Australian Newsagency Blog

A blog on issues affecting Australia's newsagents, media and small business generally.

More news outlets quitting lotto

Mark Fletcher
January 7th, 2019 · 15 Comments

In New York over Christmas I saw more news outlets with a sign like this: No Lotto. The terminal was not down. No, they had removed Lotto from the business. The move is a surprise in that the footprint commitment to offering Lotto is small. The small format shops offer newspapers, magazines, tobacco and convenience style gifts.

As Tatts extends its reach and demands on its retail network I wonder if we will see more in Australia quit its products.

If their recent handling of employee wage record keeping and pay conditions is anything to go by I suspect more Tatts franchisees will consider a business without the intrusive overlord as one retailer called them recently when we were talking about Tatts’ demands on them.

26 likes

Category: Lotteries · Newsagency management · newsagency of the future

15 responses so far ↓

  • 1 Graeme // Jan 7, 2019 at 8:38 AM

    Interesting take on newsagents and no longer having lotto. We have no trouble in selling Lotto Agencies to other retail outlets when a newsagent cannot “sell” the total business and for a very reasonable amount considering the profit.
    Your comment could suggest that newsagents may sell off their lotto thus make a capital dollar that they could reinvest into the transition of the core business.
    Do you have any information re this, if it is so?

    1 likes

  • 2 Mark Fletcher // Jan 7, 2019 at 8:44 AM

    Graeme, not enough to identify a trend. I am aware of two or three who have done it.

    In my own situation, I am only interested in businesses without lotteries.

    4 likes

  • 3 Graeme // Jan 7, 2019 at 12:45 PM

    I understand your business model and agree that it is the futures -not necessarily Gifts however transition to suit the area demographics is a must for survival Not unlike an article I wrote for N.N. in 1992 ‘Rip Van Newsagent” about the “milk bars” versus McDonalds where as today it’s the internet versus the newsagent.
    milk bars failed the transition to Cafes. Not all were suited to the transition however so many were that didn’t take it up -they closed.
    As you say “it’s adapt or die” Transition to suit demographically is the focus and it is getting to be too late to do so.

    1 likes

  • 4 Lance // Jan 8, 2019 at 7:47 PM

    We started a milk bar from scratch in Mitcham Rd in 1991, about the time supermarkets went 24hrs. We had a 7/11 about 6 doors up and yet we thrived after a worrying start.
    We expanded to a mini convenience shop, sub-news, ice cream parlour and cafe.
    That business paid for our house.
    7am-10pm 7 days, and I personally loved just about every minute of it. The wife was tired after 9yrs and didn’t want to go another one, so I got a day job.
    Find what your customers want and all will be good……………….in most cases 😉

    8 likes

  • 5 Graeme // Jan 9, 2019 at 7:29 AM

    Lance, I agree 100%

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  • 6 Gary // Jan 10, 2019 at 5:59 PM

    Not quite sure what you’re on about here Fletch. Spent all day pumping out lotto tickets into a 80 mil Powerball. Who in their right mind would contemplate giving up their lotto franchise??? And this follows a similar event in July last year. My lotto commission up 16% YOY. And a commission increase imminent. Who in their right mind would contemplate giving up their lotto franchise???. Bring it on.

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  • 7 Shayne // Jan 10, 2019 at 8:57 PM

    Gary why do you think a commission increase is imminent? Tatts announced a commission “review” in March last year and not a word since. A “review” could just as easily result in a decrease in commission. I wouldn’t hold my breath.

    6 likes

  • 8 Gary // Jan 10, 2019 at 9:39 PM

    Don’t know where you’ve been Shayne but the latest communication I have from ALNA is that all states have signed off on the increase. It now has to go to the next Tabcorp board meeting for ratification.

    0 likes

  • 9 Mark Fletcher // Jan 11, 2019 at 7:00 AM

    All power to you Gary. Lottery products work for some. I see no future for it in the retail businesses I directly own. Customers will continue to migrate online, more competitive online products will emerge. I’m not telling anyone what to do, just sharing my opinion.

    3 likes

  • 10 Gary // Jan 11, 2019 at 4:11 PM

    Don’t be so defensive Fletch. This week I’m pumping tickets into a $100 mil Powerball. Happy as a pig in the proverbial poo.

    0 likes

  • 11 Mark Fletcher // Jan 11, 2019 at 4:13 PM

    No defensiveness in my response Gary – you are claiming something that is not there. As I said, all power to you. You disagree with my opinion. I’m cool with that. Be cool with me disagreeing with you.

    7 likes

  • 12 Gary // Jan 11, 2019 at 6:29 PM

    Let it go Fletch, you’re sounding a little irrational.

    0 likes

  • 13 John // Jan 12, 2019 at 11:21 AM

    Gary,
    I don,t always agree with Fletcher, but as he indicated, everyone has an opinion and everyone is entitled to those.
    As for people giving up their Lotto agency – it may not be profitable to keep – they may be up for refits that are not justified by their profit margin- their may be 3 other outlets in the same town – the reasons may be many.
    As for the increase in margin we are about to receive – let’s wait and see what it is

    3 likes

  • 14 Lance // Jan 12, 2019 at 12:54 PM

    Gary, I see no no defensiveness or irrationality in Marks comments.
    As John said, Mark has an opinion, just as you do.
    ALL retail situations are different and ALL retailers need to make decisions around those situations.

    Accept that, and as you say….”let it go’…and make YOUR decisions.

    4 likes

  • 15 Graeme // Jan 12, 2019 at 4:23 PM

    Gary, All business have to do what they feel is right for their customers in their demographic area. Lotto for some, Gifts conversion for others. What Mark is constantly saying is that the old model unchanged is dying. It has no legs long term and the sooner newsagents transition the better.
    Use lotto customer base and introduce these customers to new product is repeated here time and time again.
    Can’t see anything but rational thinking in this approach.
    Bought a ticket Thursday, impulse, powerball big jackpot Not even a look in, if there wasn’t a newsagency outlet that I was visiting at the time I wouldn’t have bought the ticket.

    0 likes

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