October 27, 2014

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Federal Reserve Economist Toby Madden addresses workforce availability
at MnRA's Annual Meeting last Thursday in St. Louis Park.
 
Annual Meeting
Retailers May Face Workforce Pinch; Holiday Hiring Likely To Be Similar To Last Year

Excerpted from Finance & Commerce, James Warden, October 24, 2014

"Minnesota retailers are facing the same looming labor shortage as other industries, but that doesn't yet appear to have caused stores to rush to hire, according to an economist with the Federal Reserve Bank of Minneapolis.

Regional economist Toby Madden said Thursday in a speech that businesses have told him in interviews that finding good people is the biggest challenge they face. Demographers expect the issue to become more common as baby boomers leave the workforce faster than new workers replace them.

Madden's observations echo findings the Minnesota Retailers Association presented Thursday. More than 30 percent of retailers in a fall survey identified retail workforce as an obstacle to growth - the fourth biggest concern behind consumer spending, competition and regulations.

Yet less than 10 percent of the 100 to 200 retailers in the unscientific survey expect 2014 holiday hiring to be bigger than last year - well under the 60 percent who expect hiring to be the same. Meanwhile, nearly 30 percent expect to have the same number of workers but increase their hours.

The same survey found that 60 percent of retailers expect holiday sales to remain the same, compared with just more than 30 percent who expect growth in 2014 - almost an exact reversal of last year's numbers. Bruce Nustad, president of the trade group, blamed the modest expectations, in part, on continuing consumer worries about the economy.

Some businesses report more-acute labor shortages in pockets of the state that have seen demand from competing employers, such as in Rochester with the growing Mayo Clinic, he said.

Rick Lien, owner of the Rochester motorcycle dealership Cycle City, said he needs to add four to seven people to his 12-person store but can't find anyone with the skills for the positions, particularly workers with technical skills for his service department. That's forced him to look far beyond Rochester's city limits. His service writer travels 55 minutes from Harmony, Minnesota, and his sales manager travels 1� hours from just outside Decorah, Iowa. He hired his last two technicians from out-of-state. With companies like Mayo Clinic hiring, he said he doesn't have any other options."

 

Taxes
Excessive Tobacco Tax Increase Estimated To Cost Minnesota 1,100 Jobs

Today a coalition of Minnesota's retailers, service stations, wholesales, grocers and convenience stores released a new study showing the devastating effects the 2013 tobacco tax has had on Minnesota retailers and their employees.
 
In 2013 the Minnesota Legislature passed a 130% increase in the cigarette excise tax and also increased the tax on other tobacco products from 70% of the wholesale price to 95% of the wholesale price. Retailers had braced for some hardship, but they did not predict just how dramatic the impacts would be.
 
"We knew, once the legislature made our tax the highest in the region, there would be some job losses and maybe a few stores closing," said Bruce Nustad, president of the Minnesota Retailers Association. "But this study shows just how devastating the massive tobacco tax has been across Minnesota, for adult consumers, retail businesses and their employees."
 
Some of the study highlights include:
  • 1,100 jobs are estimated to have been lost or eliminated.
  • 50% tobacco sales decline in Minnesota stores along the border.
  • Dramatic sales increases of tobacco products in all four bordering states.
  • $38 million of lost sales of non-tobacco products.
  • Nearly a quarter of all cigarettes consumed in Minnesota are now estimated to be purchased in other states.
  • Automatic tax increases on tobacco products will continue starting in 2015!
Cybersecurity
Retailers Applaud White House Action To Improve Card Security In U.S.

From the Retail Industry Leaders Association, October 20, 2014

"On Friday (October 17), President Obama announced a variety of executive actions related to cybersecurity. Most significant among them is a strong endorsement of the Chip and PIN technology that retailers have long advocated for.

Specifically, the President set a new policy requiring that newly issued and existing government credit and debit cards be enabled with chip and PIN technology. The practical implications of this announcement are significant. More importantly, RILA believes this can serve as a catalyst for widespread migration to chip and PIN."

