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Retail Alliance Newsletter
Greetings!
As you know, Retail Alliance is actively involved in advocating for small and independent businesses at the state and federal level. You may have read recently that Gov. Kaine has suggested several modifications in order to help generate more money for the state of Virginia and to balance the budget. One of these is repeal of the "dealer discount." When merchants collect state sales tax they are compensated for the effort with less than one half cent per dollar collected. For most small and independent merchants the dealer discount provides a couple hundred dollars of compensation annually. Retail Alliance is challenging this proposal on principle, suggesting instead that the state seek to capture sales tax revenue from internet providers such as Amazon that have operations in the state or by causing out of state merchants to pay Virginia sales tax when shipping into Virginia as surrounding states do now. It IS a complicated issue. If you'd like to learn how you can help Retail Alliance on this issue, please contact Susan Milhoan at 757.965.3000 or smilhoan@retail-alliance.com. |
 Thursday, February 26
5:00 p.m. - 9 p.m.
Waterside Marriott Norfolk
MediaFest is a program created by Retail Alliance® to provide tools to make
retail businesses more effective. The tradeshow will feature an
extensive variety of advertising opportunities ranging from traditional
media to unique marketing approaches, numerous advertising and
networking opportunities, entertainment, an educational component,
media exposure, delicious food provided by local restaurants, and
more! The media trade show will take place from 4:00 p.m. -
8:00 p.m. on February 26 at the Waterside Marriott in downtown
Norfolk.  MediaFest is free for Retail Alliance® members, so be sure to
take advantage of this opportunity. Whether you want your advertising
to resonate with potential customers, or you want to find creative ways
to help your business grow, MediaFest is an event you don't want to
miss! Remember, advertising is about consistency and always
being in the consumer's mind. Customers may not want to buy at the
moment, but if you're the first business that comes to mind, ultimately
you are likely to earn the sale. If you or someone you know is interested in becoming an exhibitor at Media Fest 2009 contact Jen Webber at 757.455.9323 or jwebber@retail-alliance.com. All Retail Alliance® members will be sent complimentary tickets or simply show your Member-to-Member card at the registration desk. |
Viva Las Vegas comes to Hampton
Roads in April 2009, to hon or retailers all over Virginia. Starting a
business is not a simple task, the market is challenging and the
obstacles retailers face are difficult. It takes more than the
ordinary entrepreneur to succeed in this competitive industry.
Retailers deserve to be recognized for outstanding customer service and
devotion to their community.
This year Retail Alliance will bring Vegas to Hampton Roads for an
exhilarating award show unlike anything you have ever been to before!
Which glitzy retailer will take home the prestigious award this year?
On the evening of Friday, April 24, Retail Alliance members and  guests
will be entertained and dazzled during the non-stop action awards
program at the Westin Town Center Hotel in Virginia Beach, for the
second annual Retailer of the Year Gala Event. The clinking of chips,
the sound of jazz and the array of Vegas style activities will make
this night unforgettable!
All Retail Alliance members are invited to attend this event at no
charge, but an RSVP is required. Seating is limited. A cancellation fee
will be charged to those who are unable to attend after RSVP within
three days of the event.
Retail Alliance is currently accepting nominations for the 2009
Retailer of the Year. (see below)
If you have any questions or you are interested in attending the
Retailer of the Year Awards please contact Jen Webber at 757.455.9323
or email jwebber@retail-alliance.com.
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Online Coupons Seem To Have Staying Power
Matt Wise, CEO of Q Interactive, predicts that coupons will  continue to be popular for the next two or three years. And looking ahead to the 2009 holiday season, he says smart-phone applications that facilitate price comparisons will become mainstream.
DMNews has the full story.
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Retail 2 Retail
Postponed Due To Weather!
Well keep you updated with the rescheduling of this event!
Tuesday,
January 20
6-8 p.m.
Savannah's Restaurant
1296 Battlefield Blvd
Chesapeake, VA
23322
Join fellow retailers for an entertaining evening of networking and fun, complete with refreshments.
Retail 2 Retail takes place the first and third Tuesday of each month and is free to RETAIL ALLIANCE members.
To RSVP call Jen Webber at 757.455.9323
For directions to this R2R and to view upcoming R2Rs click here. |
Retail Sales Expected To Improve By Year's End
Retail sales should pick up again by year's end, an economist says. But they're still expected to drop through June and be down 1.8% for the year overall.
USA TODAY has the full story.
