March 2009 - Retail Association of Nevada
Transcription
March 2009 - Retail Association of Nevada
MARCH 2009 HAPPY ST. PATRICK’S DAY! LOOKING OUT FOR BUSINESS 410 South Minnesota Street • Carson City, NV 89703-4272 775-882-1700 • www.rannv.org NEVADA NEWS l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l Governors Nationwide Slice State Worker Pay, Benefits F rom California to New York, governors are seeking pay cuts or other concessions from public employee unions and groups that they hope can help balance their faltering budgets. Governors have asked or ordered state workers to accept furloughs, salary reductions, truncated work weeks or benefits cuts. They say the concessions are a better alternative to more job losses in the face of recordbreaking unemployment. As of this writing, California has sent 20,000 layoff notices to state employees. Kansas has suspended income tax refunds and may not have enough money to pay state employees or provide money for schools and health care providers. In Colorado, the governor is planning to furlough state workers to balance the budget. One idea in the Colorado Legislature is to base the furloughs on the amount of an employee’s pay. Those making $60,000+ would take two days unpaid leave per month; those making $40,000 to $59,999 would be forced to take one and a half days per month. And everyone making under $39,999 would take one furlough day a month. Washington State saw about 100 union members, state employees, school supporters and health care providers rally on the Capitol grounds to protest cuts and demand better benefits and pensions, no layoffs and fair pay. One rally participant told KING-TV “I’m just really angry they don’t raise money from the people who hardly pay any taxes — the corporations and the rich people.” Tennessee has plans to cut government by 15% with the potential for a 5% pay cut for state employees. Idaho’s governor plans on a 5% cut in personnel funding for all state agencies, institutions and pubic schools. Many think the pay cuts are preferable to layoffs. New Jersey, looking at a $3.6 billion budget shortfall for the current fiscal year, plans to help balance the budget through an 18-month wage freeze and forced days off for state workers. According to the governor, state worker unions are fighting the proposals. A similar fight is taking place in Alabama. The public employee union is fighting proposed furloughs, but many state employees say they would prefer the furloughs to layoffs. In Michigan, the governor has proposed laying off 1,500 state workers and cutting $164 million in school aid. 1,000 of the workers are with state prisons and the prisons will be closed and 4,000 state inmates will be released. The budget shortfall is $1.6 billion. Hawaii faces a $2 billion budget shortfall and is looking at cutting off insurance benefits for all employees retiring after July 1 regardless of how many years the employee has worked for the state. Unions argue that budgets shouldn’t be balanced on the backs of public employees. They say their members are even more vital in hard times — securing neighborhoods and prisons, educating children and providing social services to growing numbers of citizens. The National Conference of State Legislatures says that 46 states are facing budget shortfalls. ◆ Inside Pharmacy Principles for Healthcare Reform...........................2 Member Spotlight: Scolari’s Food & Drug Company........3 High Priority Issues for All RAN Members....................................5 Anchor Stores Can Make the Difference..............................8 Stimulus Bill..............................................9 What’s Next for Retail (Continued from last issue).............. 11 Judge Grants AMP Rule Injunction..................................... 11 Retail Association of Nevada • www.rannv.org Pharmacy Groups Announce Principles to Improve Patient Care, Access to Medications, Promote Technology to Enhance Health Care Delivery W ashington, DC — Amidst a time of rejuvenating the nation’s economic viability and strengthening the nation’s healthcare system, pharmacy organizations officially unveiled Pharmacy Principles for Health Care Reform. The Principles identify what is necessary to fully utilize the medication expertise to address the epidemic of medication misuse. They demonstrate how the nation’s pharmacies and pharmacists can play a critical role in providing accessible, affordable and quality health care for patients. Twelve pharmacy organizations collaborated to develop the Principles: Academy of Managed Care Pharmacy, American Association of Colleges of Pharmacy, American College of Clinical Pharmacy, American Pharmacists Association, American Society of Consultant Pharmacists, American Society of HealthSystem Pharmacists, Food Marketing Institute, National Association of Chain Drug Stores, National Alliance of State Pharmacy Associations, National Community Pharmacists Association, Rite Aid Corporation, and Walgreen Co. The pharmacy organizations outlined three goals related to medication access and use that should be an integral part of any health reform debate: l Improve quality and safety of medication use l Assure patient access to needed medications and pharmacy services 2 ◆ FMI Press Release Promote pharmacy and health information technology (HIT) interoperability Proper use of prescription medications helps improve patient quality of life and health outcomes. However, the health care system incurs more than $177 billion annually in mostly avoidable health care costs to treat adverse events resulting from failure to take medications as prescribed. Proper use of prescription medications helps improve patient quality of life and improve health outcomes. Pharmacists can help keep those costs down through pharmacist-provided patient care services, such as educating patients on how to take their prescription medications properly and safely, as well as administering health screenings and immunizations. With current costs to the health care system to treat chronic diseases at $1.3 trillion annually, taking medications properly can help prevent the need for catastrophic or emergency care. Patients can also benefit from the counsel of pharmacists, who are educated and trained as medication experts, to identify cost-effective medication options, such as generics and biosimilars. Pharmacy services such as health screenings can also provide patients with lowcost, preventive care that can lead to better overall health. Health information technology (HIT) is rapidly