Legislative Trends
Concerned About The Impact Of Pollinator Legislation On Retailers? Learn More Thursday

Meet and hear an issue briefing from Karen Reardon, vice president of public affairs at RISE (Responsible Industry for a Sound Environment) regarding important public policy issues facing Minnesota retailers related to the chemical industry, both in Minnesota and around the country.

Agenda
- Briefing on the pollinator issue
- Proposed legislation across the U.S.
- How the issue impacts retailers
- Retailer reactions

Pollinator Legislation & Its Impact On Retailers: A Issue Briefing
Thursday, October 30
10:00 a.m. - 11:00 a.m.

Free to attend. Non-members welcome. Pre-registration required. Dial-in option available. Please indicate your desire to dial-in when registering and you will be provided a call-in numbers via e-mail.

 

Annual Meeting 2014
Thank You Annual Meeting Sponsors


Over 75 retailers attended MnRA's Annual Meeting last Thursday at the Minneapolis Marriott West in St. Louis Park. Attendees got a look at the current state of the economy from Federal Reserve Bank of Minneapolis Economist Toby Madden. In addition, MnRA presented the results of its annual "State of Minnesota Retail" poll, giving attendees an anecdotal look at the attitudes of retailers across the state as they relate to our economic outlook.

Thank you to these sponsors for supporting the event:


Supporting Sponsors:
   



 

Prospective Member 
Sponsor:
 
  
   
  


Contributing Sponsors:
   



    

Economy
State Adds 7,200 Jobs In September

From the Minnesota Department of Labor and Economic Development, October 16, 2014

"Minnesota employers added 7,200 jobs in September, according to seasonally adjusted figures released today by the Minnesota Department of Employment and Economic Development (DEED).

The September gains, combined with August figures that were revised upward by 2,700 jobs, bring calendar year gains to a seasonally adjusted 23,000 jobs statewide. Since hitting the recessionary low point five years ago in September, Minnesota has added 212,800 jobs.

The Minnesota unemployment rate fell 0.2 percent in September to 4.1 percent, the state's lowest jobless rate in eight years. The U.S. unemployment rate in September was 5.9 percent.

"Professional and business services led all sectors in September with 4,100 job gains. Other sectors that added jobs were leisure and hospitality (up 3,900), other services (up 1,300), education and health services (up 1,100), manufacturing (up 1,100), trade, transportation and utilities (up 300) and construction (up 200). Information held steady for the month. Sectors with job losses were government (down 4,200), financial activities (down 400) and mining and logging (down 200)."

Healthcare Reform
New Affordable Healthcare Compliance Rules Put Pressure On HR

From Finance & Commerce, October 24, 2014

"The Internal Revenue Service is adding new reporting responsibilities under the Affordable Care Act and will require employers to submit new forms in early 2016.

Draft versions of Form 1095-C and the 1094-C Transmittal Form require large employers to demonstrate that the health care coverage they offer meets the minimum standards of coverage, value and affordability. This is in addition to reporting health care costs on the W-2 forms.

With 2014 coming to a close, HR teams should discuss the new form requirements with their IT teams to begin putting the systems into place to collect all the necessary information mandated by the IRS. Companies may need to set up systems to collect and report information (typically on a monthly basis) about to whom coverage is being offered, such as Social Security numbers, cost, affordability and value.

For some companies, time is of the essence. Employers have about two months to update their data collection systems in order to gather information for the 2015 calendar year and be able to report it in 2016. It's important for HR to commit the time needed to understand the data requirements, communicate these requirements to IT, and to work with the benefits administrator to collect and store the appropriate data.

If the information is not reported accurately or retained properly, even if the plan is compliant, it can translate into wasted resources and expenses."

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.  

 
Bar code
Minnesota Retailers Associaiton
400 Robert Street North, suite 1540
St. Paul, MN 55101
Tel. (651) 227-6631 - mnretail.org - mnra@mnretail.org


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