Viva Energy Australia has completed the purchase of the On The Run group, a network of 170 fuel and convenience businesses in South Australia that have a track record in the lottery space.
The merger amalgamates On The Run and well as Smoke Mart & Gift Box into Viva Energy’s convenience business, creating, as I understand it, a network of 1,000+ convenience retail outlets, including Coles Express, and Liberty.
This acquisition may have no impact on newsagents with lotteries or it may be a step to moves that do have an impact. On The Run outlets are good, consistent and broad in what they offer. Only time will tell what from the On There Run product mix makes it into the other outlets – like lotteries for example.
c-store.com.au offers good context:
Viva Energy’s CEO and Managing Director, Scott Wyatt, said today’s acquisition is transformational for Viva Energy and that OTR will become Viva Energy’s flagship convenience brand.
“The introduction of OTR’s superior convenience offering, including quick serve restaurants, will help revolutionise the diversity and attraction of our retail offering,” Wyatt said.
“As our stores increasingly become retail destinations, we expect convenience earnings will grow and reduce our dependency on traditional fuels.
“OTR outlets offer an attractive and welcoming store environment, supporting increased dwell time, which is likely to be a key factor in successfully introducing electric vehicle recharging facilities over time.”
What they are planning is what any retailer in channels impacted by change must plan: revolutionise the diversity and attraction of our retail offering.
My goal today is to ensure newsagents are aware of the acquisition, to be aware.
From local articles Viva’s purchase of the OTR network was about instore sytems and the ability to move these systems into Viva’s channel.
Viva believed it is cheaper to buy the OTR existing network (not real estate) and their systems, than create their own.
The real issue with Lotteries is the cost of the shop fit. OTR’s seem to get away with almost nothing, but Newsagents can spent a forture.
It seems as there are two sets of shop fit rules – one for OTR’s and for everyone else.
Thank you Mark for giving attention to what OTR has done in South Australia. As one who has battled The Lott and their asinine rules only to see those rules us newsagents must live by be ignored by the nearby OTR outlet, newsagents that will see OTR businesses near them in the rest of the country soon are in for a shock. Good luck to you all. TheLott does not treat its outlets equally in my experience.