February 27, 2017


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Consumers 
See, Touch, Feel: Why Most Shoppers Still Choose Brick-And-Mortar Stores Over E-commerce

From the RetailDIVE, Sandy Skrovan, February 22, 2017

"Online shopping has never been easier. But the majority of American consumers want the tactile experiences offered by physical stores. Long live the brick-and-mortar store.

Everyone knows online shopping has never been easier or more accessible. But despite the surge in e-commerce capabilities, mobile applications and other technology advancements - including voice-activated shopping and the proliferation of Amazon Dash buttons - the majority of American consumers still want the tactile experiences offered by physical stores.

The ability to see, touch and feel products as well as take items home immediately rank highest among the reasons consumers choose to shop in stores versus online, according to Retail Dive's Consumer Survey. For the first question in a six-part series looking at consumer shopping habits, we surveyed 1,425 U.S. consumers via Google Surveys about the reasons why they choose to shop in stores over online.

By a fairly wide margin, the primary motivation for shopping in stores is to see and try out products before purchasing. However, some notable differences exist among shoppers, depending on their gender, age and location.

In particular, female shoppers overwhelmingly want to see, touch and feel products before buying them. Males, on the other hand, skew more toward the immediate satisfaction of taking items home with them.

Shoppers at both ends of the age spectrum - younger and older generations - want to see or try products out in stores more than their middle-aged counterparts. Young shoppers clearly convey an "I want it now" mentality versus older cohorts."

 
Legislative Breakfast March 3  
How Does The Fresh Budget Forecast Impact Your Priorities At The State Capitol? 

Big issues loom at the State Capitol at the halfway point of the 2017 legislative session.  While legislators delivered on healthcare relief and federal tax conformity in the first few weeks, many high profile issues remain undecided.  

Find out what the recent February forecast means from Minnesota Center For Fiscal Excellence Executive Director Mark Haveman, as well as hear how legislators think the updated numbers impact issues at the Capitol like transportation funding and commercial property tax relief.

This Friday, March 3
7:30 - 9:00 a.m.
The Commons on Marice (1380 Marice Drive, Eagan, MN 55121)
$25/includes breakfast

Featuring:
   
    Rep. Sarah Anderson,
    State Government Committee Chair,
    Minnesota House of Representatives
       Mark Haveman,
       Minnesota Center For Fiscal
       Excellence

Sunday Sales
Minnesota Senate To Vote On Sunday Sales Today 

From the St. Cloud Times, February 26, 2017

"Minnesota lawmakers are on the brink of legalizing Sunday liquor sales.
Minnesota's Senate is expected to take a final vote Monday on a bill to allow liquor stores to open on Sundays. Lawmakers have tried and failed for years to repeal a ban that dates back to statehood.

The House gave it a major push this year by passing it overwhelmingly on an 85-45 vote. A Senate panel also passed the bill last week.

If passed, liquor stores could start opening seven days a week in July. Gov. Mark Dayton has indicated he'll sign the bill.

A small difference between the House and Senate bills on what time stores can open on Sundays could drag the final passage out slightly.

Retail Trends 
Demographic Shift Of Retirees To Affect Consumer Spending

From InvestmentNews, Mary Beth Franklin, February 24, 2017

"Major demographic shifts over the next decade will have a dramatic affect on U.S. consumer spending, which in turn will influence the overall economy, specific industry sectors and individual stocks, according to a new report from The Conference Board.

But because population growth will be uneven, favoring the South and West as retirees continue to migrate to the Sunbelt in search of warmer climates and lower taxes, the shift in population from the Northeast and Midwest could affect public sector spending and municipal bond markets.

The report, "The Impact of Demographic Trends on Consumer Spending," examines the size and age distribution of the future population, how spending patterns will change as people age and provides perspective on how population-growth trends are likely to impact future spending. While the U.S. population as a whole will grow 8% between 2015 and 2025, the number of people between the ages of 70 and 84 will spike by 50%.

As people age, they also retire. The number of retirees is currently increasing by about 1.2 million a year, about three times more than a decade ago, the report noted."  

 
Upcoming  
Plan To Attend "I Am RETAIL Day At The Capitol" March 16      

Your story meets your legislators at the Minnesota Retailers Association's I am RETAIL Day at the Capitol.

Our half-day begins with a breakfast reception featuring legislative leaders followed by conversations with legislators at the State Capitol.

With one in four jobs in Minnesota directly connected to retail, our elected officials now more than ever need to understand the impact of their decisions on retail businesses.

No cost to attend. Continental breakfast served. RSVP requested by March 1. Members and invited guests only.

Federal Taxes 
Why The GOP Should Abandon The Border Adjustment Tax

From Politico, Op-Ed, Stephen Moore and James Wallner, February 24, 2017

"Investors, employers and workers are getting nervous. What's holding up the promised Trump tax cuts?

The White House and GOP congressional leaders are hinting that tax cuts may not come until after Obamacare is repealed - meaning late summer at the earliest. But delay is the enemy of what these politicians need most: an early signature legislative victory that delivers on a key promise to voters and ramps up growth quickly.

One distraction stalling the tax plan is the thorny issue of border adjustability. The Border Tax Adjustment, proposed by the House Ways and Means Chairman Kevin Brady, would in effect impose a tax on American imports while exempting American made exports from income tax calculations. That's a giant change to how America taxes its businesses, and respected economists are divided as to whether this makes economic sense. Meanwhile, the business community is split down the middle. This is no way to build consensus for a tax plan.

If the border adjustment tax lacks the necessary support to pass Congress, Brady and his colleagues should consider abandoning it-at least for now. Otherwise, it risks further delaying tax reform."

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Minnesota Retailers Associaiton
400 Robert Street North, suite 1540
St. Paul, MN 55101
Tel. (651) 227-6631 - mnretail.org - mnra@mnretail.org