MN Retailers Association

Minnesota Waste Wise receives Governor's Award

2011-09-12T09:05:00.000-07:00

MinnesotaWaste Wise, an affiliate program of the Minnesota Chamber of Commerce and a RetailPlus+ Partner of MN Retailers Association, receiveda 2010 Governor's Award for its role in creating a program to recycle hospitalblue wrap. This program is the first of its kind to collect and recycle blue wrap,a large waste stream for many hospitals.

Theaward, "Governor's Partnership Award for PollutionPrevention," was given to Fairview Health Services along with severalother Minnesota organizations that havepartnered to increase recycling in Minnesota.The other partners were Merrick, Inc., Partnership Resources Inc. and PPLIndustries.

MinnesotaWaste Wise helps businesses save money through waste reduction, recycling,energy conservation and water reduction. “We help businesses find ways tobe more environmentally sustainable while reducing costs in the process,” saidKate Worley, Waste Wise program director. "Conserving resources issmart business."

Formore information on Waste Wise, contact Worley at (651) 292-4662 or kworley@mnchamber.com.

2011 Legislative Outlook

2011-01-03T09:01:00.000-08:00

2011 Political Party Shifts

Minnesota electoral results are always interesting, and after electing a variety of candidates—from comedians to professional wrestlers—this year brings changes that are slightly less exciting for National news outlets. For Minnesota residents, however, the changes are historic. For the first time since 1983, Minnesota says goodbye to Republican gubernatorial leadership and Democrat Mark Dayton assumes the role come January 3rd. One day later, another historic event—for the first time in over four decades, Republicans will be in charge of both chambers of the Minnesota Legislature as session kicks off on January 4th. What do changes in leadership mean for priorities set for 2011?

Dayton will become the first Democrat to serve as the state’s governor in 20 years, winning by an official margin of 8,770 votes (9,080 had Emmer not conceded, waiving the remaining recount according to the Secretary of State’s office). Dayton’s gubernatorial administration includes a new lieutenant governor, new commissioners, and new deputy commissioners. Regardless, Dayton will have to work with GOP legislative majorities, many of whom oppose his campaign pledge to increase taxes to close the gap in Minnesota’s $6.2 billion shortfall. Dayton’s role will also be a different challenge than Governor Pawlenty’s . Governor Pawlenty could control bills by vetoing. In a sense, this will be reversed as Dayton cannot sign or veto a bill unless it is first sent to him.

The Legislature shifts under Republican control as well. Kurt Zellers will be the Speaker of the House, and Amy Koch will be the Senate Majority Leader. Demographically, just over half of the new House and Senate Republican majorities represent Greater Minnesota districts, while the remaining 46 percent represent districts in the seven-county Twin Cities area.

What do changes in leadership mean for 2011 priorities?

Center Stage for 2011: Priorities and Issues
While both parties express their desire for a civil legislative process, each party has a different agenda with regard to the following priorities:

Budget/Taxes

Republicans continue to restate their opposition to tax increases as a means to fix the Minnesota budget shortfall. The message from Republicans: the state needs to learn to live within its means. Republicans believe they can extract considerable savings from state government and by making cuts on state spending. Democrats are concerned that an all-cuts budget will squeeze the middle-class with higher property taxes, higher tuition, and higher fees. The new Democratic governor plans on easing the deficit by raising taxes on the higher income earners in the state. About 75 percent of state dollars that are spent annually go to schools, cities, counties, colleges, people receiving public aid and debt service construction bonds.

Regulatory Permitting

One of the first bills through the gate in the 2011 Minnesota Legislature will likely be aimed at maximizing efficiencies with regulatory permitting and breaking down the burdens Republicans say impeded business expansion and job growth. Republicans would like to make Minnesota a friendlier place for business.

Jobs

Job growth will continue to be a legislative priority for both Democrats and Republicans. Republicans are committed to keeping employment and attracting employers in Minnesota. Democrats also want to work in partnership with Governor Dayton to ensure job creation and further investment in education.

Education Reform

Republican leaders have said educational reform is a priority and have stated they will try to protect spending for schools. Democrats also emphasize the importance of investing in education. The state’s K-12 budget alone uses up more than one-third of the Minnesota budget.

Energy/Environmental Regulation

Republicans have cited regulatory reform as a key priority and hope to streamline the environmental permitting process in efforts to make it less costly for businesses to build and expand their operations. Democrats are skeptical about Republican plans to cut back on environmental regulations and to reduce mandates on local governments. Republicans also hope to lift the state’s ban on new nuclear power facilities, and additionally hope to further develop renewable energy projects and alternative energy sources.

Other Priorities

The 2011 session will likely bring forward a debate on public subsidies for building a new Vikings football stadium. Republicans are open to the possibility of a new Minnesota Vikings stadium, but believe there are too many unknowns. A photo ID requirement for voters may come forward. Finally, Dayton and Republicans have toyed with an untapped revenue source—namely expanding gambling by authorizing a new state-run casino or adding slot machines at existing horse tracks.

2010 Holiday Shopping Trends - What The Retailers Expect

2010-10-29T09:20:00.000-07:00

Holiday season Sales are expected to bounce back during this Holiday season from the lower levels which were observed in '09, as stated by Jim Clark, director of ecommerce store

(I-Newswire) NJ, October 28, 2010 - Holiday season Sales are expected to bounce back during this Holiday season from the lower levels which were observed in '09, as stated by Jim Clark, director of ecommerce store ChristmasGiftsVault.com

Christmas purchases are anticipated to increase to $447 billion, up 2.3 percent from a year ago, according to a forecast unveiled by National Retail Federation. This would be a great improvement over the tiny 0.4 per cent that was observed in 2009. Nevertheless the stores are concerned as concerns stay on about customers' readiness to shop for high priced items.

Although customers confidence is coming back again and shoppers have now begun to purchase again, it remains to be seen whether the Christmas period sees a strong increase in sales and profits for retailers. Even the National Retail Federation's estimate is lower when compared to 10 year average Holiday product sales growth of 2.5 %.

Even as the Halloween shopping season comes to a close, it is apparent that people have certainly spent more cash in 2010. Early estimates claim that Halloween costume and party buying has grown by as much as $10 for every person with some e-commerce stores reporting a 20 percent boost in sales when compared to the the 2009 sales figures. It comes as no great surprise that as much as one-third of the sales have happened at web stores due to the sheer variety of items offered there and the amazing savings which they provide. However the bad news for the retail stores is that people are currently shopping for far more bargain priced goods rather than pricey ones and in many cases postponing their purchasing decisions to take advantage of the last minute bargains.

So the message from your buyer is obvious. They have become price conscious and in addition they want more value for each and every dollar which they shell out. Furthermore the credit supply remains to be restricted so the stores will have to discover ingenious ideas to grab the interest of the buyer. One thing is obvious, retailers who offer superior bargains and have considerable web based presence will do very well. It really is fascinating to note at this point that online product sales are improving significantly every year, regardless of the tough economy, and more and more companies are now merchandising online to boost their reach and enhance their product sales volumes.

ChristmasGiftsVault.com

Holiday Retail Sales: Why Prognostication Breeds Procrastination

2010-10-29T09:15:00.000-07:00

By Doug Stephens

It’s that time of year again…prognostication time. The time when retail industry experts far and wide weigh in with their respective projections for sales for the upcoming holiday season. For my part, I’m sitting this one out.

I’ve resolved to stay silent this year, largely because I don’t think it really matters what incremental difference we see in sales performance this year versus last. And I don’t say that lightly, because I recognize fully that the livelihoods of countless retail workers hang in the balance. What I mean is this; I don’t think sales being up, down or sideways has any bearing on the deeper realities this industry is confronting. Would a 0.3 percent year on year lift have prevented Blockbuster’s demise? Would a better than expected quarter have helped Borders…or Linens n’ Things? Would a slight rise in sales have saved the recording industry? Probably not.

In fact, a strong-ish holiday season may only serve to cover up the cracks in the foundation. I will go so far as to say that anything that approximates good news might actually encourage many retailers to procrastinate in their efforts to prepare for the future – a very different looking future.

We are sitting on the fault line of seismic shifts in media, consumerism, global economics, technology and demographics. And not only is change a reality, it’s also taking place faster than many businesses can keep pace with. The shifts that are happening today will long outlast the current economic ice-age.

Some might say that this is a revolution you either lead or die in. I prefer the glass half-full view – that these changes hold incredible opportunities for retailers who are willing to understand and act on them now. But that can only happen once you question your current business model and value proposition; once the tension for change sets in. And as long as the intravenous drip of incremental sales improvement continues, too many retailers will remain satisfied clinging to life.

I’d rather be a proponent of change than mere survival.

Facebook meets customer reviews

2010-10-11T10:41:00.001-07:00

Going beyond the ‘Like’ button, a new service lets e-retailers use shoppers’ Facebook profiles to help sell products. Diapers.com, Campmor and Abe’s of Maine have started to use the new PowerReviews tool.

Retailers have for months been able to place the Facebook ‘Like’ buttons on product pages so shoppers can show their Facebook friends their love for a product. Now a new service enables retailers to import data from consumers’ Facebook profiles to their retail sites.

The tool enables shoppers who opt in to integrate such Facebook profile data as gender and age into their reviews and their reviewer profiles on e-commerce sites. Diapers.com, Campmor and Abe’s of Maine all have begun using some of the features of the new application from ratings and reviews vendor PowerReviews Inc. Diapers.com is No. 85 in the Internet Retailer Top 500 Guide. Campmore is No. 296.

HR Alerts - Plan/Prevent/Protect - Taking Charge of Bullies in the Workplace - The New OSHA initiative

2010-09-10T09:09:00.000-07:00

Beginning September 30, 2010 for federal employees, and January 1, 2011 for all other workers, the U.S. Treasury Department will no longer issue paper savings bonds through employer-sponsored payroll savings plans.
Effective August 12, 2010, the Occupational Safety & Health Administration (OSHA) published a notice asking for comment on its intention to survey more than 14,000 private-sector employers as part of its effort to collect information on injury and illness prevention programs and proceed with prevention program rulemaking.
Effective June 23, 2010, the U.S. Department of Labor (DOL) expanded Family and Medical Leave Act (FMLA) rights to homosexual couples and requiring most hospitals to allow homosexuals to visit their partners.
Effective July 19, 2010, the Federal Register published interim final regulations from the U.S. Departments of Health and Human Services (HHS), Labor, and the Treasury requiring new health plans beginning on or after September 23, 2010, to cover certain evidence-based preventive care without cost sharing. In other words, plans cannot charge patients copayments, coinsurance, or deductibles for such services (if a network provider supplies the services).

Plan, Prevent, Protect – Sooner Better than Later

In its Spring 2010 Regulatory Agenda, the U.S. Department of Labor (DOL) had issued a new regulatory and enforcement strategy for all businesses referred to as "Plan/Prevent/Protect."

