Large Jackpots Spur In-Store Sales

For retailers selling lottery tickets, a big score can move merchandise.

September 27, 2013

PHOENIX – Many convenience stores know that selling lottery tickets is more about the ancillary sales than the payout for a big winner. The bigger the jackpot, the more customers — and the more in-store sales, Cronkite News reports.

In fiscal year 2013, Arizona Lottery retailers registered a record-breaking 6.5% hike in revenue. “Especially when our jackpots are high, it is going to increase the customer traffic in our retailers,” said Raynie Hosto, director of sales for the Arizona Lottery.

Big jackpots also bring in new customers. Shirley Petro, who owns S & J Shop & Ship, said that the lottery is a great way to introduce ticket buyers to her store. “I don’t make huge profit on the lottery itself, but it’s a way to get people into the store,” she said. “And people buy a soda, plus they buy lottery tickets. That’s the way it goes.”

That’s pretty common, said Jeff Lenard, NACS spokesman. “When somebody is new to your store because of the lottery, they are able to see what you have,” he said. “If they don’t buy something that day, maybe you can get them to buy something another day because they see some of the great things you have, whether it’s food, snacks or whatever appeals to them.”

However, one potential drawback is that big jackpots create long lines for lottery tickets, and that can turn away customers. “If the regular comes in and finds 20 people waiting to buy lottery tickets, you may lose that customer,” said Lenard. “The lines are great, the excitements are great, all of that is great, but at the same time you have to make it convenient for your regulars just as much as you are serving any potential new customers.”

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