July 16, 2018
Suppliers are vital partners for retailers! Attend our July 25 seminar to learn how to strengthen and evaluate retail suppliers.
Looking For (Supplier) Love In All The Wrong Places?
Join the Minnesota Retailers Association for "Supplier Partnerships | Dating For Business?" featuring Juli Lassow of JHL Solutions .
 
Every business depends on key partnerships in order to thrive: customers, employees, board members and suppliers. Suppliers provide the lifeblood to your products and services, bringing your vision to life – but how often do we take time to cultivate these partnerships? How do we ensure that the totality of our supplier partnerships is a reflection of the values and principles of your organization? How do we gather their feedback and insights, to enable our own growth. These questions and more, will be discussed at this seminar.
 
Event Details:
Supplier Partnerships | Dating For Business?
Roseville Public Library
Wednesday, July 25, 2018
10:15 - 11:30 a.m.
 
RSVP:
Pre-registration preferred. Call (651) 227-6631 or register online now .
Back-To-School And College Spending To Reach $82.8 Billion
From the National Retail Federation, July 12, 2018

The back-to-school and college shopping season is in full swing, but many parents and college students say they are waiting for the best deals to complete their shopping lists, according to the annual survey released today by the National Retail Federation and Prosper Insights and Analytics. Total spending for K-12 schools and college combined is projected to reach $82.8 billion, nearly as high as last year’s $83.6 billion.

“With the economy thriving thanks to tax reform and growing consumer confidence, we expect to see a very strong season,” NRF President and CEO Matthew Shay said. “College spending is expected to be at its highest level ever, and back-to-school will be one of the three highest years on record. Whether shoppers buy now or wait until the last minute, retailers are ready with everything they need for a successful start of the school year.”

Families with children in elementary through high school plan to spend an average $684.79 each, compared with last year’s $687.72 for a total of $27.5 billion. That’s the third-highest total in the history of the survey following a peak of $30.3 billion in 2012 and last year’s $29.5 billion.

According to the survey, back-to-school shoppers plan to spend the most on clothing ($236.90). In addition to apparel, back-to-school shoppers also plan to spend:

  • $187.10 on electronics such as computers, calculators or phones
  • $138.66 on shoes
  • $122.13 on supplies such as notebooks, pencils, backpacks, and lunchboxes
Back-To-School Shoppers Are Waiting For Deals
From the Retail Dive, Daphne Howland , July 13, 2018

Black Friday was once a one-day retail frenzy, but those days are gone as retailers introduce deals earlier and earlier and consumers patiently scour the landscape for the best prices. The same thing is happening to the back-to-school season, which is retail's second most important shopping arena.

Nearly half (47.8%) of American adults (more than 117 million) now hold off purchasing things in the lead up to holiday sales, with a one- to two-month wait the most common, followed by "a few weeks," according to comparison site Finder.com. In fact, 5.9% wait an entire year, that survey found.

Retailers offering back-to-school deals don't even have the benefit of a day to focus on, making this season even more amorphous when it comes to marketing. While the NRF found that more consumers plan to start at least three weeks before school begins (77% of school-age, up from last year’s 74% and 64%, and 67% of college-age, same as last year but up from 51% a decade ago), 89% of back-to-school and college shoppers still have half or more of their purchases left to complete. Of those, more than half are still waiting for the best deals for the items on their lists.

"Back-to-school shopping tends to be price-focused as parents look for promotions and mass merchants for the best deals," Rod Sides, vice chairman of Deloitte LLP and U.S. retail, wholesale and distribution leader, said in a statement. "But when we look below the surface, we notice several distinctions between high and low-income households and the way people shop for specific items like clothing, technology and supplies. The potential lesson for retailers is that back-to-school may require them to do more than compete on price alone or try to sell across all categories. Survey results show it may be about delivering the best product or experience to customers in specific categories."
79% Say Human Interaction Key To Digital Experience
From Fierce Retail, Jacqueline Renfrow, July 5, 2018

Despite how far technological advances have come in the way of customer service, 61% of consumers say human interaction, not digital, keeps them loyal. According to a new study from Calabrio, less than half, 45%, of those surveyed said that brand loyalty is driven by competitive prices.

And yes, many consumers are turning to digital channels to get help from a retailer, but 74% said they are more loyal to a company if they can speak to someone. In fact, nearly 80% think interaction with a human instead of a chatbot is an important part of the customer experience.

Still, consumers believe in new technology, and 54% do not think the investment is a waste of money for retailers. And of this 54%, about half believe that it's a waste of money because speaking with a person is always preferable for resolving issues. So much so that 43% of all respondents in the survey would consider switching to a competitor if speaking to a customer service rep was not an option.

“Innovation is key for businesses to stay competitive, but to build a lasting connection, new technology must meet customers where they are,” said Tom Goodmanson, president and CEO at Calabrio. “Given the growing volumes of customer interactions in today’s contact centers, companies have a tremendous opportunity to tap into customer preferences, needs and wants by capturing and analyzing interactions across service channels—phone, chat, email, social, etc. Those valuable insights drive the customer journey, and ultimately, brand loyalty.”

Duluth Sick-Safe Leave Set To Kick In January 1, 2020: One Hour For Every 50 Hours Worked
From the City of Duluth

On May 29, 2018, the Duluth City Council adopted Ordinance No. 10571 establishing minimum standards for earned sick and safe time in the City of Duluth.

The Ordinance takes effect on January 1, 2020. Additional information regarding Earned Sick and Safe Time, including Frequently Asked Questions, resources, and tools will be listed here as it becomes available. Please check back for updates.

Please visit the  Earned Sick and Safe Time Task Force page for additional information on the public outreach and research that was conducted in formulating the earned sick and safe time ordinance.
US Retail Sales Rise At A Healthy 0.5 Percent Pace In June
From the Star Tribune, Christopher Rugaber, July 16, 2018

U.S. retail sales rose at a solid pace last month despite higher prices and modest wage gains, a sign of underlying consumer optimism.

The Commerce Department said Monday that sales at retailers and restaurants increased 0.5 percent in June, following a big 1.3 percent gain the previous month. May's figure was revised sharply higher from an initial estimate of 0.8 percent.

Americans are confident about the economic outlook, with the unemployment rate near an 18 year-low and the economy accelerating after a sluggish start to the year. Retail sales rose 6.6 percent from a year earlier, the fastest annual pace in five years.

Still, some of the spending increases, such as gas station sales, simply reflect higher prices. Excluding auto dealers and gas stations, sales rose 0.3 percent in June.

Home and garden stores reported a strong 0.8 percent sales gain, which was likely lifted in part by more expensive lumber. The Trump administration imposed tariffs on some lumber imports from Canada last fall.

With consumer spending strong, most economists believe that growth will jump to a 4 percent to 4.5 percent annual rate in the April-June quarter, which would be the strongest in four years. That would follow just 2 percent growth in the first three months of the year.

A survey of business economists found that most companies expect their sales to rise in the coming months and that they plan to raise pay to attract and keep workers. The proportion of businesses planning to raise pay was the largest in roughly 35 years.

Still, most of the respondents to a survey by the National Association for Business Economics said that the Trump administration's corporate tax cuts last year have yet to affect their plans for hiring and investment. The administration has sold the tax cuts as an incentive for companies to invest more in plant and equipment.