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 Friday
Facts - Archives -
Month of
February 2007
Current
Week
February 23, 2007
Loss Prevention Issue before the General Law Committee
Labor Issues Picking up Steam
Other News and Notes from the State Capitol
Member Services Update
Retail News and Notes
• One of CRMA’s priority legislative issues was before a key
Committee this week.
• On Thursday the General Law Committee held an informational
hearing on Organized Retail Theft. CRMA has identified
enacting an Organized Retail Theft bill as one of our priority
issues for this session.
• The informational hearing was granted to us after we made
the request to the Committee Co-Chairs and was held to inform
members of the need to enact ORT Legislation in CT.
• The hearing was very well received by the Committee and we
want to thank Mr. Bill Shea, from CVS, for his presentation to
the Committee.
• Also, we want to thank Ms. Amanda Bell and Mr. Mark DiSalvo
from Target for answering questions of committee members.
• This informational hearing came after CRMA requested the
Committee raise a bill dealing with ORT. That bill was raised
SB-1306 “An Act Concerning Organized Retail Theft”.
• On Tuesday, February 27th the General Law Committee will
hold a formal public hearing on that bill. We are planning on
testifying in favor of the bill at that time.
• Also, in preparation of that hearing our LP committee will
be holding a special conference call on Monday February 26,
2007 at 4:00 p.m. EST to review Senate Bill 1306 “An Act
Concerning Organized Retail Theft”.
• If you are interested in joining in the call, please contact
Cathy in our office
for more details at 860-527-1044.
Labor Issues Picking up Steam
• Although CRMA’s major focus is on issues that affect
retailer’s day-to-day business that does not mean we do not
participate in issues that affect the whole business
community.
• As you know, Retailers are one of the major employers in the
State and because of that we keep a very close eye on what is
happening on labor and employment issues.
• To that end, we wanted to update you on a number of
Labor/Workers Compensation issues that are moving in the
process.
• Working with the business community in a coalition we have
identified a number of important bills that would impact
retailers. There are at least 3 that jump out at us that
require immediate attention.
• SB 847 AAC Discretionary Benefits Under the Workers’
Compensation Act.
• This bill would repeal a key workers compensation system
reform by extending the maximum number of weeks a commissioner
may award any discretionary benefits for a partial permanent
disability.
• The bill would remove a Workers Compensation Commissioners
obligation to choose the lesser of two options, the statutory
duration of the claimants PPD benefits or 520 weeks, thus
authorizing a commissioner to award up to 520 weeks of
discretionary workers compensation benefits.
• The bill was reported out of the Judiciary Committee and is
making its way to the floor for a full vote.
• CRMA is working with the business community in opposing SB
153 “AAC the Award of Workers’ Compensation for Scarring and
Disfigurement”
• This bill seeks to allow injured workers the ability to
recover monies for work related scars in addition to their
weekly wage replacement and other benefits regardless of how
insignificant the scar may be.
• We are also opposing SB 152 –“AAC the Establishment of an
Accidental Failure of Claim State for the Workers Compensation
Claimants”.
• SB 152 would place unfair - if not impossible - burdens on
employers by in effect eliminating the statute of limitations
in workers compensation claims.
• If you would like more information about these bills please
contact us ASAP.
• Also, please note there are other bills that negatively
impact business that we are watching and will update you
accordingly.
Other Capitol News and Notes
• Last week the Public Health Committee held a public hearing
on a menu labeling bill, SB 686 “AAC, Access to Health and
Nutritional information in Restaurants”
• We opposed this bill and will work to see it defeated in
committee, but it has the support of the Sen. President’s
office.
• This week we also testified before the Banks Committee on
two bills that CRMA opposes.
• SB 1089 “An Act Encouraging the Safekeeping of Consumer
Information in Retail Establishments.
• We oppose this bill that was raised at the request of the
Bankers Association. The bill would allow any bank to charge
retailers for the cost of reissuing cards that had been
canceled due to a security breach.
• Also, HB 7073” An Act Protecting Consumers’ Privacy in
Mortgage Applications”, is a bill we also oppose and we
testified against that bill as well.
• This week promises to be just as busy.
• On Monday we have a special conference call to prepare for
the General Law Committee hearing on our ORT bill scheduled
for Tuesday.
• On Wednesday, the Environment Committee will be holding a
public hearing on 2 bills that deal with e-waste. Those bills
are SB-1225 “An Act Concerning the Recycling of Electronic
Devices” and SB-7249 “An Act Concerning the Collection and
Recycling of Covered Electronic Devices”.
