A Message - National Retail Federation Annual Report...12 naTIonaL reTaIL federaTIon annuaL rePorT...

A Messagefrom Terry Lundgren and maTThew Shay

We know your goal is to provide a great product and an unparalleled experience for your customers. As you’ll note in this report, the National Retail Federation and its communities have worked tirelessly throughout 2012 to make sure that all of your employees, from your executive team to your sales force, have the tools they need to succeed.

And while you’ve focused on the business of selling, the NRF team has focused on the busi-ness of retail advocacy. It has been our primary goal to ensure that opinion leaders, law-makers and media around the world understand the true value our vibrant industry brings to a less-than-perfect global economic situation.

As NRF works to advocate for an industry that provides millions of careers, gives back to communities and drives innovative technologies and services for customers, our organiza-tion will also continue to provide the high quality education and research that retailers and service providers depend on as they look to grow their businesses.

We’re excited to share with you all that NRF has accomplished in 2012 and look forward to providing continued value in 2013 and beyond.

NRF’s mission is to advance the interests of the retail industry through advocacy, communi-cations and education. As the world’s largest retail trade association and the voice of retail worldwide, NRF represents retailers of all types and sizes from the United States and more than 45 countries abroad including department stores, specialty, apparel, discount, online, independent, grocery and chain restaurants, among others. Retailers operate more than 3.6 million U.S. establishments that support one in four U.S. jobs – 42 million working Americans.

www.nrf.com

Terry J. Lundgren Chairman, President and CEO, Macy’s, Inc. Chairman of the Board, NRF

Matthew R. Shay President and CEO National Retail Federation

DUPLICATE PAGE PROVIDED FOR VISUAL AID

Board of Directorsmarty P. albertson, Chairman, Guitar Center, Inc.

Thomas g. Bata Jr., Chairman, BataCorp SA

h. James Baum, CEO, BGH “Here’s Hallmark” Shops

robert m. Beall II, Chairman, Beall’s, Inc.

artem a. Bektemirov, CEO, Pharmacy Chain 36.6

Tim m. Belk Jr., Chairman and CEO, Belk, Inc.

robert m. Benham, President and CEO, Balliet’s LLC

Byron L. Bergren, Chairman, The Bon Ton Stores, Inc.

hasan Cem Boyner, Chairman and CEO, Boyner Holding A.S.

Claudio del Vecchio, Chairman and CEO, Brooks Brothers Group, Inc.

Brian K. devine, Chairman, PETCO Animal Supplies, Inc.

roger n. farah, President and COO, Ralph Lauren Corporation

Joe flannery, President, Weaver’s, Inc.

mindy f. grossman, President and CEO, HSN, Inc.

Philippe houzé, Chairman of the Executive Board, Galeries Lafayette

david r. Jaffe, President and CEO, Ascena Retail Group, Inc.

m. farooq Kathwari, Chairman, President and CEO, Ethan Allen Interiors Inc.

Karen w. Katz, President and CEO, The Neiman Marcus Group, Inc.

Kay Lawther Krill, President and CEO, ANN INC.

Craig L. Levra, Chairman, CEO and President, Sport Chalet, Inc.

Keith Lipert, President, Keith Lipert Gallery

Karen Lowe, GM, Global Retail Industry, IBM Corporation

Terry J. Lundgren, Chairman, President and CEO, Macy’s, Inc.

Lovro mandac, CEO, Galeria Kaufhof GmbH

ramon martin, President, Merchant Services Americas at American Express, American Express Company

Chris mcCormick, President and CEO, L.L. Bean, Inc.

mitchell B. modell, CEO, Modell’s Sporting Goods

Bob myers, President & CEO, Sheplers, Inc.

alison Paul, Principal, Deloitte Consulting LLP

Jorge Pont, Assistant to the Chairman, Sr. Director, International Affairs, El Corte Inglés, S.A.

david ratner, President, Dave’s Soda-Pet City

ron Sacino, President and CEO, Sacino’s

Stephen I. Sadove, Chairman and CEO, Saks Incorporated

gordon I. Segal, Founder, Crate and Barrel

Laura J. Sen, President, CEO, and Director, BJ’s Wholesale Club, Inc.

matthew r. Shay, President & CEO, National Retail Federation

edward w. Stack, Chairman and CEO, Dick’s Sporting Goods, Inc.

Kip Tindell, Chairman and CEO, The Container Store, Inc.

James f. wright, Chairman & CEO, Tractor Supply Company

arnold B. Zetcher, Chairman & CEO, Retired, The Talbots, Inc.