becoming an integral part of health care delivery in the United States. The use of electronic health records and electronic prescribing has increased dramatically in recent l years. Congress has just passed economic recovery legislation that includes HIT provisions that will help to improve the delivery and quality of health care. HIT interoperability between the pharmacy and other health care providers would enable pharmacists to further assist in ensuring patients adhere to their medication regimens and in reducing medication errors. Pharmacists are a highly trained and valuable resource, yet they are currently underutilized. As lawmakers continue discussions on how best to reform the health care system, it is critical that pharmacy be a part of that reform. The Pharmacy Principles for Health Care Reform serve as a resource for the ways in which pharmacy can provide costeffective patient-care services to achieve better health care. “We are pleased to speak with one voice on pharmacy and introduce these Principles for Health Care Reform. The nation is facing challenging economic times and health care is a key component of how to create cost savings for patients and the overall health care system. Pharmacy plays a critical role in helping patients to save money — by counseling them on taking prescription medications properly and helping to prevent possible drug interactions — and in the long term, these savings will help curb the costs of emergency room and catastrophic care,” said National Association of Chain Drug Stores (NACDS) President and CEO, Steven C. Anderson, IOM, CAE. ◆ Barbara Wold’s Retail & Consumer Tips Make customers feel special. Retailers and business owners hope that in tough times, people will long for the comfort of hometown shopping with people they know and trust. Customers like to feel important. Here are some things you can do to enhance that feeling and build sales: l Call customers by name. If you don’t know their name -- “We haven’t see you in awhile, welcome back” -- let customers know you recognize them. l Listen to their needs, wants, ideas and criticisms. l Great timing for staff meetings and focus groups -- ask for “new” business building ideas and “new” services that can be offered. l Remind employees to focus on the positive. Customers don’t want to come in and hear doom and gloom -- they may not return. l Many customers may plan to scale back -- offer more services to build on the perceived value. l Learn customer’s preferences and respond to them. Example: Asking, “Do you still prefer ....... ?” This lets them know you remember and helps you fine tune your merchandise selection. l Get to know your customers and potential customers as people. Learn something about their families, professions, interests, etc. www.rannv.org • Retail Association of Nevada l Compliment and reassure customers on their purchases. l Keep in touch with your customers via newsletters, email, phone calls, events and local paper advertisements. This is the time to cleanup and build your contact information database. Remember, monthly email Newsletters don’t cost anything to send out. Make them informative, worth looking at, list your special events, added services, new merchandise, etc. Don’t forget your complete contact information including area code for phone, address with city, state and zip code, website, etc. l Get to know your local newspaper editor and help him work on a human interest story about you and your business -- far better than advertising and cheaper. l Take customers’ pictures. Example: A pet and supply store takes photos of customers with their pets and posts them on a bulletin board. What a great way to bring them into the “family of happy customers!” In short: Treat customers as guests you care about. “If you wait for opportunities to occur, you will be one of the crowd.” Edward de Bono, psychiatrist and author Barbara Wold International Speaker, Author and Business Strategist MEMBER SPOTLIGHT: Scolari’s Food & Drug Company J HOW A LOCALLY OWNED CHAIN GIVES BACK TO THE COMMUNITY oey and Jerry Scolari’s philosophy of “the customer always comes first” isn’t just because it’s good business. It’s because their customers are their friends, neighbors, the children who play with their children, and the people they deal with every day. They live in the Truckee Meadows and are involved in the communities in which they do business. The largest privately-owned local chain of grocery stores in Northern Nevada spans the area from Sparks to Reno to Carson City, down into Gardnerville, Fernley, Yerington and over to Tonopah. Everything about Scolari’s is local. The company is headquartered and conducts its purchasing, distribution, administration and accounting from a warehouse/office complex in Sparks, Nevada. Even its trucks and drivers are local. The stores operated by Scolari’s vary in size and sales volume, as well as marketing strategy. Three stores are “conventional” supermarkets. Three stores are “box stores” operating under the trade name Sak ‘n Save, which place greater emphasis on economy. Thirteen stores are “superstores”, a one-stop provider in an increasing array of products and services. These stores have various specialty departments such as full service bakery/deli, pharmacy, full service meat/ seafood and floral. The stores reflect the personal pride and family values of the Scolari’s. Visits to each store are conducted by the Scolari brothers, and while inspecting, they visit with the employees to catch up on family news. They want each store to be the kind in which their own families would like to shop. “That contact has a lot to do with it,” Joey Scolari, CEO, told the Reno Gazette-Journal. The tough economy has affected their profit margin, but salary levels for their employees have been maintained. Cleanliness is paramount. Scolari’s is the only grocer in the markets they serve to earn the Food Safety and Quality Certification from NSF International, a non-profit, nongovernmental organization providing education on food, water, indoor air and the environment. The certification is the result of a one-of-a-kind program to assure customers of the safety and quality of the perishable products they purchase from Scolari’s stores. Although the poor economy has affected the Scolari’s stores, their concern has been for their customers and the communities they serve. The stores have adjusted to their customers’ new shopping habits by presenting a greater variety of budget items. Recognizing that people are using more coupons