Following form my post yesterday about Tatts Group, check out the Motley Fool article about Jumbo Interactive, the operators of the successful Oz Lotteries website. Their success is another indicator of migration of the lottery customer to online and another reason for newsagents to consider the extent of capital they invest in lottery products
Lottery products are agency products and while there is potential for sales growth thanks to jackpots, I don’t see much everyday growth for high street stores since more lottery customers will migrate online – especially when the online experience becomes even easier. As an agency line, retail success is dependent more on the supplier than retailer lines where we have more levers with which to play to make our own success.
I note NAB numbers shows online retail up 6.3 per cent year on year whilst traditional retail is flat. It is evident that all shoppers, not only lotteries shoppers are migrating on-line and the challenges exist for all product lines, not just lotteries.