EV charging point

The Savills Blog

Why there is significant demand for EV charging points in the retail sector

The UK Government has declared that from 2022 all new buildings in England, including supermarkets and offices, must install electric vehicle (EV) charge points to support the phasing out of petrol and diesel cars before this decade is over.

The retail sector doesn’t require persuading. Charging points create footfall, as stores nearby – be it on a retail park, supermarket or petrol forecourt – are perfectly placed to occupy drivers waiting for their battery to power up.

Consequently, there is significant demand for EV charging points. A thousand devices have appeared in UK supermarket car parks since January, according to Zap-Map and RAC, as the number of licensed Ultra Low Emission Vehicles (ULEVs) has doubled over the last year.

When a landowner approaches us about the potential of chargers, we consider: if the location is near a major road with high traffic; if the footfall is healthy; and whether the car park is large and has spare capacity. However, often the key determinant of EV charger feasibility is the availability of power from the grid. Connection costs vary significantly between sites and this can often be the biggest influence over a delivery strategy.

Chargers are slow, fast, rapid and ultra-rapid and the time it takes to charge an EV depends on the speed of the charger and the car model. Fast chargers will enhance dwell times, while rapid chargers could attract footfall. But it comes down to finding the right chargers for the site to ensure retail customer needs are met while attracting passing motorists.

Fast chargers can provide 20 to 60 miles of range with an hour, but rapid and ultra-rapid points can provide at least 40 miles of range in 15 minutes – though the type of charger a site can offer is determined by the grade of electricity that is supplied by grid.

Slower charge points are appropriate for longer dwell retail parks, perhaps comprising leisure, where cars can be left for hours. If the retail park is alongside a major road it will not only bring a destination charge but also en-route sessions whereby drivers top up the battery before a long journey.

In the UK, there are two ways of providing charging points on site. A landowner can either take the charger fully funded by the installer and receive rent from that company or take ownership and buy the charger.

Each option has its pros and cons – it depends on the client and their motivations. Some landowners are driven by their own net zero targets, so will accept the capital investment required in order to obtain the full returns from the chargers. Others prefer to have steady revenue over the lease period without worrying about frequency of use.

Another potential opportunity within densely populated areas is to lease out large car parks overnight to companies that are aiming to achieve net zero with a large car fleet and also fleets near Low Emission Zones (LEZs), which are increasingly popping up across Europe to tackle air pollution. 

Since these targets are now backed by EU Air Quality standards, charging points in urban areas will be increasingly necessary, and where the rate of return on investment – both financially, and in terms of footfall – will pay dividends.

Further information

Contact Silvia Manzoni

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