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To Keep Employees, Make Sure They're Trained
Consultant Harold Lloyd offered tips for retaining hourly retail employees. Among them: Have the store manager greet them on their first day, assign mentors and offer at least 20 hours of training.
NRF Blog has the full story.
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Customer Satisfaction a Top Priority
A survey released by the NRF shows that customer satisfaction is at the top of the priorities for 69% of retailers. Urban Outfitters, for one, is looking to make things easier for customers.
Multichannel Merchant has the full story.
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Retailer of the Year 2009 Nominations
Retail Alliance is currently accepting nominations for the 2009 Retailer of the Year. Nominees should be nominated for their creativity, business acumen, retail success, and ability to thrive in a tough economy. Judges will be making selections based on business growth, financial strength and stability, community involvement and other criteria.
Click here to download the nomination form
Simply fill out the nomination form and send it back to Retail Alliance, Attn: ROTY Nomination, 500 East Plume Street, Suite 500, Norfolk, VA 23320.
For questions please contact jwebber@retail-alliance.com.
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Legislative Scoreboard
The 2009 session of the Virginia General Assembly is off and running at a frantic pace. With a looming budget shortfall of $3.4 billion plus and proposed budget cuts to fill the enormous gap, businesses and state agencies are facing a huge financial impact. For further information on specific bills, go to http://legis.state.va.us. Or contact Margaret Ballard, 757-406-9431, mballard@retail-alliance.com.
Governor/Legislators Propose to Take Back Dealer Discount
Governor Tim Kaine and two legislators have put forward bills that would eliminate the  discount fee retailers receive to collect the sales and use tax. The governor's proposal is in his budget bill. Two bills that would accomplish the same goal are SB 987, carried by Senator Charles Colgan, chairman of the Senate Finance committee; and HB 2383 introduced by Delegate James Scott. According to the governor's staff, dealer discount elimination would generate $64 million back to the state.
The Virginia Retail Federation (VRF), the lobbying arm of Retail Alliance, has launched major opposition to dealer discount elimination. According to a 2006 Price Waterhouse Coopers study, small retailers under $1 million in revenues should collect more in discount fees from the state than is currently allowed - 13.47% versus Virginia's 3% allowance. Retailers under $10 million should be allowed a 5.2% discount fee and retailers over $10 million in revenue should be granted a 2.17% percent allowance as opposed to the current Virginia allowance of 1.5%.
The study also points out retailers' compliance costs for collecting the tax include: training of personnel; documenting tax-exempt sales; customer service due to sales tax issues; purchase of sales tax-related software and payment of license fees; programming and servicing cash registers; returns preparation and related costs; dealing with sales tax audits and appeals; and other compliance costs.
In meetings with the governor's staff, VRF asked for enforcement of the Virginia code which requires that Amazon.com and other Internet retailers with locations in Virginia collect the state sales tax. Last year, Kansas started collecting sales tax from Internet retailers, including Amazon, resulting in an additional $35 million to state coffers. Virginia's reluctance to collect sales and use taxes from Amazon's Virginia locations in Ashburn and Sterling not only costs the state money, but forces independent retailers into a more dire economic situation due to increased competition with large Internet sellers who are getting a tax break.
Contacts for Hampton Roads legislators that will consider these bills are:
Senate Finance Committee:
Senator Ken Stolle, vasenate08@kenstolle.com
Senator Tommy Norment, district03@sov.state.va.us
Senator Fred Quayle, district13@sov.state.va.us
Senator Louise Lucas, district18@sov.state.va.us
Senator Yvonne Miller, senatorybmiller@verizon.net
House Appropriations Committee:
Delegate Phil Hamilton, Vice Chair, DelPHamilton@house.state.va.us
Delegate Bob Tata, DelBTata@house.state.va.us
Delegate Johnny Joannou, (no e-mail), 804-698-1079
Delegate Chris Jones, DelCJones@house.virginia.gov
Delegate Algie Howell, DelAHowell@house.state.va.us
Delegate Mamye BaCote, DelMBaCote@house.virginia.gov
Delegate Rosalyn Dance, DelRDance@house.virginia.gov
House Finance Committee:
Delegate Bob Purkey, Chair, DelBPurkey@house.state.va.us
Delegate Tom Gear, DelTGear@house.state.va.us
Delegate Ken Melvin, DelKMelvin@house.state.va.us
Delegate Lynwood Lewis, DelLLewis@house.state.va.us
Plastic Bag Bans
In the opening days of the session, the VRF killed two bills, SB 873 that banned retail use of  plastic bags statewide; and SB 971 that required retailers to provide plastic bag recycling bins and reusable bags. Senator Patsy Ticer, patron of SB 873, agreed to withdraw her bill if the VRF would provide a pilot model recycling program for her district in Alexandria, similar to the pilot launched by the VRF and Isle of Wight County. Senator Blevins also applauded the work in Isle of Wight as a model for the state. He agreed to withdraw his bill in order to let the pilot program progress as a model for other localities.
