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 Friday
Facts - Archives -
Month
of March 2004
Current
Week
March 26, 2004
Appropriations Committee approves budget. Finance Committee considering outsourcing bill. Major Truck accent on I-95 could impact business. CRMA Golf outing has new format for this year's event. Washington update. Retail news and notes.
· The General Assembly’s Appropriations Committee adopted at 14.235 billion dollar state budget yesterday.
· The budget adopted by the committee is slightly different than the one that was introduced by the Governor back in February. Democrats, who control the General Assembly, increased the governor's budget by $74 million, while approving large parts of the governor’s budget.
· By a 30 – 19 vote, the committee sent the budget out of Committee where it will undergo some more “tweaking” by legislative leaders and the governor's budget director.
· House Co-Chair of the Committee, Bill Dyson (D-New Haven) had this to say about the budget “This document is not golden. It is not a panacea to solve all the problems but we’ve got to start somewhere.”
· For his part, the Governors budget Director Marc Ryan is not so optimistic about adopting this budget.
· He cited a number of concerns about the budget that was adopted. We expect that Ryan and Democratic lawmakers will do their usual tug of war over the budget.
· The fact that the budget did get adopted in a rather mild debate is a sign that maybe the sides are not that far apart and maybe we can have a budget adopted this year with the ugliness that accompanied last year.
Finance Committee is next
· With the Appropriations Committee adopting the budget it is now up to the Finance Committee to adopt a tax package that will pay for the budget.
· Finance has a committee meeting today where they will review a number of issues, but are holding off on any tax package until Monday.
· We are watching a number of issues before Finance including HB 5660 a major outsourcing bill introduced by House chair Andrea Stillman (D-Waterford). We are working with a coalition of other business groups to defeat this bill. We will update on our progress.
· By the time we hit the press next week, we should have clearer vision of how the spending and tax packages will look, including the politics that is behind them.
· We will take a more detailed look at the tax and spending package in next weeks Friday Facts.
Major Traffic Accidents will impact CT business
· It is unusual for us to update you on things like transportation and traffic jams, but last evening in Ct. we had a major traffic incident that will likely have impact on retailers large and small.
· I-95 in both directions was shut down last night after a tanker truck carrying home heating oil crashed causing a spectacular fire on the highway wreaking the overpass that support that section of I-95.
· Thankfully there were no serious accidents, but the highway was shut down and maybe shut down for weeks.
· The I-95 corridor is a major artery for transportation of goods to retail stores all around new England and the closure of this section of the highway in Bridgeport near exits 25 and 26 could have serious economic impact on Ct.
· Our friends at the Motor Transport Association had this to say about the accident “We’re going to be feeling a ripple effect from this all around the state” said Mike Riley, President of the MTAC.
· We will keep you updated on this issue. In the meantime, please let us know how the closure of I-95 will affect you. Please feel free to email us through our website, www.crmaonline.com or by calling our offices at 860 – 527 – 1044.
Golf Outing has a new format
· On to happier news. Our Golf outing will have a new format this year, which we think will add to our event.
· Rather than the tradition scramble best ball format that is sometimes common in an event like ours we will be switching to a different format that allows all players to play their own ball but takes only the two lowest scores in the group.
· Here's how it works: All four players tee off. Players then proceed to the best drive of the group and hit again. After that shot they then play their own ball into the hole.
· The group then compares scores and takes the two lowest scores of the group and that is the score they place for the hole. For instance 2 players get 4 on the hole, one player gets 5 and one player gets 6, the group takes the two lowest scores on the hole, in this case the two 4’s for a 8 on the hole.
· We think this format will allow all players to feel like they are playing a normal round of golf within a team concept and will make our tournament a little different and a little more fun.
· You can register for our golf tournament online by visiting our website.
· Register today for our golf tournament it will be great fun and will help the association.
Retail News and Notes
· Can J. Peterman survive Elaine?
