Retail Beat

updates for retailers + key business partners


June 16, 2025

 

Minnesota Retailers President Bruce Nustad was glad to spend Friday morning with members of the New Ulm Area Chamber of Commerce, talking retail trends and what’s happening on the ground in New Ulm. Thank you to the Chamber for the warm welcome and thoughtful conversation. See the local story below for a recap of the meeting.

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Members and Friends,


We are heartbroken by the horrific act of violence that claimed the lives of Representative Melissa Hortman and her husband, Mark, and left Senator John Hoffman and his wife hospitalized this past Saturday. Both of these are leaders have devoted their lives to serving Minnesota, and this tragedy is almost beyond words.


We are incredibly grateful to law enforcement for their swift and decisive action in apprehending the assassin. Their efforts brought reassurance in a moment of fear and profound grief.


At Minnesota Retailers, we’ve had the honor of working with both Speaker Hortman and Senator Hoffman for many years. They are thoughtful, principled servants who have worked tirelessly to strengthen our state and support the people who call it home. We mourn the senseless and heartbreaking loss of Speaker Hortman and extend our deepest prayers to the Hortman and Hoffman families.


We also want to recognize and thank public servants across Minnesota who continue to do the hard work of serving our communities, even in the face of this tragedy.


I am hopeful that together, we will move forward—stronger as a community and more united as a state.


Bruce Nustad


Photo credit: Minnesota House Information, Andrew VonBank

Governor Signs Special Session Bills; Retail Impacts Reported

The 2025 legislative session was one for the history books—defined by a tied Minnesota House and a single-seat DFL majority in the Senate. Things got off to a slow start as the House worked through a court-decided dispute over the definition of "quorum" after a DFL-held seat was invalidated, delaying the official start of business. In this unique environment, compromise wasn’t just helpful—it was required.

 

We’re pleased to report that this dynamic gave lawmakers a chance to re-examine several important issues. Among the highlights: legislators took meaningful steps toward fixing the sweeping key ban following our Unlock Minnesota campaign; lifted restrictions on professional artist materials, including paints containing cadmium; and revisited laws related to PFAS, internal product components, and juvenile recreation vehicles—areas where well-intended laws had unintended consequences. In each case, retailers helped lawmakers find more workable paths forward.

 

Modest but important reforms were also made to Minnesota’s Earned Sick and Safe Time law, an area where we’ll continue working to make compliance more manageable for employers and the workforce.


We also continued to shine a light on the urgent need to reform how retail pharmacies are compensated with the passage of the state’s single pharmacy benefit manager.

 

In addition to advancing positive changes, we successfully worked to stop several proposals that would have moved Minnesota in the wrong direction for retailers, workers, and consumers.

 

Throughout this session, Minnesota Retailers and our members remained actively engaged at the Capitol—testifying in committees, working with legislative authors, and providing on-the-ground perspectives. Your voices made a difference. Thank you to every retailer and key business partner who showed up, weighed in, or reached out during session. Your advocacy helps shape a stronger, more competitive retail environment in Minnesota.

 

A special thank you to Paul Seim for serving as our government affairs associate during the 2025 legislative session. His work and support were greatly appreciated, and we wish him continued success in his next chapter.

 

While we’re proud of the progress made this year, we know there’s still work to do. Retailers in Minnesota compete not just with neighboring states, but with businesses around the world. Making Minnesota more competitive—through smarter tax policy, balanced regulation, and greater flexibility for retailers—must remain a priority.


Key issues we’ll continue to focus on include establishing a vendor collection allowance, addressing rising gift card fraud, tackling organized retail and supply chain crime, and modernizing Minnesota’s outdated alcohol laws to allow the sale of full-strength beer in grocery and convenience stores.

 

The outcomes report will be e-mailed to members today and can also be found www.mnretailers.org.

 

To request a copy of our 2025 Session Outcomes report, visit www.mnretail.org/advocacy.


As we look ahead to 2026, we’re committed to continuing this momentum. Together, we can ensure Minnesota’s retail economy remains resilient, innovative, and ready for what’s next.

2025 Retail Policy Outcomes Now Available

With the special session officially wrapped and the Governor signing all remaining bills this past Saturday, Minnesota Retailers has released its 2025 State Legislative Outcomes report. The document outlines 50 new provisions passed into law that impact retailers across the state.


We encourage all retailers to review the report and reach out to Minnesota Retailers with any questions or for help understanding how these changes may affect your business.


REQUEST THE REPORT

New Ulm Retailers Generate $41M In Sales Annually, Chamber Speaker Says

From The Journal, Clay Schuldt, June 14, 2025


Representatives of New Ulm retail engaged with a conversation on the local business landscape, Friday. Minnesota Retailers Association President Bruce Nustad visited New Ulm as part of the New Ulm Area Chamber’s Hot Topic series, hosted at Lykke Books.


Nustad opened the discussion with retail figures. In New Ulm, there were an estimated 212 retail businesses. He explained this number might seem high, but there are many home-based businesses and people with small part-time businesses. He said people who sell products through Etsy are considered retailers. Nustad said in a community New Ulm’s size, there could be 20 people selling products online as a side job. “It is easier than ever to run a business from home,” he said.


Overall, there are 1,800 retail-supported jobs in New Ulm, Nustad reported. He also said New Ulm generates $41 million in retail sales annually and statewide, retail contributes $84.8 billion to Minnesota’s GDP.


In addition, around one out every four dollars in state aid money is from retail sales tax collections. “You are the free tax collection service for Minnesota,” he said.


Nustad said he was a little concerned Minnesota was reaching a plateau in retail sales. He said the pandemic actually gave a boost to retail, but he sees growth leveling off. However, Nustad acknowledged it was difficult to predict long-term trends because daily changes in the market.


“We get information way quicker than in my parents’ day,” Nustad said. It is easier for the average consumer to react to new information.


Tariffs were a great example of it. People who are worried about tariffs might make holiday purchases today instead of waiting for prices to increase. Then, the tariffs get paused. Then they are delayed for 90 days.


“There is a lot of stuff to react to and figure out,” Nustad said. “I think the consumer reacts to the information that is available on a daily basis and that makes it tricky.”


Roger Klockziem of Treasurer Haus said he believed the American consumers were tolerate of fluctuations in the market, but most people were taking a ‘wait and see’ approach.


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CNBC/NRF Retail Monitor Shows Continued Sales Growth But Less Stocking Up Ahead of Tariffs

From the National Retail Federation, June 13, 2025


Retail sales continued to grow in May even though consumers slowed down on stocking up ahead of tariffs, according to the CNBC/NRF Retail Monitor, powered by Affinity Solutions, released today by the National Retail Federation.


“The data for May indicates that the pull-forward in consumer demand ahead of tariffs is likely dissipating,” NRF President and CEO Matthew Shay said. “While momentum remains, the nature of consumer spending is shifting as economic uncertainty increases. Consumer fundamentals haven’t been damaged yet, and a slowing-but-still-growing job market is supporting household priorities ahead of any meaningful price increases in the coming months.”


Total retail sales, excluding automobiles and gasoline, were up 0.49% seasonally adjusted month over month and up 4.44% unadjusted year over year in May, according to the Retail Monitor. That compared with increases of 0.72% month over month and 6.76% year over year in April.


The Retail Monitor calculation of core retail sales (excluding restaurants in addition to automobile dealers and gasoline stations) was up 0.23% month over month in May and up 4.2% year over year. That compared with increases of 0.9% month over month and 7.11% year over year in April.


Total sales were up 4.95% year over year for the first five months of the year and core sales were up 5.24%. 


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