January 28, 2009
Issue: 4
Retail Alliance Newsletter
 
Greetings!

Now is the perfect time to take advantage of the Retail Alliance Ad Credit program!

Simply place our logo in your ad, get it approved by the Retail Alliance Marketing Director and send us your invoice. We'll credit you 10% of your invoice to an Ad Credit that can be used toward Norfolk Admirals tickets, Tides tickets, Retail Angles advertising and much more!

Retail Alliance has a $10,000 cap on this program and a $400 limit per member, so be sure to hurry and take advantage of this unique opportunity to get a return on investment in your advertising dollars.

Visit Retail Alliance Ad Credits web page for details!
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 help retail businesses be more effective.  The tradeshow features 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 5:00 - 9:00 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.  Retail Alliance® members can get their complimentary tickets from the back page of the February newsletter or simply show your Member-to-Member card at the registration desk.


Viva Las Vegas comes to Hampton Roads in April 2009, to honor 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 worthy 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 (one per member; $35 for additional tickets; $60 for non-members), 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.
Different Sales Strategies Needed for Male, Female Tech Buyers

Selling consumer-electronics products to women takes a slightly different strategy than moving the same devices with male shoppers, according to this report. A recent study by the NPD Group showed that 38% of tech purchases were by women during the three months ending November 2008.

CEPro.com has the full story.
In This Issue
MediaFest 2009
Different Sales Strategies Needed for Male, Female Tech Buyers
Upcoming Retail 2 Retail Magnolias Boutique
Consumer Behavior is Changing Rapidly
Retailers Make Changes
Retailer of the Year Nominations
Legislative Scoreboard

Retail 2 Retail



Tuesday,

February 3
6-8 p.m.

Magnolias Boutique
(sponsored by Great Wraps)
1915 Pocahontas Trl, Williamsburg, VA 23185

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.
Consumer Behavior is Changing Rapidly

Events such as the economic meltdown and presidential election are prompting noticeable swings in consumer behavior. Researcher Experian Simmons is responding by offering marketers select information from its latest three-month consumer study as the information comes out of the field.

MediaPost Communications/Marketing Daily has the full story.

Retailers Make Changes

To survive the downturn, retailers are making changes to the way they do business by cutting back on inventory and holding events for the people who are still shopping. J.Crew, for one, has started working with manufacturers to lower prices on some items and is stocking fewer of its priciest products.

The Honolulu Advertiser/The Associated Press has the full story.
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.


Deadline for nomination is March 1, 2009.
Legislative Scoreboard

Legislative initiatives launched by the Virginia Retail Federation (VRF) made strong progress during the second week of the General Assembly session.  Negotiations on Dealer Discount Elimination, Plastic Bag Bans and Fees and expensive Court Fees are succeeding.  For further information on specific bills, go to http://legis.state.va.us.  Or contact Margaret Ballard, 757-406-9431, mballard@retail-alliance.com.

Citing substantial economic impact to retailers in tourist-driven communities like Virginia Beach, the VRF opposed two bills that would allow local school boards the ability to start school before Labor Day.  Retailers argued that Labor Day is one of the most popular vacation weekends for families and retailers need high school employees during the long weekend to support the vacation economy.

SB 1266, carried by Senator Jill Vogel, was reported out of Senate Education and Health Committee on a narrow 8 to 7 vote.  It will now go to the Senate Floor.  Retailers opposing the bill must contact the following Hampton Roads senators IMMEDIATELY:

Senator Harry Blevins, hbblevins@senblevins.hrcoxmail.com
Senator Mamie Locke, SenLocke02@msn.com
Senator Louise Lucas, district18@sov.state.va.us
Senator John Miller, john@senatorjohnmiller.com
Senator Yvonne Miller, senatorybmiller@verizon.net
Senator Tommy Norment, district03@sov.state.va.us
Senator Ralph Northam, district06@sov.state.va.us
Senator Fred Quayle, district13@sov.state.va.us
Senator Ken Stolle, vasenate08@kenstolle.com
Senator Frank Wagner, fwagner21@aol.com

A similar bill in the House, introduced by Delegate William Fralin, was defeated by the retail and hospitality representatives in a House Education Subcommittee.