• CRMA strongly opposes SB-1225 and supports SB-7249.
• The Environment Committee is also holding an informational
hearing on this issue March 6, 2007
• On Thursday of next week we will be back before the General
Law Committee on another of our priority bills.
• We are very pleased to report that the General Law committee
will hold a public hearing on SB-1300, “AAC Residential
Interior Designers”.
• We will have more information about these hearings in next
weeks update.
• Also, on Wednesday of next week we will be holding two
conference calls.
• At 10:00 EST we will hold our Legislative Committee will
hold its bi-weekly conference call to review bills.
• And at 3:00 p.m. EST, we will host a conference call to
discuss pending health care legislation.
• If you are interested in joining in on these calls please
contact Cathy on in
our office for more information.
Member Services Update
• The CRMA Global Payments program remains a great option for
members wishing to save money with their bank card needs.
• With the Holiday season now behind us, now maybe a good time
for some retailers to review their bank card statements.
• Better yet, send us your latest statement and we will
analyze it for you for free.
• Call us today for more information on this program.
• We are still looking for members to participate in our
retailers’ only self insured workers compensation study.
• Last week two more members agreed to participate but there
is always room for more.
• Please call us today for more information or email us at
cathy@crmaonline.com
Retail New and Notes
• J.C. Penney aims to put more private labels in stores. J.C.
Penney Co. is trying to update its clothing labels and fuel
growth by introducing more private-label clothing brands. The
company has rebranded its own lingerie line and introduced two
new labels from Liz Claiborne, but its biggest private-brand
launch will be the Polo Ralph Lauren-designed American Living
line, which will take place in spring 2008.
The Wall Street Journal
(subscription required) (2/23)
• Scentsa brings a new scent to Nordstrom Scentsa, a new
retail tool at Nordstrom, contains a fragrance database that
delivers the best matching fragrances to the aromatic
descriptions requested by customers. The flat-panel,
touch-screen monitor offers comprehensive information on each
individual scent to put fragrance knowledge at consumers'
fingertips.
Women's Wear Daily
(subscription required) (2/23)
• Professional retail certifications -- make them preferred
qualifications for hire Companies in the market to hire or
advance exceptional people should make the NRF Foundation's
National Professional Certifications a preferred qualification
for hire. These industry-developed certifications help
employers identify talent, establish clear performance
expectations, increase productivity of your sales force and
promote superior standards of service. Industry certification
also is a great tool for on-boarding programs. The National
Professional Certification in Retail Management captures the
core of what Retail Managers need to know for a broad range of
management and supervisory positions.
Read more information here.
February 16, 2007
CRMA LP Committee Prepares for Hearing Before the General Law
Committee
Capitol News and Notes
Workers Compensation Efforts Need Another Push
Retail News and Notes
• The CRMA’s Loss Prevention Committee will be in front of the
General Law Committee of the General Assembly on Thursday,
February 22, 2007 at 11:00am.
• The Committee has carved out 30 minutes for CRMA to discuss
the latest information regarding Loss Prevention issues that
are facing retailers in Connecticut.
• Passing a comprehensive LP bill is one of our priorities for
this session and we are very pleased that the Committee has
granted us this opportunity.
• We will be holding a special conference call on Monday,
February 19, 2007 at 3:00 pm EST to prepare for this meeting.
• If you are interested in participating in this call please
contact Cathy in our office for more information. Cathy can be
reached at 860-527-1044 or
cathy@crmaonline.com.
Capitol News and Notes
• Things are starting to pick up at the Capitol with all
Committees meeting and holding hearings.
• On Tuesday of next week the Banks Committee will be holding
a public hearing and will, among other bills, be taking
testimony on SB 1089 “AN ACT ENCOURAGING THE SAFEKEEPING OF
CONSUMER INFORMATION IN RETAIL ESTABLISHMENTS”.
• We encourage members to read this bill carefully, and send
us your comments as soon as possible.
• CRMA testified against SB 813, “AN ACT REQUIRING INSURERS TO
PAY FOR ORIGINAL MANUAFACTURED PARTS FOR MOTOR VEHICLE
REPAIRS” that was before the Insurance Committee last week.
• We will continue to work against this bill as we feel it is
anti-competitive and would unfairly discriminate against
retailers who sell after market crash parts.
• With the storm this week the Public Health Committee
canceled its planned public hearing and moved the meeting to
Wednesday the 21st.
