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Gambling Bad for South African Retailers

"This is a worrying development, particularly for the fast-moving consumer goods (FMCG) sector. Privately, most companies are starting to worry about revenue potentially lost to gambling, particularly the lottery.

"'SA has a low per capita disposable income and competition for those rands could intensify very soon'

"It is estimated consumers will eventually spend R3-billion on the lottery and R4.5-billion on other forms of gambling annually.

"According to Uthingo Management, which runs the lottery, sales have exceeded R747-million since the lotto started in March. The company expects sales to top R1-billion in six weeks' time. The figure takes into account scratchcards, which existed before lotto.

"Comparable figures for gambling are not available because the National Gambling Board is only now compiling the data.

"…SA has a low per capita disposable income and competition for those rands could intensify in the months ahead.

"Analysts say that with spending shifting towards the lottery and gambling, the consumer goods sector could be in the firing line.

"…S'bu Mngadi, vice-president of CocaCola Southern Africa, says the `success of the lottery is something that concerns us'.

"…Brian Bayers, group marketing director at Shoprite Checkers, says the lotto has definitely had an impact on consumer sales, although it is hard to quantify.

"…He adds that Shoprite Checkers has installed lotto kiosks in its stores, so losses to downtrading are recovered at the kiosks anyway.

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