While the specifics of the program are still being defined, the new program involves the following:

Plan: The DOL will propose a requirement that employers create a plan for identifying and remedying risks of legal violations and other risks to workers. The employer would provide their employees with opportunities to participate in the creation of the plans. In addition, the plans would be made available to workers so they can fully understand and help monitor their implementation.

Prevent: The DOL will propose a requirement that employers thoroughly and completely implement the plan in a manner that prevents legal violations. The plan cannot be a simple paper process: the employer cannot draft a plan and then ignore it. The plan must be fully implemented for the employer to comply with the "Plan/Prevent/Protect" compliance strategy.

Protect: The DOL will propose a requirement that employers ensure that the plan's objectives are met on a regularly. Not any plan willdo. The plan must actually protect workers from violations of their workplace rights.

While the DOL continues to work on the specific details of what an employer's compliance initiative should look, employers should at least to consider starting to develop and establish an HR compliance action plan.

Question & Answer

Taking Charge of Bullies in the Workplace

Q. What protection do employees have against “bullies” in the workplace? What is management’s responsibility in this situation?

A. As of current, there is not specific legal protection for employees that are victims of workplace bullying. The only laws addressing workplace abuse and discrimination are the laws that protect members of protected classes (i.e. the Civil Rights Act, Americans with Disabilities Act and Age Discrimination in Employment Act).

A manager should be trained to look for tell-tale signs of bullying behavior. This begins as early as looking for clues related to a person's behavior during the interviewing stage. Once the signs are known, a manager should also be trained to address the issue early on and let the employee know that such behavior will not be tolerated. If the unwarranted behavior continues, managers should know the company's stance and be willing to enforce it with a verbal or written warning, etc.

If your organization hasn't done so already, it may consider creating a policy (anti-bullying) to discourage such abusive behavior. Such a policy should include the following:

A statement relating to the corporate culture and respecting others, including examples of behavior that will not be tolerated;
A complaint and resolution process should be outlined; and
The action and outcome steps which may include terminating an employee whose behavior does not respect other individuals in the workplace should be spelled out.

The New OSHA initiative

According to the Department of Labor (DOL), a new initiative was launched to ensure employers are in compliance with certain safety and health regulations prior to an audit or penalty. The Occupational Safety and Health Administration (OSHA) and other offices such as the Wage and Hour division (WHD) are part of this DOL Plan / Prevent / Protect initiative. The goal is to make sure businesses can show efforts they have undertaken to help prevent mishaps in the workplace. This initiative encompasses Injury and Illness Prevention Programs and Record Keeping and Reporting Systems.

The Injury and Illness Prevention Program (I2P2): There would be a plan where it identifies risks of legal and workplace violations. The plan would help to prevent legal violations using various measures and the plan would protect businesses using objectives and goals that are met on a regular basis. In addition, management would help to establish policies, set goals, plan and allocate resources, and communicate roles and responsibilities. The initiative would also increase or address the following: employee participation, hazard identification and assessment, hazard prevention and control, education and training, and program evaluation and improvements. Developing the plan would be unique to the business industry an employer is part of.

The Record Keeping and Reporting Systems: There would be an electronic version of OSHA-mandated recordkeeping. The “paper copy only” recording format is often time consuming because it is not easily accessible through files and may delay injury follow-up. In addition, there would be inspections conducted to determine if workers have been given OSHA mandated training and education. The WHD will issue a Notice of Proposed Rulemaking (NPRM), changing the recordkeeping requirements under the FLSA. The WHD recordkeeping NPRM notice is to be released August 2010.

All in all, the significance of the I2P2 is crucial because it compels small employers to implement a self-monitoring plan to stay in compliance with employment laws. Small employers unfamiliar with developing prevention strategies for workplace injuries may need to strongly consider seeking assistance from HR Professionals.

Enrolling Customers In Mobile Pay Networks Could Triple Cross Channel Effectiveness

2010-09-09T07:50:00.000-07:00

Retailers who start now building an enrolled customer base for mobile applications and mobile payments will be ahead of the game in the competition to garner the fast-growing mobile commerce revenues, said Richard Crone, CEO of Crone Consulting to a room full of top industry CIOs at the NRFtech meeting in Half Moon Bay, CA this week. “If you are able to control mobile payments registration inside the retail application it will triple your cross-channel effectiveness,” Crone stated. “It is mobile on steroids.”

Crone revealed the details of a new mobile program to the NRFtech attendees that will facilitate the ability for retailers to offer their own mobile payment service to customers without adding any new hardware or becoming dependent on bank- or carrier-controlled Near Field Communications (NFC). “It is a server-resident mobile wallet, located in the cloud,” he explained. Customers using smart phones will be able to complete secure transactions by scanning a barcode at checkout.

The benefits of this new approach are numerous for retailers who can motivate shoppers to enroll. Four primary benefits include the ability to:

1. Leverage the mobile channel to make customers contactable in real time

2. Promote lower cost tenders (such as private label credit or retailer-owned bank card)

3. Prevent building another company’s mobile business with NFC

4. Position the retailer to reap substantial mobile advertising revenue

Savings for Retailers

Enabling mobile payments for customers can provide substantial financial benefits for retailers. For example, a retailer with annual revenues of $7-10 billion could save an estimated $30 million each year in part from encouraging shoppers to use lower-cost tenders. Also, because mobile customers shop more frequently and spend more per purchase, retailers’ revenue will increase sharply. On average, customers spend 10% to 20% more on debit cards with mobile banking, Crone reported.

Now is definitely the time to move forward with shopper enrollment, Crone continued, noting that 57% of consumers recently surveyed stated that they want mobile payment and 90% of those consumers said they would pay more for the ability to pay using the mobile channel. Additionally, 64% would switch carriers for mobile payments and 58% would switch banks.

“There has been some talk in the industry of an advertising-sponsored payment network” that would offer significant financial benefits to shoppers and would woo them away from retailer-based payment networks. Before that happens, Crone warned, retailers should build their enrolled customer base now.

Research: 2010 Holiday Strategy & Planning Guide launches!

2010-09-08T06:50:00.001-07:00

We know it’s “only” September but holiday planning is a top focus for retailers now – and so it is also for us at Shop.org. We’re pleased to announce the arrival of the 2010 Shop.org Holiday Strategy & Planning Guide, now available for download by Shop.org Members. The holiday season is serious business in retail, so we’re here to support retailers as they put aside the soaring mercury outside and put in place plans for everything from marketing and promotions to merchandising, customer service and fulfillment.

The Guide draws from the 2009 eHoliday pre- and post-holiday surveys. This annual research, conducted in partnership with BIGresearch, explored what consumers and retailers expected before the season started, as well as what actually happened after the season ended. Additionally, we are able to draw examples of what retailers did from the annual Resource Interactive O.P.E.N. Watch Retail Edition. New this year, we are also pointing readers to other Shop.org resources, from Webinars and research to blog posts and press releases.
So, rather than rattling on with highlights, how about a little quiz testing what you remember of last year’s Holiday season (answers at the bottom) — use them as little reminders of things to think about for the upcoming season. If you’re stumped, you know where to find the answers – and much more. Also, be sure to register for next week’s Webinar on preparing for the holidays, featuring panelists from Gump’s, Kenneth Cole, and Sport Chalet.

Happy holiday planning in the meantime!

Shop.org eHoliday Quiz

1. What day of the week during the month of December has been most auspicious for online retailers surveyed in recent years?
a. Friday
b. Tuesday
c. Monday
d. Sunday

2. How many consumers bought at least one gift card as part of their online holiday shopping last year?
a. One quarter
b. One third
c. One half
d. Three-quarters

3. Which did retailers cite as the two most cost effective marketing vehicles for the past two holiday seasons? (Please pick 2.)
a. Email to one’s house list
b. Twitter
c. SEO
d. Affiliate and loyalty programs

4. What percentage of consumers finished their holiday shopping in the last two weeks of December?
a. One quarter
b. One third
c. Half
d. Two thirds

5. How are most consumers likely to find a retailer online?
a. Received an email from a retailer
b. Used search engine results
c. Shopped from the Web site before
d. Go to a set bookmark

6. Which two online marketing channels yielded half of paying customers for retailers surveyed last holiday season? (please pick 2)
a. Email to house list
b. SEO — natural / organic
c. SEM – paid listings
d. Affiliate & loyalty programs

7. Other than free shipping offers, which promotion did consumers use the most for their online holiday shopping?
a. Coupon – dollars off
b. Coupon — % off
c. Free shipping upgrade
d. Loyalty or membership points

8. What percentage of retailers surveyed last fall planned to use email to promote offline (e.g. in store) Black Friday and Thanksgiving weekend specials?
a. One quarter
b. One third
c. Half
d. Three quarters

9. What was the most commonly offered Cyber Monday promotion in 2009?
a. Coupon – percentage off
b. Free standard shipping with conditions / minimum
c. Free standard shipping with no conditions / minimum
d. Limited time promotion

10. Which is the promotion that retailers expect most to offer again this Holiday season?
a. Coupon – percentage off
b. Free standard shipping with conditions
c. Limited time promotion
d. Coupon – dollars off

Answers: 1.c , 2.c , 3.a & c , 4.d , 5.c , 6b & c. , 7.a , 8.d, 9.a , 10.c

American Eagle, Kmart Make The Grade With Moblie Promos For Back to School

2010-09-07T11:01:00.000-07:00

If the back to school season continues to be an early indicator of retailers’ promotion plans for the all important fourth quarter, expect mobile and social campaigns to be driving a lot more conversations. Looking to grab their share of the more than $21 billion spent on school-aged children during the back to school season, American Eagle, Kmart, JC Penney and others tapped into the growing dependency on social networks and mobile devices.

In addition to increased promotional activity from retailers, a new Deloitte survey found that 29% of consumers plan to use their mobile phones to help them make the right choice in school items, while 38% said they will use these methods to access price information. Consumers are using social networks for various reasons — 33% want to view a retailer’s advertisement and 30% to obtain discounts, coupons and sale information.

The survey found that consumers' recession-induced behaviors are beginning to wane as households seek to replenish certain items and worry less about the economy, Alison Paul, Vice Chairman and Deloitte's Retail Sector Leader said in a press release. "Retailers may be encouraged that fewer consumers are planning to pare back this year, although they may find that shoppers continue to be deliberate in their purchases,” she said. “Retailers should be laser-focused on giving shoppers a reason to put back-to-school dollars into their stores.”

Consumers last year spent about $1.2 million on goods and services purchased via mobile phones and the market is expected to reach $2.1 billion by the end of this year, ABI Research Analyst Mark Beccue told The Boston Globe. With such a significant forecast, it’s no surprise that retailers are jumping on the mobile bandwagon to enhance the customer experience.

Moving with Mobile

American Eagle Outfitters just ended a back to school promotion, which offered shoppers who try on a pair of AE jeans a free smart phone offer with a new two-year service plan. The promotion allowed customers to choose from more than 40 phones from a variety of top brands including BlackBerry and Android. Every customer who signed up for the plan then received a $25 AE "Money Card," which can be redeemed online or in stores.

