What Walmart's EV Charging Decision Means for Other Retailers

In April Walmart announced that:

"By 2030, we intend to build our own EV fast-charging network at thousands of Walmart and Sam’s Club locations coast-to-coast. This would be in addition to the almost 1,300 EV fast-charging stations we already have available at more than 280 U.S. facilities. With a store or club located within 10 miles of approximately 90% of Americans, we are uniquely positioned to deliver a convenient charging option that will help make EV ownership possible whether people live in rural, suburban or urban areas."

What's not mentioned is that the 1,300 EV fast charging at 280 facilities that currently have EV charging are almost exclusively owned/managed by Electrify America. While I'm not sure on the financial arrangement, it's probably safe to assume that Electrify America bore all or most development costs - the hardest and most expensive part - for these installations (while also probably paying ground leases to Walmart, 10-year terms seem common).

As we know, EV drivers are increasing exponentially, so revenue from stations in the future will almost certainly be higher than revenue today. Many Charge Point Operators (CPO) take operating losses in the early years in the hopes that future revenue will more than make up for early losses. So, while Electrify America may break even or make money on their Walmart operations, it's a wise decision for Walmart to have let Electrify America bear the brunt of the early risk, while eventually controlling the entire charging experience (while also keeping all future profit).

And that's exactly what Sona Energy Solutions LLC recommends for our retail partners! If a retailer isn't ready to hire a team and spend the capital to become a CPO now, partner with someone who will get the data, and then once the lease ends install their own chargers/network.

As it pertains to EV Charging Networks, I said in a past post that:

My belief - albeit purely based on my own experience - is that EV drivers (non-Tesla) don't really care about the network (ie EVgo, Electrify America, Chargepoint, Blink etc). EV drivers care about finding a fast-charging station that works and is close to them when they need it.

In other words: Location & Reliability >>> Network"

It's surprisingly easy for a retailer to create their own EV Charging app and there's plenty of well-respected EV charging hardware providers who would love to partner with retailers. And while it is easier than most retailers realize, it's not like Walmart said they're doing it today...they gave themselves 7 years!

So, what is everyone else waiting on?

Related, it's MUCH easier to put in EV Charging during new construction of stores, so at a minimum, do this.