• The Public Health Committee will hear two bills we oppose SB
258“AN ACT PROHIBITING THE USE OF TRANS FATS IN CT FOOD
SERVICE ESTABLISHMENTS” and SB 686 “AAC, ACCESS TO HEALTH AND
NUTRITIONAL INFORMATION IN RESTAURANTS”.
• Finally, some new polling data with reaction to the
Governor’s proposal for an increase in the income tax was
released today.
• The latest Quinnipiac University poll gave the Governor
continued high marks for her job approval with 72% of
respondents thinking she is doing a good job.
• But, 56% of respondents oppose her plan to increase the
income tax. Only 39% approved of her plan.
• Also, 79% of respondents do not believe that the increase in
revenue will lead to the lowering of local property taxes.
• That did not surprise Sen. Minority Leader Lou DeLuca. “I
think that was the most significant thing” DeLuca said.
• Speaker of the House Jim Amann had an interesting quote
regarding the Governors job approval numbers: “If they asked
me, I would have said I like the Governor too”, Amann said.
“With all due respect, this isn’t about running for prom
queen”.
Member Services Update
• More help is needed in our efforts to form a retailers-only
self insured workers compensation group.
• Throughout the summer and fall we urged members to help us
gather the necessary information to conduct an actuarial study
to determine if we could get a retailers only self insured
plan off the ground.
• We are pleased to report that we were very successful in
gathering that information but we still need more information.
• Our initial actuarial study showed that we are still short
of the necessary premium data to make our study as
comprehensive as possible.
• If you have not participated in our study and would like to,
please call or email us today. Our office number is
860-527-1044 or you can email Cathy in our office at
cathy@crmaonline.com.
• Again, this is just a study and no commitments are asked for
at this time. We simply need to gather more information to
determine if a group can be formed.
• Thank you for helping us!
Retail News and Notes
• Macy's plans to open Internet
fulfillment center, Macy's will meet the growing Web demand
for items on Macys.com through a new Internet fulfillment
center in Goodyear, Ariz., which Federated Department Stores
will open by 2008. Federated must focus on Web retail because
of the market's growing pace, an expert said.
The Cincinnati Enquirer (2/15)
• Local grocers remove some peanut butter brands from stores
Harris Teeter is taking Peter Pan brand peanut butter off its
shelves due to possible salmonella contamination in Peter Pan
and Great Value peanut butter, which is Wal-Mart Stores'
private-label spread. ConAgra produces the two brands.
The Charlotte Observer (N.C.) (free
registration) (2/15)
• Fashion houses associate clothes with art, Gucci and Prada
have been decorating their stores with art gallery and
exhibition offerings to offer customers more than just
fashion. Luxury good retailers hope to broaden their appeal
and believe that the addition of art to their stores will help
fight brand fatigue and competition from cheaper brands.
The Wall Street Journal (subscription required) (2/16)
February 9, 2007
Governor’s Budget Address Catches Everybody off Guard
Reactions to Speech from the House and Senate
Other Capitol News and Notes
Retail News and Notes
• Wow! We didn’t see that coming.
• On Wednesday the Governor gave the most dramatic speech in
her short time as Governor and clearly the most bold budget
address in 15 years.
• She proposed increasing the state income tax to pay for her
new education initiative. The money will go directly to cities
and towns to implement her new program and to help reduce
local property tax.
• There are many other details of the budget which we will
take a look at in this weeks FF along with reactions to her
speech.
• Also, we have important information on one of our
initiatives along with other Capitol News and Notes.
• Meeting reminder: CRMA Legislative Committee will hold its
bi-weekly conference call on Wednesday February 14th at 10:00
AM EST.
Governor’s Budget Address Catches
Everybody off Guard
• As we mentioned, Governor Rell shocked both her Republican
friends in the Legislature and the Democratic majorities by
proposing an increase in the personal income tax.
• The Governor’s proposal includes an increase in the income
tax rate to 5% for income year 2007 and to 5.5% for income
year 2008.
• The increase is expected to yield $617.5 million in FY08 and
$650.0 million in FY09 and thereafter.
• The increase in revenue is targeted to pay for the
Governor’s education initiative which they project will cost
$3.2 billion over a five year period.
• In addition to the increase in income tax the Governor is
also proposing increasing the cigarette tax from $1.51 to
$2.00 per pack, effective July 1, 2007.
• This increase in expected to raise $86.4 million in FY08 and
$82.8 in FY09.