A Messagefrom Terry Lundgren and maTThew Shay

We know your goal is to provide a great product and an unparalleled experience for your customers. As you’ll note in this report, the National Retail Federation and its communities have worked tirelessly throughout 2012 to make sure that each of your employees, from your executive team to your sales force, have the tools they need to succeed.

And while you’ve focused on the business of selling, the NRF team has focused on the busi-ness of retail advocacy. It has been our primary goal to ensure that opinion leaders, law-makers and media around the world understand the true value our vibrant industry brings to a less-than-perfect global economic situation.

As NRF works to advocate for an industry that provides millions of careers, gives back to communities and drives innovative technologies and services for customers, our organiza-tion will also continue to provide the high quality education and research that retailers and service providers depend on as they look to grow their businesses.

We’re excited to share with you all that NRF has accomplished in 2012 and look forward to providing continued value in 2013 and beyond.

Terry J. Lundgren Chairman, President and CEO

Matthew Shay President and CEO National Retail Federation

30 // July: leveling the Playing Field for All Retailers: Advocating for Sales Tax Fairness

32 // AuguST: Trendspotting: The Back-to-School Shopper

34 // SePTemBeR: leading the Industry on Digital Retail

37 // OcTOBeR: Advocating for Retailers on Swipe Fees

40 // NOvemBeR: Politics and the election: The Impact on Retail

44 // DecemBeR: Trendspotting: Holiday Forecasts and consumer Spending

48 // PuBlIcATIONS

Table of Contents08 // JANuARy:

Retail’s BIg Show

12 // FeBRuARy: Trendspotting: The consumer Outlook for 2012

14 // mARcH: Fighting for Smarter Health care Reform

16 // APRIl: Representing Retail communities: experts, education and events

22 // mAy: Telling Retail’s Story

26 // JuNe: Building the Next generation of Retail leaders

8 naTIonaL reTaIL federaTIon 9annuaL rePorT 2012

JanuaryreTaIL’S BIg Show

For hundreds of thousands of retailers the start of a new year means stashing away holiday displays, pouring over holiday sales data and revamping websites for a new calendar year. For many of them January means more than the day-to-day operations, it also means a much anticipated trip to New York City.

In 2012, Retail’s BIG Show was NRF’s 101st Annual Convention, symbolizing a century of retailers coming together and learning from the leading voices in the industry. And the 2012 event was record breaking: 25,500 attendees from 78 countries; 439 solution providers on the BIG Show EXPO hall floor; and 50,000 page views over four days on Retail’s BIG Blog, which featured full coverage of the show.

But the stats only tell one part of the story. The reason why attendees flock to the BIG Show each year, and the reason why retail executives across the world visit Retail’s BIG Blog for coverage of the show is the world-class educational content that NRF offers the industry.

A consistent theme of the 2012 event was an industry-wide focus on jobs, innovation and con-sumer value as part of NRF’s Retail Means Jobs campaign. NRF secured a best-in-class roster of speakers, including executives from Fortune Magazine, Gilt Groupe, Rent the Runway, Hud-son’s Bay Company, Ascena Retail Group, Ralph

“The BIG Show brings together, retailers and solution providers to discuss the latest innovations in retail technology. It’s an excellent opportunity to see and compare product offerings from leading providers of retail solutions.” James A. Lance, SVP, CIO, The Bon Ton Stores, Inc.

(Clockwise) Macy’s Chairman, President and CEO Terry Lundgren; Former President Bill Clinton; HSN CEO Mindy Grossman; and Saks Fifth Avenue Chairman and CEO Steve Sadove take the stage at Retail’s BIG Show 2012


@NRFnews:

CNBC’s @CourtReagan broadcast @RetailsBIGShow, covering @Intel @Microsoft & @IBM trends on EXPO floor.

Lauren, Whole Foods, Macy’s, The Container Store, Saks, Burberry, Guitar Center, PETCO, and even President Bill Clinton.

As Clinton addressed a packed hall of delegates, he shared that he is, in fact, among the millions of Americans who found their first job in retail. Another exciting keynote discussed ways retailers can provide better consumer value, as executives from Coca-Cola described how they provide a channel-customized consumer experience for their 20 million outlets daily. Looking to innovation, Whole Foods executives Walter Robb and John Mackey were awarded the industry’s Innovators of the Year award for their focus on community support and environmental improvement. Their efforts to ensure top-notch company culture, with happy, talented and committed employees, has ensured them a spot on Fortune Magazine’s 100 Best Companies to Work For every year since the list began.

