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                                                                                May 5, 2014

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16th Annual Event
Join Minnesota's Retail Leaders For MnRA's June 25 Annual Legislative Wrap-Up Golf Tournament        

You made it through the holiday season, endured a long winter, filed your taxes, and the end of legislative session is in sight. Now it's time to look toward summer and the Minnesota Retailers Association 16th Annual Legislative Wrap-Up Golf Tournament, Wednesday, June 25 at the award winning Legends Golf Club.

One Tournament; Five Reasons to Play
  1. Golf an amazing course. 
  2. Network with leading retailers.
  3. Wrap up the legislative session.
  4. Support MnRA and Minnesota Retailers IMPACT political committee.
  5. Be part of the tradition.
Register today!
  • Investment before June 4 (early bird discount):
    - $199/golfer, includes golf, cart, bbq lunch, dinner, and taxes;
    - $796/foursome.
  • After June 4:
    - $211/golfer, includes golf, cart, bbq lunch, dinner, and taxes;
    - $844/foursome.
  • $45 dinner & networking-only option.
Register now!

E-Fairness
Study Shows Online Sales Tax Impacts Amazon

From Time, Victor Luckerson, April 22,  2014

"Online sales taxes are discouraging people from shopping on Amazon, according to a new study by researchers at Ohio State University. Regular online shoppers living in states that implemented a tax on Amazon decreased their spending on the website by 10 percent compared to states without the tax. The drop was even steeper for big-ticket purchases above $300, for which Amazon sales in taxed states were down 24 percent.

 

The lack of sales tax for online purchases has been a big advantage for Amazon over brick-and-mortar retailers for more than a decade. But an increasing number of cash-strapped states, which lose a reported $23 billion from uncollected sales taxes on online goods, are now making consumers pay taxes for Amazon purchases. In total 20 states now levy an Amazon tax, according to Bloomberg.


Online retailers can be compelled to collect taxes in states where they have a physical presence, like an Amazon warehouse, or in states where the retailer pays marketers to send traffic to their sites."

 


Jobs and the Economy
Families Look to Shower Mom with Gift Cards, Brunch, Apparel Items This Mother's Day     

From the National Retail Federation, Jack Kleinhenz, April 23, 2014

 

"After splurging on tablets and smartphones, beauty supplies, apparel and jewelry for mom last year, consumers this year will celebrate Mother's Day keeping practicality in mind. According to NRF's 2014 Mother's Day Spending Survey conducted by Prosper Insights & Analytics, Americans will spend an average of $162.94 on mom this year, down from a survey high of $168.94 last year. Total spending is expected to reach $19.9 billion.*

"As one of the most universally celebrated holidays, retailers will take this opportunity to attract Mother's Day shoppers with promotions on ladies apparel items, health and beauty products, jewelry and even restaurant options," said NRF President and CEO Matthew Shay. "Now fully into spring, retailers are hoping consumer sentiment and spending intentions continue to grow as we round out one of the busiest retail seasons of the year and prepare for summer."

Moms work hard and they are entitled to a show of appreciation on their special day. Most consumers will acknowledge that appreciation with a greeting card (81.3%), though it appears her loved ones will also look for special gifts. Two-thirds (66.6%) of those celebrating will buy mom her favorite flowers, spending a total of $2.3 billion, and 33.5 percent will look for spring sweaters and blouses, spending a total of $1.7 billion on apparel and accessory items. Mom's loved ones will also buy books and CDs ($480 million), housewares or gardening tools ($812 million), personal experience gifts like a day at the spa ($1.5 billion), jewelry ($3.6 billion), and special outings like brunch or dinner ($3.8 billion)."

 


Marketing
Mobile, Social Driving 36% Of In-Store Sales      

From MediaPost News MarketingDaily, Sarah Mohoney, April 28, 2014

 

"Looks like retailers are still from Mars, and customers are from Venus, with $1.1 trillion hanging in the balance. A new study from Deloitte Digital finds that stores are pouring their money into m-commerce sites that don't appeal to shoppers. And consumers are wandering around physical stores, nursing their digital disappointment.

Shoppers' digital interactions, including the way they use phones, tablets and computers to access Web sites, email and social media channels, now influence 36 cents of every dollar spent in the physical retail stores, or $1.1 trillion. And by the end of this year, with the increasing penetration of smartphones, says Jeff Simpson, director with Deloitte Consulting's retail practice and co-author of the report, that's expected to climb to 50%, or $1.5 trillion in sales. "The pace of growth is far quicker than we'd expected."

Yet retailers, stubbornly fixated on conversions, "are focusing on the wrong thing," he tells Marketing Daily. M-commerce sales account for just $40 billion, while mobile-influenced sales have reached $593 billion. "Retailers need to look at the whole customer journey," he says. "Mobile is not about driving m-commerce sales or conversion. It's about how it all affects the big number."

