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Friday Facts - Archives - Month of June 2007

Current Week  

     June 29, 2007


Legislature Passed 50 or 60 Bills into Law to End the Session
Streamlined Sales Tax Study Part of Final Bill
2007 Golf Classic in the Books
Nominate a Retailer of the Year
Retail News and Notes
Happy 4th of July!


• This week the legislature went back to work and finally passed a budget and tax package.

• Early this week it was the State Senate’s turn to debate the budget after the State House spent most of Friday night waiting for the bill to be ready.

• The House did not take final action on the budget until about 1:30 AM Saturday morning. Following the vote on the budget the House voted on 2 of the 3 bills necessary to implement the budget and went home around 5:00 AM on Saturday morning.

• Yes, we were there for that; as crazy as that sounds.

• The State Senate, knowing the house would not be finished with the budget until Saturday, decided not to disrupt their weekend by going into session and waited until Monday to do their work.

• With one “no” vote, Sen. Sam Calagrini (R. Waterbury), they voted the budget and the three implementers into law leaving only the one implementer for the House to finish up.

• That bill, otherwise know as the OPM implementer was, as one legislator described it “50 or 60 bills rolled into one”.

• By Thursday at 5:00 PM, they were all done for the year and we are all thankful for that.

Streamlined Sales Tax Study Part of Final Bill

• Section 100 of the OPM implementer bill establishes a Study Committee to examine how the state can implement the streamline sales tax (SST) project. We are hoping for an appointment on that panel.

• The SST project is an effort on the part of states to simplify sales tax definitions so that they are uniform in all states; in part to give Congress the impetus to overturn a Supreme Court decision to allow for the collection of sales tax on remote sellers.

• This session we fought and were successful in stopping the legislature from taking a piecemeal approach to this including eliminating the clothing exemption allowance.

• We applaud the legislature in establishing this study group. It will allow for a thorough review of the SST and its benefits to retailers and the state.

• We will update you throughout the progress of this study.

2007 Golf Classic in the Books

• On a beautiful, hot, Tuesday, we held our 6th Annual Golf Classic.

• For those who participated we appreciate your continued support! We understand how many tournaments are held each year, but you made time for ours. Thank you!

• For those that could not join us this year, we are already thinking of ways to improve next year’s event. So, keep us in mind, because it is a good time and for a good cause – CRMA.

Nominate your Retailer of the Year

• Nominations for the Retailer of the Year are starting to come into our office.

• We remind all members and friends to get your nomination in to us a soon as possible.

• We honor CT’s finest retailers each year at our Annual Meeting and Luncheon.

• Please call Cathy in our office at (860) 527-1044 for more information. Look for more information regarding our Annual Meeting and Luncheon including the dates and location of this year’s event soon.

Retail News and Notes

Nordstrom could put Faconnable on the block... Nordstrom is exploring strategic alternatives for Faconnable, but a company spokesman downplayed a recent New York Post story that claimed a deal to sell the upscale clothing and accessories brand was at hand. "We are simply exploring options that would benefit Nordstrom and Faconnable," Michael Boyd said. Seattle Post-Intelligencer (6/21)

Quickservice freebies are back... McDonald’s, Starbucks, Wendy's, Sonic and other quickservice chains are turning their backs on the trend of deep discounts and offering free products to consumers on a large scale. Competitors are seeking to draw higher traffic numbers in an environment that's seeing a downturn in new unit growth. Advertising Age (6/18)

Ralph Lauren launches London touch-screen window… Former Wimbledon tennis champion Boris Becker, who serves as Ralph Lauren's brand ambassador, helped the company launch a 24-hour interactive shopping window at its flagship London store on Wednesday. Consumers can touch a virtual model wearing a specific outfit, then be guided through electronic touch-sensory technology to a page that adds the product to a digital shopping cart. USA TODAY (6/20)

Happy 4th of July! 

• On behalf of all of us here at CRMA we would like to wish you a happy and safe 4th of July Holiday!!
 

June 15, 2007


No Progress on Budget Talks
SB 1089 Cursed?
Professional Lobbying Firm Assists CRMA
CRMA Golf Classic Update
Member Services Update
Retail News and Notes

• With the regular session over, thankfully, on June 6, the Connecticut General Assembly left one very big item unfinished – adoption of a state budget.

• The Democratic majority called themselves back into special session to deal with the budget and were optimistic that after a few days of rest a deal with the Governor could be made and adoption of the budget would take place.

• It has not worked out exactly that way.

