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What the Lottery Can Teach Us About C-Stores in Arizona

From the top c-stores to market size, their reports shed light on the gas station industry.

Melanie by Melanie
January 21, 2020
in C-Store Categories, Industry Overview, Statistics
0

New insights into c-stores in Arizona. From the leading chains to the lottery revenues and commissions, read on to discover this market. 

Why lottery and c-stores?

Not surprisingly, it turns out that most people buy their lottery tickets from convenience stores/gas stations. In Arizona, that figure is over 64% of all lottery sales. C-stores lead in this space along with cigarettes and fuel. 

How many states offer a lottery?

Most states sell lottery with the exception of Alabama, Alaska, Hawaii, Nevada, and Utah (see the map below). Mississippi was the sixth state until recently with the launch of its lotto in 2019.

States with and without lotto

What does the Arizona Commission say about c-stores?

There are 2,182 c-stores in Arizona that sell lottery (table below). About 40% are independent which means that chains, specifically Circle-K, dominate this state. 

Do all c-stores sell lottery in Arizona?

We can be pretty confident that most do. Why? The number of stores matches up pretty well to both NACS and the US Census Bureau’s reported total c-store locations of 2,217 and 2,011. 

Business Classification# of Accts% of Accts
Shopping Malls40.1%
Smoke/Gift Shops – Newstands1063.3%
Chain Supermarkets47815.1%
Independent Supermarkets471.5%
Chain Convenience Stores1,16236.6%
Independent Convenience87227.5%
Liquor Stores983.1%
Drug Stores40.1%
Auto/Gas Stations1484.7%
Truck Service Centers481.5%
Bars/Restaurants752.4%
Spec Non-Grocery1033.2%
Bowling Centers30.1%
Mass Merchandise10.0%
In-House & Promotional230.7%
Total3,172100%
Chain/Indpt Supermarkets52516.6%
Total Convenience Stores2,18268.8%
Other Classifications46514.7%
Total All Classifications3,172100%

C-store chains that dominate Arizona.

It’s clear that Circle-K dominates this geography with almost 50% of all convenience chain locations (see table below). Still, there is a good group of smaller chains and independents to give consumers a choice in where to buy their smokes, cokes, and lotto. How much did they make in lotto sales?

Top Retailers# of Accts% of Accts
4 Sons 210.7%
7-Eleven 561.8%
Carioca 361.2%
Circle K 61319.8%
Cobblestone 120.4%
Fry’s Gas 933.0%
Good 2 Go 170.5%
Jackson’s Food Stores 110.4%
Loves 120.4%
Maverik 220.7%
Pilot Travel Centers 180.6%
Quik Mart 230.7%
QuikTrip 1143.7%
Quik-Way Retail 240.8%
Safeway Gas 311.0%
Shay’s 210.7%
Superpumper130.4%
Terribles 90.3%
Woody’s 150.5%
Speedway 772.5%
Convenience Total 1,23840.0%
Albertson’s 301.0%
Bashas’ 471.5%
El Super 60.2%
Food City 461.5%
Fry’s 1213.9%
Los Altos Ranch Market 70.2%
Safeway 1053.4%
Walmart 852.7%
Food Store Total 44714.5%
Major Chains 1,68554.5%
All Stores 3,092100%

Average lottery revenue and commissions per c-store (Jul – Dec 2019).

The below averages show that c-stores (chains and independents) are second only to supermarkets in lottery sales. Since these figures reflect only half the year, we can expect that a chain will earn about $24K in commissions per store per year and an independent will earn about $13K.

Lottery and category affinity.

When viewing lottery, just like any other category, it’s also important to view the basket. In previous NACS SOI presentations, some of the items that had a high affinity with lottery purchases were newspapers, bakery items, coffee, cigarettes, soda, bottled water, prepared foods, pizza, and energy drinks.

Business ClassificationShareAvg SalesAvg Commission
Shopping Malls0.00%$20,041$1,303
Smoke/Gift Shops – Newstands0.90%$39,253$2,551
Chain Supermarkets26.80%$268,421$17,447
Independent Supermarkets0.80%$86,550$5,626
Chain Convenience Stores45.40%$187,118$12,163
Independent Convenience18.50%$101,777$6,615
Liquor Stores1.30%$61,989$4,029
Drug Stores0.00%$15,951$1,037
Auto/Gas Stations2.80%$91,197$5,928
Truck Service Centers0.90%$94,552$6,146
Bars/Restaurants0.80%$51,935$3,376
Spec Non-Grocery0.90%$42,597$2,769
Bowling Centers0.00%$37,921$2,465
Mass Merchandise0.00%$31,009$2,016
In-House & Promotional0.70%$152,015$9,881
Total100%$150,975 

Have a question or something to say about lotto? Leave a comment!

Melanie
Author: Melanie

Tags: ArizonaLotteryNACSUS Census Bureau
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Melanie

Melanie

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