‘Business is real good’ with Powerball sales
As convenience retailers and supermarkets handled a flurry of last-minute Powerball ticket sales ahead of Wednesday night’s drawing, store owners were hoping the record-breaking $1.5 billion jackpot would boost their businesses, too.
“Business is real good,” said Jyoti Mehta, owner of the Highland Creek BP at 5045 Ridge Road, after unwrapping a stack of blank Powerball slips.
“We see lots of new faces. … It’s good for my business.”
Convenience stores sell about half of all lottery tickets sold in the U.S., according to Jeff Lenard of the Virginia-based National Association of Convenience Stores. So, it’s quite likely that this week brought some of the busiest days in convenience store history.
“It gives retailers a chance to shine and enjoy the excitement in their communities,” Lenard said via email.
But despite the expectation of record business, Lenard said it’s possible some owners may see a dip in sales, with some customers buying only lottery tickets.
Other patrons, looking to get a quick cup of coffee or a snack, may be frustrated by trying to find a parking spot or waiting to check out, so they leave. Some stores are using the lines as a chance to raise awareness of their food products and other offerings, Lenard said.
“Sometimes the lines scare people. But of course, lottery sales are up,” said Gus Khalil, manager at the Exxon 7-Eleven at 9025 Mallard Creek Road.
“In the evening, when it gets bad, we’ll have Register 2 for lottery only.”
Khalil estimated that typical customers spent $5-$10 on tickets. And “some people will come in for snacks,” and end up getting tickets, too.
Ticket sales, which include scratch-off games and draw games such as Powerball, have ballooned in Mecklenburg since the state lottery’s inception. In 2006, the lottery’s inaugural year, Mecklenburg stores sold $43 million in tickets. By 2013, sales climbed to $132 million, according to an Observer analysis of state data.
Mecklenburg County is home to some 500 active lottery retailers. Through mid-2014, they sold about $600 million in lottery tickets.
Thirty-seven active Mecklenburg retailers sold more than $2 million in lottery tickets, data show, and three have sold more than $5 million.
Plaza Sundries on East Trade Street led all sales with $5.5 million through mid-2014.
Lottery tickets are sold at a number of store types, from bars and convenience stores to smoke shops and supermarkets.
Salisbury-based Food Lion also has seen a bustle of lottery customers, and has added additional store associate hours to help service customers, “so we can make it an easy shopping experience for them,” spokeswoman Christy Phillips-Brown said.
Gas stations led all active Mecklenburg stores, selling some $400 million in tickets since 2006. Many Charlotte-area stations this week advertised a “$999 million” jackpot on their electronic signs, which weren’t designed for winnings in the billion-dollar range.
On a typical day, convenience stores with gas stations serve around 1,100 customers a day – 300 at the gas pump and 800 inside the store, buying items that include lottery tickets, according to the convenience stores association. On a $2 Powerball ticket, retailers make about a dime. Stores that sell winning tickets also receive commissions.
Lottery customers tend to be regulars and buy other items while they are there, according to the association.
That played out at Mehta’s store on Wednesday, where one Highland Creek resident and self-described “16-year customer” bought $30 worth of Powerball tickets, then spent about $15 more on cigarettes. “It’s convenient” to get both during the same trip, said the customer, who didn’t want to give his name.
Khalil is more hopeful about getting a boost from returning customers, rather than on the sales he’s making to people buying more than lottery tickets.
“It might increase single-digit percentage-wise, but nothing to take to the bank.”
This story was originally published January 13, 2016 at 5:26 PM with the headline "‘Business is real good’ with Powerball sales."