• This past week no progress was made on adoption of a state budget with sporadic talks taking place between both sides.

• With a budget surplus of close to 1 billion dollars, and a deadline of June 30th as the end of the state fiscal year, it would seem that a deal is inevitable.

• But nothing yet.

• For retailers, the big issue remains whether any budget and tax package will include the elimination of the clothing exemption allowance.

• As we closed the regular session we got the sense that folks were moving away from eliminating the exemption allowance but with a special session you never know.

• In many ways a special session is more dangerous than a regular session because deals are made and then announced to the caucuses and quickly voted on.

• That does not leave much time to make your point for or against anything.

• We will remain active in monitoring the situation and would continue to encourage all retailers that are concerned about the clothing exemption allowance to contact their State Representatives and let them know how you feel.

SB 1089 – Cursed?

• Every session it seems there is one bill that continues to turn up no matter how many times you knock it down.

• This year bill number 1089 is that bill.

• If you recall, originally SB 1089 deals with Banks and Credit Unions having the ability to force retailers to pay them for the cost of canceling and reissuing a credit card due to a security breach.

• We defeated that bill and were very happy to do so.

• But, as often happens late in the session, some legislator, in this case Majority Leader Marty Looney, needed a bill for an idea he had and he picked SB 1089.

• In the last days of the session, he stripped the bill with the banker’s language which we were ok with, and inserted some other language, which we were not ok with.

• Sen. Looney’s amendment to the original SB 1089 would now require that credit reporting agencies that conduct employee background checks now check with the Judicial Department’s website to check for the latest updates on individuals before issuing completed background checks to employers.

• The problem is that The Judicial Department doesn’t have a website yet and may not until February of 2008.

• There are other issues with this new bill that we are trying to fix in the special session and will keep you up to date.

• But in the meantime, if you would like to review this “new language” please call our office today. And stay away from the number 1089.

Professional Lobbying Firm Assist CRMA

• We have to take a minute to salute the firm that assists CRMA every year at the State Capitol.

• As you know from reading our FF, CRMA takes a great deal of pride in our work as Connecticut’s advocates for the Retail industry.

• We think we are the very best at representing your interest at the Capitol covering a whole range of issues that represent the diverse membership of CRMA.

• But, we would not be able to do this completely without the assistance and guidance from our contract lobbying firm Murtha Cullina.

• Murtha, one of the State’s top law firms with offices in Hartford, New Haven, and Stamford, as well as in Boston, is led by David McQuade and includes a team of lobbyists that cover a whole host of clients and issues but always make time for CRMA.

• Specifically, Jane Murphy at Murtha has been the key person in our success.

• Jane understands our issues and has been instrumental in assisting us in building our reputation among legislators and regulators as THE VOICE OF RETAILING AT THE STATE CAPITOL.

• We would encourage all members to consider Murtha if they need legal advice and if you get a minute; send Jane an email to thank her for her hard work on our behalf.

• Jane can be reached at jmurphy@murthalaw.com.

CRMA Golf Classic Update

• We are closing in our 6th Annual Golf Classic and there is still time to participate in this year’s event.

• There are slots available for golfers and tee signs and hole sponsors, so please call Cathy in our office today for more information at 860-527-1044.

• Don’t forget the date: June 26, 2007-Blackledge Country Club -Hebron CT- shotgun start at 10:00 am with a buffet lunch and raffle to follow.

Member Services Update

• As we approach the hot days of summer we remind our members that CRMA and Consumer PowerLine have teamed up to offer members a great way to reduce cost and help the electric grid by participating in our Demand Response Program.

• The CRMA/Consumer PowerLine program already has signed up one of our larger members – Sears/Kmart – to participate and we encourage all of our larger energy users to contact us today for more information.

• Also, we are making progress with our attempt to create the first ever RETAILERS ONLY SELF INSURED WORKERS COMPENSATION PROGRAM.

• We have completed our study and are reaching out to the DOI to begin talking to them about the process that needs to take place on their end to approve our plan.

• That program is open to all members – please call us today to learn more about our plans for a RETAILERS ONLY SELF INSURED WORKERS COMPENSATION PROGRAM.