AE’s promotion is well-aligned with spending forecasts. NRF’s recent survey found that teenagers and pre-teens will dish out more of their own money for apparel, supplies and accessories this year.

Sears is running an integrated marketing campaign with a mobile call to action and social engagement aspect. The retailer is looking for tween style-makers through its "Crush Your Style – The Search for America's Top Style Crush" campaign. The program issues one style challenge every week for six weeks to find America's top style talent, with a $50,000 family trip as the grand prize. Shoppers can enter the contest via the mobile phone, and friends can vote for the winners on their mobile phones, too. The mobile site m.crushyourstyle.com has a call-to-action asking consumers to text a different keyword each week to the short code 66746.

Kmart’s back to school campaigns focused on convenient shopping for customers. With Kmart2go, customers can shop for products via iPhone and Android apps, giving users complete access to the full list of items and categories available on Kmart.com. Kmart also communicates deals to customers by blasting out daily text messages with promotions for the back to school season.

JCPenney is displaying interactive ads on iPhone apps that allow users to view new outfit combinations and find the closest store. JCPenney’s “New Look. New Year. Who Knew!” multichannel back-to-school campaign features ads in Apple’s iAd, mobile coupons, a WAP site for teens and a new iPhone application.

Target is sending out scannable coupons that shoppers can redeem at the point of sale, while Kohl’s and Best Buy are sending text message alerts to promote special deals.

The Social Scene

While mobile promos are dominating this year’s back to school strategy for many retailers, social media is also a key component for other retailers’ back to school tactics. Abercrombie & Fitch Co. is tapping to give teens “a shot at Hollywood fame.” Facebook fans can submit a photo of themselves wearing A&G jeans or leggings for the chance to win a screen test in Hollywood and audition for a movie. The Facebook community will vote for the top five hottest guys and girls.

Sears is getting more social, too, as the company supplemented its back to school campaign with a Facebook application promoting new merchandise targeted at college students. Students can use the application to decorate a virtual dorm room with products available for purchase at Sears, such as bedding, appliances and electronics. Shoppers can also share their virtual rooms with friends, allowing them to come up with new ideas.

In another socially-driven initiative, Kohl’s is tapping its Facebook fan page and giving away $500,000 to 20 lucky schools, totaling $10 million. The contest allows students to vote for their school and submit ideas about how their school should use the money.

Cutting Edge Sales

2010-09-02T06:56:00.000-07:00

"Cutting Edge Sales" is in and of itself a buzz phrase describing a competitive sales advantage that every retail sales associate is looking for, a bit like the fountain of youth. Like the fountain, though, "Cutting Edge Sales" is something that is more inside of oneself than something concrete to be found.

Retail sales persons and consumers have changed a great deal over the years but what makes a retail salesperson extraordinary really has not changed that much. It takes the same dedication to ones craft that has always been the mark of an expert.

Yes, the consumers are better informed. Information is more readily available and the internet has provided an outstanding research tool for all people with a need but people can still be gently persuaded.

The important thing for one to remember is that the things that worked for salespeople hundreds of years ago did just that. They worked. And they still can with the right approach and a little cutting edge retail sales training.

The change in the dynamics of making a sale today compared to yesteryear should be focused more on the retail sales associate's delivery, not necessarily the content of their pitch. I like to use the analogy that we are delivering the same package, but we are using the newest, brightest and shiniest wrapping paper.

The outline of a sale has looked the same with little variation for eons:

Ø Approaching the Customer (Greeting)
Ø Identifying Needs
Ø Presenting and Demonstrating Options
Ø Trial Closing
Ø Handling Objections
Ø Closing
Ø Sales Follow-Up

The reason this outline has stayed the same is because it has a proven record of success. How this outline is delivered by retail experts has to change to keep up with the times and that is the evolution of sales. When one understands that they can start to understand more about "Cutting Edge Sales."

A retail salesperson today, more than ever, has to sell oneself. Consumers in general are a very skeptical lot, especially when they are spending money that is harder to come by. As a result, they purchase from those that they trust and they tend to trust those that they like.

Today, so much more time has to be spent on greeting a prospective client. So many average retail salespersons skip this step entirely, or even worse are rude. That is why they will always remain average salespeople. Even a mandatory and effective greeting like, "Hi and welcome to our store" falls flat if it is not warm, genuine and sincere. Here is where one becomes a human and not just a salesperson, therefore gaining trust and becoming more likeable. Remember the old quote, "People don't care how much you know until they know how much you care."

Further, customers don't want to be peppered with questions like they are undergoing a police interview. This rapport that you have now established makes for a free and easy qualifying stage and opens up your shopper to share their needs with you as well. Retail sales training consensus has always been, "A sale can not be made until the customers' needs are met."

Vocabulary is also a very key part to sales today. The lexicons of today vary greatly from the words of just a few years ago. It is more important than ever for retail sales associates and retail managers to continually build their vocabulary and be a wordsmith. This allows one to state exactly the points that need to be made without over talking and losing the customers attention and interest. Time is of the essence in today's busy world.

It also helps to be "hip," yet still formal and know more about the people with whom you are communicating. Thus, one can create the right vibe for comfortable buying which is very cutting edge.

Staying informed on the latest technology is one of the most critical parts of being "Cutting Edge." Technical improvements over the years are too vast to list, but should all be put to good use for the expert retail sales associate.

Nothing is more important or more valuable today than real time information. Systems can provide very simple real time information and data that gives retail salespersons more tools with which to sell. Knowledge of inventory, sales tracking, delivery zoning and up to date pricing can better prepare retail sales associates to make a sale. This is a very powerful tool especially in this "Now generation" that we live in. Consumers don't care to wait the extra 30 seconds to download an email joke. They certainly are not going to wait around long for information about a product or for the delivery of that product.

All of the instant information in the world is useless, however; unless one asks for the sale. The instant information is the shiny new wrapping paper, but asking for the sale is as old as the sales process itself.

The use of technology can also give a retail salesperson the ability to practice better customer retention and follow up by generating instant "Thank You" notes via email. Consider the impact of an instant email "Thank You" waiting for your customer when they arrive home from their shopping excursion or having them receive it on their Blackberry in the car on the way home.

It also allows customers to track "Frequent flyer miles" on line for future discounts and creates another outlet for prospecting. Researching the internet to better understand the competitions strengths and weaknesses is also a very effective practice of using current technology for retail sales training by "Cutting Edge" retail sales experts.

These are all tools that are mostly known to CEO's and upper Retail Sales Management, but a better understanding of these tools can give a retail sales associate the upper hand needed to consummate a sale. It is another example of using instant information to utilize age old sales strategy and sales training, or an old package with new wrapping paper.

It is vital to commit to leading one's retail field and staying ahead of the competition. The responsibility to stay atop of one's profession is that of the retail sales associate alone, so don't wait for management implementation. The most important concept a retail salesperson needs to embrace is that selling is life. As one evolves, learns and experiences life, they grow and improve, as it is in sales. The person that "Knows it all" can only start to degenerate, but the person who is hungry everyday for more knowledge and growth shall always stay a step ahead of the rest and on the cutting edge of sales.
All the Success!
DMSRetail

THE TRUE VALUE of hiring and retaining top people

2010-08-23T07:51:00.000-07:00

Many managers have the mistaken impression that they should treat all workers equally. The opposite is true.

Great managers have figured out how to treat top, average, and poor performers differently. If you want to give your company a competitive advantage and increase employee productivity and thus company performance you should dedicate more time and resources to the top 20 percent of your employees. In fact, you can increase company revenue by millions of dollars literally by retaining the top 20 percent, releasing the bottom 10 percent, and replacing the latter with average employees.

This doesnt mean you should abuse or ignore the rest of your employees. It just means you shouldnt treat all employees equally.

10 times more valuable
Top performers almost always exceed the performance of average workers by at least 25 percent. It is not unusual in some industries to find that the performance differential between average and top performers is 10 thats 1,000 percent! If you invest in an asset (whether that asset is an employee or any other financial investment) that costs 25 percent more but produces 10 times more in output or revenue, you have a net gain and an outstanding one at that.

Calculating the top performer differential
Demonstrating the dollar value of top performers in comparison to average workers isnt as difficult as you might think. Start by identifying several jobs that have easily measurable results (the outputs by which your employees should be measured). Sales positions are an easy starting point. The goal is to compare output or results of those with average performance and those ranked as the best in each job function.

Follow these steps to calculate your Top Performer Differential:
1. Average Output per Employee. Start by determining the output of an average performer. This is called the average output per employee. See a sampling of outputs on page 2 for ideas on what to measure.

2. Top Performer Output. Calculate the output of your very top performers (or the average of the top 1 percent of your employee population).

3. Top Performer Increase Factor. Divide the top performer output per employee for a specific position by the number you identified as the average performer output. The resulting number is your top performer increase factor for that position. (The ratio is usually between .5 and 3, but sometimes is as high as 10, as is the case for Cisco Systems.)

4. Revenue per Employee. Calculate the average revenue for an employee for these jobs total divisional revenue for a year divided by the number of divisional employees. If that is not available, take the total revenue of the firm for a year, and divide it by the number of employees. You can also choose to do profit per employee instead. Just substitute dollars of profit for revenue.

5. Revenue Increase for Top Performers. Take the average revenue per employee and multiply it by the top performer increase factor. The resulting number is the revenue generated by the top performer.

6. Value Difference Between Top and Average Performer. Subtract the average revenue per employee from the revenue of a top performer. The difference is the value added each year by hiring or retaining a top performer versus an average performer. (The same calculations can be done to compare average and poor performers.)

7. Add Other Jobs. Next, do it for other measurable-output jobs. If the ratio (the percentage difference) is close for most jobs (it usually is), use that ratio for all jobs in the firm. If various positions provide dramatically disparate differentials, average them to come up with an organizational differential.

A sampling of outputs
If you find yourself at a loss for potential outputs to use in measuring your employees performance, then consider some of the following as starting points. You can always refine these over time as you figure out what works best for your team and company. Your goal is to test tools and strategies of measure. So, begin by using multiple measures. No single measure will be without its faults, so triangulate to verify your initial findings.

Below are examples of direct measures of results (data-driven results):
* Output data/overall results for current period
* Percentage of goals or targets met
* Error rate
* Customer complaints or compliments
* Impact (accuracy) of key decisions amount of money that a decision lost or made for the company
* Impact (accuracy) of forecasts
* Percentage/number of repeat customers
* Number of ideas, suggestions, or innovations implemented

Examples of indirect measures of results (proxies for performance subjective team or manager review of an individuals performance) are as follows:
* Key accomplishments ranking (first to achieve or last to achieve)
* Speed of promotions
* Performance improvement
* Scores on standard performance appraisals, 360-degree assessments
* Performance of his or her employees (in the case of a manager)
* Success rate of teams he or she is a part of
* Customer feedback
* Output results from previous projects/positions (assuming that past performance is indicative of future performance)
* Forced ranking by direct peers
* Forced ranking by project team
* Forced ranking by manager(s)
* Forced ranking by neutral (selected) panel of experts or a committee
* Attendance
* How high they are ranked by outside recruiters
* How high they are ranked on the company succession plan

How to calculate the performance differential for a salesperson
Lets say the average salesperson generates $250,000 per year, whereas your top salesperson generates $400,000. Divide 400,000 by 250,000, and you get a top performer increase factor of 1.6.

