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7-Eleven pulling out of selling Tatts lottery products

Tatts Group has announced that from June 30 7-eleven stores will no longer be selling their products:

By mutual agreement, from Monday 30 June 2014, Tatts products will not be available fro purchase from Tatts Quick Outlets which are located in 7-Eleven stores.

This change has followed an assessment of the viability of the Tatts Quick model, which sells a reduced product offering, as a distribution channel for Tatts products.

This is great news for newsagents and other lottery retailers – a reason to promote Tatts products and your business as the go to retailer for these.

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  1. Brett

    I suspect Coles and Woolies would also want a simple model to sell through the tills. Happy that Tatts want/prefer the full service options. This is good news.

    1 likes

  2. Dave

    The issue is that these big corporate players (eg Coles, Wollies, 7-11 etc) only deal with principals that they have leverage over. Clearly Tatts kept the upper hand and 7-11 have spat the dummy. I hope the same happens with Coles and Woolies. All we’d need then is for the government to come to it’s senses (possible oxymoron) and restrict or completely ban on-line gambling, we’d then have the business back in our hands.

    7 likes

  3. Wally

    I wonder who decided thanks but no thanks. Was it Tatts or 7-11. Did they just sell scratchies or all products. Being in the west we did not have this but obviously the Coles/Woollies experiment will be of interest in the long term. Hopefully it is more trouble than it is worth with to small margins for them to care about.

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  4. mark pigott

    what took them so long. newsagents have lines out the door on big jackpots whilst the 7 eleven down the road has nobody in them at the same time. what were they thinking, any newsagent or tats rep could have seen what was going to eventually happen. Spreading of ones brand too widely and for what exactly does not in all cases work wonders. just ask your newsagent and other brands should take note.

    3 likes

  5. June

    I was pleased to read about 7/11’s getting rid of Tatts. We don’t have them here in SA but the BP On the Run’s have got lotteries product and I hope the same thing happens there.
    We have only been “live” with the new Tatts program for about 5 weeks (they leased SA Lotteries I believe) and I have been very encouraged by the helpfulness of the Tatts people. They have been into my store 3 times in 5 weeks to see if we need any assistance and we are now able to sell Central syndicates which is, in my opinion, a big plus. My staff are now understanding combos and central syndicates and they are doing their best to upsell (much easier with megadraws of course).
    Maybe Tatts have realized that the newsagency brand goes very well with Lotteries product.
    I am hoping that Coles/Woolies will NOT like the intensive sales intervention that their staff will have to engage in and then Tatts will understand that newsagents take their lotto very very seriously and put
    in a lot of time and effort for their (Tatts)
    product.
    Hopefully Newsagencies will be the “go to” destination for many years to come, for Lotto product.
    I have read some negative comments on this blog regarding lotto so I thought I would put in my two pennies worth.
    If Tatts continue here in SA like they’ve started I think we will all benefit from our
    association with each other

    7 likes

  6. Amanda

    I find this amusing.

    Here in the Newcastle / Hunter Valley region of NSW we have Lotteries products in 7-eleven outlets and some other service station groups. They HAVE NOT done any training. They have minimal POS, signage and tell customers to return to newsagents to check tickets. They DO NOT achieve incremental sales, they only take away from the nearby agency.

    Yet, the ONLY retail channel advertised by Tatts lotto throughout the region on radio station “KOFM” (a member of the largest radio network in the country) is the 7-eleven retail chain. This is a region with approximately 85 newsagents, many of which are open late on Thursday nights.

    In fact driving home tonight Tatts lotto advertised the Powerball jackpot amount and for customers to get their tickets at 7-eleven or tatts.com.au.

    I am not naive as the people who run the newsagency channel, this will soon change to Coles Express, and further down the track Coles supermarkets.

    I would love somebody from Tatts Lotto to have the balls to give an answer Lotto as to why they constantly disrespect newsagents in such a way.

    Bloody disgraceful.

    15 likes

  7. Bretts

    I think the real reason for this change about is the Franchising structure of 7-eleven.
    Not from head office but the Franchise who pay a % of total turn over to 7-eleven. Lotto would be a negative sale for them but head office would not care.

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  8. Harry

    Hi I am willing to buy news agency who is making almost 60 percent of profit form lottery products.
    Can someone give me advise if this business is very risky to buy if coles and woolworths will start selling lottery.

    Please help as i am going to put all my life savings into this business.

    0 likes

  9. Linda

    Can someone answer Harry’s question above as this is also a concern for us who are looking at purchasing a newsagent too

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  10. Mark Fletcher

    Linda, Harry is not asking the right question. Each business ought to be assessed on its own performance and analysis as to the sustainability of that performance. No one can do this research for you, you must come to your own conclusions. While others, including me, have opinions, there are many local factors to consider that making a recommendation from afar risky.

    At the heart of Harry’s comment is the question – will the business I buy suffer if a major competitor nearby gets a product or service I sell? I think the answer to that, on a common sense level, is self evident.

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  11. Wollermann Business Brokers

    “I would love somebody from Tatts Lotto to have the balls to give an answer Lotto as to why they constantly disrespect newsagents in such a way……………”
    Agreed….

    0 likes

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