A challenge for The Warehouse Group

This story first appeared in the May issue of EVtalk – CLICK HERE to download the magazine FREE

The shift to an EV fleet has been challenging for The Warehouse Group.

That’s the view of its environmental initiatives general manager Greg Nelson.

“We’re looking at four EVs this financial year to July,” he says. That means many more to come to achieve the target in the fleet, which has around 220 vehicles.”

The group’s main businesses are The Warehouse, Warehouse Stationery, Noel Leeming and Torpedo7, so much of the fleet comprises delivery vehicles – Noel Leeming has about 110 for instance.

A sticking point has been lease pricing, mainly because the high depreciation rates on new EVs are passed through into monthly leasing costs.

To keep costs down, the leasing company involved is being asked to purchase used United Kingdom vehicles, like the Renault Zoe, as depreciation is not as significant.

Other options are electric vans, with the LDV brand possibly being considered in the future now that its LDV has added AC charging to its previously DC only.

Nissan e-NV200 electric vans were also considered but are too small for the size of the goods, like the larger TVs, that need to be transported most days.

“We started looking at electric vans about one and a half years ago, but there were not many options for e-vans then,” Nelson says.

He says electric vehicles with good range are usually required for their drivers, especially in the South Island.

“Our first EVs will be pool vehicles, based at our head office in Auckland.”

Travelling in an EV in some areas where the charging network is sparse can also be challenging, although chargers are rapidly filling the gaps.

The Warehouse Group is also providing charging stations at 11 of its stores, and its Northcote head office has four charging bays.

Stations at The Warehouse are free for a limited time to the public, with access in the future likely to be restricted to an app, with plans to reward charging station users who regularly shop at The Warehouse. Details have yet to be finalised.

About 21 chargers will eventually be established at stores, nearly all part funded through the Energy Efficiency and Conservation Authority.

Nelson says they’re focussing on smaller towns where public charging would encourage people to think about purchasing or using an EV.

Chargers in Hastings, Motueka, Blenheim and other town sites are used reasonably well, Nelson says.
The chargers are all three-phase, 22kW AC medium speed with type 2 plugs.

The final 10 or so charging sites are being finalised and should be in by July.

Nelson says another of the challenges in switching to an EV fleet is the cost comparisons with running a conventional fleet. The group includes the Ford Focus TDi wagon and the Skoda Octavia among its “benchmark” ICE vehicles which have much lower monthly leasing costs to New Zealand new EVs of a similar size.

“This is why we are looking at ex-UK Zoes as these are roughly the same price but a smaller vehicle,” Nelson says.

He’s noticed a far more positive attitude towards EV uptake by New Zealanders in the past year, compared with a previous reluctance.

He says a senior executive and two board members had plug in hybrid vehicles, and now six staff members have their own Nissan Leafs.

One further advantage is the electrics get the prime parking sports near the chargers.

Nelson himself plans to get an EV, but for the moment he cycles about 16km one way to work.
No doubt that all helps with the group’s aim to reduce its energy use and associated carbon footprint – the target a 32% drop in emissions by 2030.

Electric vehicles are a part of that, and include investigating replacing conditions of use under Customer Service, electric vehicle chargers – and replacing LPG-powered forklifts with electric ones.