October 17, 2016


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Retailers heard a panel of perspectives on local workplace regulations
last Thursday at MnRA's Annual Meeting.
 
State Budget Update
State Budget: Sales Tax Collection Down 2.3 Percent From Projections

From the Star Tribune, October 10, 2016


"
Minnesota state budget officials on Monday reported that tax collections from July to September were slightly under projections, totaling nearly $4.5 billion.

Overall, the amount was about 2 percent less, or $97 million, than a February forecast published by the Minnesota Management and Budget office. The July-September quarter is the start of the new fiscal year for the state.

Budget officials reported that net individual income taxes generated $29 million, about 1.1 percent less than projections published in February. Sales tax collections were down 2.3 percent from projections, netting $1.2 billion for state coffers."    
 
Local Sick/Safe Leave
Chamber Sues Minneapolis Over Sick Time Rules
 
From the Star Tribune, Eric Roper, October 14, 2016 

"Minneapolis' efforts to mandate the pay and benefits offered by private employers in the city took a pummeling from businesses on Friday.

The state's largest business association, the Minnesota Chamber of Commerce, sued the city to halt an ordinance requiring businesses to offer sick time to employees. And restaurant owners, in a separate meeting at City Hall, insisted a proposed citywide minimum wage would be more damaging than a recent study says.

"You will shut us down with all the policies that [are] happening," said Saed Wadi, a co-owner of World Street Kitchen, Milkjam Creamery and Saffron restaurants.

The criticism of a proposed citywide minimum wage, which the City Council is expected to consider next year, came as Mayor Betsy Hodges reiterated her view that the issue should instead be tackled as a region.

"I do not believe that raising the minimum wage in Minneapolis alone is the right path, and I'm not convinced that it is the right solution for our local economy," Hodges told business leaders at the City Hall event Friday morning.

The sick time ordinance, passed in May, is slated to go into effect in July 2017. But the chamber is requesting an injunction to stop that and a court order saying the rules are invalid because they conflict with state law."
 
Holiday Sales
Black Friday 3rd In Sales And Foot Traffic

From Consumer Affairs, Mark Huffman
    

"We report year after year that Black Friday is not necessarily the best day for holiday shopping deals. It seems more consumers are getting the message.

RetailNext, a brick-and-mortar retail analytics firm, has issued its forecast for the busiest holiday shopping days and Black Friday has fallen to third place, behind December 23 and December 17.

The company bases its forecast on two factors: anticipated foot traffic and sales. Black Friday is in third place on both lists.

Shelley Kohan, a RetailNext vice-president, says more retailers in recent years have opened on Thanksgiving Day, taking both sales and traffic from Black Friday.

"This year, with Christmas falling on a Sunday, most shoppers will want to cut short their shopping early on Saturday, December 24, leaving the day before, Friday, as retail's biggest opportunity for sales," Kohan said. "For store visits, Super Saturday will lead the way, with Black Friday a very close second."
December will see the most shopping

According to the forecasts, the busiest holiday shopping days in terms of both sales and traffic are all in December, with the exception of Black Friday. That suggests that despite other data showing many consumers are already shopping, most consumers will either procrastinate or decide they will get the best deals closer to Christmas."
 
  
Holiday Forecast
Expert Predictions On The Holiday Shopping Season

From Retail Dive, Jason Ankeny, October 17, 2016


"The holidays are synonymous with a multitude of traditions, including a deluge of seasonal shopping forecasts. As in years past, the National Retail Federation has looked into its crystal ball, and it likes what it sees: The trade organization anticipates sales in November and December to increase 3.6% year-over-year to $655.8 billion - a notable boost over the 10-year average of 2.5%.

"This year hasn't been perfect, starting with a long summer and unseasonably warm fall, but our forecast reflects the very realistic steady momentum of the economy and industry expectations," NRF President and CEO Matthew Shay said in a statement. NRF Chief Economist Jack Kleinhenz added: "Consumers have seen steady job and income gains throughout the year, resulting in continued confidence and the greater use of credit, which bodes well for more spending throughout the holiday season."

The same day the NRF released its forecast, the International Council of Shopping Centers unleashed its own powers of prognostication, releasing its annual Holiday Shopping Intentions Survey. The ICSC anticipates holiday sales in stores will rise 3.3% in the next two months, up from a 2.2% increase in the year-ago period.

Individual holiday shoppers plan to spend an average of $683.90 this year, according to the ICSC, noting that 91% of holiday shoppers plan to spend at brick-and-mortar stores, a number that grows to 96% when taking into account consumers who will make purchases online with retailers who maintain a physical presence."
 
Holiday Forecast
Retail Sales Mixed For September

From Chain Store News, Marianne Wilson, October 16, 2016


" First the good news: Retail sales rose 0.6% in September, after falling a revised 0.2% in August, according to figures by the Commerce Department.  
 
The increase, the most in three months, was helped by a rebound of automobile and restaurant sales.
 
On the less positive front, excluding autos and gasoline, sales were up only 0.1%, less than economics predicted.
   
Restaurants saw the biggest increase since April in September, with a 0.8% gain. Online sales rose 0.3%.
 
Sales at electronics and appliance stores fell 0.9%, while sales at clothing stores were flat. Sales at department stores fell 0.7%.
 
Building materials and garden equipment and supplies sales increased 1.4% in September. Grocery store sales rose 0.2%."
 
Trends
Digital Coupon Are On A Roll

From Progressive Grocer, John Karolefski, October 10, 2016


"If Millennials had their way, all coupons would be digital and free-standing inserts would be remembered as paper discounts their parents used. That's the current thinking of many analysts who keep track of America's favorite promotion.

Of course, we are a long way away from that reality as FSIs still dominate coupon distribution and redemption. But digital offers are on a roll, judging by the latest statistics as well as important developments this year.  

In the first half of 2016, Kantar Media reported that the number of digital coupons grew by 23.4 percent. At the same time, the average face value of digital coupons issued for consumer packaged goods increased by 21.2 percent. More importantly, the number of mobile coupon users in the U.S. has grown nearly 18 percent in the past year to 92.6 million, according to eMarketer data; by the end of 2016, mobile coupon users are expected to increase another 11 percent to 104 million.

Earlier this year, GS1 US and the Joint Industry Coupon Committee (JICC) announced a standard for paperless couponing. It helps retailers identify digital couponing transactions in a cash register transaction log, enabling settlement for retailers. This is important because the GS1 standard enables grocers and brand manufacturers to accept digital coupons with increased traceability at checkout. Trading partners now have enhanced traceability in the redemption of digital coupons at the POS, and grocers can reconcile their cash registers for paperless transactions more easily.

"The new GS1 Standard is a step forward in addressing industry needs at a time when consumers are relying on their mobile devices more than ever to shop," said Jeffrey Bumgarner, manager, industry affairs, Grocery Manufacturers Association. "Industry members and their app developer partners will be able to use the new standard as soon as the proper infrastructure in place at the end of this year."
 
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Minnesota Retailers Associaiton
400 Robert Street North, suite 1540
St. Paul, MN 55101
Tel. (651) 227-6631 - mnretail.org - [email protected]