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Tatts double standards for On the Run in South Australia?

Mark Fletcher
November 23rd, 2016 · 19 Comments

Go into almost any On The Run c-store in South Australia and you see Tatts product placement at the counter that is not permitted in newsagency businesses. Unless I am missing something tatts is permitting a major competitor of newsagents to have a lower cost and more commercially valuable lottery offering in-store.

Here is one store I saw in Adelaide yesterday.

IMG_1057

I know of newsagents who have been fined for non lottery products placed this close to their Tatts terminal.

If I was a Tatts outlet in South Australia I would want to know why On The Run has been permitted what appears to be more competitive terms than newsagents.I would want this tested with those in authority over such matters.

14 likes

Category: Ethics · Lotteries · Social responsibility

19 responses so far ↓

  • 1 Clay // Nov 23, 2016 at 11:04 AM

    I have spoken to our Area Manager about this and he told me that it’s due to the store fit out! He said to me that if you have the old SA Lotteries fit out you are not permitted to display anything other than Lotto products but if we were to do a new fit out under Tatts guide lines then we would be able to display anything we want there. I find that hard to believe.

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  • 2 han // Nov 23, 2016 at 1:02 PM

    On a separate issue regarding Tatts, I have recently a scratchie book closed by Tatts, rending the tickets worthless. I was told by Tatts that the impending expiry was communicated to all newsagents and if I haven’t managed to sell the remaining tickets it’s my fault. Any one else has similar problems?
    I wrote a formal complaint to NSW Gaming Authority about the unfair and unethical trade practice of Tatts cancelling tickets newsagent has paid in full.

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  • 3 Mark Richardson // Nov 23, 2016 at 1:33 PM

    Tatts continue to issue breach notices here in SA for having non Tatts product on “their” counter but as the photo shows OTR have a different set of rules this A disgrace .If you pay $20,000 plus for their new fit out then you can have other lines on the counter ,very strange

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  • 4 Michael // Nov 23, 2016 at 1:47 PM

    Han if you are in a group ask them to help. NewsXpress helped me with something similar.

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  • 5 han // Nov 23, 2016 at 2:32 PM

    Cheers Mark. I am not with any group but I lodged a complaint with NSW Liquor and Gaming Authority.

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  • 6 Mark Fletcher // Nov 23, 2016 at 3:38 PM

    Han I didn’t respond, Michael did.

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  • 7 han // Nov 23, 2016 at 3:45 PM

    Cheers Michael. Did Tatts give you a refund? It’s not much money (it’s a S1.10 book) but I was much annoyed by the bullying tactics of big business.

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  • 8 Paul // Nov 23, 2016 at 7:16 PM

    @ Mark Richardson , I’m wondering if any of the groups (I won’t mention associations as we know they won’t do a thing) will challenge Tatts with the ACCC under the new Franchise Laws. I can’t see anything mutually beneficial about alot of what Tatts does so I’m a little surprised this hasn’t appeared anywhere.

    Mark Fletcher are you aware of any stirrings in this regard in the industry ?

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  • 9 Mark Fletcher // Nov 23, 2016 at 7:56 PM

    Paul, newsXpress made a submission to the ACCC earlier this year. The ACCC said it was not interested. newsXpress web back to the ACCC. The ACCC came base and said, again, they were not interested. newsXpress is preparing to go back for a third time, with even more evidence. Everything newsXpress has done it has shared with its members.

    4 likes

  • 10 Bill // Nov 23, 2016 at 11:20 PM

    Mark, What about going to the SA small business commissioner instead of the ACCC?
    Tatts new fit out is a joke, lacking in practicality and wanting to take centre place at the service counter.
    They are demanding 3.6m to 4.5m of space from the shop front down one wall. In addition to 1800mm of Lotto counter space which is 100% lotto exclusive, and 800mm to 1200mm for a writting bench, their fit-out also requires a “transaction point” for each terminal at 500mm to 750mm wide at the agents cost in a different finish to the lotto counter. In this space the agent is permitted to have items such as confectionery in a position similar to the OTR picture.
    SA Lotteries pushed for counters on the lease line with customers into the mall. Many stores in SA do not have walls directly behind the lotto counter. This new fit out brings all that traffic into the store and choking up the rest of the business. What a mess this layout would be at peak times.
    I wonder what the larger newsagencies owned by Drake and Chapley supermarket groups think of this layout? Munno Para newsagency for example has 3 terminals on the lease line in the centre of their store.
    I can’t see this fit-out being enforced in On the Run, Pharmacies, Delis, pubs and clubs so why are newsagents left to carry their re-branding.
    The cost of upgrading to this fit-out is around $30k never mind the cost of having to re-configure the store to accommodation the re-arranged floor plan.
    All this expense and then Tatt’s will expand their trial in Coles Vic to the rest of the country in all supermarkets.
    Where is the guarantee on the return on investment?

