NANA, the NSW newsagents association, released this yesterday:
The retail franchise administration group at Tatts Group Lotteries has advised lotteries outlets in NSW and ACT which have a 30 June 2017 deadline to upgrade to the Generation One DigiPOS Retail Image that an across the board extension to 30 November 2017 is now in place. The extension gives Newsagents and other lotteries outlets in NSW and ACT previously due for the upgrade by 30 June 2017 a five-month extension.
If I was a Tatts retailer I’d be frustrated at the moving targets over the course of this project. The moving targets have altered the costs and this could have disadvantaged those who moved earlier.
Also, their decision to put in place a delay now is odd given the heavy handed notices sent out last week.
Maybe Tatts could use the delay to gather evidence of the commercial benefit of their demand retailers install DigiPOS. For the size of the spend retailers deserve more than a hope of a revenue increase. tatts should have evidence from the retailers who have it already. My suspicion is there is no noticeable increase in revenue that justifies the increase cost imposed on small business retailers by Tatts.
QLD as well .
Thats spot on Mark.
According to the National Franchise laws, a franchisor cannot impose significant capital expenditure costs onto the franchisee without showing what financial benefit the increase in capital expenditure will give the franchisee.
It’s all totally illegal.
The newsagent, located in the next suburb from us, has just completed their retail image. One screen and scratchies diagonally positioned to the back wall. They are in a bigger strip centre than us and have been afforded significant cost reduction with the installation of their retail image.
Tatts are also heavily promoting online sales, which they are entitled to do, that has a direct effect on our retail sales. I am a complete loss how Tatts can show retail stores (franchisees) there is a financial benefit with the increase in capital expenditure (retail image) while driving sales into another channel. I am very interested in the National Franchise Laws.A
Interesting Conversation. I have recently applied for a Small Business Digital Grant that is available thought the Queensland Government that will help with cost of the Digipos (The Lott informed us of this grant via email)
Two of the questions asked in the Grant application were:
1. Provide a clear outline of how the technology or service will enhance the digital capabilities of the business and make the business more competitive.
2. Provide details of the impact the technology or service will have on the business, for example revenue growth, cost savings, time savings, employment outcomes.
Well I pondered over these questions for a while and thought, “Who better give answers on this than the company that is asking me to pay for them. So I spoke to The Lott and asked them for their help in answering these questions. I specifically told them that I was not wanting information relating to my business as I knew I wouldn’t get that but I wanted an overview of what the benefits are of this new system and what benefits it will give my business or any business that installs it.
The response I received was the following:
” I have followed up (on your request) and been advised by management that unfortunately we cannot provide the details requested.
So I spoke to the representative and asked why and he informed me over the phone that it is a legal issue and they cannot provide that information.
Shauns Probably the reason they can’t answer your question is because they have NO data to support a claim that the new image will in fact grow your sales ect
I am not wanting information on my specific business. Just the overall benefits of the new systen
Perhaps there is v little data to support the premise that the Digipos supports retail channel.