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Sponsors
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 Friday
Facts - Archives -
Month
of February 2004
Current
Week
February 27, 2004
CRMA meets with finance committee Co-Chairs on a number of issues.
Gift certificate update. An alternative to smart growth. CRMA news and notes.
Retail news and notes.
· We are back! Welcome to another edition of our Friday fax. We apologies for missing you for the past two weeks, as we dealt with some technical difficulties.
· The CT. general assembly is picking up steam as committees hold more hearings on bills.
· This week we met with the Co – Chairs of the Finance Committee, Sen. Daily, (D-Westbrook) and Rep. Andrea Stillman (D-Waterford) to discuss tax issues effecting retailers.
· Specifically, we met with the Co chairs to tell them of our wish to see the sales tax free week continue. The sales tax free week has become an important part of retailers business. However, it is scheduled to go off the books this year unless the legislature amends the law to keep it on schedule.
· During our meeting with the Co Chairs they express support for continuation of the sales tax free week, but also cautioned us that it will be very difficult to keep it without showing the committee that the week has provided benefits to the overall economy.
· To that end, we need your help. If your are a mall manager, or a retailer that sells products other than clothing and footwear and have seen a spike in your business during the sales tax free week, please call us or email us your information.
· Also, we will be reaching out to all members shortly to gather more information about this year’s sales tax free week. This information will be vital to the continuation of the week. Please help us by returning your information in timely manner
Attention OTP retailers:
· If you are a retailer that sells OTP, the governor’s budget calls for an increase in that tax as well.
· During our meeting with the Sen. Co Chairs, we also raised that issue.
· Again, they were sensitive to the impact this will have on smaller merchants, but did not sound optimistic.
· Quite simply, we will have a real fight on our hands to keep this increase from happening. We will notify you shortly as to the key legislators that you will need to contact.
Gift Certificate Update:
· The General Law committee will hold a public hearing on SB. 288, An Act Concerning Gift Certificates.
· This bill would essentially repeal last year’s changes to the gift certificate law. CRMA will testify in favor of the bill.
· As you recall, CRMA has put together a special committee to deal with this issue and has hired outside counsel to help advise us. That outside counsel will testify before the committee on this bill as we begin the process of repealing last year’s law.
· We will update you next week on how the hearing went. In the meantime, if you are interested in joining this special committee, please feel free to contact our office by calling 860-527-1044 or by emailing us through our website at www.crmaonline.com
Smart growth – a balanced approach is the best approach.
· As you many of you know, the idea of “smart growth” has been spreading across the state and the country. We are concerned that the advocates for smart growth really want no growth
· That’s why we are pleased to tell you that we are part of a new organization that wants to take a balanced approach to growth in CT.
· The Connecticut Partnership for Balanced Growth (www.cpbg.org) is a 501c-(6) organization made of retailers, developers, land use professionals, home builders and others that want to strike a balance between preserving our environment and community character and meeting the demands of the marketplace.
· We think that can be done through a common sense approach and not by the command and control approach that many “smart growth” advocates promote.
· We encourage all members to visit the CPBG site and consider contributing to this new organization that will also help educated legislators about the need to have balance in this emerging debate.
CRMA News and Notes:
· Our CRMA golf committee will hold a conference call this week to discuss our third annual golf classic that will be held on June 8th at Blackledge Country Club.
· If you are interested in joining the Golf Committee, please call or email us today
· Attention Legislative Committee members: Because of the technical difficulties we had with email this week, many of you may not have received your reminder notice about our call last Thursday. So, we will be holding another call this Thursday at 9:30 EST with our normal call in number.
· If you are interested in calling into the legislative committee, please feel free to contact us and we will provide you with the call in number.
· Finally, don’t forget our newest member service offering: Property casualty insurance with ONE BEACON. Call us today if you are interested and we can start you on your way to receiving a quality product at a great price.
Retail News and Notes
· Lowe's, Home Depot profits rise
Both home-improvement chains reported strong fourth-quarter profits yesterday; Lowe's posting a 28% increase and Home Depot posting a 39% increase. However, analysts expressed concern over Lowe's same-store sales, which rose 7.3% compared with 12.4% the previous quarter. The Philadelphia Inquirer/Associated Press (2/24), The Miami Herald/Associated Press (2/24),
· The US Department of Commerce numbers for online retail sales in Q4 are out – the Department finds e-retail sales hit $17.2 billion last quarter, rising 25% since Q4 2002. The DOC mentions that online retail sales represented 1.9% of total retail sales in the US in Q4 of last year, rising from 1.6% in Q4 2002. For the whole year, e-retail sales accounted for 1.6% of total retail sales in 2003.