Business 2.0 writer Andy Raskin suggests a comeback plan for retailer J. Peterman, a name made famous by the ubiquitous sitcom
"Seinfeld." John Peterman, who saw his namesake company file bankruptcy in 1998, has purchased the right to use the "J. Peterman" name once again. Business 2.0 (3/18)
· Home Depot announces online registry
The home-improvement leader is aiming its new service toward engaged couples who may be looking for tools to improve their home. Among the most-requested items so far are a double hammock and a wheelbarrow. Retailers generated $6 billion in revenue from registries last year. Orlando Sentinel (Fla.)/Associated Press (free registration) (3/23)
· Kmart back in the black, but same store sales recede
Kmart said it earned $276 million in its fourth fiscal quarter, adding that same store sales were down 14%. The company's profits came after it closed 316 stores as part of a restructuring effort; the company emerged from bankruptcy proceedings in May. Sales of the Martha Stewart Everyday brand housewares line were so far unaffected by Stewart's legal troubles, the company said. The Detroit News (3/19), Detroit Free Press (3/19), The Philadelphia Inquirer/Associated Press (3/19),
· Abercrombie shirt draws governor's ire
A new T-shirt from Abercrombie & Fitch, which shows a map of West Virginia with the slogan, "It's all relative in West Virginia," caused the state's governor to write a letter to the retailer demanding the shirts be pulled and destroyed immediately. Gov. Bob Wise said the shirts depict "an unfounded, negative stereotype of West Virginia." Abercrombie said it will continue selling the shirts and honors "all 50 states of the union." The New York Times (free registration) (3/23), Twincities.com/Pioneer Press (3/23)
March 19, 2004
Legislative Update. News and Notes from the State Capitol. Washington Update.
CRMA Golf Classic Update. Retail News and Notes.
· There was more activity this week at the state capitol as a number of committees sent more bills out of their respective committees for further consideration.
· Among the many bills we have been tracking and those that have been acted upon by various committees, include HB 5735, which would impose an Advance Recovery Fee on certain electronic devices.
· HB 5735, “An Act Concerning the Recycling of Electronic Devices” was reported out of the environment committee earlier this week. The committee made some changes to the bill and sent it to the Finance Committee.
· We will continue our opposition to the bill before the Finance Committee. Because the bill already had a public hearing, we cannot testify against it, but we will be writing to the co – chairs and the members of the Finance committee to outline our objections.
· Last week we informed you of some labor bills that are pending final action by that committee.
· Two bills, HB 5447 and HB 5490 were introduced on behalf of organized labor and would have very negative effect on retailers.
· Both of those bills were reported out of the Labor committee this week and will now make there way to the floor of the House for debate.
· There is a chance they could be sent to other committees and will certainly spark some debate when they get to the full House. In the meantime, we will continue our opposition to these bills and will update you on their progress.
· There are a number of bills dealing with call centers and outsourcing of jobs. The labor committee also reported out of committee one such bill on Tuesday.
· That bill, SB 430, along with others that are in various committees will most likely be melded into one bill that will be debated before the full general assembly.
· Other news and notes from the Capitol
· In other news from the capitol this week, the controversy surrounding the Governor continued as some damaging information about a sale of his former condo in Washington came to light.
· In addition, one of his judicial nominees withdrew his name from consideration after more information about services that were provided to the governor was revealed.
· The special impeachment inquiry panel is schedule to hold a meeting on Friday.
· There was no formal House or Senate session this week.
· Former House Member Bill Kiner (D- Enfield) is sending out word to some folks that he will run for State Senate seat currently occupied by Sen. John Kissell (R-Enfield). If Kiner runs, that will be a very interesting race.
· Most Committees are finishing up there work this week. In addition to the Labor Committee, which finished its work on the 17th (thank god), Public Health finished on the 18th, and Education finishes on the 19th.
· The Judiciary Committee has a March 22nd deadline to act on bills, while the two money committees, finish the following week.
· Appropriation has a March 29th deadline while the tax committee Finance is finished the next day, March 30th.
Washington Update
· Some news from the nation’s capitol from our friends from NRF and others.
· Congress took another step toward making President Bush’s tax cut permanent when the House Budget Committee approved a $2.4 trillion spending plan that would allow three tax cuts that expire at the end of the year to be extended.
· NRF also reports that the AFL-CIO this week asked the U.S. government to impose trade sanctions against China that could cost retailers and consumers billions of dollars in new tariffs.
· For more information on these issues and more we suggest you go to NRF's website
www.nrf.com
· Also from Washington we have news that our senior Sen. Chris Dodd has been critical in forging a compromise on Class Action Reform Legislation.