Next, divide total revenues of your organization by the number of current employees. Lets say you have $100,000,000 in revenues and 1,000 employees. The result is an average revenue per employee of $100,000.

Multiply this number by the top performer increase factor, and you get the average contribution to revenues by top performers $160,000 in this example.
Subtract from this number the average revenue per employee of $100,000, and you see that on average, top performers contribute $60,000 more per year than average performers.

Let employees know
Regardless of the measurements (criteria) you decide to use to calculate employee performance, dont keep it a secret.
Even if the measures you select have some bias in them, employees can learn to change their work behaviors to fit the criteria if they know in advance what they are. Letting them know the rules and standards by which they will be measured minimizes confusion and allows the workers to focus on what is important.
In addition, when you post the criteria, you will (whether you like it or not) get feedback. You can use that feedback to adjust the criteria over time.

Dr. Sullivan, a noted author, speaker, and internationally recognized visionary currently serves as a Professor and Head of the Human Resource Program at San Francisco State University. You can find more articles by Dr. Sullivan at www.drjohnsullivan.com

Scheduling Tips You Can Use Now

2010-08-17T13:10:00.001-07:00

There are many non-monetary factors that employees consider when judging the quality of their work life. One of those is how their work life affects the quality of their personal life.

Perhaps the most important consideration is the work schedule - better known as the Backbone of the store. Most retail employees work shifts; days, evenings, weekends and some holidays. Those shifts can range from three to eight hours or even more in some cases.

If you ask a retail employee what they like least about their retail job they will often say the "hours of work". While most of the business world generally carries on their business between 9 am and 5 pm, Monday to Friday, retailers are conducting their business from morning 'til night, usually seven days a week.

This presents challenges, to say the least, for both management and staff. Managing the work schedule well is one of the most important factors in creating a productive workforce and, therefore, your success.

TIPS FOR MANAGING THE WORK SCHEDULE

1) Timing is everything! Whenever humanly possible, a work schedule should be posted for at least two weeks out and must always cover two entire weeks into the future. This will mean having three weeks posted most of the time - on any given day, the employee must be able to see their work schedule for the next fourteen days. It is simply not acceptable to post a schedule on Wednesday which covers the following week.

Think of how tentative an employee's plans would have to be. The Manager who leaves scheduling until the last minute does not understand how important the schedule is and does not consider the impact of the work schedule on the employees' life or on the business. Posting a schedule late is creating problems for the Manager and the employees. You will encourage more sick calls, more appointments that simply can't be missed and various other creative reasons for not being able to work a particular shift. Don't force people to do these things.

The successful Manager respects their employees enough to give them as much notice as possible. They understand that the work schedule affects their quality of life and that should never be taken lightly.

When unforeseen circumstances cause an accurate schedule to be delayed (and this should be very seldon), or if your business really will not work properly with advance schedules, the minimum requirement is that the Manager post a schedule which indicates 'proposed' or 'on call' shifts. Of course, it is important that these shifts be planned as carefully as possible to reflect the needs of the business and not just to provide a huge safety net for the Manager.

2) Be creative! Talk to your employees about the type of shifts they prefer. Of course, they need to understand that the needs of the business will take priority but why not try to work with their requests? While you may be trying to be fair by not giving an unpopular shift to one person all the time, you may find out that you have one employee who actually wants that shift because it fits into their lifestyle nicely.

The key is to give a lot of thought to the scheduling process...don't be set in your ways and definitely don't play favorites. Always ask yourself if there might be a better way.

3) Schedule for productivity! Make sure you are scheduling your best sales associates at the times when they can produce maximum results. You know when your stores' quiet times and busy times are. Schedule accordingly, depending on your business. You may have reasons to believe that your best sales associate should work the busiest shifts, the quietest shifts, or somewhere in between. Only you know that.

Remember, though, it is never wise or productive to schedule your best sales associates to cover periods when the store is not open to customers.

4) Set up a system for employees to make special requests! Do not put out a calendar and let employees decide which days they are, and are not, available by marking their names on specific dates. This becomes a wish list that has a tendency to set the employee up for disappointment. It also pits one employee against another as they all rush to mark their required days off for special events, etc.

You need to let employees know that they are welcome to leave you a note requesting certain times/days off. They must understand that it is a request and that you will do your best to accommodate them. You need to get back to the employee as soon as possible if their request must be denied. It should go without saying that you should do your best to accommodate them provided that the business does not suffer.

5) Employees covering their own shifts! Ensure your employees understand it is not acceptable for them to have someone else cover one of their scheduled shifts without checking with management first.

The reason for this is that you have, presumably, scheduled certain individuals at certain times based on a number of factors. One of those factors may be the individual's skill level in a particular area. If that person decides to have another employee cover a shift for them, it is up to you to decide if that particular shift can be well enough covered by the other individual.

6) Make everyone aware of the importance of the schedule! Employees need to know that the schedule is one of the most important tasks you, as the Manager, must perform and that you devote quite a bit of time and effort to create a productive schedule that works for everyone.

It should be understood that the schedule is designed around the needs of the business and the needs of the employees. It's also very important to let your employees know that you are working within a wage cost or allowable hours framework of some description.

New website tracks long-term trends in the well-being of Minnesota families

2010-08-16T10:03:00.000-07:00

The Minnesota Budget Project, along with some amazing research partners, are pleased to announce the launch of Minnesota Data Trends, a website that tracks key indicators of family well-being around the state. The site looks at long-term trends in income, housing costs, transportation costs, access to health insurance, employment and other important measures.

Much has been written in the past year about the struggles of average Minnesotans during the Great Recession. Often lost in the immediate focus on the latest unemployment report or foreclosure data are the longer-term trends showing that low- and moderate-income Minnesota have faced challenges for years and conditions are worsening over time.

For example, the recent Great Recession cannot explain all the job loss in Minnesota. The state gained an average of about 36,000 jobs per year between 1981 and 2000, but only 1,000 jobs annually between 2001 and 2009. And as jobs become scarcer, housing costs are rising. For nearly two decades (from 1980 until 2000), only eight percent of Minnesota households were paying more than half their income for housing. By 2008, however, nearly 13 percent of households had this level of cost burden.

The goal of Minnesota Data Trends is to provide reliable, baseline information on issues affecting low-and moderate-income Minnesotans. We hope to focus attention on how multiple trends can together place a severe strain on a family’s budget. Any number of factors could put a family with little financial margin into chaos: reduced hours at work, an unexpected car repair or health care bill, or the loss of child care.

The website also acts as a directory of experts on these important issues. In addition to the Minnesota Budget Project, the collaboration has involved the Affirmative Options Coalition, Children’s Defense Fund – Minnesota, JOBS NOW Coalition, Minnesota Community Action Partnership and the Minnesota Housing Partnership.

On the website you will find graphs showing long-term trends that anyone can download and reprint for free. The website also includes the data source for the graph, a brief paragraph summarizing the trend and contact information for further details.

But this is only a beginning – we’ll keep the website updated as new data becomes available.

-Scott Russell & Christina Wessel

U.S. Retail Industry Update - 264 Store Closings, 864 Openings, U.S. Retail Chains Leave W Recovery Behind and Defect to 14 Countries with Money to Sp

2010-08-13T06:26:00.000-07:00

Even though plans for new store openings are still outpacing store closings four to one, the numbers from the U.S. retail industry unfortunately won't dismiss all fears that the U.S. economy is sliding into a "W" recovery. With economic eyes from around the world focused on the U.S. retail industry for solid signs of recovery, what is seen are some surprising store closing announcements and a large number of U.S. retailers abandoning their own economy to defect to other countries, in search of customers with shopping dollars to spend.

Isn't that why the world's largest retailers used to want to set up shop in the U.S.?

Surprising Store Closing News

When Liz (LIZ) announced that it was closing all 87 of its outlet stores, it wasn't exactly a shock, but it was still a surprise. Outlet stores have been doing well in the frugal economy. Chains like Bloomingdale's are entering the outlet business because that's the direction where consumers have been headed with their shopping dollars. For a well-known apparel chain like Liz Claiborne to admit that it can't operate its outlet stores profitably is at least a little bit disconcerting.

The Claiborne people didn't - and shouldn't - point all of their fingers at the economy, however. The Liz Claiborne label has been attached to some questionable pieces of clothing in the recent past, and lots of loyal Lizzers have gotten confused and alienated because of that. Perhaps creative director Tim Gunn has spent too little time in the office, and too much time with wannabe designers in the Project Runway workrooms. Whatever the reason, a 31% year-over-year drop in quarterly sales proves that Liz Claiborne outlets could not "make it work" any more.

Another surprising store closings announcement came from Winn-Dixie (WINN). That supermarket chain has decided to close 30 of its 518 stores. While this is not even a 10% downsizing, what's surprising is that Winn-Dixie is generally perceived to be a low-cost place to buy groceries, and often the only grocery store in town. This is another case where the economy isn't the culprit, but rather, the store's own reputation and operational execution.

To read the customer and employee comments following news reports of Winn-Dixie's closings is to know the real story behind the underperformance of 30 Winn-Dixie stores. Apparently, no matter how low your prices are, customers do not like to shop in dirty, smelly stores that carry the lowest of low quality products. At least that's what the customer comments indicate. Who knew?

Despite Winn-Dixie's latest quarterly profit increase of 26%, there have been hints that the company outlook is not so sunny. There were 77,792 hints, to be exact. That's the number of shares of Winn Dixie stock that the company's own senior executives have sold off in 2010. As a matter of fact, CEO Peter Lynch sold 52, 360 shares at the beginning of July, prior to the store closing announcements at the end of July.

Winn-Dixe shares are actually selling for a slightly higher price today than Lynch got for his shares, but the other senior executives (including the CFO) saved themselves a bundle by selling when they did. Of course they all know more than we do. But looking at the seven big chunks of stock that have been sold should make all Winn-Dixie investors wonder exactly they what the Winn-Dixie executives do know.

Store Openings Continue at a Fearless Pace

Store openings in the U.S. are not so much surprising as they are fearlessly aggressive. Intent on snatching up the best of the vacant retail space deals available, retailers are ignoring "W" recovery possibilities, and boldly moving forward with their expansion plans.

