Despite NSW and ACT newsagents fears that that Tatts lotteries will move into Coles and Woolworths supermarkets from 2018, Victorian lottery retailers see a more immediate threat from Tatts Group planning to sell lottery tickets at convenience stores.
This follows a 12 months trial of lottery tickets through six Coles Express outlets in Victoria.
The Lottery Retailers Association (LRA) of Victoria has around 550 retail members in the state, most of which also retail magazines and newspapers. According to the CEO of the LRA Gary Carter, a Tatts Group report said that the Coles Express trial was a huge success, however Tatts would not give out the results.
“Tatts said that they believed that a good proportion of lottery sales were occurring outside of newsagent’s sales but they would not divulge the figures,” Mr Carter said. “Coles Express do not have to pay for a $25,000-$30,000 compulsory fitout and get preferential treatment. But we’re not hearing that Tatts is coming into supermarkets.”
Mr Carter said that the previous 7-Eleven trial had failed and that it only used the quick pick lotteries.
A Memorandum of Understanding between the NSW Government and Tatts Group signed late January raised concerns among the Newsagents Association of NSW & ACT (NANA) that Tatts lotteries will move into Coles and Woolworths.
“There are no problems with independent petrol stations taking on lotteries but we have an issue with Coles and Woolworths being given lotteries for their supermarkets and smaller stores,” CEO of NANA Andrew Packham said.
NSW newsagents fear losing their business goodwill to Coles and Woolworths, while over 50% of foot traffic and 20-25% of profit can come from Tatts lottery sales.