(http://www.emarketer.com/news/article.php?1002680&trackref=edaily)
Mardi Gras bead makers scratch heads while reaping profits
Chinese workers making millions of strands of beads for Mardi Gras revelers in New Orleans and elsewhere do not understand the beads' appeal, but a handful of companies in China have enjoyed the explosion in demand for more specialized beads. "They just know it's for crazy Americans," says Tony Wong, owner of one bead manufacturing company. The Wall Street Journal
February
13, 2004
Legislature begins hearings on bills next week.
CRMA lobbyist will meet with key legislators on gift card legislation.
One Beacon/CRMA program offers many benefits to small merchants.
Retail News and Notes.
· With the start of the legislative session last week, committee hearings and meetings will begin in earnest next week.
· Already the Appropriations Committee has held hearings on a number of state agency budgets and the Finance Committee will begin soon on the governor’s revenue proposal.
· Speaking of the Finance Committee, House Co – Chair Andrea Stillman (D-Waterford) is running for the State Senate seat that is currently being held by Sen. Melody Peters next election cycle.
· In addition to the appropriation and finance committee, next week there will be a number of committee meetings we will be attending.
· On Tuesday of next week the Energy and Labor Committees will both hold meetings to raise bills as well as public hearings on some bills that will impact us.
· On Thursday, General Law and Finance meet to raise bills. And on Friday the Judiciary Committee will meet to raise bills.
· We will attend all of these meetings to keep an eye out for bills that impact the retail industry. If there are any, and we are sure there will be some, we will add them to our tracking sheet that we share with members of the CRMA Legislative Committee.
· All members are welcome and encouraged to participate in our legislative committee. We hold bi weekly conference calls to review legislation as well as sending members weekly tracking sheets to update them on the progress of those bills.
· If you are interested to joining this committee, please feel free to contact us through our website, www.crmaonline.com or by calling the office at 860-527-1044
CRMA to meet with key member of Judiciary committee next week.
· For those members that are concerned about the new gift card law that was snuck into last years final budget by the Treasures Office, please take note that we are working in earnest to repeal last year’s act.
· Next week we will be meeting with a key member of the General Assembly to discuss this issue.
· That member, Sen. Andrew McDonald (D-Stamford) is the Sen.Chair of the Judiciary Committee. The Judiciary Committee has some jurisdiction in this area and Sen. McDonald will be an important player in any final action on gift cards.
· Members should know that we are making a major effort to replace last years act and would welcome any support that they may have.
· To that end, we put together a great team to fight this new law. In addition to the lobby team from Murtha
Cullina, LLC we also have hired outside counsel to assist us.
· Attorney’s Rick Pomp and Rick Kay, both professors of law at UConn and are well-respected and talented lawyers that are working on our behalf and will join us in our meeting with Sen. McDonald.
· In addition, Attorney Mary Ann Gall, abandoned property specialist with Jones Day, has also written an opinion on our behalf.
· Again, this effort is vital to the repeal of last year’s act and we need every member’s help. You can participate by contacting us at 860-527-1044 to discuss how you can help in greater detail.
CRMA/One Beacon Business Insurance helps small retailers.
· In our previous Friday Facts, we notified members that we were very happy to announce CRMA’s endorsement of One Beacon Insurance Group as our preferred provider of business insurance for members of
CRMA.
· One Beacon has a great, new insurance product that is now available to members of CRMA – the One Pac Insurance Policy for retail businesses.
· Most One Pac polices include replacement cost coverage without coinsurance and all - risk property coverage, plus coverage for equipment breakdown and business income.
· In addition, members can take advantage of the One Pac extender endorsement, a prepackaged selection of policy extensions to provide coverage for electronic equipment and software, property in transit, valuable papers and much more.
· The One Pac policy provides coverage that include buildings, exterior and interior building glass, spoilage, employee dishonesty and much more.
· To learn more about the One Beacon Insurance program for retailers and the One Pac policy, please call CRMA’s preferred insurance agency, Association Benefits Insurance Agency, Inc.
(ABI). Our professional agents, focused exclusively on the insurance needs of retailers, will be happy to talk with you.
· When contacting ABI, be sure to tell them you are a member of
CRMA. You can contact an agent at ABI by calling 800-211-4217 x224 and ask for Frank Michaud.
Retail News and Notes
· Valentines Day Spending: According to NRF and
BIGresearch, Valentine's Day spending in the US will hit $12.79 billion in 2004, with consumers buying gifts for everyone from spouses to teachers.
(http://www.emarketer.com/news/article.php?1002665&trackref=edaily)
· Behind the scenes at Fashion Week
As Fashion Week continues, the Philadelphia Inquirer reports on the trend of buying separates to expand a wardrobe, while USA TODAY focuses on the celebrities and designers that make Fashion Week the event it is. Click here to view a photo gallery of Fashion Week. The Philadelphia Inquirer (2/11), USA TODAY (2/11)
· Sears to debut new line of women's clothing
Sears, Roebuck and Co. plans to debut a line of women's clothing this fall in 450 of its 870 stores. Sears also will introduce the Structure brand of menswear to stores by year's end. Chicago Sun-Times (2/10)
February 6, 2004
Governor address Legislature with annual state of the state speech.
