Page 57 - Public Gaming International September/October 2017

amounts become a destination vs. an impulse
transaction.”
out of 10 people who come to our register will Lottery
When the prize reaches $300 million, “nine
buy at least one $2 ticket,” he says. “If the pot
same volume. When it gets to $100 million, Players
is a normal $40 million, you do not get the

more people will buy a $2 ticket.”
c-stores can use to increase lottery ticket sales. Drive
Burke recommends several tactics that
Promote lottery at fuel pumps and the
sent a significant source of revenue for large. “Signage at the fuel pumps lets them C-Store
ottery ticket sales continue to repre-
checkout counter, especially when jackpots get
convenience stores, generating about know lottery tickets are available inside and
L$8,000 in sales weekly and 9% of total can compel them to purchase, particularly if Sales
convenience sales, according to Management there is a high prize amount,” he says.
Science Associates (MSA). “Lottery remains a Consider bundled deals and discounts.
very reliable source of revenue that sells itself,” “Place a cooler near the lottery register and and
says Don Burke, senior vice president of MSA. offer something like two Red Bulls for $3 if
“It’s a category consumers rely on being able to they purchase lottery,” says Burke. “It’s all
purchase at a convenience store.” about effective signage around the area and
Lottery tickets are complementary in filling secondary placement of products that are Basket
out the market basket. Ninety-five percent of commonly in the market basket when lottery
lottery buyers purchase at least one other item is bought.”
inside the c-store, and the overall basket value Chaudhari recommends offering a variety Size
of these lottery customers averages $10.35, of scratch-off games and opening more facings
according to NACS. In comparison, those of the same games to entice buyers to try their
customers who do not buy lottery spend $6.29. luck from different stacks. This article is an edited
The other categories of merchandise most Have a plan for high-traffic lottery days, and version of an original story
commonly purchased with Lottery are (accord- strive to improve the in-store experience for all by Erik J.Martin, CSP,
ing to SwiftIQ findings shared at the 2017 shoppers. “We have a separate area near the
NACS State of the Industry Summit): checkout where scratch-off buyers can play and cspdailynews.com
• Newspapers (112% more likely to not hold up the line,” says Chaudhari, who
be purchased with lottery) hired a second employee just to handle lottery
• Bakery items (68%) sales. C-Store Facts
• Coffee (59%) “I’ve seen employees at other locations
• Cigarettes (60%) become annoyed at the time a customer • About half of all U.S. lottery
• Soda (56%) takes to pick out a scratch ticket or pick their tickets are purchased at
• Bottled water (50%) online lottery numbers. This makes customers convenience stores
• Prepared food (50%) less likely to purchase anything else or even
• Pizza slice (48%) return,” says Bumgarner of Scrivener Oil. • Lottery accounts for 9% of
• Energy drinks (41%) “Remember that customers are not an incon- total c-store purchases
• Gasoline (27%) venience—they are the reason we’re here, and
“Lottery is typically an impulsive, add-on we need to make them feel that way.” • Average lottery sales weekly
purchase to some of the staples and destination Reward loyalty. “We take care of our per c-store is $8,000
items that drive consumers to a convenience common customers who come in regularly to
store, like fuel and cigarettes,” Burke says. play and who spend a lot of time in the store • C-store lottery transactions
However, these shopping dynamics change by giving them a free bottle of soda or water,” peak on Wednesdays and
when the lottery payout grows. “The state Chaudhari says. Saturdays
lottery and multistate games are very depen- Remember that drawing attention to
dent on the jackpots,” says Steve Montgomery, lottery becomes especially important when • Strongest c-store lottery
president of b2b Solutions LLC, Lake Forest, America prospers. “Studies have shown that sales occur from 3 to 5 pm
Ill. “When those jackpots get to a certain size, lottery sales go up when the economy is bad,
sales increase at a rapid rate. I think this is due as consumers are looking for hope and luck,” • C-store lottery commissions:
to non-lottery players deciding to play.” Burke says. “When consumers have more typically 5% to 6% (depending
Burke said: “It is proven that when lottery money, they don’t necessarily think of the on state)
jackpots increase, so does convenience-store lottery—they see it as more of an aspirational-
traffic. That fact suggests that higher lottery type purchase.” n Sources: NACS, MSA, SwiftIQ

SEPTEMBER /OCTOBER 2017 // PUBLIC GAMING INTERNATIONAL // 57