The VRF also found money left in the 2008 Virginia Litter Recycling Fund, providing Senators Ticer, Quayle and Reynolds and Delegate Barlow budget amendments to fund recycling and litter prevention programs in Isle of Wight, Alexandria and Henry County.
WIC Reform
In a major initiative to reform arbitrary decisions by the Virginia Women Infant Children program that eliminated over 100 groceries statewide from offering the program, the VRF led a coalition that achieved major regulatory changes. The changes were confirmed by representatives from the agency in a Joint Commission on Administrative Rules hearing January 13. Subject to USDA approval, WIC reforms in the following areas will be effective immediately:
- There will be an increase in the ratios of slots available, meaning an approximate 25% increase in the number of stores that will be authorized to offer WIC. Specifically, the Department has changed the ratios from 150-105 in rural areas and from 250 to 225 in urban/suburban areas effective December 1. This will take the current number of groceries offering WIC in Virginia from 891 to 1186.
- An exception will be made for the number of authorizations in the geographic areas (BEAs) that can document hardship due to the economic environment.
- Current requirements for minimum numbers of participants per store, or volume, will be eliminated.
- If the slot for a previously authorized store is given to a more recently opened store, the previously authorized store will receive a one-year extension on its authorization.
- The agency will work toward a revision to these regulations on a fast track basis. Also included in the changes will be a provision to waive the six-month reapplication prohibition. These fast track regulations should be in place by the first of February.
- The agency expects to complete revamping its computer system by 2011. The Virginia Department of Health (VDH), the agency that oversees WIC, has agreed to ensure that the new computer program allows for elimination of the Virginia WIC slotting system and will incorporate peer group standards that ensure fairer competition between small and large grocers. It is understood that the new system must meet USDA requirements. However, the VRF, its coalition partners and legislators now have an agreement with VDH that it will open the WIC program to any retailer that meets USDA requirements. If these changes are not made by the agreed upon deadlines, WIC will have to answer to members of the General Assembly.
Legislator Revives Larceny Threshold Increase
Last week, the Virginia State Crime Commission (VSCC) turned down a proposal by Senator Ken Stolle to increase the larceny threshold. The VRF and its Loss Prevention Task Force, working with the senator through the summer and fall, agreed to support his proposal if a new section was added to the criminal code that includes: jail time for a Class 1 Aggravated Misdemeanor, a threshold based on the aggregated value of stolen goods, and multijurisdictional grand juries. Despite the VSCC lack of endorsement, Senator Stolle has introduced his proposal as SB 1422.
Moreover, Senator Chap Petersen has now introduced SB 1136 which imposes a larceny threshold increase from $200 to $500. The VRF will meet with the two legislators to see if Senator Petersen plans to conform his bill to Senator Stolle's legislation.
Despite the compromise, both legislators will face strong opposition to a larceny threshold increase in the House Courts committee. The House remains adamant that a larceny threshold is a "cost of living increase to shoplifters." The VRF communicated to Senator Stolle that we will support his bill only if the entire package stays intact in the House.
Bill to Increase Court Processing Fees Meets Strong Opposition
A strong outcry of opposition from the retail community is facing SB 916, introduced by Senator Richard Stuart. The bill would almost quadruple the court fees retailers pay to process garnishments and civil actions, raising the fee from $27 to $100. Retail Alliance member Grand Furniture estimates that its processing costs, based on last year's court filings, would skyrocket from $572,461 to approximately $1.64 million. At a time of economic crisis for retailers, the bill is exceptionally onerous. A vote in the Civil Subcommittee of the Senate Courts committee has been delayed, but it is expected to come up again as early as next week. To voice opposition, Retail Alliance members must contact the Hampton Roads legislators on the Senate Courts committee.
Senator Ken Stolle, vasenate08@kenstolle.com
Senator Fred Quayle, district13@sov.state.va.us
Senator Tommy Norment, district03@sov.state.va.us
Senator Louise Lucas, district18@sov.state.va.us
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