Retail News and Notes

Dubai group may purchase Barneys The Jones Apparel Group is in talks to sell fashion-retailer Barneys New York -- whose flagship; high-end store is a Manhattan staple -- to an investment arm of Dubai. Istithmar is pursuing an $825 million purchase of Barneys, sources say. The New York Times (6/14)

Ashley Judd lends name to clothing line at Goody's Three new apparel labels dubbed AJ, Ashley Judd and Love, Ashley will be available at Goody's Family Clothing stores this fall. Goody's has more than 380 locations in 21 states. The Tennessean (Nashville) (6/14)

Giant Food shoppers go registerless Giant Food Stores in Pennsylvania has launched an "Easy Shop System," which allows shoppers to scan items using a handheld device as they cruise the store aisles and then bag their purchases directly in their carts. WHP CBS 21 (Harrisburg, Pa.) (6/13)
 

June 8, 2007

Legislature Adjourns
Great Session for CRMA Members
Energy Star Holiday
Special Session Pending to Deal with Adoption of a New State Budget
CRMA Golf Classic Update
Retail New and Notes


• The Connecticut General Assembly adjourned at midnight on Wednesday June 6, 2007 ending what was the longest possible long session they could have.

• This week’s FF will be a quick one as we are still recuperating from the long end run.

Great Session for CRMA Members

• It was a very good year for CRMA at the State Capitol. The highlights include:

• Passage of historic Electronic Waste legislation. The so called manufacturer’s responsibility approach will make CT the first state in the tri-state region to take this approach and is a major victory for retailers.

• We were successful in persuading the legislature to take this approach as opposed to a point of sale fee collection approach.

• We defeated a bank and credit union sponsored bill that would have held any retailer responsible for the reimbursement of cost to the bank or credit union for the cancellation of any credit card or debit card due to a security breach. (SB 1089)

• We held back an attempt to force our restaurant members to put calorie counts on their menus despite the President of the State Senate’s support. (SB 686)

• No banning of trans fats ended up taking place.

• We worked with our friends at CBIA in defeating a bill that would have required retailers to give PAID sick leave for full and part – time workers. (SB 601)

• We also worked with CBIA in defeating an expanded discretionary benefits bill for workers compensation claims that would have resulted in increases in workers compensation premiums. (SB 847)

• We held the line on a single payer health care bill and any new tax that would have to be paid.

• And, we worked with our friends at the Food Association to help defeat an expansion of the bottle bill.

• We will give you a more detailed report on how the Legislature ended in next week’s FF.

• In the meantime, if you would like more information please feel free to call our office, 860-527-1044.

Energy Star Holiday

• We are very pleased to report that there is good news in the energy legislation that the legislature acted upon near the end of session.

• Included in that bill is the creation of a sales tax holiday for one year on all energy state appliances effective immediately.

• Also, the bill makes all home weatherization products permanently exempted for the states sales tax.

• For more information on this program, please visit the Department of Revenue’s website, www.ct.gov/drs

• The holiday does not include compact florescent light bulbs.

Special Session Pending to Deal with Adoption of a New State Budget

• With the end of the regular session comes a big issue still unfinished – adoption of a state budget.

• For retailers the state budget and tax package has some big items, most notably the Democratic majority’s idea to ELIMINATE the state’s clothing exemption allowance.

• CRMA has been working hard at trying to persuade legislative leaders that eliminating the allowance would have a very negative effect for both consumers and for retailers.

• We are concerned that it may still remain in the budget, despite some leaking of information that it may be dropped.

• We cannot let up on this issue and we continue to need you help.

• Please contact you local Senator and Representative and urge them not to eliminate the clothing exemption allowance.

• Still no word when the Legislature will go back into special session but you can be sure we will be there and will report back to you.

CRMA Golf Classic Update

• With the regular session over we can now turn our attention more intently on our upcoming CRMA Golf Classic.

• Here are the details of the Golf Classic: June 26, 2007 – Blackledge Country Club, Hebron CT 10:00AM shotgun start.

• You can help us in this very important fundraiser in a lot of different ways.

• Please call Cathy in our office for more information, 860-527-1044.

Retail News and Notes

Federated becomes Macy's today Federated Department Stores will officially change its name to Macy's Inc. today, accompanied by the ticker symbol "M." Branding expert Rodger Roeser says that a corporate name change won't make a difference in shopping patterns unless accompanied by better products and an improved shopping experience. The Cincinnati Enquirer (6/1)

Starbucks to serve 2% milk in espresso drinks Starbucks has announced plans to prepare its espresso-based drinks with 2% milk instead of whole milk in all of the company's U.S. and Canadian stores. Tall and grande lattes will soon have 30 fewer calories, and customers still will be able to ask for whole, soy or skim milk. Seattle Post-Intelligencer (5/31)

