January 27, 2020
Join MnRA this Friday through Tuesday at the Minneapolis Mart in Minnetonka. Learn more here.
Join MnRA At Minneapolis Mart This Week (Friday-Tuesday)
The Minnesota Retailers Association is proud to be partnering with Minneapolis Mart later this week for their Friday-Tuesday show. On Saturday, we'll showcase speakers between 8:30-9:30 a.m., and 3:30 - 4:30 p.m. In addition, stop by to see us at our booth!

Minneapolis Mart is a wholesale permanent showroom facility, featuring six major markets each year and each market includes wholesale temporary shows. The Mart is uniquely managed and operated by its showrooms for the benefit of customers and professional reps. There you will find 1,500 additional lines of merchandise, including seasonal, souvenir and more.

Show hours are 9:00 a.m. - 6:00 p.m. each day, January 31 through February 4.

Education sessions Saturday, February 1

8:30 - 9:30 a.m.
Deepening Supplier Relationship, Juli Lassow, JHL Solutions
Biz Hacks, Sarah Kowal, Right Now Enterprises

3:30 - 4:30 p.m.
Creating Video The Drives Sales, Caity Viren, Brand Yourself
Top Five 2020 Consumer Expectations You Can't Ignore, Minnesota Retailers Association
Register For Retail Day At The Capitol March 10
Two great ways to participate in Retail Day At The Capitol:

  1. Breakfast with legislative leaders, 8:30 - 9:30 a.m.
  2. Breakfast + comfortable, prearranged meetings with your specific legislators, 8:30 -12:30 p.m.

Agenda for the day:

8:30 a.m. - Registration and continental breakfast
8:45 a.m. - Program begins
8:55 a.m. - Legislative Leader Comments
10:00 a.m. - Visits with Legislators
12:30 p.m. - Visits conclude

Four good reasons to attend:
  1. Get the latest on the happenings at the State Capitol impacting retailers.
  2. It's all on the Capitol grounds--no moving your car or taking a shuttle!
  3. No cost to attend, thanks to our sponsors.
  4. This event is a solid opportunity to connect with Minnesota's innovative retailers and learn about the Minnesota Retailers Association!

Click here to register, or contact us at (651) 227-6631 to learn more! Please RSVP your spot by March 1.
Minnesota Lawmakers Seek To Limit Cities' Growing Use Of Sales Taxes
From the Star Tribune, Jessie Van Berkel, January 25, 2020

More Minnesota cities are imposing local sales taxes than at any time in state history, and some state legislators are worried a proliferation of the new taxes could create unfair advantages for communities with more retailers.

Legislators allowed 18 cities, from Willmar to West St. Paul, to add or extend a sales tax in 2019, and 14 others got the go-ahead in 2017. That’s a dramatic jump from decades past, when the state signed off on fewer than two local sales taxes per year on average. Cities’ leaders are increasingly relying on these local sales taxes to pay for millions of dollars in new projects and expenses without raising property taxes.

“Cities are looking for ways to try to alleviate the burden on property taxpayers, and yet they have a lot of these increased demands,” said House Tax Committee Chairman Paul Marquart, one of the legislators concerned about potential disparities between cities with and without sales taxes.

Lawmakers, seeking to rein in the use of local sales taxes in Minnesota, changed the requirements for cities last session. Cities cannot use the money for more than five infrastructure projects. They need to give the Legislature more detail about how the money would be used and document the projects’ broader significance to the region. City leaders also have to come to the Legislature first for approval of a tax plan before taking the idea to voters — reversing the previous order.

Nonetheless, local officials and lawmakers said they expect the high rate of requests will continue at the Capitol in 2020.

League of Minnesota Cities lobbyist Gary Carlson estimated about a dozen cities are planning to ask for permission to move forward with tax plans. St. Paul is among the cities that recently announced plans to add a local sales tax. City officials said last week they would like to add a 1% tax that would be spent on prekindergarten services, roads and housing.

The local taxes are in addition to the state sales tax of 6.875% and, like the state tax, certain things — such as food and clothing — are exempt.