Not included in the 864 newest additions to the 2010 Store Openings list are 555 Blockbuster kiosks that will start popping up at QuikTrip convenience stores across the U.S. It's not that these budget movie rental kiosks will be huge profit centers for Blockbuster. It's more of a defensive move that allows the struggling Blockbuster chain to establish a kiosk presence before it is completely shut out by Redbox. Even though Blockbuster has fallen far behind, they're desperately trying to stay in the race. And the key word in that sentence seems to be "desperate."

Riding the Subway to Global Retail Domination

Even though retail chains are expanding at a pace that is far ahead of the economic recovery reality, it is even more notable to observe the growing number of U.S. and global retail chains that continue to follow the money to other countries where consumer dollars are easier to capture. Just in July, major U.S. retailers announced new global expansion plans which will land U.S. retail chains within the borders of 14 different countries. This month's retail defectors include Blackberry, Domino's (DPZ), Tasti D-Lite, 7-11, Marshall's, and Subway.

The biggest global expander is Subway, which continues its quest for fast food world domination at a pace that even Wal-Mart could envy. Out of the 1,000 stores that Subway plans to open in 2010, only half of them will be located in the U.S. By the end of the year, Subway will have added more than 500 Subway restaurants to the 2010 Global Store Openings list from 11 different countries.

Even with more than 33,000 restaurants in 90 countries, CEO Fred DeLuca is clear that opening stores at a breakneck pace will not secure Subway's global domination forever. "The world doesn't stand still," DeLuca has been quoted as saying, "and we don't deserve to be where we are unless we stay ahead of things and take the necessary steps to remain competitive."

How is the seller of five-dollar footlongs "staying ahead of things?"

A Subway iPhone app first developed in New Zealand allows customers to locate the nearest Subway, place their order before they get there, and bypass the line completely, even during the busiest of mealtime rush hours.
The introduction of a breakfast menu instantly established Subway as the world's largest seller of breakfast sandwiches.
"Drive views" allow Subway drive-through customers to see their sandwich being made, just like they can inside the store.
Subway is the sponsor of a new multi-channel entertainment show called "Golf Therapy," which is still so abstract that it's difficult to describe (or understand), but is rumored to be on the leading edge of sponsored entertainment and quite buzzworthy.
In order to establish their "healthy" brand in Japan, Subway is growing its own organic hydroponic vegetables on-site.

Right now it seems retail expansion has the ability to stimulate economic recovery more than economic recovery has the ability to revitalize the retail industry. But unless the wizards of the U.S. retail industry make an agreement to take on the burden of jump-starting the entire economy, it's tragically possible that the retail expansion that's been done this year will put some retailers into trouble again while recovery drags its feet. Beyond the economic impact, double-dipping into recession would take a great psychic toll on the American people.

That is definitely a price Americans can't afford to pay.

Best Practice

2010-08-12T07:41:00.000-07:00

Check the effect of every new practice or procedure before you implement it.

Here's how...

Ask yourself, and other management personnel, these two questions:

1) What effect will this have on our customers?

2) What effect will this have on our store level employees?

If the answer to each of these questions is positive, go forward (assuming, of course, that the new practice or procedure is good for the company itself). If not, then go back to the drawing board and make a change.

At the very least, go back and seriously consider what you are doing because, if the customer or store level employees are negatively impacted...there may very well be something wrong with what you are proposing.

Always think twice, at least.

Conversion Check Up

2010-08-11T08:42:00.000-07:00

September is an important month for many retailer's and, during these tough times, it's important that we prepare ourselves even more so than usual.

One area we can focus on to make a big difference is conversion %. That is the rate at which shoppers are being converted into buying customers.

It is easy, and common, for sales associates to be overwhelmed by increased traffic particularly if floor coverage is insufficient. This is when we stand to lose big time! If sales associates are just managing to 'keep up' with the business, then conversion will definitely suffer.

Of course, other KPI's will suffer as well but during heavy traffic periods conversion can be a huge missed opportunity because it will naturally go up to some extent - and it should - because many September shoppers are not just browsing. They have more defined needs for the kids going back to school, for fall wardrobes, for indoor renovations to the home, for new hobbies and activities, etc. so they are in the stores to buy and, quite likely, conversion would go up even if the store associates are behind the cash desk processing the line up of purchasers. When the Store Manager sees that conversion has increased, s/he may get a false reading on the success of the store.

Now is the time for a refresher on selling skills, in general, and conversion needs to be emphasized.

Set stretched, but attainable, conversion targets.

7 Tips for Retail Manager's to use Right Now

2010-08-10T06:23:00.000-07:00

By: DMSRetail

Hire the best sales people you can find: Like we have said before, it is much easier and more productive to hire a great sales person and teach them how to do the myriad tasks that need to be done in the store, than it is to hire a great associate who performs tasks really well but doesn't know how to sell or who fears rejection and does not want to sell.

Make sure your associates have the tools to handle the "I'm just looking" shopper: When all attempts to engage this customer in a conversation have been unsuccessful your sales associate can hand the customer a short promotional piece about a new arrival or a special event going on in the store. The piece should be well thought out in order to get the maximum benefit.

Don't dwell on the past: Thinking back and reminiscing about the days when the recession was not affecting sales doesn't do anyone any good at all. Go forward with a positive and pro-active attitude.

The Store Manager's presence: As we have often said, at DMSRetail, the Store Manager needs to be on the sales floor. This is where the action is; where the customers are making their buying decisions and where the sales associates are doing (or not doing) their best to satisfy the customer. Store Manager's need to stay in touch with staff and customers and there is no better place than on the sales floor.

Add more excitement to the usual Friends & Family Events: Get your customers involved early and have them give you the names and email addresses of their friends & family members. If you have an event that offers clear benefits, your customers will be your biggest advertisers. The same is true for staff members. If you get them involved early and make sure the event will 'wow' them you should get a great turnout.

Have regular information gathering meetings or discussions with your front line people: The purpose is to get your sales associates to give you ideas about what can be done better in store, to sell more merchandise to more people. You may learn about some missed opportunities that should be communicated to the individuals in the organization who can do something about it.

Choose your Greeter carefully: There are times when you should have a Greeter stand just outside your store instead of inside. The individual will not only welcome shopper's coming in but they will also talk to customers who are leaving. The Greeter chosen for this should be relatively well informed - perhaps a management or supervisory person - so that they can ask the right questions and properly interpret the answers they get from customers who are leaving and, even more important, so they can redirect some customers back into the store.

Stress-Free Company Celebrations

2010-08-09T09:36:00.000-07:00

Even in (or perhaps, especially in) tough economic times, many businesses continue to explore ways to boost employee morale. Summer picnic events have been a classic option. In fact, while some businesses are cutting back on the budget for such activities, 39 percent who responded the HR Support Center’s June Poll of the Month still plan to have a company picnic or similar event this summer for their employees.

Whether at a special outside venue or on company premises, these celebrations often involve food and fun for everyone. They also can become employer headaches. Any business, however, can create stress-free celebrations with and for their employees by thoroughly planning and considering items such as the following:

Make attendance completely voluntary. Otherwise, be prepared to pay employees for attending.
Restrict alcohol access. Uncontrolled alcohol consumption will increase your risks of harassment and safety issues.
Reinforce company standards of conduct. Even if the event is held off-site and after hours, a work event remains a work event, and the company’s standards of appropriate employee conduct and behavior apply.
Establish a social media policy. Do not allow employees to post unauthorized pictures and comments about your event on social media (e.g. Facebook) which can result in negative public perceptions against your company.
Show your appreciation. Remember to celebrate this great opportunity to share thanks and to recognize all those who have made your company even more successful and such a great place to work!

Controlling Your Employee Turnover Costs

2010-08-05T13:45:00.000-07:00

Excessive or avoidable employee turnover results in a waste of time, resources, and added costs. While it can depend on the industry and business cycles, the impact is often especially hard on small businesses. Understanding what goes into the turnover costs and establishing helpful strategies are important steps for you to effectively manage the revolving employee door of your company.

Price of Losing Employees. New employee hiring costs often accounts for business need assessments, advertising, and interview resources. Other factors may include background checks and sign-on bonuses (which are less prevalent with today’s economic market of higher quality candidate pools). In terms of new employee training, costs would include training resources such as technology, reference materials, and trainer coordination.

In short, Total Employee Turnover Costs = New Employee Hiring Costs + New Employee Training Costs.

Reduction of High Turnover. Periodically review the following for your company:

Recruit Right. Does your business target the right people for your workplace? Getting the right talent is crucial. Matching the right candidates in line with your company branding and long-term business goals is also important.
Motivate Right. How well do you understand what really motivates your employees? Sometimes, financial incentives may work just fine; sometimes, involving employees in new project developments will be a better investment; and sometimes, it is the simple thank-you. Know what drives your employees at all times.
Exit Right. Employment termination is a regular part of the employee life cycle. Part of the process includes capturing the real reason(s) for an employee departure can be critical to your company. Whether involving questionable leadership styles, perceptions of unfair pay, or unresolved complaints about the air conditioning not working, getting to the core issue of each turnover will help you assess what corrections you might need to make.

Low Turnover Management. While low employee turnover can be a badge of pride and of a great work environment, low employee turnover can represent negative warning signs and actually be counterproductive. Turnover in general can be beneficial by shifting your business to get new talent with new ideas.

How Brick-and-Mortar Retailers Can Compete and Win in the Mobile Arena

2010-08-05T07:07:00.000-07:00

Thursday, 05 August 2010 08:41

By Adi Prabhat Jain, Associate Sales Manager, Infosys Technologies Limited

It seems that there is no end to the woes of brick-and-mortar retailers. In 2009, while total e-commerce sales were estimated to have registered an increase of 2%, the total retail sales decreased by 7%, according to the U.S Department of CommerceQuarterly Retail E-Commerce Sales. While online retailers have been dealing blows to brick-and-mortar retailers (for some time now) and driving prices down towards marginal costs, mobile phones threaten to slowly spell their death unless retailers do something radically different to connect with increasingly demanding customers.

Advertising and promotional campaigns on mobile phones are fairly common and shopping on the mobile phone is fast picking up, albeit concerns over security still persist. However, a host of mobile applications, with diverse value propositions, are fast gaining traction. These applications are often freely downloadable and allow customers to search products, compare prices and promotions, read reviews and check in-store availability. What really sets them apart from their counterparts on the Internet is the fact that all this can be done anywhere, especially, at the point of purchase decision.

There is a bunch of freely available mobile phone applications that enable users to search for products and receive text messages with informational tidbits that range from names of local stores carrying the product, their in-store stock situation and information about promotions on those products. Even more advanced applications are available for camera and smart phones.

Amazon’s application for mobile phones has a function, “Amazon Remembers,” that matches pictures of objects taken on mobile phones to products available in their store, makes product recommendations, and also performs price comparisons with a few web retailers.
Scanbuy, a New York-based company, provides an application that enables shoppers to compare the prices of products in brick-and-mortar stores with those in online stores. Users can simply click a picture of the product barcode using their mobile phone camera and compare product prices with other Web retailers or read product reviews.
Google has recently introduced its “Product Search” mobile application for smart phones that allows users to search the inventory of participating stores for products of their choice. The “My Location” feature of the application allows users to find out how far they are from the store carrying the product.