Retailers continue shift toward movie downloads Best Buy and Blockbuster are two of the companies that have inked digital-distribution deals with Lionsgate, according to information from Jon Feltheimer, Lionsgate's CEO, in a Thursday conference call. Neither Best Buy nor Blockbuster has officially announced plans to launch movie-downloading services, but industry analysts think it's just a matter of time. Variety (5/31)
 

June 1, 2007

Governor Vetoes Democratic Tax Package
Clothing Exemption Allowance Still in Serious Jeopardy
CRMA Lobbyist Working Around the Clock as Close of the Session is Near
Other News and Notes from the State Capitol
CRMA Golf Classic Update
Retail News and Notes


• Last night Governor Rell vetoed a Democratic tax package that included elimination of the clothing exemption allowance and a Republican sponsored cut in the gas tax.

• The action by the Governor was not unexpected by any of the parties involved and capped a week of political posturing by all sides.

• The Governor’s veto will not be overridden by the Democratic majority in either chambers (5 Democratic Senators sided with the GOP in opposing the bill) so now both sides need to sit down again and try and hammer out a deal.

• What is especially frustrating to witness is that all the squabbling is being done when the State has a surplus of close to 1 billion dollars!

• They still have time to do a tax and spending plan and we understand that they are very close on the spending side. But, it is the last 5 percent that is the hardest to get.

Clothing Exemption Allowance Still in Serious Jeopardy

• As we alerted you last week, the clothing exemption allowance is in serious danger of being eliminated.

• We will continue to hammer away at legislators about the value of this exemption and try to educate them that simply doing away with it does not put them in compliance with the SSUTA.

• But we need you to keep your calls and emails to legislative leaders going.

Other News and Notes from the State Capitol

• The State Senate continues to pass unfriendly business bills.

• This week two bills passed that would be very harmful to the business community. SB 601, “AA Mandating Employers to Provide Paid Sick Leave to Employees” and SB 847, “ACC Additional Benefits for Wage Loss under the Worker’s Compensation Act”. Both are awaiting action in the House.

• HB 7249, “ACC the Collection and Recycling of Covered Electronic Devices”, a bill that CRMA has been a leader on, is ready to go into the House any time.

• Also, last week we reported that Sen. Tom Colapietro was holding onto a lot of General Law bills, including our LP initiative. And we told you we would keep working with him to get him to release them.

• Late last night he informed CRMA’s lobbyist that he was willing to work on some of his issues and we are hopeful that we can move our LP Bill out of the Senate in the next day or two and get it passed in the House before midnight Wednesday.

• Finally, consensus on Energy and Health Care remain elusive.

• The House D’s caucused an Energy Reform bill last night and the word we hear is that it did not go well.

• It is still a question as to whether the House will move their version of an Energy bill before adjournment on midnight June 6, 2007.

• Meanwhile in the Senate, the Senate Chair may be ready to move his bill which the House Chair does not like.

• On the health care front, there also does not appear to be an agreement in the air.

• Both of those issues will go right down to the wire and may even go into overtime.

CRMA Golf Classic

• Just another reminder that our 6th Annual Golf Classic is soon upon us.

• Please consider helping us.

• The funds raised at this event help keep the Association strong so that we can continue to represent retailers.

• Please call Cathy in our office for more information.

Retail News and Notes

Survey: Consumers will spend $9.9 billion on Father's Day. The average consumer will spend $98.34 on Father's Day this year, up from $88.80 in 2006, an NRF survey predicts. "Gas prices have little effect on what consumers spend for those who matter most," said Tracy Mullin, NRF president and CEO, in a statement. "Retailers will see increased sales of clothing and tools as well as gift cards, which allow dad to treat himself to something he chooses." CNNMoney.com (5/29)

Microsoft unveils tabletop computer. A tabletop computer dubbed Microsoft Surface allows users to interface via a touch screen to access a variety of media. The technology, which effectively turns a conventional table top into an interactive surface, also can read bar codes, and is expected to make its debut in hotel lobbies, restaurants and retail outlets. The New York Times (5/30), USA TODAY  (5/29)

Organized retail crime on the rise, according to NRF survey.. While awareness of organized retail crime has never been higher, senior loss prevention executives admit the problem is getting worse. According to the National Retail Federation's third annual Organized Retail Crime survey, more than three-fourths of retailers (79%) said their company has been a victim of organized retail crime within the past year. The survey also found that 71% of retailers say they have noticed an increase in organized retail theft activity in the past 12 months, up dramatically from 48% in 2006. Read more here.

   
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Phone: (860) 527-1044 • Email: crma@crmaonline.com