Two people have told me that Coles staff received as little as a couple of hours training in the sale of Tatts lottery tickets. If true, this makes a mockery of the training requirements imposed on newsagents by Tatts.
Less training coupled with lower corporate image branding requirements and, I suspect, no up front payment provides Coles outlets with a lower barrier to entry than faced by newsagents when taking on Tatts products. Indeed, the costs of establishing a new Tatts outlet in a Coles location based on the trial model illustrate a considerable financial disadvantage for newsagents.
I’d expect the difference in the obligations of Coles taking on Tatts compared to a newsagency to be something taken up with the new federal government given their declared interest in the market power of Coles and Woolworths. I would also not be surprised to see one or two newsagents take the matter up with state based small business forums where a complaint could be easily prosecuted.
The photo shows a lottery ticket sold by one of the new Coles outlets selling Tatts products in Victoria. It’s now like the 7-Eleven tickets. This Coles ticket appears to be printed on the regular Tatts printer. A newsagent got the ticket when a customer wanted it checked.
Coca Cola and others bend over for Coles and Woolies why not Tatts Lotto. The Joys of unfettered Market Power.V
It amazes me that we bitch and moan about a new product from Touch Networks we can sell for no capital cost yet ignore this post.
That ticket looks the same as One I would sell (NSW) where as our 711 trail that has been going forever has there own ticket that looks nothing like One sold through a Newsagent.
Do they have real teminals as well not the cut down version 711 have?
7-Eleven use their POS software. Have not seen the Coles operation.
Tatts will sell their product in as many places as they can.
We all know this and I have accepted this.
Seeing as the training is only a few hours, I guess it is some form of the TAPS program? Hardly enough time.
A few things I would really like to know:
1. Are they required to have a certified manager/franchisee on premises at all times?
2. Do they offer the full range of products?
3. Are they subject to yearly inspections as we are?
4. Do they have to comply with retail image standards? And if so, do they (Coles) have to pay for it?
The next time a rep gives you lip about putting other products on the tatts counter, politely show them the door.
For many people, the Coles Express / 7 Eleven scenario may not be an issue as they do not have those stores near by. But it should be top of mind and of great concern for the options and consequently future decisions it may present Tatts Lotto with.
I am watching with great concern. With both Coles Express and 7-eleven close enough to negatively effect sales.
Tatt’s are palming these trials off as incremental sales, but so were the introduction of magazines, newspapers and phone recharge into supermarkets and petrol stations many years ago.
The real issue these trials present is changing consumer habits. It will spread the sales of these products and deteriorate the level of sales achieved in Newsagencies of Tatts products.
What will that see in the future? I think what we have seen with newspaper and Phone charge commission over the past 5years is the obvious future of Tatts Lotto commissions if the ANF does not grow some balls!
And what about Tatts’ new app on the app store called tatts.com you can access all their products from one account.
lotteries and horse and sports betting,all prizes paid immediately into the one combined account to spend on any of the 3 products you like .
this type of sale, given other gambling products experience, will be even bigger than online sales i think.
retail is rapidly becoming irrelevant in the bigger scheme to them yet our obligations and requirements are more onerous and expensive than ever,
Its going to be tough to maintain current commission levels now and for me it must now be time to seriously rethink lottery in my shop
If tatts dilute the requirements for Coles, then I must carefully consider the shopfit they require of me soon.