these days, they offer double-coupons, up to a dollar, and for the elderly customers, Tuesdays are Senior Days. Those 62 and over can enjoy a 5% discount. Their commitment to giving back to the community goes back many years. Scolari’s Friendship Fund was founded in 1988. This unique program allows local non-profits, including schools, to raise money. (One elementary school was just sent a monthly check of $600.) Since its inception, the program has returned $4.5 million to the community through participating charities and schools. Perhaps the project which brings the greatest pride, was helping to found the Northern Nevada Food Bank. Organized to help feed the hungry it has been in greatest demand in the last year. In addition, Scolari’s is a proud sponsor of many community events, which include the Reno Rodeo, the Reno National Championship Air Races, the Nevada State Fair, University of Nevada Athletics and Saint Mary’s Community Flu & Pneumonia Shot Program. ◆ ◆3 Retail Association of Nevada • www.rannv.org Shut Up For Good RESEARCH DISCOVERS FACTORS THAT STIFLE IMPROVEMENT SUGGESTIONS FROM SUPERVISORS I t’s hard to overstate the importance of first-line supervisors. They supervise the employees that accomplish the work . . . that’s all the employees and all the work. Owners may decide what is to be done and who will do it, but they would have no business at all without workers and supervisors to direct their efforts. Supervisors develop an intimate knowledge of both the people who do the work and the work itself. They know the strengths and weaknesses of their people, and they can By James Larsen, Ph.D. improvement suggestions. We can hardly make positive changes without this input, even if we must listen to ideas we don’t like that direct us to courses of action we don’t want to take. This kind of communication was the subject of a recent study by Ethan Burris, from the University of Texas at Austin. He calls it voice to managers. Voice for short, and he defined it as “upward directed verbal communication that is intended to improve rather than merely criticize.” Burris explored “Supervisors who expressed strong loyalty to their employer did not emerge as likely to voice improvement suggestions.” make work assignments that take advantage of strengths while avoiding the damage that can occur when the wrong people are assigned tasks for which they are ill-suited. They also understand the work. They can recognize efficiencies that no one else can see. They can recognize hazards before any business is lost. They know how the work in one setting fits in with the work in another. To be sure, supervisors can’t do it alone. Executives have their roles to play. General managers, for example, have authority to make changes in allocating resources like rates of pay, hours of work, staffing levels, material resources, and many other decisions. But to do a good job at this next level, we must have input from supervisors, especially 4 ◆ factors that encourage and discourage supervisors to voice improvement suggestions to their bosses. He surveyed 499 first-line supervisors who worked in a large, national chain of restaurants. Two weeks later, he sent surveys to the general managers of these restaurants, and 234 of them responded. He also examined personnel records. When he finished his analysis, he was surprised by his findings. They were sobering. Burris discovered a pattern of detachment among many of the supervisors. These were people who thought about leaving, who wanted to leave, who may even plan to leave, but didn’t. Burris called it psychological withdrawal or quitting without leaving. These supervisors withheld effort from their jobs. They went through the motions, and they did not voice improvement suggestions. This reaction was especially common when the supervisor experienced two kinds of difficult interactions with their general managers: 1) When they felt their general managers had expressed anger toward them that was not justified, and 2) when they believed their general managers had made negative comments about them to a third party. Quitting before leaving is a fairly common reaction of employees when they find themselves in work settings they find unpleasant, but it was surprising to find it to be common among first-line supervisors. Supervisors who expressed strong loyalty to their employer did not emerge as likely to voice improvement suggestions. This finding also surprised Burris who expected to find loyal supervisors striving to implement improvements even if they had to take charge themselves. It wasn’t true. It didn’t happen. The loyal supervisors were quiet. If they had improvement suggestions, they were keeping them to themselves. Supervisors who experience high quality relationships with their general managers also confounded Professor Burris. He expected these supervisors to speak freely and voice many improvement suggestions. He was wrong. They didn’t. These supervisors did not voice improvement suggestions any more frequently than other supervisors. Finally, Burris’ simplest finding was his most troubling. The longer first-line supervisors held their jobs, the less likely they were to speak up. Put another way, the more knowledgeable first-line supervisors became because of their experience managing employees in a work setting, the less likely they were to share insights they gained for improvement with their general managers. Burris wonders if supervisors may not see the need for their suggestions or may be unwilling to take the risk or go to the trouble to make suggestions. But whatever the explanation, the conclusion is clear. Many supervisors have heard and heeded the message to keep improvement suggestions to themselves. The flow of unsolicited and unwelcome improvement suggestions from supervisors in these settings has stopped. If this is true in your retail business, then the obvious solution is to solicit improvement suggestions and welcome them when they come. The alternative is to handicap yourself, and this is unnecessary. You need this input to have a positive influence on change. ◆ Reference: Burris, Ethan R. James Detert, and Dan Chiaburu (2008) Quitting Before Leaving: The Mediating Effects of Psychological Attachment and Detachment on Voice. Journal of Applied Psychology, 93 (4), 912-922. www.rannv.org • Retail Association of Nevada High Priority Issues The Following are High-Priority Issues that concern all Members of the Retail Association of Nevada. This list encompasses all members including general merchandise and