This post is about what appears, in my opinion, to be a double standard of Tatts in its dealing with small business newsagents compared to the giant On The Run convenience group in South Australia.
This post is also about business ethics, social responsibility, support for small business and, fairness.
Whereas On The Run stores can have non Tatts products next to, in front of and around the Tatts counter space, newsagents are not allowed.
Here is a photo of an On The Run counter. It is setup is such a way that it appears to be permanently operating this way.
Now, look at a newsagency counter in South Australia. This location is at the front of the shop, to the side of the main lottery serving counter. If the newsagent puts any other product on the empty square top you can see in the photo they are fined. Well, actually, they are not fined. The site auditor marks them down and Tatts requires another visit to make sure they are compliant. This supplementary audit costs something like $230. I see the $230 charge as a fine.
This, to me, looks like double standards from Tatts. The newsagent is being held back, their competitiveness is being hindered while On The Run is provided a competitive advantage.
I would like to see the double standards tested on behalf of small business newsagents in South Australia and, indeed, nationally. If this behaviour is allowed to continue unchecked what will happen when more of these corporate convenience and similar businesses come on stream? How will newsagents be able to compete with Tatts stopping newsagents achieving the best possible return from Tatts traffic?
I would have thought Tatts would want to be in successful retail outlets. One way to ensure success is to allow and encourage retailers to be retailers.
The only performance measures Tatts should have are year on year performance on a same store basis and store performance compared to other outlets in the region. These performance measures should apply equally to all retailers.
Not allowing a newsagent to use the space in the photo above is unfair and an abuse of power by what, in my opinion, is a large and overbearing supplier. In fact, it is the type of behavior new ACCC rules from the federal government could assist in resolving.
One for my namesake ?
Earth calling Mr Shipton ……ring ring…….ring ring………ring ring
For those not aware, Colin Shipton is the ANF in South Australia. In my opinion, the Colin has failed newsagents in SA for years. Take your annual fees and invest them in your business and stop paying people to do a bad job.
I have received six calls from newsagents today about this, agreeing with the post as similar has happened to them. Each has said they will not comment as they fear reprisals from Tatts.
To those Newsagents who fear reprisals and will not write on this blog .
How can you run your businesses being in fear of your suppliers ? You are not doing yourselves or the industry any favours .
As for the ANF well they wouldn’t want to upset any potential sponsors would they.
I would suggest the Small Business Comissioner of SA would be a good starting point .
I think this is just as much about revenue raising for Tatts SA than anything else.
You would think Tatts would want the best for ALL of its agencies . In all my time in the industry (which is a long time) ive never seen such rediculous behaviour which borders on harassment.
Our Tatts Rep says she is just the messenger thats a cop out the messages sould go both ways
Don’t think that Mr Shipton or any other fatcats in the ANF Australia wide will stand up for newsagents. They will lose their free long lunches and sponsorship if they upset Tatts, MPA or Newscorp.
As for Tatts and its treatment of newsagents, why don’t the 4000+ newsagents in Australia stand united and on one day(make that day TODAY) put in a complaint at the same time to the ACCC and your local small business commissioner and inundate them.
They WILL then have to do something about this dictatorship and unfair competitive terms governed by Tatts over the newsagency channel and put the arrogant bastards back in their box.
Mark, your comment #3 is correct. Newsagents will not comment. If the agent is identified from this blog they will be breached. I saw a comment on a Golden Casket FB page last week about the deplorable start to scan on sale that the agent had written and they received a call from GC and their GC retail executive and told to remove or a breach notice would be pending.
Warrick if that is true, and I have no reason to doubt it, it is appalling behaviour by Tatts and something that ought to be challenged.
Really what are these associations doing to support the industry? my opinion…. to worried about the small stuff and need to start focusing on the bigger issues like lobbying governments to get woolworths out of NSW.
Michael #8 What the hell is getting Woolworths out of NSW got to do with this post? We are talking about two different standards here where newsagents are disadvantaged over other retailers. Since Tatts bought Golden Casket it has been all down hill in Queensland. The people running Tatts or should I say, the young hot shot that is at the head of this corporation should be ashamed of what he has done. I will be challenging Tatts at the earliest convenience. ACCC here we come.
Warrick – this is exactly what i am talking about !!!!! Nsw and victorian and south australian agents are dissadvantaged compared to queensland !!!!! By getting lotto out of woolworths/on the run will help all newsagencys !!! Where have you been? this isnt just about golden casket!
Michael, I was not aware that WW sold lotteries in other states. Your post said nothing about lotteries, it says and I quote, get Woolworths out of NSW.
Where have I been, I don’t belong to any state or national association because it’s a total waste of money, I was better off transforming my newsagency into a sleek modern business with my money and the funds that would have been buying corporate lunches.
I never said it was just about GC so get you facts right.
The ANF has been a total failure to newsagents, just sighting one example “Bill Express” that cost us and many others in all states a considerable amount of money.
Anyway, I’m off to salute my grandfather who was a Gallipoli veteran. Have a great ANZAC day and thank you to all that have served this great nation.
Michael newsagent associations get from newsagents millions of dollars a year and, in my opinion, offer no return on that investment. Those who profit most from the associations are those who work for them. Spend your money elsewhere, in your business, and get a better return.
Why are we spending $30 000 to $40 000 on Corporate Image shopfits for Tatts while we lose Tatts traffic to other channels they are building i.e. Online and Corporate Retailers? With DigiPos now required we still have to provide a poster bench ($1400) for 2 poster frames outside. Absolutely filthy on this amount of my money being spent by Tatts with no chance of a ROI.
Now Tatts want extra 1% of commission for doing Tatts advertising in store by installing in shop Digipost.
What a shame on Tatts to doing with retailers