    1 likes

  • 11 Mark Fletcher // Nov 24, 2016 at 5:59 AM

    Bill, My understanding is Tatts is expanding the Cole Express model outside of Victoria. I am told moves are afoot with Woolworths too.

    newsXpress is not letting go of this issue. It is looking at a couple of options given the ACCC indifference to what to me looks like an unfair advantage being given to a big business competitor of small business newsXpress locations.

    What helps Tatts and encourages the ACCC is that many newsagents have done what Tatts has asked, without any assessment of the financials.

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  • 12 Colin, Malvern SA // Nov 24, 2016 at 8:42 AM

    I did a full fit out 3 years ago, fully compliant and actually exceeded their minimum requirements. I did not use Tatts but went through a Tatts approved shop fitter. It cost nothing like the numbers being quoted here.

    I recently had a conversation with Tatts about double standards and OTR. When I said I was contemplating moving the lottery away from the front of the shop to release windows for display there was no push back. I do not have to locate the counter on the lease line. If I went ahead, I would use same shop fitter.

    There is still push back on sale of other products on Tatts counter but nothing like it used to be. I think Tatts are shifting their stance of independent v OTR. We need to keep up the pressure.

    Nick Z Team might be a good way of applying pressure. He has no love for the gambling industry, quite the opposite.

    1 likes

  • 13 MARK RICHARDSON // Nov 24, 2016 at 9:44 AM

    If more Newsagents got off their arses and made formal complaints to the SBC and the ACCC we might actually get a result ,they will act if they get enough complaints .As for the ANF here in SA total waste of time

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  • 14 Pat // Nov 24, 2016 at 11:22 AM

    Tatts say they spend all this money on research and marketing to get the right image then they turn around and let this happen. There is definitely a case to be tested under clause 30 “Capital Expenditure” of the Franchising Code. Tatts has a case for pushing the investment for a 2+ terminal store as they should be making enough to cover $30-50k every 7 years, even then they have to give up nearly 3 metres of counter and a lot of wall space to meet image requirements for Golden Casket. On top of that is 2-3 overpriced screens that do next to nothing at the moment.

    However the investment for the current image for a small newsagency is ridiculous. Some wouldn’t even make money on Tatts sales for a year or more after factoring in labour and rent, just for a screen and install cost. Problem is ACCC will probably not act on anything until something formally goes to mediation or court. Even though it is a perfect test case for the changes to Consumer Law and small business protection on short form contracts.

    Who is going to put their hand up to test it out and risk losing terminal access or franchise termination.

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  • 15 TED // Nov 24, 2016 at 12:07 PM

    Colin the cost of a fit-out in NSW is at least 30K. How Tatts can justify this is beyond me.

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  • 16 Mark Fletcher // Nov 24, 2016 at 1:09 PM

    Ted, they can’t and don’t. Newsagents should challenge this. Across the channel is is a $75M+ spend for what? What sales increase is guaranteed from this capital investment? None.

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  • 17 Tammy // Dec 5, 2016 at 3:01 PM

    Tatts has allowed this to happen in SA and from what I can tell OTR has serious clout here, I also questioned my area manger and she dug her heels in defending them. After which she audited my area (to the point where even my staff thought it was laughable). I’ve been into a few OTR amd I’m constantly amazed at what they are allowed to do. I know they say its because they have the new fitout, but hell it reeks of double standards.

    3 likes

  • 18 MARK. R // Dec 5, 2016 at 5:17 PM

    Tammy yes its a disgrace how Tatts continue to breach SA newsagents in particular over non Tatts items on the counter when only a few kilometers away (in most cases) there is a OTR service station with Tatts and No restrictions as to product placement

    If you are a member of the ANF or now called ALNF I think ask your SA representative Colon Shipton as to what they are doing about it

    2 likes

  • 19 Mark Fletcher // Dec 6, 2016 at 7:43 AM

    Mark from what I can see the ANF has done nothing. Until newsagents fund a legal cha;ledge OTR will gain ground from newsagents unabated.

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