Here is an announcement from ALNA late tonight.

Newsagents to remain open across Australia 

• Enabling accessibility of news and information for older Australian and those with limited digital options
• Establishing strict protocols regarding social distancing, cleaning and hygiene

Australia, 23 March 2020, Following on from the Australian Lottery and Newsagents Association’s (ALNA) proactive letter to several Federal Cabinet ministers last week, requesting that they consider Australian newsagents to be an ‘essential service’ and remain open as they have in France and Italy, ALNA is pleased with advice and support we have received from State and Federal governments that newsagents can remain open at this time, while managing their responsibilities carefully.

ALNA was contacted today by the Deputy Prime Minister, Michael McCormack, who acknowledged the advice we had provided government regarding newsagents and their role in the Australian community. He reassured us that the government made efforts yesterday to provide greater clarity for all small businesses, including our members, around which businesses were closing.

ALNA understands how complex these issues are and we appreciate the government alleviating members concerns and providing greater clarity for all small businesses including our newsagents. We want to be a strong role model for other businesses in managing social distancing and helping to educate the public about this, all the while continuing to deliver hard copy news and some of life’s basics. In particularly supporting our older generations who rely on newsagents for their convenience and to many others who either don’t have ease of access to digital news or whose preference is for hard copy news.

Ben Kearney, CEO, Australian Lottery and Newsagents Association, stated “With strict cleaning protocols, personal hygiene and social distancing rules in place, and limiting how many customers can be in store at any given time, it’s undoubtedly not business as usual, however we are working hard to innovate our service delivery and this announcement from the Government provides certainty, for now, to our newsagents as to their continuity of trading during these challenging and unprecedented times”.

Newsagents are also in a strong position to alleviate pressure on supermarkets and local grocery stores, as many provide food and beverage items and other important household items. And with school children still either attending school or being home schooled, having access to a wide range of stationery and school supplies will be a relief for parents and carers as well.

Ben Kearney, CEO of ALNA, has been in touch, outlining his representations recently, including today, on behalf of newsagents, seeking to have retail newsagencies permitted to open during the lockdown.

ALNA CEO Ben Kearney sent out this newsflash this afternoon:

Australian Lottery and Newsagents Association (ALNA) calls on Tabcorp to take decisive steps to protect and support their retailers in navigating the COVID-19 pandemic
As I am sure our members will agree, these are unprecedented and very challenging times and the adverse effects of the COVID-19 pandemic are being felt in every aspect of our lives and critically in the retail network.

Above all else we are encouraging our members to please stay calm, as your teams, suppliers and customers will all appreciate this as we are all working hard to navigate the same challenges.

As you would be aware the Federal and State Governments are taking extraordinary steps to stay ahead of the curve with this pandemic and many large businesses are stepping up to do their share of the heavy lifting. Simple measures like ensuring continuity of wages or sick leave for casual employees that may need to self-isolate are helping. Big business has much greater capacity to absorb these shocks than small business operators do and Tabcorp is in a strong position to help.

ALNA is already working with government on ways to help retailers through the crisis and of course in recovery on the other side. This is a great opportunity for ALNA and Tabcorp to work together on this issue with government, as they (the issuers of licences) are significant stakeholders and will ultimately feel the shocks to the retail network over time with a loss of tax revenue, etc.

The fear and panic this pandemic have caused is unparalleled and Tabcorp’s retailers are not immune.

ALNA is making available as much information and support to members during these uncertain and extraordinary times.

As this crisis unfolds ALNA is fielding lots of calls from genuinely concerned members who are already feeling the impacts and are asking if Tabcorp has a plan to support and protect their retail network.

Retailers concerns are wide ranging and start with smaller more immediate concerns i.e. what will happen if the shopping centre closes and I am left with a large amount of unsold syndicate shares, to bigger concerns around what will happen if the shopping centre is forced to close and I have no income for several weeks, or on high streets if players stay home and self-isolate.

The biggest concern of many retailers is the potential for a rapid transfer or dislocation of retail sales over to online as the crisis worsens and more self-isolation measures are adopted or imposed. The new remuneration/omni-channel model does include retailers in omni-channel sales and revenue, but it is not geared to fairly support retailers if an unprecedented and rapid dislocation occurs like this and retailers are left with no mechanisms to sell lottery products to regular customers.

Retailers already report customers are opting to stay at home to avoid the risk of infection. This will potentially be catastrophic for retailers if this escalates through fear or by additional government restrictions on public gatherings and self-isolation, etc. As Tabcorp and many other employers are encouraging and facilitating staff to work from home where possible. This will add to the reduction in retail traffic our members are already reporting.

As you know the new remuneration model has a significant portion of revenue contingent on some performance and compliance outcomes and this is unfortunately adding to the uncertainty and anxiety about cashflow for retailers which is so important to their livelihood at this difficult time. Small business ‘lives and dies’ on cashflow. The failure of cashflow is the single biggest cause of small business closure and consequent loss of employment.

Yesterday, Australian Lottery and Newsagents Association (ALNA) has written to Tabcorp’s Managing Director and called on them to take decisive steps to protect and support their retailers.

ALNA has recommended the following practical measures that will deliver immediate and direct support to their retailers, but importantly they will provide surety and would clearly demonstrate Tabcorp’s support for their retail network in this incredibly challenging and unique time. These will relieve some of the stress and concern being felt by retailers and demonstrate that the whole business is working to resiliently move through this together. They would set a great precedent too for other franchise systems in Australia to follow.

Suspend scoring of the Omni-channel Program for this cycle – immediately (for this Cycle 02/03/2020 – 28/06/2020) suspend scoring the omni-channel program requirements and rate all retailers Green for the Cycle. This will guarantee the commissions from the remaining or available sales are not further eroded and immediately relieve heightened anxiety of retailers.

Support Retailers Revenue – in the event a rapid retail sales decline, business interruption (i.e. shopping centre closures), or the effects of any other forced social distancing measures imposed or being felt in centres and high streets occurs, or where customers simply disengage completely due to illness, Tabcorp should consider temporarily removing ongoing franchise and terminal fees etc. and guarantee retailer’s revenue/commissions for any period the retailers are unable to trade or feel the disproportionate effects of this crisis. This would provide surety and help retailers to maintain quality well trained staff who will be so critical in the rebound phase.

Increase Share of Online/Digital Sales – if there is a rapid and en masse transfer or dislocation of retail sales to online due to mass self-isolations, for Tabcorp to implement temporary measures or mechanisms to re-allocate revenue back to retailers to more fairly share digital revenue during this period which will provide critical and direct financial support to retailers.
Furthermore, ALNA has signalled our desire to work together on what plans or strategies can be prepared now for the retail network when the crisis has passed, and we move into a recovery phase. What marketing, promotional or other initiatives can we plan now for implementation post the virus to help drive customers back into retail.

Importantly, as part of the recovery, ALNA believes we need to consider any permanent market changes that occur as a results of this crisis i.e. if the transfer or dislocation of retail sales to online is sustained past the crisis, the omni-channel model will need to be reviewed and transformed to cater for this new trading environment and to ensure retailers are fairly considered.

We will keep members updated on constructive dialogue and solutions.