 



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Trends
Consumer Confidence On Upswing, Especially Millennials

From MediaPost News MarketingDaily, Tanya Irwin, April 29, 2014

 

"Consumers are showing more retail confidence -- especially Millennials, the group hardest hit by the recession, according to IRI's quarterly MarketPulse survey.

 

The first quarter of 2014 showed the first increase in consumer confidence since the economic downturn began. All age groups across the board are reporting a sunnier outlook.

IRI has been monitoring the struggles of Millennials and is taking a closer look at this notable increase in a special Point of View, "Millennial Shoppers: Positive Mindset Points to Future Growth," which is available here.

"Consumers say they are feeling more confident about their household finances and don't feel like they need to sacrifice as much in order to make ends meet," says Susan Viamari, editor, Thought Leadership, IRI, in a release. "However, it's important to remember that consumers are still entrenched in their conservative shopping strategies, so CPG marketers still need to work at finding pockets of opportunities."

 


The Economy
Strong Consumer Spending, Factory Activity Fuel U.S. Growth Outlook

From Reuter, Lucia Mutikani, May 1, 2014

"U.S. consumer spending recorded its largest gain in more than 4-1/2 years in March and factory activity accelerated last month, reinforcing views the economy was regaining steam.

Economic growth stalled in the first quarter after a very cold and disruptive winter, but the data so far point to a strong second-quarter rebound.

"The weakness in growth we saw in the first quarter is not indicative of what is going on in the economy. The fundamentals continue to look pretty good, the economy has momentum," said Gus Faucher, senior economist at PNC Financial Services Group.

Consumer spending increased 0.9 percent in March after rising by 0.5 percent in February, the Commerce Department said. March's gain was the biggest since August 2009 and beat economists' expectations for a 0.6 percent rise.

Consumer spending accounts for more than two-thirds of U.S. economic activity. When adjusted for inflation, it increased 0.7 percent in March after advancing 0.4 percent in February.

That was also the largest gain since August 2009 and put consumer spending on a strong upward trajectory heading into the second quarter."   

 


Impacts
Study: Digital Influences $1 Trillion In Retail Sales

From Chain Store Age, Dan Berthiaume, April 28, 2014

"Digital interactions influence 36 cents of every dollar spent in the retail store, or approximately $1.1 trillion. According to the latest study from Deloitte Digital, by the end of 2014, that number will climb to 50%, or $1.5 trillion of total store sales.

The study, "The New Digital Divide," shows that looking solely at smartphones, industry estimates put mobile commerce sales at roughly $40 billion in 2014. By comparison, Deloitte Digital's data indicates that mobile-influenced sales in the store have reached $593 billion, suggesting that smartphones' influence on store sales has far surpassed the rate at which consumers make a purchase directly on their phones.

Consumers using a device during their shopping journey convert, meaning they make a purchase, at a rate 40% higher than those who do not use a device. In addition, Deloitte Digital found a dramatic impact on traffic, spending and loyalty from digital shoppers. For example, 84% of store visitors use their devices before or during a shopping trip, 22% of consumers spend more as a result of using digital; just more half of these shoppers report spending at least 25% more than they had intended. Three-quarters of respondents said product information found on social channels influenced their shopping behavior and enhanced loyalty."  

 


The Unsession
Retail At The Capitol: Bonding Bill Key To Session End Date

If you missed MnRA's Friday Retail At The Capitol e-newsletter click here. If you don't receive the weekly update contact us at [email protected] and we will add you to the list.
Updates From The Capitol
Legislative Update Calls Each Monday 

   

For members seeking an insiders look at the legislative week, MnRA hosts a weekly 10:00 a.m. Monday conference call beginning February 24. This members-only activity takes place each week of legislative session through its conclusion and includes opportunities for retailers to get involved in the policy making process.

   

Thanks to our Retail at the Capitol calls sponsor, Holiday Companies, there is no cost for these calls and no advance RSVP is required. Simply dial in for the calls that interest you and work with your schedule. Calls last approximately 30 minutes.

To obtain dial-in information for these calls, contact MnRA at [email protected] or call us at (651) 227-6631.
Member Service
MnRA's RetailPlus+ Buying Group

The Minnesota Retailers Association (MnRA) has leveraged the collective clout of our members to offer increased savings on the products and services essential to retailers. These vital products and services help Minnesota retailers navigate the often complicated terrain of operating as a retailer.

Thank you for your patience as we redesign the web presence of the RetailPlus+ Buying Group in the coming weeks.

Question on the program? Contact the MnRA staff at (651) 227-6631.

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Minnesota Retailers Association
400 Robert Street North, suite 1540
St. Paul, MN 55101
Tel. (651) 227-6631 - mnretail.org - [email protected]


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