Information availability ensures the best deal

As technology progresses shoppers are obtaining access to newer channels and an unprecedented amount of information. They are now empowered to make smarter decisions and challenge retailers to provide them the products they want at the prices they desire.

While mobile applications are still in their nascent stages, data on local stores is still undependable and security concerns abound, it is only a matter of time before the applications will stabilize and local store data will become more organized and security concerns will be put to rest. Whenever this happens, the balance of power will further shift in the shopper’s favor.

Retailers cannot prevent shoppers from carrying mobile phones loaded with these applications into their stores and conducting a quick, on-the-spot “due-diligence” before making a purchase decision. Neither can they match the lowest prices or run the same promotions available at other local or online stores on all products.

What should brick-and-mortar retailers do?

To effectively compete in the growing mobile arena, brick-and-mortar retailers must try to better engage their customers, although this may require a paradigm shift.

Traditionally, retailers have collected massive amounts of customer data to perform sophisticated affinity analysis to understand “what-goes-with-what” and designed promotional programs to drive revenues. However, in the context fast unfolding, merely understanding average behaviors is not enough. Retailers need to observe and understand the behavior of individual customers and act on it, in real-time.

While on one hand mobile phones present a threat to retailers, on the other they present a tremendous opportunity. Thanks to the mobile phone, through carefully designed opt-in marketing programs retailers can track demonstrated in-store customer behavior and juxtapose it with static demographic and psychographic data to get a peek into the customer’s mind.

Astute retailers will make the right investments in building systems that provide customer focused insights, design personalized promotional “bundles of satisfaction” for individual customers in real-time and communicate them to customers on the same mobile phones that can potentially upset their businesses.

This can make univariate price comparisons difficult and enhance the shopping experience and thereby keeping customers loyal. Moreover, it will enable retailers to exploit an evolving channel for meaningful business opportunities and not just “advert spam” for which an average customer has a low tolerance in any case.

Adi Prabhat Jain is an Associate Engagement Manager in the Retail, CPG & Logistics unit at Infosys Technologies Limited. He has seven years of industry experience in IT Sales, Consulting and Project Management. He has an MBA in Strategic Marketing and Information Technology Management from the Indian School of Business, Hyderabad. Adi’s professional interests lie in mobile policy, m-commerce, m-governance, green technologies and sustainable business projects.

Retail TouchPoints: JC Penney, Forever 21 'Haul' In User-Generated Videos For Back to School Promos

2010-08-04T06:24:00.000-07:00

By Amanda Ferrante

Through a special arrangement, presented here for discussion is a summary of a current article from the Retail TouchPoints website.

In an age where consumer-generated content reigns, tech-savvy consumers have found a new way to support their shopping habits -- by broadcasting their latest finds on YouTube for the social sphere to see. The videos, known as "hauls," have made an impressive impact on YouTube, as more than 159,000 have been posted to the user-generated site. Retailers have taken notice, and several are now integrating the concept into their overall marketing strategy.

J.C. Penney, Forever 21 and American Eagle have harnessed the haul videos for viral promotions. Penney recently announced plans to give gift cards to teens who create haul videos after shopping at the store. Urban Outfitters is taking the concept a step further by offering the "UO Haul: Shop & Tell" Contest, giving haulers the chance to win up to $500 in gift cards.

"Anytime a retailer or manufacturer can get a consumer to evangelize their offering to their peers and social network it is a clear win," said Matt Britton, CEO of Mr. Youth, a social media agency focused on marketing messaging for teens. "With the growing reach and influence of today's teen consumer and the fading impact of traditional media, this trend exemplifies the new and often sophisticated choices retailers face in reaching consumers. Any major seasonal tent pole for a retailer (Holiday, Back To School, Dads & Grads, etc.) can effectively use 'haul videos' to reach consumers in a unique and memorable fashion."

Haul videos can be a lucrative opportunity. Some haulers receive money from the companies whose products they review, typically in disclosed posts. Haulers with corporate sponsors sometimes host contests, giving away products as a way to attract new subscribers.

Two popular internet haulers, sisters Blair and Elle Fowler, gave one retailer a particularly big boost. Only 24 hours after they posted a review of a watch they bought, it sold out in every color and the company's website crashed from the boost in traffic, according to ABC News. The sisters are even in talks with Forever 21 for a lucrative contract, although nothing has yet been set in stone. The sisters' videos have been viewed over 75 million times on YouTube.

Although the hauling trend has indefinite potential for growth, Mr., Britton encourages retailers to think about the potential drawbacks, which include:

"Participating consumers spreading misinformation about products including price and quality;
Consumers creating haul videos that aren't on brand which could chip away at a retailers overall equity;
The lack of ability to maintain a consistent message from such an effort that is coming from such a diverse audience of content creators."

Discussion Questions: What do you think of the "hauling" trend around user-generated videos? How can the opportunity be further maximized? What are the potential risks?

The CLASS Act: Cutting through the confusion

2010-08-03T13:02:00.001-07:00

There has been a great deal of information – and some misinformation – circulating about the long term care portion of the new health care reform law. The publicity has prompted many workers to seriously consider how they would pay for a period of long term care.

To help you answer questions from your employees, here is a quick look at what's true – and what is not – about this important legislation.

Facts about the CLASS Act:

It is a national, voluntary entitlement plan.
The plan provides a modest benefit of at least $50 per day.
It may pay up to $75 depending on the loss of abilities.
There is a five year vesting period before benefits can be paid.
Employers have the option to participate/employees may opt out.
Enrollment may begin as early as 2011.

What the CLASS Act does not include:

It does not call for a tax to fund coverage. It will be funded only by the premiums paid by participants, which can be increased at any time to keep the plan solvent.
It does not provide disability insurance or any income replacement – it covers only care for help with things like bathing, dressing, eating etc.
It does not provide a benefit amount sufficient to cover the high expense of long term care:

To learn more about this important topic, see The CLASS Act: Shining a light on America’s need for long term care, an industry thought-leadership white paper from Unum.

Counterfeit Bills

2010-07-28T11:44:00.000-07:00

Our contact in Texas tell us that the North Dallas area has alerted us to another counterfeit bill problem. This concerns twenty dollar denominations. According to our source, these counterfeits are very difficult to spot. The paper is slightly thicker than legal tender and smooth. Feel the bill. You should be able to feel texture in an authentic bill. Also, hold the bill up to a bright light with the president's face towards you (on a twenty, the correct president is Andrew Jackson). To the left of the portrait, is printed "USA TWENTY" in very tiny print running parallel to the edge of the bill.

Please check carefully to protect yourself when taking cash from customers.

Fight SKU-liferation with smarter assortment decisions

2010-07-28T06:24:00.000-07:00

Did you know that the typical shopper only purchases 340 unique items a year from a pool of more than a million items sold?

How do you know which items to add, retain or delete? The solution for most retailers is simply ranking items by sales or "cutting the tail" to remove the perceived underperformers. However, retailers are now connecting the dots between a more science-based approach and more successful assortments.

DemandTec offers six ways to fight SKU-liferation:

1) Localizing assortments based on shopper demographics and the competitive environment.

2) Understanding each item's ability to add variety and grow incremental sales in the category.

3) Creating optimized assortments using integrated assortment and space solutions.

4) Identifying underperforming SKUs before they become a liability.

5) Obtaining a clear understanding of incrementally and transferable demand.

6) Rationalizing your SKUs to achieve competitive differentiation, increase customer loyalty, and improve your bottom line.

Learn more by downloading the Science Meets Assortment Optimization ebook.

Social Media Bill of Rights on the Horizon

2010-07-20T08:11:00.000-07:00

Facebook, Google and AT&T have had their share of privacy issues, hacked sites and third party infiltrators to name a few. The exponential growth of computer use and social media within all levels of government, corporate and personal use, privacy advocates feel it is time to develop a core ‘standards of use’ practices that consumers can expect to be employed when signing in and registering with websites.

Social networking is now a necessary part of business, but who is protecting the users? These are some of the issues facing privacy advocates, computer scientists and corporate social media specialists at the four day Conference on Computers, Freedom and Privacy (CFP) recently held at San Jose State University.

As Jon Pincus, Co-chair of the 20th CFP says, “Everybody agrees the value of a social network is its users”. He goes on to say that a social network bill of rights may be in order. This is as a direct response to the recent Facebook privacy changes that occurred in April of this year.

The social media bill of rights was on the agenda at the conference. Things like how websites should handle private consumer data, security of data, honesty and the ability for site users to remove their data from the site when and if they leave the site were all up for discussion.

A first run at the bill was developed and is provided below. For more information, and to vote, “aye” or “neigh” on the bill of rights visit the website to cast your vote. Also follow the happenings at #billofrights.

Here is the full text of the proposed Bill of Rights:

“We the users expect social network sites to provide us the following rights in their Terms of Service, Privacy Policies, and implementations of their system:

1. Honesty: Honor your privacy policy and terms of service.

2. Clarity: Ensure that policies and terms of service are easy to understand.

3. Freedom of speech: Don’t censor without a clear policy and justification.

4. Empowerment: Support privacy-enhancing and assistive technologies.

5. Security: Treat my data as securely as your own, and notify me if it is compromised.

6. Data minimization: Minimize the information I am required to provide and share with others.

7. Control: Let me control my data, and don’t share it with others unless I agree first.

8. Predictability: Don’t change who or what sees my data without my consent.

9. Right to know: Show me how you are using my data and allow me to see who and what has access to it.

10. Right to self-define: Let me create more than one identity and use pseudonyms. Do not link them without my permission.

11. Right to appeal: Allow me to appeal disciplinary actions.

12. Right to leave: Allow me to delete my account, and take my data with me.”

DHS Notice Adding Drugs to State MAC List

2010-07-20T07:03:00.001-07:00

Just another reminder in case you missed the announcement from Carey Potter at NACDS regarding the notice from DHS regarding additions to the state's MAC list.

The Department of Human Services has issued a notice adding drugs to the state MAC list. Please see below.

Official Notices

Minnesota Department of Human Services (DHS)

Health Care Purchasing and Delivery Systems Division

Health Care Administration

Public Notice of Maximum Allowable Costs of Medical Assistance Outpatient Prescribed Drugs

NOTICE IS HEREBY GIVEN to recipients, providers of services, and to the public of additions to the state Medical Assistance maximum allowable cost (state MAC) list for certain outpatient prescribed drugs .

At least once each calendar year, the United States Department of Health and Human Services, Centers for Medicare & Medicaid Services, publishes a federal upper limit (FUL) payment schedule for many commonly prescribed multiple-source drugs . The federal upper limit is set at a rate equal to 150 percent of the published price for the least costly therapeutic equivalent that can be purchased by pharmacists . This FUL payment schedule constitutes the federal MAC list. For many multiple-source drugs that are not on the federal MAC list, the Department establishes a state MAC list. Additionally, the Department imposes a state MAC for many multiple-source drugs that are on the federal MAC list, as long as the savings are at least as much as the savings would be using the federal MAC list.

