The lowering of sales targets by Camelot is good news for many retailers, says Fiona McLelland
Lottery operator Camelot lowered sales targets for retailers at the start of this month, which should result in fewer stores having their terminals withdrawn for not selling enough tickets.
The sales target has been reduced from £1,400 per week to £1,000. When The Grocer visited Bellevue Cash & Carry in Edinburgh, independent retailers said it would be good news for many retailers struggling to reach current targets.
But the move could also be a problem for those retailers who are hitting the targets, says independent retailer John Sheik. His Landmark-affiliated Lifestyle store on Leith Walk, Edinburgh, is enjoying an increase in lottery sales. He puts the uplift down to the £50,000 investment he put into his store last year to become a Hot House scheme customer.
“Camelot’s strategy seems to be to put out more and more machines and sell through more and more different media formats. But that’s not the answer, as this approach will simply dilute sales.”
Sheik says that he used to have a very good relationship with Camelot and its sales representative, who would regularly keep him up to date on sales. But he claims he has not had a visit from a rep in more than six months and says that he can only guess that his lottery sales are up because overall sales at his revamped store are up 50% on last year.
“Service was great at the beginning when I used to see a rep every six weeks or so, which meant we could resolve any problems there and then. I would like that closer contact with Camelot again.”
Mark Crolla runs Crolla’s of Newhaven, the Main Street store that has been the family business for more than a century. He says the increase in targets will not affect him because he has a loyal customer base and no trouble with sales. But others will benefit, he says. “This has come too late for my brother, who had his machine taken away. I’ve had the lottery from the start and built up my customer base from there. But for retailers who came in later, it has been difficult.”
Crolla says the lottery is valuable for his business because it drives footfall - he estimates 70% of lottery customers make additional purchases. This year, ticket sales have remained steady and he has seen a rise in scratchcard sales. Although happy with Camelot’s service, Crolla would like a bigger margin on ticket sales.
Imtiaz Ali would also like more profit from his rising lottery sales, but he adds that it can be a lifeline for small traders. “Camelot is the difference between having a business and not having one. Before I got the lottery 10 years ago, I had 400 people come in on a Saturday. Now I have 1,400.”
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Lottery operator Camelot lowered sales targets for retailers at the start of this month, which should result in fewer stores having their terminals withdrawn for not selling enough tickets.
The sales target has been reduced from £1,400 per week to £1,000. When The Grocer visited Bellevue Cash & Carry in Edinburgh, independent retailers said it would be good news for many retailers struggling to reach current targets.
But the move could also be a problem for those retailers who are hitting the targets, says independent retailer John Sheik. His Landmark-affiliated Lifestyle store on Leith Walk, Edinburgh, is enjoying an increase in lottery sales. He puts the uplift down to the £50,000 investment he put into his store last year to become a Hot House scheme customer.
“Camelot’s strategy seems to be to put out more and more machines and sell through more and more different media formats. But that’s not the answer, as this approach will simply dilute sales.”
Sheik says that he used to have a very good relationship with Camelot and its sales representative, who would regularly keep him up to date on sales. But he claims he has not had a visit from a rep in more than six months and says that he can only guess that his lottery sales are up because overall sales at his revamped store are up 50% on last year.
“Service was great at the beginning when I used to see a rep every six weeks or so, which meant we could resolve any problems there and then. I would like that closer contact with Camelot again.”
Mark Crolla runs Crolla’s of Newhaven, the Main Street store that has been the family business for more than a century. He says the increase in targets will not affect him because he has a loyal customer base and no trouble with sales. But others will benefit, he says. “This has come too late for my brother, who had his machine taken away. I’ve had the lottery from the start and built up my customer base from there. But for retailers who came in later, it has been difficult.”
Crolla says the lottery is valuable for his business because it drives footfall - he estimates 70% of lottery customers make additional purchases. This year, ticket sales have remained steady and he has seen a rise in scratchcard sales. Although happy with Camelot’s service, Crolla would like a bigger margin on ticket sales.
Imtiaz Ali would also like more profit from his rising lottery sales, but he adds that it can be a lifeline for small traders. “Camelot is the difference between having a business and not having one. Before I got the lottery 10 years ago, I had 400 people come in on a Saturday. Now I have 1,400.”
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