Cities and towns have until Friday to submit proposals to the Legislature for approval this year. If lawmakers sign off, local officials would then take the idea to voters.
Study: Consumers Shop Via Mobile, Are Retailers Ready?
From Chain Store Age, Dan Berthiaume, January 24, 2020

Retailers recognize the importance of mobile, but haven’t necessarily moved to keep up with it.

According to a new study from messaging software provider Quiq, 65% of surveyed retailers said mobile technology has increased their sales revenue. Respondents said that on average, 42% of sales are made through mobile devices such as smartphones. 

While 37% of respondents have integrated mobile into the holistic customer experience (buying, communicating, and in-store interactions), the majority (54%) admitted that they’re not fully prepared to meet consumer demands for mobile. About 25% admitted they are still in the early stages or have no mobile strategy at all. 

The study also examined retailer attitudes toward social media. Findings include:

  • Eighty-eight percent of respondents said that Facebook is important to their marketing and sales strategy, followed by Instagram (80%) and Twitter (69%). Almost two-thirds (64%) are communicating with customers on Instagram and 61% on Facebook Messenger.
  • Retailers also said that mobile is uniquely benefitting customer relationships, with 74% agreeing it has made them more accessible to customers and 66% reporting that it provides higher customer satisfaction.
  • Fifty-six percent of respondents said they communicate with consumers over text messaging and 46% over Android iMessage and Apple’s Messages.
Sign Up For MnRA's Every Monday Call To Hear The Latest From The Capitol
For members seeking an insiders look at the legislative week, MnRA hosts a weekly 10:00 a.m. Monday conference call starting on February 17 and ending May 18. 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.

There is no cost for these calls; 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, register now or contact at savannah@mnretail.org or (651) 227-6631. Following registration you will be sent a calendar invite with dial-in information.
Unemployment Holds Steady In Minnesota, And Job Growth Slows To A Near-Stop
From the Star Tribune, Evan Ramstad, January 23, 2020

Minnesota’s unemployment rate held steady at 3.3% last month, and preliminary data showed the state added just 4,000 jobs for all of 2019, the state jobs agency said Thursday.

The state’s job growth began to slow markedly two years ago, chiefly because of the demographic trend in which the retirement of baby boomers outpaces the arrival of younger people into the labor force.

Throughout 2019, the state’s unemployment rate ranged from 3% to 3.4%, below the nation’s rate.

However, as the economy continues to remain strong, the U.S. is closing in on both the lower unemployment rate and slower rate of job growth that Minnesota has experienced for several years.

“Minnesota’s labor market is tighter, but the U.S. is going to catch up with us,” said Oriane Casale, interim director of the labor market office at the Minnesota Department of Employment and Economic Development.

“This is all being driven by demographics,” she said. “This is constraining growth in Minnesota and clearly having some effect nationwide as well.”

The state’s job growth amounted to a rate of 0.1% for the 12 months ended Dec. 31. The U.S. added jobs at a 1.4% pace in 2019.

The state’s labor-force participation rate held steady at 70.3% in December, one of the highest in the nation and well above the national rate of 63.2%.
Retailers Receive High Marks For Workplace Equality
From the Retail Industry Leaders Association, Evan Armstrong, January 23, 2020

Now here is news worth celebrating. Earlier this week, the Human Rights Council (HRC) Foundation released its 2020 Corporate Equality Index (CEI), rating workplaces on LGBTQ equality. The Index features American companies and law firms that earned top scores of 100 in the survey measuring LGBTQ workplace inclusion.

Several retailers were among the companies recognized, including 23 RILA members, listed below. 
  • Abercrombie & Fitch
  • Apple
  • Costco
  • CVS
  • Best Buy
  • Gap
  • GameStop
  • IKEA
  • JCrew
  • Kroger
  • L Brands
  • Levi Strauss
  • Lowe’s
  • Macy’s
  • Meijer
  • Nike
  • Nordstrom
  • Staples
  • Starbucks
  • Target Corp.
  • VF Corp.
  • Walgreen
  • Walmart
NRF Launches Center For Consumer Privacy And Innovation
From the National Retail Federation, January 15, 2020

The National Retail Federation today announced the launch of a new Center for Consumer Privacy and Innovation, a retailer-led initiative intended to promote and protect innovation in the retail customer experience. The launch took place during NRF 2020 Vision: Retail’s Big Show, NRF’s annual convention.