· Sen. Dodd along with Senators Schumer and Landrieu helped break the logjam on this bill from last year when it fell one vote short of passage.
· The bill still needs final passage in the U.S. Senate and our sources tell us that much of the Senates business has been delayed due to procedural maneuvering.
· This is an important issue for retailers nationally and we will continue to monitor it for our members. In the meantime, we urge you to call Senator Dodd and Senator Lieberman and continue to ask for their continued support in passing this legislation.
Golf Classic Update
· A quick update on our golf outing that is scheduled for June 8th, at Blackledge Country Club in Hebron, CT.
· You can register online if you would like. This week our invitation went out as well as being posted on our website.
· If you go to www.crmaonline.com you will see the information about the golf classic. Take two minutes today and register your foursome online for what promises to be a great day.
· Next week we will update you on the new format we have planned for this year’s event.
Retail News and Notes
Sears introduces new inventory technology
As part of its Merchandise Performance Improvement program, Sears, Roebuck and Co. is testing new software to make sure store racks have the proper amount of inventory and merchandise is shipped to stores where it can sell for full price. Sears will also ship its spring inventory in batches in order to redistribute it according to stores' performance. Chicago Sun-Times (3/18)
Marketers poke fun at low-carb craze
Attempting to create buzz for their own products, some marketers are throwing cold water on the white-hot,
low-carb trend. "Taking the low-carb a little too far?" asks an ad for Kellogg's Morningstar Farms, showing a mound of bacon on a plate. And another ad for Schieffelin & Somerset's Grand Marnier liqueur asks, "Isn't there more to talk about than how many carbs you ate today?" The Wall Street Journal (subscription required) (3/17)
Thoroughly Modern Mr. Peanut
Has Planters gone, well, nuts? After decades of presenting Mr. Peanut, its venerable brand character, as a dignified dandy, meant to be timeless in his appeal, Planters is giving him a far more contemporary persona intended to better connect with consumers. In a campaign from Foote Cone & Belding in New York, Mr. Peanut shows off his moves on the basketball court and the dance floor, takes a centerfold-style pose to promote his products as low in carbohydrates, and even looks back on his days as a baby legume. (By STUART ELLIOTT, Published: March 19, 2004,
www.nytimes.com)
March 12, 2004
General Law Committee finishes work for the year. The Labor Committee has bills that could be trouble for retailers. Finance committee considers raising the tax on cigars.
A Special Request. Retail News and Notes.
· On Tuesday the 9th, the General Law Committee finished their work as a full committee by acting on over 22 bills.
· Fortunately for retailers, of those 22 only a few will have direct impact.
· One bill, SB 139, “An Act Concerning the Ownership of Retail Establishments”, would have a direct impact on our larger members.
· The bill was introduced by Rep. Vin Tonucci, (D-Derby), and would require that any retailer with a square footage greater than 40,000 sq feet have a sign placed in the store that discloses what corporation they are operated by and where the corporation is located.
· In addition, the bill would require that the sign also identify what percent of the stores products is produced in the United States.
· There was a considerable amount of debate by members of the committee on this measure and its future is uncertain, but we will continue to lobby on it and keep you informed of its progress.
· General Law also had a spirited debate SB. 399, “An Act Concerning Introductory Rate Offers and Automatic Renewal of Consumer Contracts” This bill would require certain notices be sent to consumers for sales made at introductory rates as well as contract terms.
· Quite honestly, we are not sure what the final language of the bill will look like. As we mentioned there was considerable discussion and confusion on what the bill should look like.
· We will have to get back to you on the final version as we get the sense that even the sponsor of the bill Sen. Fasano (R-East Haven) is unsure of what the committee sent out.
· General Law also reported out SB 5452, “AAC Entrance to Public Accommodation for the Training of Therapy Dogs”. This bill would allow persons who are training therapy dogs to have entrance to places such as malls and restaurants.
· If you have any questions of these bills or any of the other bills we have told you about in previous FF, please feel free to contact us by emailing us through our website, www.crmaonline.com or by calling our office at 860 – 527 – 1044.
· Finally, a reminder to members of the legislative committee, our next legislative committee conference call to review legislation will be Thursday March 18, 2004. We will be sending all legislative committee members our latest tracking sheet and the number to call into.
