Given the substantial contribution to a retailer’s overall income that having the National Lottery in-store can make, demand for lottery terminals unsurprisingly outstrips supply.
The National Lottery can significantly enhance an independent retailer’s bottom line – especially when you take into account that minimal space is needed, there is very little maintenance and the only non-staffing cost involved in operating a terminal is the power needed to run it.
For advice on what retailers need to do to get a terminal, how we judge them and the ways in which they can improve their chances of being selected.
So, to help you understand how we allocate terminals, it would be a good idea to outline why ‘Loterie Nationale’ has a selection process and what that process actually entails.
Why do we have a selection process?
As operator of ‘Loterie Nationale’, our objective is to maximize returns to the Good Causes through selling tickets in a socially responsible way. In order to maximize our sales potential – and returns to the Good Causes – it is imperative we get the best return on each and every one of our lottery terminals.
This means having the right number of terminals in place and making sure that ‘Loterie Nationale’ outlets are in the best locations to offer the best sales opportunities – and therefore the best returns to the Good Causes.
We work with 1000 retailers throughout the country, ranging from small independent shops, to large supermarket chains, to specialized lottery sellers; with independent outlets making up the majority. To ensure we are fair and thorough, the same criteria apply across all retailers regardless of area or sector – with each case being ultimately judged on its own merits.
How the selection process works?
We analyze the sales potential of each of those outlets on our database using a combination of market research and geo-demographic data, as well as additional information collected on an ongoing basis at ground level by our experienced sales representatives. Based on their local insight, they provide recommendations that take account of factors such as the commitment and enthusiasm of staff, access to the outlet (including parking facilities), and store appearance and standards.
We use a geo-demographic modeling system which uses a mapping system to help us identify areas of the country that may be under- or over-supplied, based on estimated demand for National Lottery products. The audit for new retailers committee evaluates each selection nomination to identify which of them offers the best opportunity to maximize returns to the Good Causes. The committee, which consists of the product managers, reviews each recommendation against all of the selection criteria and discusses any justification put forward by the LN sales team. The group also takes into account changes in the retail landscape and wider retail market trends which might influence the sales potential of the potential new outlet – such as if new housing estates or offices are built, stores open or close, new shopping centers open or even the road network changes which could affect shopping habits. The successful selection forms are then passed to commercial operation department for further process.
Contrary to some belief we do not select on a ‘first come, first served basis ’. When a terminal does become available, we use our fair and rational selection process to identify those outlets from our database, irrespective of sector or proximity to other stores, which offer us the best opportunity to generate incremental sales – and therefore raise even more money for the Good Causes.