grocery. Pharmacy specific issues may be found under separate cover. By Liz MacMenamin and Lea Tauchen Advertising Age Restricted Products Alcohol Tobacco American Disabilities Act Parking/ Driving Restrictions Anti Trust Auto Repair Automatic Dialing Devises Availability of Merchandise Bait and Switch Building Standards-Codes Green Buildings Closing/Relocation Commission Selling Comparable Worth Consumer Credit Collections Disclosures Interchange fees Rate Scoring Consumer Fraud/ Deceptive Practices Gift Certificates Consumer Sales E-Commerce Education Electronic Data Data Breach Electronic Monitoring Encryption Energy Product Efficiency Labeling E-Star Credits Environment Air Quality Asbestos Notification or Abatement Bottle Bills Plastic bottle bans Mandated Recycling Bottle deposits Hazardous Substances Packing, Biodegradable, Plastics Plastic Bags Bans Mandatory Recycling Bag Tax Right to Know Solid Waste Underground Tanks Financing Food Safety Stamps WIC Fuel Graffiti Initiative/ Referendums Item Pricing Labor/Personnel Discrimination Employee Assistance Disclosure Employee Card Check Employer/Employee Trip Reduction Garnishment Hiring/Termination Living Wage Mandated Health Insurance Parental Leave Other Mandated Benefits Safety Wages/Fringe Benefits Plain Language Political Contributions Price Comparison Privacy Product E-Waste Labeling Liability Recall Safety Standards Rain Checks Repair Service Resale Price Maintenance RICO Security Arrests Civil Liability Fraud Retail Theft Security Personnel Licensing Service Contracts Tax Ad Valorem Personal Real Advertising Corporate Franchise Corporate Income Gross Receipts Inventory Licensing Modified Business Tax Newspaper Supplements Property Tax Sales and Use Sales Tax Collection Sales Tax Exemptions Tax holiday Telemarketing Do Not Call List Telephone Solicitations Tort Reform Trademarks Unclaimed Property Gift Cards Unemployment Utility Rate Video Display Monitors Video Game Ratings Warranties Workers’ Compensation Is A Tax By Any Other Name Still A Tax? L awmakers are twisting in the winds these days as they try to close the budget shortfall … without taxes. With the $2 billion plus needed to maintain state government at the same levels as 2007, it’s quickly becoming evident that more money will be needed. Legislators do not seem to be inclined to do much cutting, so how do they fill the hole … without using the “T” word? What’s being talked about are “revenue enhancements”, “closing the gap”, “repairing the breech”, “filling the hole”, and other similar euphemisms. It’s what’s being whispered that has some nervous. Here are a few taxes that are being whispered about in the Legislative Hallways: l Raising Sales tax l Increasing cigarette tax by 55 cents (this would be on top of the 61 cent tax just added by the Federal Government.) l Another hike to the modified business tax, also known as the payroll tax l Adding a tax on services such as legal, accounting, etc. Assembly Speaker Barbara Buckley hopes to have a decision on “revenue enhancements” by the third week in April. ◆ ◆5 Retail Association of Nevada • www.rannv.org Commercial Real Estate Declines Retail space vacancies rose to 14.5% at the end of 2008. In 2007, the rate was 8.17%. Average retail rent is expected to fall by 9% this year. Vacant retail space in the Reno-Sparks area is at 131,000 square feet. RGJ Bottom Could Be Reached by Mid-Year While more Reno-Sparks businesses could close this year, Colliers International commercial real estate predicts a bottom could be reached by the middle of the year with a possible turnaround in the third and fourth quarters generated by new tourist traffic. RGJ Adapting to Change One major retailer in Las Vegas has adapted to the new economy by focusing on small businesses. For two days, customers wandered the new 7,000 square foot copy and print center. Clothing and jewelry departments were replaced by bulk quantity items such as candy, snacks and water. LVRJ MAGIC Came to Las Vegas Though smaller in scope, the Men’s Apparel Guild in California (MAGIC) show was held at the Las Vegas Nevada Notes Convention Center and counted about 60,000 attendees. Longtime exhibitors said that while this was a low, the foot traffic was pretty busy and it was a great way to get their products seen by buyers. One exhibitor said that stores are examining price points and if lines are too trendy. LVRJ Preview Speakers Offer Mixed Views The Las Vegas Chamber of Commerce-sponsored forecast had lots of advice on what might lie ahead. Preview 2009 speakers looked for as much optimism as possible midst the doom and gloom. Former Labor Secretary Robert Reich predicted an economic turnaround in 2010 and that unemployment could go as high as 14%. Reich also suggested that a downturn is the perfect time for introspection and being ready for when times improve. LVRJ December Sales Down Grocery sales were down nearly 19% during December, despite it being a holiday month. All taxable sales were down 17.6% in Washoe County. Carson City sales tax was down, as was Douglas. Churchill County and Lyon County showed increases for the month from last year. NNBP Reno-Tahoe Outlook According to a poll of businesses, 65% said their revenues decreased over the past year. Businesses who were in a “wait and see” mode last year are now focusing on how to move forward in a time of uncertainty. More than half said they do not plan to hire any employees in the coming year. RGJ Customer Service Still the Key to Sales At a Las Vegas Conference held by the National Retail Federation, retailers learned that price alone doesn’t make the sale. In a recent survey, NRF learned that most of those polled planned on spending less in 2009 and, coupons and low prices weren’t the determining factors in deciding about stores. Customers said that they visited stores that had what they advertised having, and stores that had helpful sales people who were knowledgeable and could help customers make good selections. Also a return policy that’s customer-friendly seems to be very important to most. LVRJ Sparks Chamber to Hold Stimulus Discussion The March 12 luncheon of the Sparks Chamber of Commerce will feature Sparks Mayor Geno Martini, Reno Mayor Bob Cashell and Washoe County Commissioner David Humke to discuss the federal economic stimulus bill and what it means to the local business community. The meeting will be from 11:30 a.m. to 1 p.m. at the Grand Sierra Resort in the Grand Theatre. RSVP at 775-358-1976 or register online at www. sparkschamber.org RGJ The State of Sparks Mayor Geno Martini of Sparks issued his State of the City speech and urged residents to stay upbeat about the economy. Since last March, the city of Sparks has had to layoff 58 employees. Martini said that with unemployment reaching new highs and tourism being sharply down that challenging times lie ahead. However, he was upbeat about developments, including the opening of Golden Eagle Regional Park & Sports Complex and a portion of the $1.2 billion Legends at Sparks Marina retailentertainment complex. Also, this spring, the Truckee River Whitewater Park at Rock Park will be complete. RGJ ATTENTION NEW MEMBERS: We want to write an article about your business. If you would like to be featured in an upcoming issue of Nevada News, please contact the RAN office at 775-882-1700. 