I know of newsagents are preparing to hand back their Tatts agency at the deadline of the requirement for them to install the new corporate image and digital platform.
Several who have spoken with me say they have advised Tatts.
I know of other newsagents who have decided toque their businesses because of the Tatts refit and dignity marketing costs.
It surprises me that Tatts is not more engaged on this issue, in the face of this evidence.
Here we have small business retailers turning their backs on their businesses because capital expenditure requirements for which there is no obvious return on investment.
The silence from Tatts on their requiring a capex by small business retailers for which there is no sound business case. Indeed, I am told that when newsagents raise this at Tatts forums they are shut down.
My understanding is that a franchisor cannot rehire a franchisee to engage in capex without provide a sound business case.
Tatts has enough shops with the new cutout and the digital marketing platform for them to provide evidence of the commercial value of the capex.
The only reason I can think why Tatts would shut down conversation or provide evidence supporting the capex is that no such evidence exists.
Newsagents I have spoken with recently feel helpless, leaving them no option but to walk away. This is a dreadful situation for their families. It speaks to the handling of this by Tatts.
I don’t expect comments to this post as most who do comment on Tatts matters raised here contact me privately out of fear of retribution by Tatts.
Tatts could fix the situation with evidence of a good return on investment from the refit and digital marketing investment. I cannot understand why Tatts refuses requests for such information. The only reasonable conclusion is that such evidence does not exist. This his what newsagents think. Tatts knows it. mThe best counter tatts could have would be evidence to the contrary.
The future of many family owned businesses rests with Tatts.
It is going to take 1 agent to stick up for themselves and take this to court for the whole group to benefit (potentially). I have already consulted my lawyer and set wheels in motion so that I can argue the legality of this demand when it occurs.
Luckily I do not “require” an upgrade as yet but when I do I will fight it tooth and nail. I will also be arguing that I do the same fitout that has been installed in the IGA supermarket that has the new digipos (1 screen, 1 small counter with the scratchit dispenser and terminal) which would free up 70% of my counter space for my own use.
We are required to upgrade our one of our shops this year due by November. The lease is up for renewal in October. The only quote I have to date is for $45,000 (that includes GST and screens) and under current trading conditions it is not a feasible proposition and we are looking at closing. Our main store has already done the transition to the new image and there is no financial upside. Just because it looks pretty doesn’t equate to more dollars spent. In fact customers are more confused and less engaged.
Yep, I agree with Ian. I’ve had the upgrade and there is no evident financial upside and agree that the customers are often more confused.
Rather than having a clear message as to what the jackpots are you have to wait for 8 or more screen cycles sometimes for that to come up and a customer isn’t going to wait that long.
I actually had a customer comment this morning that “Couldn’t they have done that with one screen rather than two ? ” which is exactly spot on. They could have done it with one, actually made it look better and more easily read by customers with out being overwhelming and it would have cut the cost to me and taken up less rather than more of my real estate.
Chris , I too actually had a word to a lawyer before going ahead with it and his opinion was that it was a winnable case however he said Tatts would potentially sandbag it out for years to prevent an agent having a win which would result in a landslide of claims. He did however say that there is nothing to stop me making a claim after selling the business down the track when time is of less importance and there is no fear of some form of retribution. Just make sure you have made your point known to a Tatts representative and have documented this yourself.
interesting info Paul S. Totally agree, we have just completed our refit in the past 7 days. Just this morning a customer standing there says – so what’s tonight’s jackpot. Of course my husband knew but said to him, you have to watch the screen to see, they stood for the full circle of the screens to see TONIGHTS jackpot come up. He laughed and said, “in future i will start staring at the screens when i walk in the door”… yay! those screens were so totally worth it! We are making no secret of the financial burden this has placed on us and our family to customers.
I hope there is a newsagent somewhere with the cash and fortitude to take them on legally. Their screens and fit out is done – and now my attention goes to running our business the way we want too!
Would agents who have completed the fit out consider a class action?
Amanda I doubt it. They should though.
Get the media on side like A Current Affair. If newsagents don’t like it, customers don’t like it and it is sending small businesses broke there is a story in it. Tatts will be hard pressed to justify the difference to customers (let alone improvement to sales) it will make while all the negatives abound.
Which Television network does not have Tatts as a major advertising account Stuart ?
Which network would jeopardise that account ?
I have done several media interviews on this story including ABC and commercial radio. Journalists are surprised on air and off air when they are told the facts but they move on to the next story. It is only when the impact of this story on families is told over and over that it will cut through I think.
Tatts do not care businesses are closing they are relying on a percentage of the customers that that business services to transition to online and that being the end game for them retailers closing is of no consequence .
The retailers who have or who are going to do refit ,tatts deals one on one with individual retailers rather than as a collective ,which makes it easy for them to use what are little more than stand over tactics.
Its the entire reason the local newsagency has become redundant , as its the way every major organization we ever serviced has treated us
And I’ve just noticed for the first time today the screens were advertising a Tatts “online” game !
How F&%*$*#g arrogant are these bastards ?
While I’m no longer a member of the ANF as
I found them a waste of money, I would be very interested (as I’m sure they have someone who reads here) to hear what either they or the other lotto agents association (sorry forgot their name !) were willing to say about this or what they intended to do. While I’m sure the first doesn’t actually care as they don’t want to endanger their sponsorships from Tatts I’d be interested to see what either has to say. (I know I’m dreaming ! )
Had to step back and watch that one myself Paul .Fine line the add is encouraging people to get the app ,so they can argue they are not advertising to play online,but once one has the app….
And yeah dreaming for sure coba