· The Legislative Committee is open to all members. If you are interested in joining our Legislative Committee and participating in our weekly updates, please call or email us.
Other news and notes from the State Capitol:
· Watch out for the Labor Committee:
· The Labor Committee is at it again. This year they have reported out a bill that would increase the minimum wage and raised two other bills that would allow organized labor to distribute union material on private property.
· First the minimum wage bill. SB 332, “AA Increasing the Minimum Wage, would allow for an annual cost of living increase to the minimum wage, based on the Consumer Price Index.
· The Labor Committee sent the bill to the full House of Representatives for consideration on Tuesday of last week. We will keep you up to date on the progress of that bill in next weeks Friday Facts.
· Two other bills labor is considering are very troublesome to members.
· HB 5447, “AAC Distribution of Literature to Employees on Employer Premises”. This bill would prohibit employers from asserting their private property rights to deny access to their premise to individuals that wish to communicate with their employees or patrons.
· HB 5490, “AA Prohibiting Captive Audience Meetings”, would prohibit employers from “coercing” employees into attending or participating in meetings for the purpose of communicating the employers’ position concerning politics, religion, or labor organizing activities.
· Both of these bills are still pending in the Labor Committee. We will be talking with members of the committee next week to tell them we oppose these bills.
· We will keep you up to date on their progress as well.
· Finally, the Finance Committee is meeting on Monday to review a number of bills including some that deal with outsourcing and call centers.
· We will be there to talk to members of the committee about the other tobacco products tax on cigar retailers and on keeping the sales tax holiday. Look for more information on these issues in next weeks FF.
A Unique Special Request:
· We would like to make a special request to members. If you have any store posters or pictures that identify your store, we would love to have copies of them for our office.
· We have a few classics but could use some new ones. If you have any and would like to donate them to us, please send them to our offices care of CRMA 60 Forest Street Hartford, CT. 06105. Thank you to those of you who can help!
Retail News and Notes:
· Target department stores head to the sale block
Minneapolis-based Target has hired Goldman Sachs to explore "strategic alternatives" for the company's department store chains -- Marshall Field's and Mervyn's -- which may lead to a sale. One retail analyst predicts a "world-class bidding war" between May Department Stores and Federated over Marshall Field's. The two chains have a combined book value of $3.6 billion; Target officials were not made available for comment.
CNNmoney/Reuters (3/11)
· Krispy Kreme Says Its Profits Nearly Tripled
Krispy Kreme Doughnuts Inc., the second-largest United States doughnut chain, said yesterday that its fourth-quarter profit nearly tripled. But average weekly sales declined, helping send the stock down 1o percent for the day.
http://www.nytimes.com/2004/03/11/business/11dough.html (3/11)
· Piggly Wiggly introduces pay-by-thumbprint system
The Southern grocery chain plans to introduce a finger-scanning payment system at its 116 stores in South Carolina and Georgia. Pay By Touch, which makes the technology, says the system will reduce fraud and increase efficiency. San Jose Mercury News (3/12)
March 05, 2004
CRMA scores major victory on gift cards in General Law Committee.
Other news from the General Law Committee. Environment committee to hold hearing on recycling bill. Plans under way for CRMA legislative reception.
CRMA Golf Classic update. Retail news and notes.
· We are very pleased to report this week that we our efforts to repeal last years changes to the CT. gift card law passed a big hurdle.
· On Thursday the General Law Committee passed unanimously, SB 288, “An Act Concerning Gift Certificates.
· This bill would essentially repeal sec 84 of Public Act 03-1 that made changes to the way the state treats gift certificates.
· The bill still may need some work but its passage out of the committee is a good first step in what we hope will be final victory on this issue.
· As you know from our previous Friday Fax, CRMA has put together a special committee to deal with this issue and has hired outside counsel to help us frame our argument to the Legislature.
· This is only round one of what we expect could be a long fight. We need your help in this effort. Please consider contributing to our special cause by contacting us today.
· You can join in our efforts by emailing us at www.crmaonline.com or by calling our office today for more information. Our office number is 860-527-1044.
· With passage out of the General Law committee the bill now moves to the State Senate for consideration. We expect that the bill will be shipped to the Judiciary Committee or the Finance Committee for further consideration.
· We will certainly keep you up to date on the progress of this bill, but once again strongly encourage all members to participate in our special gift card committee.