6 ◆ www.rannv.org • Retail Association of Nevada Consumers Cut Food Spending They’re buying generic and eating at home. The bad economy is hitting America in the stomach. According to the Commerce Department’s Bureau of Economic Analysis, consumer spending on food fell at an inflation adjusted 3.7% from the third quarter. That’s the steepest decline in the 62 years the government has compiled the figure. Economists say that people are trading down to lower priced foods, such as ground turkey, and digging into their pantries for staples instead of a quick trip to the market. At Kroger, more customers are buying family packs of meat, chuck steak and ground beef. Hot dog sales are up even in higherincome areas. WSL Strategic Retail of New York found that more people are preparing food at home, eating at lower-priced restaurants when they do eat out, and picking less pricey items from the menu. When times get tough, restaurants are one of the first places where people economize. Now, some consumers consider a fast-food meal a luxury. AP Americans Reach for Small Luxuries Amid Sour Economy From 99-cent music downloads to Ghirardelli chocolates, people are finding small ways to indulge National Notes themselves, at least a little to boost their spirits. Cable channels are being cut and replaced by old-fashioned card games and even dominos. Some say if there’s a silver lining to the downturn, it’s the reminder of simpler and happier times. Chocolate companies are reporting higher sales as many seek the comfort of the sweet as they curl up on the couch and watch a rented DVD. USA Today Safeway Warns Branded Foods to Cut Prices Safeway Inc.’s top executive warned branded-food makers that his grocery chain will push its private-label brands harder if the food manufacturers don’t start lowering prices on their products. While prices have been falling in dairy and fresh produce, big food makers have not followed suit. Food makers say they can’t pass along cost savings because they locked into contracts last summer when commodity prices were high. WSJ Consumers Listen To Pharmacists for OTC Medications According to the most recent Pharmacy Today Overthe-Counter (OTC) Product Survey, pharmacists believe that 83% of consumers purchase over the counter products recommended by their pharmacists. With more than 100,000 nonprescription medications on the market and more than 1,000 active ingredients, it’s critical that consumers consult their pharmacists about how medications may interact with certain foods, other medicines or dietary supplements. APA Press Release Wal-Mart’s Store-Brand Groceries to Get New Emphasis Wal-Mart, the largest U.S. grocery seller, will reintroduce its Great Value line of food in late March. The line will have new packaging and emphasize its lower prices. The company’s renewed interest in improving its private-label offerings reflects its attempt to bolster profit and increase store visits by consumers pinched by the highest unemployment in 16 years. Bloomberg Beauty and Baby Boomers Although boomers say they are likely to cut back on their monthly household budgets in the coming year, survey results show that beauty could prove one of the last areas where cutbacks will be made. Most polled say they spend from $20 to $26/month on cosmetics and the large majority do not plan on cutting back from that amount. Press Release Target Adjusting Its Approach Target Corp. is adjusting its approach in a way that may make the retailer more successful. The plan calls for a greater emphasis on food, health-care products, personal items and other necessities while offering fewer discretionary items to avoid big markdowns that have hobbled its earnings. They also plan on enhancing their assortment of food products and adding perishable items in new and remodeled stores. An investment will be made in technology to improve different areas of its operations, such as its pharmacy program. CNN Money UPCOMING EVENTS Food Marketing Institute 2009 Future Connect May 4–6 Hyatt Regency Hotel & The Dallas Convention Center Dallas, TX Food Marketing Institute’s MARKETECHNICS May 6–8, 2009 Dallas Convention Center Dallas, TX National Retail Federation Washington Leadership Conference May 11–13, 2009 National Press Club Washington, D.C. National Retail Federation Loss Prevention & Expo June 15–17, 2009 Los Angeles Convention Center Los Angeles, CA ◆7 Retail Association of Nevada • www.rannv.org L Consumer Affairs Division Warns: Don’t Be Fooled By Extended Auto Warranty Scheme as Vegas — You open your mail to find a postcard, stamped in red with the words “FINAL NOTICE: Expiring Auto Warranty.” Watch out; it’s probably a scam. According to the Better Business Bureau, complaints against questionable auto warranty processing services have risen by more than 40 percent in the past year. In these tough economic times, some less than scrupulous businesses are doing all they can to separate you from your hardearned money. The solicitations come through direct mail or telephone calls. The services often have official-sounding names, and mailers are typically marked with last-chance warnings. Representatives use high-pressure sales tactics, stressing special discounts only available if you buy “right now”. These shady solicitations entice consumers to buy coverage they don’t need. Even worse, the services may not deliver the coverage they promise. Consumers who purchase the unneeded coverage usually find that pre-existing conditions are excluded, detailed maintenance records may be required, there may be limited authorized repair facilities, and frequently repair charges must receive prior approval before payment will be made. To avoid receiving these calls and mailings in the first place, sign up with