Senate Courts Committee Rejects Court Fee Increases
SB 916, introduced by Senator Richard Stuart, was rejected by the Senate Courts Committee due to a strong outcry of opposition from the retail community and other stakeholders.  The committee voted to pass the bill by indefinitely which means it should not come up again during this legislative session.

The bill would have almost quadrupled the court fees retailers pay to process garnishments and civil actions, raising the fee from $27 to $100.  Retail Alliance member Grand Furniture estimated that its processing costs, based on last year's court filings, would have skyrocketed from $572,461 to approximately $1.64 million.  At a time of economic crisis for retailers, the bill was exceptionally onerous.   Many thanks to Grand Furniture which provided exceptional information on the impact SB 916 would have on its operational expenses.

Plastic Bags Bans Reformed into Recycling Programs
Working with representatives of the state's Litter Recycling Fund, the VRF orchestrated budget amendments for three model plastic bag recycling and litter prevention projects statewide.  Senators Patsy Ticer, Alexandria; Senator Fred Quayle, Suffolk and Isle of Wight; Delegate Bill Barlow, Smithfield and Isle of Wight; and Senator Roscoe Reynolds, Henry County, are patrons of budget amendments that will take forward unused funds from last year's recycling budget to implement projects in their localities.  The Virginia Plastic Bag Coalition, started last year in Isle of Wight County, has created a model recycling project for the state.  In partnership with the VRF and multiple stakeholders, the county will kick off "Isle Be Green"  this spring with recycling programs in the public schools, education for consumers and a retail strip center recycling demonstration project. 

Delegate Joe Morrissey, who is also carrying a plastic bag ban bill, has agreed to delay committee hearings on HB 1814 so that he can further study the Isle of Wight project.  VRF also met with Delegate Adam Ebbin, requesting that he reconsider his bill, HB 2010, imposing fees on plastic and paper bags.  VRF representatives pointed out to Delegate Ebbin that fees are non-consumer friendly in this difficult economic environment.  He has delayed hearings on his bill for a week and is considering partnering with Senator Ticer on a model recycling program in Alexandria.

VRF Makes Great Progress on Opposition to Dealer Discount Repeal
More than 80 VRF members from the Richmond and Hampton Roads regions protested the governor's proposed Repeal of the Dealer Discount.  Armed with signs and wearing buttons exclaiming "Retail Survival is Measured in Pennies," small business owners gathered in front of the General Assembly building and voiced their position to legislators who were making their way to floor sessions at the capitol.

VRF lobbyists also met this week with the top legislators on the money committees including with Senator Charles Colgan, chairman of Senate Finance; Delegate Phil Hamilton, vice chairman of House Appropriations; and Delegate Bob Purkey, chairman of House Finance.  In addition, the VRF continued negotiations with the governor's staff.  Legislators are expressing sincere concern for small business and a willingness to negotiate on the Dealer Discount Repeal.

The governor's proposal to eliminate the discount fee is in his budget bill.  Two bills that would accomplish the same goal are SB 987, carried by Senator 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.

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
 
Bill to Alleviate ABC Penalties Meets Uphill Battle
HB 2051, a bill that would help restaurants and retailers that unknowingly violate ABC regulations and have no prior history of a violation, met unforeseen challenges in House General Laws ABC subcommittee.  Offered by the subcommittee chairman, Delegate Tom Gear, and initiated by the VRF and the Virginia Hospitality Travel Association (VHTA), the bill has an unexpected $1 million fiscal impact on the ABC agency's revenues from fines.  HB 2051 met with a tie vote in subcommittee and is expected to be heard again next week.  If it is voted out of subcommittee, it will be sent to the House Appropriations Committee for further review.  

To support the measure, contact the following legislators:

Delegate Tom Gear, ABC Subcommittee Chair, DelTGear@house.state.va.us
Delegate Chris Jones, General Laws Committee Chair, DelCJones@house.virginia.gov
Delegate John Cosgrove, DelJCosgrove@house.state.va.us
Delegate David Albo, DelDAlbo@house.state.va.us
Delegate Tommy Wright, DelTWright@house.state.va.us
Delegate Watkins Abbitt, DelWAbbitt@house.state.va.us
Delegate Daniel Bowling, DelDBowling@house.state.va.us