Other General Law Committee news
· The General Law Committee took action on other bills Thursday as well.
· In somewhat of a surprise vote, they rejected SB 442 AAC Written Notification of Declined Personal Checks.
· This bill was introduced by Sen. Tom Gaffey (D-Meriden) and would have required retailers to respond to every customer whose check was declined by giving the customer a written explanation as to why the check was denied.
· Gaffey’s bill had the support of both the co chairs of the committee but did not have enough support among rank and file Democrats on the committee. The bill had virtually no Republican support. We expect that the bill will comeback in the form of an amendment later in the session.
· Also, the General Law committee rejected a bill that would have allowed for Sunday sales of alcohol. The bill had no support in the committee, which in turn used that bill to roll back the hours a package store could be open from 9:00p.m. back to 8:00p.m
· The roll back of hours certainly will face tougher scrutiny as the extended hours was part of the budget deal from last session that the state used to close the budget gap.
· It remains to be seen if the money committees and the leadership will allow this roll back to take place.
· Finally, general law has one more meeting scheduled before its work is done for the year. That meeting is scheduled for Tuesday March 9th. We will update you next Friday with all the details of that meeting.
Environment Committee to hold hearing on Recycling bill
· On Monday of next week the Environment Committee will hold a hearing on HB 5735,
"AAC The Recycling of Electronic Devices."
· As it is currently drafted the bill would require that retailers add an Advance Recover Fee on certain products like, TV’s and computers.
· We oppose this bill and have told the House Chair and other members of the Committee and will testify before the committee on Monday to express our concerns.
· A similar bill was introduced last session but died in the Finance Committee.
· If you would like to view the bill, you can visit our website
www.crmaonline.com. Once there, double click on resources. Then double click on CT. General Assembly. Insert the bill number in the upper right hand corner.
· Also, it is not too late to let us know your thoughts on the bill. Feel free to email or contact as soon as you can.
Legislative Reception.
· Plans are under way for our annual legislative reception. We have set April 21, 2004 as the day.
· The reception will be held in room 310 of the State Capitol from 7:00 p.m. to 9:00 p.m.
· One side note on our reception.
· We have used the Old Judiciary Room in previous years to hold our Legislative reception. We have to move down the hall to room 310, because the House Inquiry Panel is using the Old Judiciary Room for its meetings and hearings on whether or not to impeach the Governor.
Member Services update:
· Attention all members: the CRMA/OneBeacon property casualty program is off and running. We encourage all members if they have any questions or are at least interested in a free quote to contact us today.
· If you are interested, either email us at crma@crmaonline.com or call Frank Michuad of ABI at 1-800-211-4217 x 226.
· Do it today! Tell Frank that you are a member of CRMA and that you want to save money using the
CRMA/OneBeacon program.
CRMA Golf Classic
· Invitations for the Golf outing will hit the streets next week.
· If you are interested, we encourage you to pick your foursome and return you registration sheet immediately to ensure your spot in this great event.
· This year we will have some changes in the format that we think will make the event great fun.
· If you are interested in serving on our golf committee, please feel free to contact us at
crma@crmaonline.com or by calling our office at 860-527-1044
Retail News and Notes.
· Sears sponsors “Extreme Makeover: Home Edition”
Sears and ABC hooked up for one of the season’s new hit TV shows, “Extreme Makeover: Home Edition”. The show’s pilot was in December 2003 and it is scheduled for 13 additional episodes that began in February 2004. (S Journal, March 2004 Vol. 6 Issue 3)
· Retailers pushing more formal work attire
As economic uncertainty continues, more employees are concentrating on dressing to impress, and retailers are more than willing to help. Saks Fifth Avenue recently offered a seminar on career attire, Gap has a special "wear to work" section and Men's Wearhouse helps customers determine what suit best fits their profession. Pittsburgh Post-Gazette (3/2)
· Mother nature helps retailers post record sales in February
Better weather this year and rebounding consumer confidence pushed retail sales up 14% over last February, a "blowout" performance, one analyst said. "We've finally got a great February," said Ken Perkins, retail analyst with Thomson Financial. CNNmoney (3/5), Los Angeles Times (free registration) (3/5), Seattle Post-Intelligencer/Associated Press (3/5)
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