June 11, 2018
MnRA visited Norby's Department Store in Detroit Lakes last week as Norby's launched its final sale. Norby's is slated to close later this summer after 112 years in business.
NRF/University Of Florida Survey Says Retail ‘Shrink’ Decreased To $46.8 Billion In 2017
From the National Retail Federation, June 6, 2018

Thefts, fraud and losses from other retail “shrink” decreased to $46.8 billion in 2017 from $48.9 billion the year before as shoplifting and organized retail crime continued to be the leading causes, according to the annual National Retail Security Survey released today by the National Retail Federation and the University of Florida.

“Retailers are making progress in combating criminal activity, but there are still many challenges,” NRF Vice President of Loss Prevention Bob Moraca said. “Whether the threat is coming from cybersecurity, organized retail crime or employee theft, the job for retail security teams continues to become more difficult every day, especially when resources and staff are limited.”

According to the report, shrink averaged 1.33 percent of sales, down from 1.44 percent the year before. A total of 59 percent of retailers surveyed said shrink was flat or decreasing, up from 51 percent. Only 41 percent said shrink was growing, down from 49 percent. Shoplifting and organized retail crime were the most frequent causes, accounting for 36 percent of losses, followed by internal employee theft (33 percent), administrative paperwork errors (19 percent) and vendor fraud or mistake (6 percent).

The most substantial losses per incident came from retail robberies, at an average $4,237.02 each (down from $5,309.72 the year before), followed by employee theft at $1,203.16 (down from $1,922.80) and shoplifting/ORC at $559 (down from $798.48).

For the first time in the survey, retailers were asked about their role in combating cybercrime. Two-thirds of LP executives said they meet at least quarterly with IT/cybersecurity counterparts to discuss potential threats, and 86 percent said their companies have a cybersecurity incident response plan in place.
A Salute To Norby's: 112 Years In The Making
To use words like "the end of an era" to describe the closing of Norby's Department Store in Detroit Lakes doesn't even seem close to strong enough.

Norby's has been serving the community for 112 years. And that service goes well beyond over a century of serving customers in their store.

That's 112 years of employing hundreds and hundreds of people--some who were looking to stay active in retirement, some looking for a first work experience, and some making a career in retail.

That's years of local advertising and marketing.

That's years of presence in Detroit Lakes (and a few other communities!), making downtown a true shopping destination.

That's years of support for countless local organizations and groups.

And that's years of dedication to being a leading, innovative retailer in Minnesota.

The Board and staff of the Minnesota Retailers Association salute the Norby's family as they wind up operations in the coming week and look to the future. If there was a profile of an ideal family-owned retail business in Minnesota that has given more than it has gotten over the years, that would be Norby's.

MnRA has been blessed with Michael Norby's steadfast leadership on the Board of Directors since 1993, including him chairing the Board of Directors in 2003. Michael will be truly missed, but we can't help but be excited to see what is next for him and his entire entrepreneurial family.

It's likely a few graduate students will analyze the factors that influenced the closing of this community icon, but today we salute the entire Norby's team--past and present--for their 112 years of contributions to not only the Detroit Lakes area, but the entire state of Minnesota and beyond.

Norby's, thank you for such a great retail run! Your contributions to Minnesota are cherished, and your legacy is certain to live on.
Deadline Extended: Minnesota Retail Champions Nominations Open Through June 15
When innovative retailers and their partners gather, learn and celebrate at Retail Rally in October, we'll roll out the red carpet to recognize 10 Minnesota organizations and individuals for being champions of the industry.

Show your support for Minnesota's retail industry by nominating an employee, employer, business or vendor partner for one or more of these prestigious awards:

  •  Lifetime Achievement/Outstanding Achievement
  •  Vendor Partner of the Year
  •  Retailer of the Year
  •  Retail Community of the Year
  •  Retail Employee of the Year
  •  Social Responsibility
  •  Best Place To Work
  •  Retail Innovation
  •  Customer Experience
  •  Advocate of the Year

Nominations are open through June 15 and can be done at www.retailrally.com/nominate.

Take a moment to nominate a Minnesota Retail Champion today!
RILA Warns Of 'Three-Front Trade War'
From Chain Store Age, Marianne Wilson, May 31, 2018

The Retail Industry Leaders Association voiced its opposition to the White House announcement on the Thursday that it will impose new steel and aluminum tariffs on imports from the European Union, in addition to Canada and Mexico.

“Today’s White House announcement to unilaterally impose new tariffs on steel and aluminum imports from the European Union, Canada, and Mexico will have a negative impact on every sector of the American economy,” said Hun Quach, VP of international trade, RILA. “The downstream impact of these tariffs will raise the cost of doing business for thousands of American companies, including retailers, and will stifle efforts to expand and create jobs.”

Quach said that imposing tariffs raises the stakes for U.S. allies to take retaliatory measures that will hurt the nation’s exporters while creating more uncertainty for American businesses.

“The administration has created a three-front trade war, targeting NAFTA, China, and now the European Union, with no resolution to any of these disputes in sight,” Quach said.