UK supermarket giant tesco is taking on c-store giant 7-Eleven in Thailand with the opening of a new model called 365. My understanding is that this is a trial of a new smaller-format c-store.
In Australia we see Coles and Woolworths continuing to change their core supermarket model and, to a lesser extent unit now, play with alternative retail models. This new tesco model is something to watch.
Tatts gets this too – why else would they embrace 7-Eleven and Coles Express and treat them differently to newsagents.
The story on page 25 of today’s SMH speaks volumes about Tatts future direction
Why expand and take away from the main lotto agent who has grown the product? Newsagents make up probably over 95% of retail sales of Tatts products in NSW. Service stations are at the bottom of the pit. 7eleven store sales are so low they have now been removed from rankings.
Incremental sales will be minimal, they will only damage the brand and devalue its worth to retailers already supporting the product.
NSW Newsagents should be demanding 15% commission. incremental business through new outlets with should get 5% commission.
Amanda I suspect its because they suspect that main agent has lost their way.