• The governor proposed to eliminate the car tax and to phase
out the unified gift and estate tax.
• The Governor also proposed eliminating the sales tax
surcharge on businesses when their energy usage exceeds $150
per month.
• To get more details on the Governor’s proposal, we suggest
you visit
www.courant.com
Reaction to the Governor’s Speech
• Because this speech and the proposals included were so
dramatic and controversial the reaction to it on both sides of
the aisles are worth noting.
• Remember, Rell is a Republican who won an overwhelming
victory in November and is at the height of her popularity,
but she is also the head of a party that always opposed not
only taxes in general, but the income tax in particular.
• In addition, we hear that she did not tell anyone one of her
plans, not even her Republican allies.
From the House
• “The big question right now is: Do we really need all that
revenue? Do we need $1.3 billion in revenue” House Speaker Jim
Amann (D- Milford)
• “Frankly, you could just put a Democratic head on her
shoulders because it sounded more like a Democratic response
to major issues in our state. It was a brilliant political
move. Here she is surrounded by 107 Democrats in the House,
realizing her veto is meaningless”, Rep. Christopher Caruso,
(D- Bridgeport and frequent and vocal Rell critic).
• House Minority Leader Lawrence F. Cafero, Jr, (R-Norwalk)
while applauding Rell for talking about education, he did not
hide his displeasure with Rell’s early embrace of a tax
increase. “It is not where we wanted to start”.
From the Senate
• “To receive this kind of budget from a Republican Governor
is unheard of”, Senate President Pro Tem. Don Williams (D-
Danielson)
• “She is doing what she has to do and we are doing what we
think we have to do. I think people agree with us… As it
stands today, I doubt there would be any votes for it” Senate
Minority Leader Lou Deluca (R- Woodbury)
• And finally our favorite from Sen. Bill Nickerson, the
ranking Republican on the Finance Revenue and Bonding
committee, “I have to take a pill”.
• We will continue to monitor the budget as it moves
throughout the process and keep everybody up to date.
Other Capitol News and Notes
• Great news on our efforts to enact an Organized Retail Theft
Legislation: The General Law Committee has agreed to give us a
forum before the committee to review the current state of Loss
Prevention in CT.
• That will take place on Thursday February 22, 2007 at 11:00
AM EST. Please call or email us if you would like more
information or would like to join our LP Committee.
• With the Governor’s budget address now behind them, look for
the action to really begin to pick up at the Capitol.
• Our next Legislative Committee conference call will take
place Wednesday, February 14, 2007 at 10:00 EST. Please call
or email for more information about that call.
• And we will be hosting a special conference call to review
the various health care bills that are emerging at the
Capitol. That call will take place at 10:30 on Wednesday
February 14, 2007.
Retail News and Notes
• Designer styles infiltrate Payless, other footwear companies
Payless Shoe Source is just one of several lower-priced shoe
companies beginning to offer designer styles at affordable
prices. As part of an ongoing re-branding effort, the company
has hired Laura Poretzky of the label Abaete to design pumps,
flats, boots and other items priced between $25 and $45.
The Boston Globe (2/8)
• Poll: Consumers want card networks to reveal interchange
Ninety-four percent of consumers think card companies should
be required to share information about their interchange
collection, a Harris Interactive online poll conducted on
behalf of the Merchants Payments Coalition found. About 93% of
those surveyed believed card companies should be required to
explain their pricing, and 91% wanted Congress to intervene by
requiring the networks to reveal interchange information. "The
way credit card companies hide interchange fees is
indefensible," the National Retail Federation's Mallory Duncan
said in a statement.
Digital Transactions (2/2007)
• Microsoft raises Vista tech support prices
Microsoft has raised costs and narrowed help for the support
of retail customers using Microsoft Vista and Office 2007.
Microsoft says its previous support prices were lower than
those of competitors, such as Circuit City's Firedog and Best
Buy's Geek Squad, and that the higher support prices are still
"barely in line with the lowest prices are our competitors
charging."
PCWorld (2/6)
February 2, 2007
CRMA Loss Prevention Committee Sets Agenda for 2007
Capitol News and Notes
Member Services Update
Retail News and Notes
• This week the CRMA Legislative Committee held its bi-weekly
conference call to review issues that impact retailers.
• As a result of that call, a sub-committee dealing with Loss
Prevention issues was created and that group also met and
reviewed Legislation for 2007.
• There was other activity at the Capitol this week as the
first month of the long session closed and the Governor
prepares for her budget address.
