August 25, 2014

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MnRA hosts our next Women In Retail event September 17.  Don't miss an insightful discussion of generational dynamics around customer service, loyalty programs, and social media.
Swipe Card Fee Reform
U.S. Supreme Court Asked To Review Swipe Card Fee Ruling     

From the National Retail Federation, Craig Shearman, August 18, 2014


"The National Retail Federation today told the U.S. Supreme Court that the debate over debit card swipe fees is "of staggering importance" and asked the justices to review a ruling that left the Federal Reserve's cap on the billions of transactions conducted each year at 21 cents rather than reducing it to a lower level.

"There's so much at stake here for U.S. retailers and their customers that we have no choice but to pursue this case as far as possible," NRF Senior Vice President and General Counsel Mallory Duncan said. "When a federal agency blatantly disregards the clear intent of legislation passed by Congress and signed into law by the president, that's a dispute that cannot be ignored."

A petition asking the Supreme Court to consider the case was filed today by NRF, the National Association of Convenience Stores, the Food Marketing Institute, the National Restaurant Association, NRF member Boscov's Department Store and NACS member Miller Oil Co., all of whom were plaintiffs in the original lawsuit.

Under the Dodd-Frank Consumer Protection and Wall Street Reform Act of 2010, the Federal Reserve was required to adopt regulations that would result in debit swipe fees that were "reasonable and proportional" to the actual cost of processing a transaction. Incremental costs of authorizing, clearing and settling each transaction were allowed to be considered but fixed costs were not. The Fed calculated the average incremental cost at 4 cents per transaction and initially proposed a cap no higher than 12 cents, but eventually settled on 21 cents after heavy lobbying from the financial services industry.

While lower than the average of 45 cents before the cap was set, NRF argued that the 21-cent figure included costs that went beyond those allowed under the legislation and filed suit against the Fed in U.S. District Court in 2011 along with other retail groups."

 


Payments
Millennials Leave Cash Behind For Mobile Payments    

From AdWeek, Jason Campbell, August 18, 2014

"If trends among millennials are any indication, cash, checks and credit cards could all be going the way of the passenger pigeon.

As Bloomberg points out, mobile payment apps like eBay's Venmo are increasingly being used by young adults to handle everything from dining tabs to living expenses. Usage of the app jumped 62 percent during this year's first quarter, with a total of $312 million in processed transactions.

Payment apps, which link to a user's checking and credit accounts, can be downloaded for iOS and Android phones and accessed with Wi-Fi at restaurants and bars. The technology has spawned a slew of competing Venmo-like apps, including Popmoney, Google Wallet and Square Cash, though no single app has come to dominate the new market.

According to July figures from Nielsen, 55 percent of mobile payments are made by smartphone users in the 18 to 34 age bracket. Commenting on the trend to Bloomberg, Venmo's CEO William Ready told Bloomberg, "The early adopters [are people who have grown] up with mobile social media."

 


Better, Stronger, Faster Retail
Exploring Dynamics Across Generations - From Millennials to Boomers, September 17

Looking for retail strategies to be successful across today's consumer generations?

Join the Minnesota Retailers Association and hosts Roberta Bonoff, Hillary Feder, Victoria Hoshal, Kirsten Pardoe, and Jill Renslow for our Women In Retail event featuring an engaging conversation surrounding customer service, loyalty, and social media in today's multi-generational retail environment.

The evening includes networking and an insightful panel of shared learnings from Best Buy, Minneapolis Institute of Arts, The Social Lights, and Weber Shandwick.

Women In Retail
Wednesday, September 17, 2014
5:00 - 7:00 p.m.
Mall of America Executive Center, Level 4 East

Panelists and Discussion Leaders

No cost to attend. Non-members welcome. Complimentary appetizers. Cash bar. Space limited to 100 participants.  

 

Click to register now, call (651) 227-6631, or e-mail [email protected].

 

Presented by:
With support from:

 
    

  



 


Store Trends
Web Retailers Turn To Store Fronts   

From the Boston Globe, Sarah Halzak, August 20, 2014


"When the online jewelry shop BaubleBar opened a brick-and-mortar outpost in Manhattan, the retailer quickly realized just how different its in-store shoppers are from its Web customers.

Shoppers suddenly paid more attention to unflashy pieces often overlooked online. More women bought multiple necklaces that could be worn together. And perhaps most importantly, cofounder Daniella Yacobovsky said, shoppers typically purchased three times as much merchandise as an online BaubleBar customer.

''Having the opportunity to touch and feel our product is a big value,'' Yacobovsky said.

After three years as an e-commerce darling, BaubleBar and many other Web retailing pioneers have discovered the old-school benefits of having a brick-and-mortar store.

Rent The Runway, which rents designer clothes by the day, plans to open a stand-alone store in Manhattan's Flatiron district in September.

Products from Etsy, a dominant online marketplace for handicrafts and vintage goods, will soon be available in independent boutiques and some major chain stores, such as Nordstrom.

Birchbox, the subscription service that delivers beauty products to customers' doorsteps, opened a brick-and-mortar flagship in New York in July.

Upstart online retailers have emerged as a major challenge to traditional outposts such as Walmart and Best Buy. But many of these sites are looking for new ways to distinguish themselves amid the flood of competitors while expanding their businesses at a time when e-commerce still comprises just a small portion of retail sales."

 


Retail Trends
Back To School Shoppers Looking For Deals  

From the National Retail Federation, Fiona SwerdlowPioneer Press, Bill Salisbury, August 20, 2014


"From kindergarten to college, the countdown to the first day of class is on.  As we found from the latest NRF survey conducted by Prosper Insights & Analytics, Back to School and Back to College shopping is on to-do lists for families everywhere. Some survey highlights:
  • With just days or weeks to go for many students, one-quarter of BTS shoppers and more than one-third of BTC shoppers anticipate shopping online for some part of their remaining purchases this summer. 
  • That said, over half of online BTS shoppers will also head to department stores (62 percent), discount stores (55 percent), clothing stores (54 percent) and office supply stores (47 percent), among other merchants. Online BTC shoppers also expect to head into these stores for some of their remaining shopping, though somewhat less so than BTS shoppers. 
  • With consumers still generally fiscally cautious, it's not surprising that online shoppers this year are on the lookout for specials and offers. Of those who have started their shopping, close to half of BTS online shoppers and 20 percent of BTC online shoppers say that coupons, sales and/or promotions have influenced anywhere from one-quarter to three-quarters of their purchases so far."

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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