The folks at Intralot are well into the process of briefing Victorian newsagents and other interested retailer about their offer.
We are into the final countdown to the most significant change in the distribution of lottery products in Victoria in decades. There will be new retailers and new products. Several existing produce will cease. retail locations in existing retailers will change by necessity and new retailers will sell some lottery products.
The battle about Intralot is yesterday’s fight. Today the focus has to be on the opportunity the change brings.
I see the arrival of Intralot and the repositioning of Tattersalls as an opportunity for every newsagent to reinvent their lottery offer, to exploint the publicity and advertising and to re-engage with shoppers about our in-store offer. So, outside of everything Tattersalls and Intralot will do, we will engage and leverage the change for the maximum potential.
What does this mean? Better in-store displays, more local promotions, education aimed at our demographic and more fun!
Mark, could I pick your brain and exprience? I saw a 2 terminal Tatts outlet (no newsagent, just additional giftware) for sale in inner Melbourne at over a 3 times multiple ($250k for 795k). I know you have discussed the multiple of newsagency sales previously, and I look forward to hearing more about how your own sale may pan out. But is it fair to sell a stand alone tatts shop for such a huge sum in the current conditions? Maybe it is, or maybe they used to get bigger multiples. I honestly have no knowledge with this, I just know that a big multiple implies an fairly assured income when you look at newsagencies and post offices.
The first step has to be to get to an accurate net. Often, with addbacks, the figure is unsustainable. o, get to the right sustainable net. Next, the multiple – the price is whatever you think is fair. If you think three times is too high then walk away.
I expect lottery outlets to sell more at a two to two and a half multiple except where these is excellent upside.
Mark
thank you.
So much for Tatts supporting their retail network…Interested to hear yesterday the last ad, on the Nova radio station, just before their 6 oclock news (im told one of the best spots of the day) an ad for the superdraw this Saturday, “you dont ever need to foget your tickets,get them now online at http://www.tattersalls. etcetc ” no mention of the retail stores at all …and all whilst most of us were still working away to sell their product…I thought we were told their website would never be used to compete against us…just support times and areas that didnt have a retail presence…Another Tatts promise that should never have been believed….You think with the impending changes looming they would be a little more supportive..or do they also have other changes we dont know about.
As i said,the prodigal son in Lotteries might,and more importantly should, get a bit more attention again…and by that i mean their retail network not their website!!
Hope they never forget the engine room that built the empire and reward it appropriately…