the Do Not Call Registry at http://www. donotcall.gov or by calling, toll-free, (888) 382-1222 and with the Direct Marketing Association’s Mail Preference Service at http://www. dmachoice.org. What do you do if you get one of these calls? “First, hang up the phone,” says Consumer Affairs Commissioner Campos. “Then, file a complaint with us at Consumer Affairs and with the Federal Trade Commission (FTC). The FTC has the authority to sue the company, fine them, and force them to stop their deceptive sales techniques.” If you’re considering the offer, be sure to check the company out thoroughly. l Research them with the Nevada Consumer Affairs Division by calling (702) 4867355 or (775) 688-1800. l Review the consumer complaints in the Consumer Affairs.com section on Extended Warranties at http:// www.consumeraffairs.com/ auto_warranty/index.html. l Get all information and conditions in writing. l Do not give any personally identifying information, such as your Social Security Number or bank account over the phone. Commissioner Campos also encourages consumers to visit the Fight Fraud Website at http://fightfraud.nv.gov/. “The site includes extensive tips on how to prevent fraud and provides downloadable complaint forms to help you respond effectively if you become a victim,” says Campos. “Visit it regularly for the latest fraud alerts.” ◆ Anchor Stores Can Make the Difference A t Winterwood Pavilion in Las Vegas, seven stores have closed since Vons closed at the end of 2007. And, according to the Las Vegas Sun, at the Spring Valley Town Center, where a drugstore and an Albertsons supermarket closed, seven storefronts in a row stand empty. At the Rainbow Dunes Centre, where a discount retailer closed a few years ago, ten of the other 12 stores are vacant. At one time, smaller stores dreaded it if a Wal-Mart or big box store moved in. But then they discovered that a large anchor store generates traffic, in particular, foot traffic. Customers of the big box store would wander into the smaller stores and become regular customers. 8 ◆ Now they’re finding that as the big box stores close, they lose all their foot traffic and business is lost. Some call this loss of business retail blight. When large department stores left the Park Lane Mall in Reno, the smaller shops left couldn’t generate enough traffic to stay in business. Last year the Mall was sold to a developer, and demolition is taking place. At Henderson’s Boulder Market Place, Albertsons was the first to leave. Since then, a drugstore, a video store and three smaller stores have closed. Two more Albertsons are closing in February in Las Vegas, as well as four Lucky grocery stores. An Albertsons spokeswoman attributed the closings to stores not meeting their sales goals. In order to save malls, some owners are changing their requirements and leasing space to payday lenders and even government agencies. Filling the space is the important part. At the Houston Mall in Texas, a traffic court and outpatient health care service filled space vacated by big box stores. For retailers hoping to expand some day, the vacancies offer an opportunity to gain needed space without a total build-out or moving to a new location. Rents are negotiable and right now, rents are lower. It’s the ideal time to negotiate a long-term rental agreement. Some independent retailers think the savings are substantial enough that it makes sense to open new stores now and weather some tough months until the economy turns around. Wal-Mart and Walgreens have plans to expand in Northern Nevada. Some market-themed changes are taking root in the Las Vegas Valley. A Hispanic grocery store recently opened its second valley location, at an aging strip mall in North Las Vegas, and is opening another one in about three months. Elsewhere, mixed-use “lifestyle centers” are springing up in place of the empty malls. Sort of an outdoor urban village that mixes retail, theater and condos, they appeal to those who don’t want to drive everywhere and like the small town atmosphere. ◆ www.rannv.org • Retail Association of Nevada Stimulus Bill Includes Vital Boost to State Medicaid Funding, Tax-Relief, Advancement of Interoperable HIT A NACDS urges reasoned approach to implementing HIT privacy measures lexandria, Va. — NACDS President and Chief Executive Officer Steven C. Anderson, IOM, CAE, issued the following statement regarding the anticipated passage and enactment of the final conference report of the American Recovery and Reinvestment Act: “States and patients are among the victors in this legislation. It increases the Federal Medical Assistance Percentage (FMAP), providing $86.6 billion in financial assistance that will help avert additional cuts to Medicaid programs, and thereby preserve coverage for millions of Medicaid patients. As the face of neighborhood healthcare, “The Medicaid funds in this bill will help states to ensure that low-income patients maintain access to vital healthcare such as medications and pharmacy services.” pharmacies can help patients stay healthy and prevent more costly forms of care such as emergency room visits. The Medicaid funds in this bill will help states to ensure that low-income patients maintain access to vital healthcare such as medications and pharmacy services. “In addition, the final report contains important tax-relief that will assist NACDS members and other businesses. These include accelerated depreciation of capital expenditures and tax credits for hiring veterans and youth. “The legislation also provides $2 billion in grants and loans for the advancement of interoperable health information technology (HIT). HIT applies modern tools to the traditional role of pharmacies and pharmacists — helping patients take their medications as prescribed, promoting prescription accuracy and safety, fostering sound healthcare decision-making, and helping to reduce healthcare costs. “On a related point, the final report contains the most significant changes ever to the HIPAA privacy rules, which affect the entire healthcare delivery system. The dialogue and debate on this issue provided to this process a greater level of reason than had been seen in some proposals dating back to the last Congress. We look forward to continuing to work with policymakers as they continue to address this issue. “Unfortunately, not all of the discussion surrounding the privacy issue has been fact-based, and in some cases it has become sadly distorted. For this reason, NACDS will take every opportunity, including this one, to debunk the myth on this