CRMA Loss Prevention Committee Sets
Agenda for 2007
• On Thursday of this week, the CRMA Loss Prevention
Committee, made up of LP professionals from member companies
as well as members of the Legislative Committee, met to review
plans for 2007.
• As we mentioned in last week’s Friday Facts the General Law
Committee raised a bill for a public hearing on “An Act
Concerning Retail Theft”.
• The Committee kept the title of the bill broad enough so
that after the hearing they can include it in whatever they
deem appropriate.
• The Loss Prevention Committee reviewed the priorities that
they would like in the bill.
• Things like increased penalties for fraudulent receipts,
participating in an Organized Retail Thief Ring, reselling of
stolen property, as well as increased penalties for exiting
using emergency exits.
• The LP committee is also preparing for formal testimony to
the General Law Committee on all these issues.
• If members could not participate in the call, but would like
to get involved in this issue, please contact us and we will
add you to our LP Committee.
Capitol News and Notes
• The Governor is scheduled to give her annual budget address
to the Legislature next week. We hear she is going to focus on
education.
• We were wrong last week when we predicted that the House
Democrats would unveil an energy bill over the weekend and
take it up this week.
• Turns out they are a little unsure of the best way to deal
with this issue –which is not all surprising.
• The House Co-Chair of the Energy Committee, Rep. Steve
Fontana (D-Hamden) said that the House may end up tackling
small parts of the issue rather than a big bill that would
encompass large parts of the energy issue.
• We are not sure exactly what he means, but we will continue
to keep watch on that issue.
• The Public Health Committee held a long informational
hearing on the state of health care in CT this week.
• They examined a host of issues including, electronic
records, chronic diseases and expansion of the Husky Program
for the uninsured.
• We are planning a special health care call soon to bring
members up to date on that issue. Also, look for a special
Health Care Friday Facts.
• A very interesting hearing was held this week by the Finance
and Appropriations Committees to brief incoming freshman
legislators on the state budget process.
• We got a copy of the hand out, complete with pie charts and
good information about where your tax dollars are spent and
would be happy to ship one to you if you would like.
• Please call or email our office today and Cathy will send
one off to you.
• Finally, our next Legislative Committee conference call is
scheduled for Wednesday, Feb 14, 2007 at 10:00 AM EST. Please
call or email for more information.
Member Services Update
• We have been mentioning that we are interested in exploring
ways to help members with their energy costs, including
possibly forming an energy aggregation group.
• By now, we had hoped to have more information to share with
you and sorry that we don’t. But, that does not mean we have
stopped trying. It is just taking a little longer than
anticipated.
• Hopefully, we will be ready by the end of next week to get
the ball rolling.
• Also, we are continuing our efforts to form a retailer’s
only Self Insured Workers Comp. Group and will be contacting
you soon with more news.
• Finally, we are very interested in your bank card business.
Bluntly, we want to see if our program stacks up to your
current processor.
• CRMA’s Bank Card program is the best overall program for
retailers in the state. By overall we mean, rates – no hidden
fees – and services.
• Please call or email us today to see where you stand.
Retail New and Notes
• Banana Republic head takes reins at Gap Marka Hansen, who
has held the top job at Banana Republic for the past three
years, has been promoted to lead Gap, Inc. "While there are
challenges that lie ahead, with the support of the extremely
passionate, talented and committed Gap brand team, I'm
confident that together we can reclaim Gap brand's authority
in casual apparel," Hansen said in a statement.
Forbes/Associated Press (2/2),
Twincities.com/Associated
Press (2/2), The
New York Times (2/2), The
Wall Street Journal (subscription required) (2/2)
• Daylight-saving time could hit
snags this year it might not be Y2K, but Congress' decision to
move daylight-saving time from April to March this year is
likely to affect numerous computer systems that have been
preset to change the hour on the traditional date. Many people
aren't even aware of the change, but it could affect
everything from security systems that log the time of critical
events to takeoff times for pilots and synchronized
international communications components.
The Washington Post (2/1)
• Retailers welcome tax relief in minimum-wage bill The
National Retail Federation welcomed the Senate passage of an
important change in depreciation rules and other tax relief as
part of legislation that would increase the federal minimum
wage. The Senate approved an amended version of H.R. 2, the
Fair Minimum Wage Act of 2007, by a vote of 94-3. Like the
original bill passed by the House in January, the Senate
version would increase the current $5.15 minimum wage to $7.25
over two years.
Read more information
here.
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