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Newsagents will close unless… stories unhelpful

The stories in media outlets this week that newsagents will close unless they are protected on the matter of lottery ticket sales are unhelpful in my view.

Research by journalists would reveal that in states where there is no such protection newsagencies not have closed as a result. research would also indicate that there are many growing newsagencies without lottery product whatsoever.

I don’t want to be part of channel that survives because of protection just as I do not want to be of a minority and only get a job because of that and not because of my skills.

The stories infer that our businesses are uncompetitive and need help, weak and need life support are out of date yet don’t want to be relevant to today.

The bigger challenge newsagents with lotteries face is not from other retailers getting the products, it is from online. Win the political lobbying on retail and it’s no win at all given the extraordinary growth of online sales and the better service experience for things like ticket checking online.

The newsagents who think their business would close if other retailers like supermarkets got lotteries should think now about how they would react, about the business plans they would implement to survive. Indeed, this is what they should have been doing for years.

Protection is dangerous. It can make you lazy. It can make you feel entitled.

I run businesses in unprotected marketplaces. Competition makes me more focussed and more committed to my own actions for the success of the business. Competition drives me to explore efficient new customer generation – so I am not relying on one path to my door.

By all means lobby the politicians – but in the meantime, act like a professional retailer, make your business more appealing, generate net new traffic for other products and services, make your current traffic more valuable and exert more control over your future than ever before.

While the history of our channel as protected businesses is rich and wonderful, it is history. Our future is in an unprotected market where we are successful because of what we do and not because a politician wants the small business vote.

13 likes
Lotteries

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  1. Chris

    My only issue is the same as the issue we are having with magazines. A level playing field. Any new retail outlet that receives a lotto license must have the same shop fit that newsagents are soon to have. It needs to be a consistent approach by Tatts to all of its outlets. If new outlets do not have the same level of shop fit that newsagents have then there needs to be a tiered level of commission. Hiding behind protection can make newsagents lazy in how they display their store as they will get customers no matter what they look like because they are the most convenient location or the only Tatts agent in town. Our industry needs to improve as retailers, not as protected agents.

    5 likes

  2. Mark Fletcher

    Chris I agree – a level playing field is vital and it is what good competition policy should provide for.

    0 likes

  3. Gary

    We need a reality check here. If the newsagents in NSW can get a free kick from the ref then good luck to them.
    I agree with you, we have to evolve and become retailers and be good at it. If we can get peace of mind knowing that our investment is secure through legislation, this is a bonus, not a blight as you infer.

    3 likes

  4. eric tjie

    been in this industry for 20 years and it is all for change now. you got to be in the right group to survive and prosper. independent newsagency day is numbered.

    0 likes

  5. Bretts

    This post I would like to vote down.
    If NSW newsagents can a positive outcome from this though legislation that is a win.

    1 likes

  6. Mark Fletcher

    Brett I understand the sentiment. The reports themselves do us a disservice though as they paint our channel in a negative light – that we need protection to survive. I think it’s an unintended consequence of the campaign. The other unintended consequence is that it would reinforce different rules in NSW compared to other states.

    0 likes

  7. andy

    Thanks to nana for getting labour in nsw to support the extension of the tatts deal if it comes off it will be the best result for years

    1 likes

  8. Mark Fletcher

    Andy, while it will look like a win, the bigger battle is the shift of lottery business online and mobile. I suspect many newsagents will see the PR win and ignore what they really need to focus on.

    0 likes

  9. Andrew t

    So Andy, tell me, where was your precious Labor a few years back? You must be blind or conveniently forgetful.

    2 likes

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