important point. Some have suggested that pharmacies sell health information about particular patients for use in sending advertisements to those patients. That is not true. For example, unless a patient gives prior authorization, a pharmacy cannot sell health information that identifies the patient to drug manufacturers, for the purpose of helping manufacturers send marketing materials to the patient. “Pharmacies can sell ‘de-identified’ data, but patient names and other identifying information must be removed. This de-identified information is helpful for research and quality assurance purposes, including analysis of healthcare spending trends for public policy. Unfortunately, this distinction between patient-specific and de-identified information has been glossed over all-too frequently during this debate. “NACDS looks forward to continuing to work with Congress and the Administration on all issues related to the viability of pharmacies, and opportunities for pharmacies and pharmacists to maximize the value they deliver to patients and to the entire healthcare delivery system.” ◆ The National Association of Chain Drug Stores (NACDS) represents traditional drug stores, supermarkets, and mass merchants with pharmacies. Its more than 160 chain member companies include regional chains with a minimum of four stores to national companies. NACDS members also include more than 1,000 suppliers of pharmacy and front-end products, and 85 international members representing 28 countries. Chains operate 39,000 pharmacies, and employ a total of more than 2.5 million employees, including 118,000 pharmacists. They fill more than 2.5 billion prescriptions yearly, and have annual sales of over $750 billion. For more information about NACDS, visit www.NACDS.org. ◆9 Retail Association of Nevada • www.rannv.org Important Information for SIG Members The NRS governing self insured groups requires notifying members of all new members to the Nevada Retail Network Self Insured Group. New members for NRNSIG from February 1, 2009 to February 28, 2009 are listed below. Absolute Circle of Care Ancient & Accepted Scottish Rite Armstrong & Kidwell Bath Lumber Co Carson Valley Medical Center Desert Valley Dental Desert Valley Pediatrics Dr Stephen Palazzolo First Tee of Northern Nevada Great Basin Internet Services Green Thumb Lawn Service Little Knights & Maidens Nevada Hospital Association OCG Creative Prestige Auto Wash RO Anderson Sierra Hearth and Home NRNSIG members who wish to register a negative vote on a new group member, please write NRNSIG at 575 S. Saliman Road, Carson City, NV 89701, indicating which member and the reason(s) for the negative vote. TAKE CONTROL OF YOUR WORKERS’ COMP COST Be Part of… The Nevada Retail Network Certificate #5004 l Greater management control that cuts overhead costs l Pre-employment screening at a small co-pay for NRN members only l Team Safety/Loss Control Program for all members l Investigation and defense of claims l Direct savings that give members greater incentive to control losses Take Control Today… Call Mike Olson 800-859-3177 • Self Insured Group • • Membership in RAN Required • Sponsored by: The Retail Association of Nevada 410 South Minnesota Street Carson City, NV 89703-4272 Membership Information: Find out more about RAN’s self insured group. Call Mike Olson, 800-859-3177, or the RAN office at 775-882-1700 (toll free in Nevada 800-690-5959). Don’t forget to check out our website, www.RANNV.org. 10 ◆ www.rannv.org • Retail Association of Nevada What’s Next for Retail in ’09? By Susan Reda, Executive Editor Stores Magazine A dding to the air of crisis are recent “going out of business” announcements by the likes of Mervyns, Linens ‘n Things, Whitehall Jewelers and Shoe Pavilion. With the current crisis still unfolding, reorganizing under Chapter 11 is no longer the option it once was. And troubled retailers are facing the grim reality that the value of their inventory may be less than expected due to the worsening economy. In early 2009, retailers may struggle with inventory levels falling short of merchandising plans, but pressures should ease by the second quarter. The credit outlook isn’t much better for consumers. There has been a surge in the number of credit-card borrowers running late on their payments. Suffice to say the easy lending terms of years past are history. But that doesn’t mean F (Part 3 of 3, continued from RAN’s February newsletter) shoppers will lock themselves in their homes and cut up their credit cards. A latent desire to seek out and acquire small indulgences will kick in by mid-2009 as consumers begin to adjust to the “new normal.” l Look for the electronic wallet to finally become a reality in ’09 as shoppers become more comfortable using their cell phones to make purchases. l Seeking the proverbial silver lining, retailers will find that if inventory scarcity becomes an issue, shoppers will buy an item when they see it rather than postpone the purchase anticipating a sale. l It’s no longer nice to be engaging — it’s imperative. Learn the ins and outs of social networking or be left in the dust. Twitter was a fad less than a year ago; now, major corporations are using it for business. Ditto for Facebook. And who knew LinkedIn would grow to be anything more than a way to stockpile associates? Much like the Six Degrees of Kevin Bacon, social networking applications have taken on a life of their own — one that will continue to gain ground in the coming months. Gen Y has grown up having more technology in their bedrooms than some retailers have in their back offices. It is rewriting the rules of shopping—how and where they do it, what they expect and how they want to be treated. As this generation enters the workforce, expect them to reshape corporate culture. They expect an open, transparent environment. They want to work for brands that have integrity and are considered responsible stewards of the environment. They expect “fun” to be baked into their jobs — part of the work hard, play hard balance. If you’re lucky, they’ll stay for three to five years: Learn from them while you can. l The digital generation spends its days instant messaging and texting; they consider e-mail too slow. If you can’t imagine texting negotiations on the fly, it may be time for a new perspective. l Mobile is the tail that will wag the dog, especially when you consider that the cell phone chip is 100 times more powerful than PCs were just a few years back. l Influence networks are the way to reach the under-30 crowd; they don’t