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. ◆