“Retailers recognize the importance of and value the trust placed in their hands by their customers,” NRF President and CEO Matthew Shay said. “The Center for Consumer Privacy and Innovation will provide insight and policy expertise to educate lawmakers as they strive to properly balance consumer protections with retail innovation.”

The retail industry is increasingly driven by consumer data, harnessing new technologies and personalized solutions to deliver a seamless experience. Digital and mobile solutions, in particular, have enabled retailers to innovate at a greater speed to meet the demands of consumers.

As officials at the state and federal levels seek to regulate how personal information is protected and consumers are given control over data, the center will produce research, track privacy legislation, and educate the public and policymakers about the benefits, convenience and value they derive from the technology retailers develop. The effort is intended to ensure that government regulation does not harm innovative aspects of the retail economy.

“Retailers endeavor each day to earn and maintain a customer’s trust and loyalty,” Shay said. “There is always another competitor across the street or across the globe eager to provide better products and services at the best possible prices. Unfortunately, public policy aimed at protecting consumer privacy could result in unintended consequences that harm continued innovation designed to benefit the consumer.”
Top 2020 Advice For Minnesota Retailers
As the new year commenced, we asked MnRA friends to share 2020 advice for retailers and their key partners. Here are the top pieces of advice we selected:

TREAT EMPLOYEES LIKE GOLD
"Create a premium brand. Keep your product and service fresh and the best. Treat your employees like gold and tell your customers how much you appreciate them. Leave them feeling always like they have found the best kept secret."
- Insight from Roberta Bonoff, founder, Envision It!
 
GROUND YOURSELF IN CONSUMERS’ EXPERIENCE EXPECTATIONS
"Ground yourself in the consumers’ experience expectations. How do they want to interact with your brand, then meet them there. Ask yourself how their behaviors and expectations will change, then adapt."
- Insight from Marisa Kinney, Sr. Director, Global Retail, Red Wing Shoe Co.

CREATE ONE-OF-A-KIND PRODUCTS & EXPERIENCES THROUGH PARTNERS
"The most successful retailer and supplier partners in 2020 are the ones that work seamlessly together to create one-of-a-kind products and experiences that draw in their consumers. Seek out the partners that you are best able to work with to bring these visions to life!"
- Insight from Juli Lassow, Owner & Principal, JHL Solutions
 
EXECUTION IS ALL YOU
"Focus on execution. Don't fool yourself into thinking execution is something other people in your organization will handle. Require absolute clarity at the intersection between your brand (website or staff) and your customers. Strategic initiatives without flawless execution yield no value."
- Insight from Flora Delaney, President, Delaney Consulting
 
PROACTIVELY SEEK CUSTOMERS
"Look for opportunities to be proactive on generating incoming business versus waiting for customers to walk into your stores. Go get them."
- Insight from Scott Plum, Founder, Minnesota Sales Institute, LLC
 
HARNESS THE POWER OF NEUROSCIENCE
"Harness the power of Neuroscience and Psychology to boost sales and marketing. Neuroscience and Psychology have revealed many insights on how consumers make buying decisions. Those insights can help retailers sell more at lower cost. Watch this 17-minute TED Talk on the unconscious buying decisions ."
- Insight from Terry Wu, President, Neuromarketing Services

ADD YOUR VOICE TO YOUR LOCAL COMMUNITY CONVERSATION
"Get active in your local business community! It doesn’t take much. Call your local chamber of commerce or business association and be a part of the conversation shaping the community around you."
- Insight from Savannah Sepic, Government Relations Manager, Minnesota Retailers Association

MAKE YOUR LIFE EASIER BY WRITING DOWN YOUR PHILANTHROPIC PLAN
"It’s not easy, but tell your customers the story of your philanthropic efforts and the organizations you support. And develop a giving strategy and process (it only has to be a few sentences but write it down!) that aligns with your favorite causes to make it easier to say yes and no to charitable requests in 2020."
- Insight from a small business owner

TAKE POLITICS OUT OF THE 2020 ELECTIONS
"The trick to surviving the 2020 elections is focusing on people and ideas, not politics. Politics today seems to be all about winners and losers. People and ideas are how we will advance Minnesota and our communities."
- Insight from Bruce Nustad, President, Minnesota Retailers Association