The Department requires Medical Assistance pharmacy providers to submit their usual and customary costs. Pharmacy providers are reimbursed at the lower of: 1) the federal or state MAC, plus a dispensing fee; 2) the submitted usual and customary charge to the general public; or 3) a discount off of average wholesale price , plus a dispensing fee.

No earlier than July 13, 2010 the Department may add the following outpatient prescribed drugs to the state MAC list:

Drug Name

NARATRIPTAN

ANASTROZOLE

These additions are made to bring Medical Assistance reimbursement to pharmacists more closely in line with the actual acquisition cost of the drugs listed above. The Department estimates that there will be a state savings of $50,000.00 for State Fiscal Year 2009 (July 1, 2010 through June 30, 2011).

This notice is published pursuant to Code of Federal Regulations, Title 42, section 447.205, which requires publication of a notice when there is a rate change in the methods and standards for setting payment rates for Medical Assistance services.

Written comments and requests for information may be sent to Pharmacy Program Manager

Sara Drake R.Ph.,

Health Services and Medical Management Division

Health Care Administration

Minnesota Department of Human Services

P.O. Box 64984

St. Paul, Minnesota 55164-0984.

Register Source:MSR, Vol. 35, Number 2, 7/12/2010, page 48

FDA Urges Retailers to Comply with New Rules Restricting Sale of Tobacco to Minors

2010-07-19T05:19:00.000-07:00

The Food and Drug Administration is reminding retailers that they need to observe new federal rules restricting the sale of tobacco products to minors that went into effect late last month.

“As a retailer, you play an important role in protecting children and adolescents from the risks associated with using tobacco products,” the agency said in a fact sheet posted on its web site. “Retailers are uniquely positioned to reduce underage access to tobacco products by complying with the FDA rule.”

Regulations that took effect June 22 prohibit the sale of cigarettes or smokeless tobacco to anyone under 18, and require retailers to ask for identification from customers under 27. The sale of single cigarettes or packages with less than the standard 20 cigarettes is barred, along with most flavored cigarettes with the exception of menthols. Cigarettes can no longer be sold in vending machines except in locations accessible only by adults, and the sale or distribution of hats, T-shirts and other items with tobacco brand names and logos is outlawed.

Details of the regulations are available on a new FDA web site at www.fda.gov/BreakTheChain

NRF Calls Passage of Landmark Swipe Fee Fix a Major Victory for Retailers and Consumers over Debit and Credit Card Fees

2010-07-16T06:29:00.000-07:00

WASHINGTON, July 15, 2010 – Provisions in the financial services reform bill passed by the Senate yesterday requiring reasonable debit card swipe fees and making it easier for merchants to give discounts to customers who don’t use credit cards represent a major victory for retailers and consumers in their fight against card fees, the National Retail Federation said.

The Senate voted 60-39 to approve the conference report on H.R. 4173, the Dodd-Frank Wall Street Reform Act of 2010, named for Senate Banking Committee Chairman Christopher Dodd, D-Conn., and House Financial Services Committee Chairman Barney Frank, D-Mass. The report is the final version of a pair of wide-ranging financial services reform bills first passed by the House in November and the Senate in May. The report was approved by the House on June 30 and now heads to President Obama.

“Today we have a bill on its way to the President’s desk that tells the big banks enough is enough. The days of big bank bailouts are coming to an end – Congress has clearly sided with Main Street businesses and their customers,” NRF Senior Vice President and General Counsel Mallory Duncan said.

“The bill requires debit fees that are reasonable and proportional to actual costs. As a result, retailers will see their costs reduced and will be able to pass on the savings through lower prices and greater value for their customers.

Eliminating obstacles to giving a discount or other benefit for cash check or debit cards will also make it easier for retailers to reward customers who are clued into these fees and choose not to use credit cards.”

Duncan said. “Banks began saving huge sums over the cost of processing paper checks when they introduced debit cards as ‘check cards’ a generation ago. When debit cards first came out, transactions were redeemed at full value. But saving millions wasn’t enough. The banks couldn’t resist the urge to invent yet another fee.”

The bill includes an amendment that would require the Federal Reserve to set regulations resulting in “reasonable and proportional” swipe fees for debit cards. The Fed would be required to consider banks’ actual costs for processing the transactions and the fact that paper checks drawn on the same accounts are paid at face value.

Swipe fees – officially known as interchange fees – are a percentage of the transaction charged by card company banks each time a card is swiped to pay for a purchase. The fees average between 1 and 2 percent for debit cards and 2 percent or more for credit cards. Overall swipe fees charged to retailers and other business by Visa and MasterCard banks totaled $48 billion in 2008, with debit swipe fees accounting for $20 billion of the total.

Current card and banking industry prices effectively require retailers to include the fees in the price of merchandise, resulting in the average household paying $427 more annually than they would pay without the fees, according to NRF estimates.

Green Chemistry Meeting

2010-07-13T07:38:00.000-07:00

The Minnesota Pollution Control Agency is hosting a "Green Chemistry" meeting on Thursday, July 15, 2010. The meeting is being held from 8:00 am--11:00 am at the Hiway Federal Credit Union, 840 Westminster Street, St Paul. Forty people are expected to attend. (Note the list.) At least 26 of those attending are from Government agencies or an environmental group. The meeting which is being sponsored by the MPCA will have at least 11 staff people in attendance. Only six private sector individuals have indicated their intention to participate.

If your company has environmental staff or if you are concerned about how this may affect the state's future environmental policy, you may want to attend or send a representative. If you are not sending a representative but are aware of how 'green chemistry" is affecting the formation of public policy in other states, please Email MnRA at shana@mnretail.org before 5 PM tomorrow. (Wednesday) The meeting which is a follow-up to the January 13th introductory meeting has the following intended purpose:

MPCA has used the input from all of its focus groups and a series of interviews to develop a survey. The survey will be available for review and discussion at Thursday's meeting.

In follow-up meetings, the survey results will be analyzed and results will be organized into a summary and posted on the web for comment. MPCA will notify focus group participants when the summary is posted on the web. MPCA will host an informational meeting to get reaction. Although the agency appears to be taking strategic steps to ultimately make recommendations for changing public policy in the future, it is likely that "green chemistry" initiatives will surface in the 2011 legislative session. The meeting on Thursday may provide some insight into the proposals business is likely to face.

NRF Welcomes House Passage of Swipe Fee Fix, Says Measure will Help Hold Down Prices for Consumers

2010-07-06T07:48:00.000-07:00

WASHINGTON, July 1, 2010 – The National Retail Federation welcomed a provision in financial services reform legislation passed by the House today that will help hold down the $20 billion in debit card swipe fees charged annually by the banking industry and allow merchants to give discounts to customers who don’t use credit cards."

The House has sent a clear message that big banks shouldn’t be allowed to drive up consumer prices by charging fees that are outrageously out of proportion to the actual cost of processing a transaction,” NRF Senior Vice President and General Counsel Mallory Duncan said. “The requirements of this bill should result in debit card swipe fees that are truly ‘reasonable’ and ensure that banks can’t put their hands quite as far into consumers’ wallets as they do today.”

“Retailers want to give their customers full value for every dollar spent and not be forced to raise prices in order to collect unfair fees on behalf of the credit and debit card industry,” Duncan said. “This legislation will reduce debit card swipe fees and, in turn, help retailers hold down prices for their customers. It will also make it easier for retailers to give a discount to customers who choose to save money in return for not using a credit card. That will give families trying to stretch their dollars in the current economy additional control that they don’t have now and is a major win for consumers across the board.”

The House voted 237-192 yesterday to approve the conference report on H.R. 4173, the Dodd-Frank Wall Street Reform Act of 2010, named for Senate Banking Committee Chairman Christopher Dodd, D-Conn., and House Financial Services Committee Chairman Barney Frank, D-Mass. The report is the final version of a pair of wide-ranging financial services reform bills first passed by the House in November and the Senate in September. The Senate is expected to vote on measure later this week in order to have it on President Obama’s desk before Congress heads home for the Independence Day holiday.

The bill includes an amendment sponsored by Senate Majority Whip Richard Durbin, D-Ill., that would require the Federal Reserve to set regulations resulting in “reasonable and proportional” swipe fees for debit cards. The Fed would be required to take into account banks’ actual costs for processing the transactions and the fact that paper checks drawn on the same accounts are paid at face value. The amendment would also bar the card industry from interfering with merchants who offer a discount or other benefit to customers who pay by cash, check or debit card rather than credit cards, and would allow merchants to set minimum purchase amounts of up to $10 for credit cards.

Swipe fees – officially known as interchange fees – are a percentage of the transaction charged by card company banks each time a card is swiped to pay for a purchase. The fees average between 1 and 2 percent for debit cards and 2 percent or more for credit cards. Overall swipe fees charged to retailers and other business by Visa and MasterCard banks totaled $48 billion in 2008, with debit swipe fees accounting for $20 billion of the total.

Current card and banking industry prices effectively require retailers to include the fees in the price of merchandise, resulting in the average household paying $427 more annually than they would pay without the fees, according to NRF estimates.

As the world's largest retail trade association and the voice of retail worldwide, NRF's global membership includes retailers of all sizes, formats and channels of distribution as well as chain restaurants and industry partners from the United States and more than 45 countries abroad. In the United States, NRF represents the breadth and diversity of an industry with more than 1.6 million American companies that employ nearly 25 million workers and generated 2009 sales of $2.3 trillion. www.nrf.com

Minnesota Pollution Control Agency survey on green chemistry

2010-06-29T09:16:00.000-07:00

Pollution Prevention staff at the Minnesota Pollution Control Agency (MPCA) is working on a Green Chemistry and Design project. You may have received and recently completed a survey sent out by the agency to provide them background in this work.

The MPCA is currently drafting and discussing key green chemistry and design policies or actions to pursue, which agencies and partners should carry out the policies and action. The agency will also try to figure out how much public/private funding and effort might be necessary to carry out the policies.

MnRA will be attending an informational meeting about this “new policy” on Thursday, July 15, from 8:30 to 11:00 am, Highway Federal Credit Union, 840 Westminster Street, St. Paul.

At that meeting the agency will share findings from the agency focus groups with manufacturers and retailers, interviews with academics, advocates, and government officials, and the just completed on-line survey of manufacturers and retailers.

If your company has not completed the survey, please click here to complete the survey. Return the complete survey and return to MnRA by Wednesday, July 9, 2010.

The results will be forwarded to the MPCA prior to the July 9, 2010, meeting.

Sonic inks online deal with Sears

2010-06-28T07:42:00.000-07:00

Retailer to launch web portal for TV, movies later this year

By Alex Dobuzinskis, Reuters

June 22, 2010, 02:26 PM ET

Sears Holdings Corp. on Tuesday became the latest retailer to partner with digital media company Sonic Solutions to sell movies and television shows through an online website.

