The latest Annual Report of The Lottery Corporation, released this week, is worth reading if you’re a lottery retailer. as it provides a good roadmap on their plans. It also includes insights on digital (online) revenue versus in-store.
A continual focus on digital innovation, combined with leveraging data to personalise marketing and optimise customer experiences, saw the digital share of Lotteries turnover grow to 38.4%, driving margin improvement. Customer analytics and personalised communication continues to deliver commercial uplift, increasing the efficiency and effectiveness of our advertising.
Digital was 18% 5 years ago. While it has grown over time, the growth in recent times is modest.
For context, further in the document (pg 17):
In terms of distribution channels, digital turnover increased by 0.4% and retail turnover decreased 2.7% – a solid result considering overall Division 1 prize money on offer, which drives store traffic, was down. Digital turnover accounted for 38.4% of all Lotteries turnover. The introduction of Store Syndicates Online added to digital performance, and active registered Lotteries customers grew by approximately 132k in the year to 4.2 million. Across our two distribution channels, we’re investing in accelerating convergence and in enhanced personalisation of digital experiences.
I think this is a key note (pg 20):
We invest in a digital program that aims to align with the way customers consume media and engage with our product.
And this is interesting (pg 20):
We continue to strengthen and diversify our physical retail footprint to meet our customers’ evolving preferences.
From a lottery retailer’s perspective the report reads well. It certainly notes the value of introducing store level syndicates to the digital offering. Retailers tell me they certainly like this. Customers I have spoken with like it too.
I’d like to see TLC relax in-store space and location requirements so as to enable retailers to more easily leverage lottery traffic and drive lottery traffic. I wonder if that will happen as they further diversify their retail mix.
I’d also like to better understand the apparent shift I retailer focus. It feels like they are approving more tobacco outlets, which if true, would be at odds with words from the company about community and health. I mean, what good comes from tobacco products. Also, reports this year show that retail channel to be loaded with challenges.
Your last paragraph says it all.
When one looks at the ratings in outlets Sales order The Tobacco and other isolated product outlets Servos and the like are in 900 1200 with the greater majority. This would be a no brainer for any newsagency? Newsagencies and other retailers have 62,6% of the sales sale were 100m then the difference is significant especially as retail sales are also growing.. that
is when the jackpots are growing, which has not been the case over the past year.