It’s no secret in our industry that the lottery category lags behind other consumer products when it comes to how games are accessed and purchased at retail. Despite $348 billion in annual retail sales globally, conversations at industry conferences seem stuck on replay. Every year, the same challenges are rehashed on panels, commiserated during coffee breaks and debated at after-hours gatherings. Meanwhile, time ticks by with minimal movement on adapting to consumer trends which are racing forward faster than ever. With the bulk of lottery revenue currently generated at retail, what’s really happening out there? Are lotteries and their partners working with current retailers in ways that will keep their products relevant in changing retail environments, the new generation of consumers – and the next generation of players? Are they growing consumer touchpoints by onboarding non-traditional retailers? But there’s an elephant in the room…most government lotteries are unable to invest significantly in the technology needed to modernize their business. More than ever, their technology partner’s ability to support rapid and cost-effective migration to new retail technologies is the difference between good performance and great performance. And that adds up to multi-millions of dollars. While the holiday season was still strong despite the economy and low but slowly rising consumer confidence, it’s important for lotteries to identify and focus on retail opportunities in 2024. To do this means getting inside the minds of the retail community to understand the trends they see on their horizon and align lottery efforts for maximum results. The National Retail Federation predicts that the average U.S. store size will continue to shrink. With shoppers’ waning attraction to mega-sized stores, smaller-footprint stores will continue trending, putting counter and display space at an even greater premium. New and redesigned stores are playing a significant role in optimizing the customer experience. And shopper expectations are high. Retailers are balancing the in-store experience with the transaction, which translates to purchases and loyalty. Convenience stores are redesigning and re-engineering how and where merchandise is displayed – including lottery scratch games. With retailers welcoming more technology into their stores, new tech-driven layouts are designed to offer convenience and a seamless path to purchase. “Both retailers and players require real-time information to achieve that frictionless shopping experience,” said Michael Martin, VP of Retail Solutions for Scientific Games. “We recommend SCiQ digital menu boards to streamline and modernize space in the store and engage both retailers and players with dynamic real-time information such as new games, next available ticket number and key promotions.” Progressive Grocer reported that while Gen Z may be leading the way, shoppers across demographic groups appreciate the convenience of self-checkout. A survey of 4,000 shoppers in the U.S. and UK found that two-thirds of survey respondents said they would choose retailers that offer self-scanning at checkout. Why the gravitation to frictionless buying? Speed. More than a third – 34% – of those polled also noted they don't like to stand in line for regular checkout and 33% said that they appreciate less interaction with people. Not the best stats for clerk checkout, particularly during a Powerball run. And with the shortage of retail workers not predicted to let up in 2024, self-service is here to stay. And that means both self-checkout and selfservice vending machines. “Consumers aren’t willing to tolerate an inconvenient purchase experience. We’ve got to meet them where they are with cashless sales at both self-service and self-checkout with proven solutions to sell lottery products, or risk losing players,” said Joe Fulton, Director of Payments and Commerce for Scientific Games. New & Redesigned Stores
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