As consumer preferences for playing The National Lottery evolve, forecourts are uniquely positioned to embrace the opportunity. Here we explore the growing on-the-go lottery market, and how retailers can modernise the in-store sales and player experience.
UK adults spent £4.49bn on National Lottery games in retail in 2022/23, and while the market has remained steady over the last few years, technology-led innovation holds the key to strong sector growth to come [Kantar].
The bedrock of this growth lies in convenience and accessibility, as well as the introduction of innovative features that can help to benefit and engage both customers and retailers.
And, with their trading set-up, forecourts are uniquely positioned to offer this convenience: 89% of multiple forecourts are open 24 hours [Association], with customers visiting on average 3.6 times per week [Lumina] , and with the vast majority of sites, 71%, offering lottery services [Association].
But how can forecourt retailers maximise this lottery opportunity and modernise the in-store sales and player experience?
Meeting consumer preferences
Retail plays a significant role in shoppers’ lottery experience; nearly 15 million lottery players last year claimed to have only played The National Lottery in a retail setting, with retail forecourts, specifically, contributing to this trend [Kantar].
For shoppers who have played Draw-based games in the last 12 months, just over 5% usually purchase their tickets in a forecourt. For Scratchcards, it’s just under 5% [Kantar].
Consumers choose to play National Lottery games for a variety of reasons, including big prizes (67%) and the fact that the playing supports good causes (24%). However, a substantial proportion also play for reasons that forecourts tap right into, with 24% reporting playing because ‘it’s easy to play’, and an additional 13% reporting ‘it’s cheap to play’ [GOV.UK].
As a forecourt retailer, therefore, offering lottery services opens the door to upselling opportunities in the growing on-the-go market, as customers look to these locations as a practical way to pick up both repeat- and impulse-purchase tickets.
Maximising the forecourt opportunity
For consumers, playing the lottery in a forecourt offers convenience. As a location visited by nearly a fifth of customers every day [Lumina], with a typical basket spend of £11.38 (excluding fuel), lottery offerings provide a well-priced add-on purchase.
For retailers, sales of The National Lottery provide welcome commission: 5% on Draw-based tickets sold, and 6% on Scratchcards. And regular lottery players offer reliable increased footfall, as they’re likely to choose local forecourts offering lottery services over those that don’t. Nearly 40% of forecourts have no other retail services or businesses close by, leaving them unrivalled in the services they offer to visiting shoppers [Association].
Lottery-only shoppers may also spend on impulse in other categories, such as food and drinks, with the average forecourt basket containing three items, on top of any fuel purchased [Association]. In fact, one in 10 UK consumers say they impulse-buy every time they shop, according to research by Clear Channel [Clear Channel].
Motivators for these impulse purchases include promotions and discounts (50%), a ‘treat yourself’ mentality (40%) and in-store advertising (19%). Forecourt retailers should therefore think carefully about the promotions and point of sale advertising situated near their lottery offerings and counters, to maximise this impulse opportunity.
Another growing market is the gifting opportunity, particularly in National Lottery Scratchcards. With a breadth of games on offer, an accessible price range (typically from around £1-£5), and the altruistic nature of each purchase raising money for National Lottery-funded projects, they’re becoming a popular gifting gesture.
Dominic Williams, head of alternative channels at Allwyn, emphasises the impact of The National Lottery since it launched in 1994: “The National Lottery has generated over £49bn for more than 690,000 community, sport, arts and heritage projects across the UK since 1994. This is an added driver for gifting purchases, which also offer recipients the opportunity to become a winner and join the millions of people who’ve cumulatively been awarded over £94bn in prizes, including over 7,200 millionaires made.”
The future of lottery in forecourts
For forecourts investing in improving their stores, 16% are prioritising technology [Association] and this includes across lottery offerings.
Williams, explains: “The National Lottery is currently undergoing a transformation, including the roll out of new state-of-the-art terminals, and a brand-new gaming system that will modernise the in-store player experience. This is a really exciting time to be partnering with The National Lottery.”
Since the start of the Fourth National Lottery licence in February 2024, Allwyn has committed to investing in retail kit and technology to modernise The National Lottery offering. The rollout of new permanent point of sale (PPOS) pieces, which commenced in June 2024, will help deliver more modern retail environments and capture the attention of customers with eye-catching branding and ‘call to action’ messaging. This includes an attention-grabbing illuminated Scratchcard dispenser, and a new Playstation with a wing allowing retailers to display information about National lottery-funded projects local to their store, for the first time.
Sustainability is a growing area of importance for forecourts, with over half (51%) investing in energy-saving measures such as chiller doors and LED lighting, as well as smart meters (26%) and solar panels (7%) [Association]. Working with sustainability partner Planet Mark, Allwyn has adhered to these growing eco concerns of retailers by ensuring that the new National Lottery PPOS kit and its transportation are carbon-efficient, due to lightweight design, and by priotising recycled and recyclable materials in the kit’s manufacture and deployment, with some components made of 60-100% recycled materials.
Accessibility is another area of development for forecourts. In 2023, 69% of forecourts had wheelchair access, with 56% having specifically wide aisles. Disabled parking was available at around 51% of forecourts, with 12% offering hearing aid loops.
To account for the increasing demand for accessible retail environments, Allwyn called on the expertise of its accessibility partner, Purple, to help deliver a more accessible National Lottery . The height of new Playstation tables has been standardised to be more considerate of wheelchair users – as has the Scratchcard dispenser media screen – and payslips are set at a suitable height within reach. Graphics and signage, as well as the surfaces they sit behind, have also been designed with accessibility in mind.
In most cases, National Lottery permanent point of sale will be swapped out with the improved new items on a like-for-like basis. Your store will be contacted when your installation visit has been scheduled.
Visit TNLPartners.co.uk to register your interest in becoming a National Lottery retailer.