Governor’s budget proposes no increase in sales tax.
Legislative Committees to begin work on budget and other issues
Retail News and Notes.
· On Wednesday of this week, Governor Rowland addressed the legislature with his annual State of the State Address.
· There was much drama in the Governors speech, given that it was the first time he has addressed the General Assembly since the Speaker of the House empanelled a special committee to consider his impeachment.
· To no real surprise, however, not one member of the General Assembly walked out in protest. Rather, most received the Governor with polite applause after the Lt. Governor Jodi Rell introduced him.
· The governor gave a 34 minute address that was interrupted 27 times with applause as he introduced a number of individuals and small groups into his budget address
· Here are some quotes after the governor’s speech, “If you were a visitor from Mars and you got out of your flying saucer and looked around this room, it was a day of business as usual,” said Republican State Senator William Nickerson (R) Greenwich,
· House Minority Leader Bob Ward, (R) North Branford “Frankly, it was a well delivered speech. The governor is a very skilled communicator. He mentioned things that would be popular and very easy to pass”
· From State Sen. John Fonfar (D) Hartford “He’s very good. I thought he accomplished what he set out to do – to have us and the public see him in his role as Governor. I think some of my colleagues have forgotten how good his is. How long that lasts, I don’t know. But for the moment, he’s succeed”.
· And from Rep Larry Cafero (R) Norwalk “Touché to the governor. It was a good move”
· Others were not so complimentary. House Majority Leader Jim
Amann, (D) Milford, “This was pure damage control. Nobody in this chamber was fooled by the positive rhetoric”
· Sen. President Kevin Sullivan (D) West Hartford: “ We have not seen such a symphony of sympathy in this chamber for a long time.” And from Chris Caruso, (D) Bridgeport “It was a shameless spectacle. It showed no humility. I had to do everything I could to stay in that seat and not walk out. I think he covered everyone except custodians and orphans in that speech.”
The Devil is in the Details of the Budget
· Of course all anyone could talk about during and after the speech was the speech but there is still the business of adopting a budget and the Governor’s proposed budget has a lot of think about.
· For retailers the Governor proposes NO HIKE IN THE SALES TAX.
· But, the budget does propose to increase the tax charged on cigarettes from the present $1.51 to $2.05, effective April 1, 2004. That tax is expected to raise $32.8 million in the current fiscal year.
· And the Governors budget also calls for an increase in other tobacco products, which will hit all retailers that sell cigars, pipes, chewing tobacco and self-roll cigarettes.
· The OTP is being raised from 20 percent of the wholesale price to 30%, a 50% increase. The snuff tax will raise from 40 cents per ounce to 60 per cent ounce, a 50 percent increase as well
· The governor’ s budget also delays the repeal of the newspaper tax until July 2005. That will raise an additional $15 million dollars.
· Finally the governor’s budget proposes that unclaimed deposits on unreturned beverage containers be escheated to the state. An issue that will be hotly debated.
· Of course, these proposals are just that – proposals. The Legislature will begin its review of them right away. We will keep you up to date weekly on the progress of these and any other budget related matters.
Legislative committees begin work next week.
· With the start of the session on Wednesday, Committees can officially begin raising bills and holding public hearings.
· We will be meeting with key legislators over the next week to review what is on their mind this year and also begin the process of screening and identify bills that impact the retail industry.
· To that end, our legislative committee will once again this year be active in reviewing legislation. Many thanks to Board Members and Chairman of the Legislative Committee Tom Zapf of Macy’s for all his work in keeping us on track during the legislative session.
· The Legislative Committee is open to all members of CRMA. If you are interested in joining the Legislative Committee, feel free to email us or call the office. You can email us through our website, www.crmaonline.com or call us at 860-527-1044
Retail News and Notes
· Home Depot succeeding with women shoppers, employees
The nation's second-largest retailer, behind Wal-Mart, now counts 45% of its shoppers as women, according to a recent survey, and was cited in a recent Catalyst study for its high number of female executives. The Catalyst study of 353 Fortune 500 companies also found those with more women in senior management performed better. Journal and Constitution (Atlanta) (2/1)
· Customers often don't mind "offensive" clothes
Some retailers have pulled certain apparel lines, such as David & Goliath's "Boys are Stupid" shirts, because of customer complaints, but others are often surprised by what customers will buy. A Seattle apparel manager expected controversy over a T-shirt that might offend Asians, but instead found it was a top-seller among that demographic. The Seattle Times (free registration)
· Opinion: "Twinkie Tax" misguided
The $30 billion-a-year snack food industry is the focus of more than a dozen revenue-strapped states. The states hope the snack tax will help cut budget shortfalls and obesity rates. New York plans to tax sweets and snacks, in addition to a bill to ban the sale of snack foods from vending machines in public schools. Forbes (free registration) (2/16)
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