppers are highly value-focused. Independent shops struggle to compete on price as large chains are able to discount more deeply and for longer periods."
Looking ahead to 2025, retailers face new challenges. He added: "Medium-sized retailers will see a significant increase in employment costs, while thousands of smaller retailers will be hit with higher business rates as relief drops from 75per cent to 40 per cent."
However, Mr Goodacre said he sees reasons for optimism and added: "We expect 2025 to bring some positive changes. Wages are set to rise faster than inflation, which should boost consumer spending. Both inflation and interest rates should continue to fall, helping to rebuild consumer confidence."
"The circular economy presents a growing opportunity for independent retailers, and with economic growth set to improve, we anticipate better trading conditions. While challenges remain, independent retailers who stay adaptable and resilient will find opportunities in the year ahead."