The California-based Sonic has similar deals in place with Blockbuster Inc. and Best Buy Co. Inc.

Under Sonic's latest multiyear deal, the operator of Sears and Kmart stores has licensed Sonic's RoxioNow platform to sell digital entertainment under the Sears and Kmart brand names.

Sears is expected to launch the portal later this year, which will allow consumers to access Hollywood content on TVs, Blu-ray players and mobile phones.

"This is an opportunity for Sears to get their consumers up and running with digital content, and offset what is happening as consumers move from physical media to digital delivery," said Mark Ely, executive vice president of strategy for Sonic.

Sonic this month reported net revenue of $104.3 million for the last fiscal year. The company allows consumers to access its online portal for buying and renting movies and TV shows, through its built-in technology on televisions and Blu-ray players from manufacturers such as LG Electronics Inc and Samsung Electronics.

Sears Holdings already sells some of those devices at its stores. But the latest partnership will allow the retailer to create its own online platform to sell Hollywood content, just as Wal-Mart Stores Inc has done with its purchase of the video-streaming service Vudu.

"Teaming up with Sonic is a great opportunity for Sears and Kmart to quickly establish a position in digital video entertainment," Karen Austin, president of home electronics for Sears Holdings, said in a statement.

Ely said only 3 to 5% of consumers who buy TVs and Blu-ray players equipped with Sonic Solutions' technology actually connect online to the portal, where they can buy and rent content.

Sonic hopes its deals with retail outlets such as Best Buy and Sears Holdings will increase consumer awareness, and drive more consumer adoption of RoxioNow.

The Hollywood studios that create the movies and TV shows sold through Sonic's RoxioNow platform typically reap at least 70% of sale proceeds, with Sonic and its retail and manufacturing partners sharing the rest.

Monthly Sales Tax Payment Change!

2010-06-24T16:04:00.000-07:00

The Minnesota Retailers Association is finalizing its 2010 legislative report. Before it is published, MnRA wanted to highlight an important provision of the budget bill which passed in the last days of the session. It is a provision relating to a change on how retailers are expected to remit sales tax collections. Currently, retailers are required to submit the previous month's sales tax payment on the 20th day of the month.

The current system will change on September 1, 2010. You, as a retailer, will have to choose between two options as to how you are going to remit the sales tax. The system you choose in September is the system that you will be required to use in until state policy changes. MnRA wanted you to have enough time to choose the remittance system which works best for your company so take some time now to do the analysis. One again, you will not be allowed to change options once your company has chosen a method and has submitted your sales tax remittance in September. So what are the two choices you have in September?

The new law requires vendors who collect and remit $120,000 or more annually in sales tax to remit payments on an earlier schedule. Vendors have two options for making early payments, but once they select an option they must continue to remit under that option until the state returns payment back to the old system of remittance on the 20th of the month. The choices are as follows:

remit 90 percent of their monthly liability on the 14th of the month* after it was collected with the remainder due on the 20th of the month; or
remit a percent of the current month's liability (equal to 67 percent of the previous month's liability) in the month in which the taxable sale occurs** with the remainder due on the 20th of the following month. If a vendor chooses this payment option, in the first month they will make a payment equal to 167 percent of the liability for the previous month's sales.

* You can use the 90 percent of the liability of the previous month or (2) 90 percent of the liability for the same month in the previous calendar year, or (3) 90 percent of the vendor's average monthly liability for the previous calendar year; or

** For vendors making payments on the 20th of the month in which the sale occurs the safe harbor is equal to the lesser of (1) 67 percent of the liability of the previous month or (2) 67 percent of the liability for the same month in the previous calendar year.

When the cash flow account and the budget reserve account reach the desired levels listed in Chapter 16A, the early sales tax payments under this section will be eliminated and the remittances will again be due on the 20th of the month following the month in which the sale occurs. (Don't plan on this occurring for a very long time.)

So how will this affect the June accelerated payment?

It won't! Nothing in this section affects the June accelerated payment date, or its associated settle-up date. The new law also requires that all fees and other taxes reported on the same return be remitted on the same schedule as well.

Minnesota Statutes 2009 Supplement, section 289A.20, subdivision 4, is
4.22amended to read:
4.23 Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and
4.24payable to the commissioner monthly on or before the 20th day of the month following
4.25the month in which the taxable event occurred, or following another reporting period
4.26as the commissioner prescribes or as allowed under section 289A.18, subdivision 4,
4.27paragraph (f) or (g), except that:
4.28(1) use taxes due on an annual use tax return as provided under section 289A.11,
4.29subdivision 1 , are payable by April 15 following the close of the calendar year.; and
4.30(2) except as provided in paragraph (f), for a vendor having a liability of $120,000
4.31or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes
4.32imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the
4.33commissioner monthly in the following manner:
5.1(i) On or before the 14th day of the month following the month in which the taxable
5.2event occurred, the vendor must remit to the commissioner 90 percent of the estimated
5.3liability for the month in which the taxable event occurred.
5.4(ii) On or before the 20th day of the month in which the taxable event occurs, the
5.5vendor must remit to the commissioner a prepayment for the month in which the taxable
5.6event occurs equal to 67 percent of the liability for the previous month.
5.7(iii) On or before the 20th day of the month following the month in which the taxable
5.8event occurred, the vendor must pay any additional amount of tax not previously remitted
5.9under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than
5.10the vendor's liability for the month in which the taxable event occurred, the vendor may
5.11take a credit against the next month's liability in a manner prescribed by the commissioner.
5.12(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to
5.13continue to make payments in the same manner, as long as the vendor continues having a
5.14liability of $120,000 or more during the most recent fiscal year ending June 30.
5.15(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required
5.16payment in the first month that the vendor is required to make a payment under either item
5.17(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make
5.18subsequent monthly payments in the manner provided in item (ii).
5.19(vi) For vendors making an accelerated payment under item (ii), for the first month
5.20that the vendor is required to make the accelerated payment, on the 20th of that month, the
5.21vendor will pay 100 percent of the liability for the previous month and a prepayment for
5.22the first month equal to 67 percent of the liability for the previous month.
5.23 (b) Notwithstanding paragraph (a), a vendor having a liability of $120,000 or more
5.24during a fiscal year ending June 30 must remit the June liability for the next year in the
5.25following manner:
5.26 (1) Two business days before June 30 of the year, the vendor must remit 90 percent
5.27of the estimated June liability to the commissioner.
5.28 (2) On or before August 20 of the year, the vendor must pay any additional amount
5.29of tax not remitted in June.
5.30 (c) A vendor having a liability of:
5.31 (1) $20,000 or more in the fiscal year ending June 30, 2005; or
5.32 (2) (1) $10,000 or more in the, but less than $120,000 during a fiscal year ending
5.33June 30, 2006 2009, and fiscal years thereafter, must remit by electronic means all
5.34liabilities on returns due for periods beginning in the subsequent calendar year by
5.35electronic means on or before the 20th day of the month following the month in which the
5.36taxable event occurred, or on or before the 20th day of the month following the month in
6.1which the sale is reported under section 289A.18, subdivision 4, except for 90 percent of
6.2the estimated June liability, which is due two business days before June 30. The remaining
6.3amount of the June liability is due on August 20.; or
6.4(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years
6.5thereafter, must remit by electronic means all liabilities in the manner provided in
6.6paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar
6.7year, except for 90 percent of the estimated June liability, which is due two business days
6.8before June 30. The remaining amount of the June liability is due on August 20.
6.9(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
6.10religious beliefs from paying electronically shall be allowed to remit the payment by mail.
6.11The filer must notify the commissioner of revenue of the intent to pay by mail before
6.12doing so on a form prescribed by the commissioner. No extra fee may be charged to a
6.13person making payment by mail under this paragraph. The payment must be postmarked
6.14at least two business days before the due date for making the payment in order to be
6.15considered paid on a timely basis.
6.16(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed
6.17under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the
6.18chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and
6.19paid with the chapter 297A taxes, then the payment of all the liabilities on the return must
6.20be accelerated as provided in this subdivision.
6.21(f) At the start of the first calendar quarter at least 90 days after the cash flow
6.22account established in section 16A.152, subdivision 1, and the budget reserve account
6.23established in section 16A.152, subdivision 1a, reach the amounts listed in section
6.2416A.152, subdivision 2, paragraph (a), the remittance of the accelerated payments required
6.25under paragraph (a), clause (2), must be suspended. The commissioner of management
6.26and budget shall notify the commissioner of revenue when the accounts have reached
6.27the required amounts. Beginning with the suspension of paragraph (a), clause (2), for a
6.28vendor with a liability of $120,000 or more during a fiscal year ending June 30, 2009,
6.29and fiscal years thereafter, the taxes imposed by chapter 297A are due and payable to the
6.30commissioner on the 20th day of the month following the month in which the taxable
6.31event occurred. Payments of tax liabilities for taxable events occurring in June under
6.32paragraph (b) are not changed.
6.33EFFECTIVE DATE.This section is effective for taxes due and payable after
6.34September 1, 2010.

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GOVERNOR PAWLENTY ANNOUNCES MINNESOTA WILL NOT PARTICIPATE IN EARLY MEDICAID ENROLLMENT

2010-06-24T14:01:00.000-07:00

~ General Fund costs for early expansion would be $430 million over three years ~

Saint Paul – In a letter to Minnesota Human Services Commissioner Cal Ludeman, Governor Tim Pawlenty announced today that Minnesota will not participate in the early Medicaid enrollment contained in the new federal health care law. The Governor’s decision was required by a new state law enacted last month.

Under the federal health care law, all states will expand Medicaid eligibility to low-income adults without children in 2014. Several states, including Minnesota, were given the ability to enroll in this program early.

Governor Pawlenty said Minnesota will not participate in the early enrollment because of significant General Fund costs totaling $430 million over the next three years and uncertainty surrounding the federal government’s ability to fulfill the massive spending obligations in the program going forward.

“Signing Minnesota up early for this entitlement program would strain the state budget and put us at significant risk,” Governor Pawlenty said. “Rather than simply expanding these rapidly growing and unsustainable programs, we should reform health care to pay for quality, rather than volume of procedures, and look for ways to provide additional access through the private market.”

In the letter, Governor Pawlenty writes that the inability of Congress to pass enhanced Federal Medical Assistance Percentages (FMAP) funding for states should serve as a warning about the federal government’s ability to continue spending hundreds of billions in funds without any way to pay for them.

“Our state budget is balanced, but next year there will be some tough choices to match expenditures and revenues for the next budget period,” Governor Pawlenty said. “The last thing we do should right now is add another $430 million in costs to the bottom line and enmesh the state in an expensive federal health care program that does nothing to control costs or impose reform. Instead, Minnesota should build on the real reform reflected in the bipartisan overhaul of General Assistance Medical Care adopted this legislative session.”