watch TV, and when they do they often view it on something other than a traditional television. l High-definition experiences are everywhere, which means investments in digital and interactive signage should be front and center. Messaging will move even closer to the point where the shopper actually makes the decision. l Web 3.0 beckons. It’s an opportunity to look at processing data on a single computer. Are you ready? ◆ Judge Grants AMP Rule Injunction ollowing up on his ruling from the bench on December 14, 2007, United States District Judge Royce C. Lamberth on December 19, 2007, signed an order for a preliminary injunction that blocks the Medicaid pharmacy reimbursement final rule issued by the Centers for Medicare and Medicaid Services (CMS). The temporary injunction is the result of a motion by NACDS and the National Community Pharmacists Association. The text of the order includes positive statements about the likelihood of our success upon the Court’s consideration of the merits of the case, the irreparable harm of the AMP rule for pharmacies, and the public interest to be served through an injunction, “as it is in the public interest for federal departments and agencies to operate in compliance with the law and Medicaid beneficiaries may find access to their retail community pharmacies reduced or eliminated should the injunction not be issued.” NACDS and NCPA’s legal action formally began On November 7, when the associations filed a lawsuit in the United States District Court for the District of Columbia against the U.S. Department of Health and Human Services, the Centers for Medicare and Medicaid Services (CMS), as well as, in their official capacities, Health and Human Services Secretary Michael O. Leavitt and CMS Acting Administrator Kerry Weems. The lawsuit challenges CMS-imposed Medicaid pharmacy reimbursement reductions scheduled to be implemented via rulemaking in January 2008 that would reduce reimbursement rates below what is permitted by law. Both organizations remain committed to working for a long-term legislative solution as well. ◆ ◆ 11 Retail Association of Nevada 410 South Minnesota Street Carson City, Nevada 89703-4272 PRESORTED STANDARD U.S. POSTAGE PAID CARSON CITY, NV PERMIT NO. 98 Nevada News Nevada News is published by the Retail Association of Nevada, a nonpartisan, nonprofit corporation founded in 1969 representing the Retail Community, the Chain Drug Council and the Grocery Industry Council. Mary F. Lau President/CEO Elizabeth MacMenamin Director of Government Affairs Lea Tauchen Director of Government Affairs Bryan Wachter Strategic Affairs Coordinator Danielle Cherry Office Administrator Mike Olson Account Executive / Workers’ Comp Ande Engleman Newsletter Editor Sue Arzillo Newsletter Design & Layout W NRF Welcomes Legislation To Fight Organized Retail Crime, Says Retailers Can’t Afford Losses From Theft During Recession ASHINGTON — The National Retail Federation welcomed legislation intended to help law enforcement fight the $30 billion-a-year problem of organized retail crime, saying introduction comes at a time when the nation’s economic crisis has more shoppers turning to “bargain” merchandise they might not realize is stolen or tainted. “Organized retail crime is a rapidly growing problem, especially as challenging economic times increase the market for stolen merchandise,” NRF Vice-President for Loss Prevention Joseph LaRocca said. “Retailers already struggling to survive are seeing their inventory disappear in increasing amounts, and the goods end up at flea markets or on the Internet at prices that put temptation into the path of cash-strapped consumers trying to stretch every dollar. Losses from these crimes ultimately drive up the price of legitimate merchandise at a time when consumers can least afford it, and do serious damage to our nation’s already weakened economy. The legislation being introduced shows that Congress is ready to stop treating the perpetrators of ORC like petty shoplifters and recognize them for the professional criminals they really are.” Three major bills on ORC have been introduced: the Combating Organized Retail Crime Act of 2009, sponsored by Senate Majority Whip Richard J. Durbin, D-Ill.; the Organized Retail Crime Act of 2009, sponsored by Representative Brad Ellsworth, D-Ind.; and the E-Fencing Enforcement Act of 2009, sponsored by House Judiciary Committee Crime, Terrorism and Homeland Security Subcommittee Chairman Bobby Scott, D-Va. All three bills would address organized retail crime, in which groups of professional thieves steal merchandise from stores on a large scale and resell the goods in venues ranging from flea markets to the Internet. ORC rings typically target consumer items that are in high demand but easy to steal like infant formula, razor blades, cosmetics and gift cards, along with more expensive items such as DVDs, CDs, video games, electronics or designer clothing. In addition to the financial loss, ORC can present a public health hazard because items like infant formula or over-the-counter medications might be improperly stored or mislabeled. While the bills offer different approaches to combating ORC, taken together they would define ORC as a federal crime for the first time, require review and necessary amendments of federal sentencing guidelines for criminals convicted of ORC, require operators of online auction sites to cooperate with retailers and law enforcement officials in their investigations of ORC, and, in some cases, hold auction sites responsible for the sale of stolen merchandise that could have been prevented. LaRocca said online “e-fencing” has become thieves’ preferred method for disposing of stolen retail merchandise because they can receive as much as 70 percent of its retail value, compared with 30 percent on a street corner or at a pawn shop. The anonymity of the Internet also reduces the chances of apprehension. LaRocca said measures specific to the Internet are necessary because online auction operators don’t do enough to cooperate with retailers to stop ORC, typically working with police only after an incident is reported and not taking sufficient proactive steps to keep stolen merchandise off their sites. Retailers lose as much as $30 billion to ORC each year, according to the FBI and retail loss prevention experts, and an NRF survey found a record 85 percent of retailers were victims of ORC in the past year. NRF is leading retailers’ efforts to fight ORC. The National Retail Federation is the world’s largest retail trade association. ◆