Why Retailers Attend Retail’s BIG ShowAS RePORTeD By POST-SHOw SuRvey

84.6

%

89.2

%

87.5

%

83.3

%

of attendees rated their experience at BIG Show as good or excellent.

of attendees said the EXPO Area at BIG Show provided opportunities to learn about new products or services.

of attendees said the EXPO Area at BIG Show supplied a comprehensive array of solution providers.

of attendees said they would, or were likely to, recommend BIG Show to a friend or colleague.

of attendees said they would attend BIG Show 2013.

83.7

%

What’s Hot at retail’s BIg Show


$150

$59.

33

$52.

63

$126

.03

$116

.21

$33.

97

$33.

05

$145

.28

$131

.04

2012 2011

$30

$0

$60

$90

$120

TOTAL SPENDING:

$10.1 billion

TOTAL SPENDING:

$17.6 billion

TOTAL SPENDING:

TOTAL SPENDING:

$16.8 billion

Super Bowl Valentine’s Day St. Patrick’s Day Easter

$4.14billion

FebruaryTrendSPoTTIng: The ConSumer ouTLooK for 2012

With the start of the calendar year came predictions on whether the shopper of 2012 might withstand the economic uncertainties of the past few shopping seasons and begin the year with a little more disposable income. However, early projections from NRF showed that while retail was set to grow at a rate faster than many other U.S. industries, the 2012 retail sales forecast showed a modest rise of 3.4 percent to $2.53 trillion for the year – slightly lower than the pace of 2011, in which sales grew 4.7 percent. Through the calendar year, how-ever, retail would prove to be resilient once again.

Used as a barometer for retailers planning their operations throughout the year, NRF surveyed the pulse of American shop-pers throughout the first few months of 2012 to track industry-wide trends. This data, coupled with monthly retail sales reports, showed a confident but cautious consumer.

“Our 2012 forecast is a vote of confidence in the retail industry and our ability to succeed even in a challenging economy. Retailers have played a key role in driving growth, but to continue this momentum we need Washington to act on proposals that will spur job creation and unleash the power of the private sector.” NRF President and CEO Matthew Shay

@NRFnews:

NRF forecasts retail indus-try sales growth of 3.4% in

2012. #nrf12

NRF ExpEcts REtail salEs to RisE 3.4% iN 2012

“Over the last 18 months, retailers have been on the forefront of the economic recov-ery – creating jobs, encourag-ing consumer spending, and investing in America.” Matthew Shay, Forbes, January 16, 2012

Spending During the Holidays PeR PeRSON


center. Post-ruling, NRF continued to stay in the public eye to explain what the deci-sion meant to retail and restaurants across America by appearing in national and congressional publications as well as broadcast news. And each day, Trautwein, on behalf of NRF and the industry, sat through the Supreme Court hearings and explained just how the arguments applied to retail.

Immediately following the ruling, NRF continued its long-standing leadership role to impact the regulatory agencies as they work to develop and implement health care exchanges and essential health benefits criteria so they do not include non-essential benefits that will drive up costs and limit affordability for retailers and their employees.

MarchfIghTIng for SmarTer heaLTh Care reform

On March 29, 2012, NRF’s Neil Trautwein took his place with other experts, ana-lysts and reporters at the U.S. Supreme Court in Washington, D.C. The day marked the third and final hearing to weigh the constitutionality of the Affordable Care Act (ACA), and Trautwein was ready with pen in hand to analyze the results and impact of this historical ruling. But the road to health care reform started long before these critical days in March. In the preceding months, NRF led coalition-building initiatives including the retail and chain restaurant industries – the two biggest industries that would be impacted by the decision – in a productive, bipartisan effort toward health care coverage that made

sense for all.

Known for his expertise on health care in the business community, Traut-wein leveraged his three decades of experience with policy and coalition

building to position NRF as ACA thought-leaders, and the retail industry as a powerful lobby. Serving as chairman of the Essential Health Ben-efits Coalition and the Employers’ Health Care Clearinghouse, NRF captained these allied health care groups to find the most equitable health care solution for retailers, restaurants and their employees. NRF also championed discourse with the Obama Administration through

the Choice and Competition Coalition to encourage the White House and states to set timely, simple and complete rules for

businesses as well as individuals.

As the date of oral arguments approached, NRF ramped up support for the business community. Preparations for any possible outcome never ceased, and essential health benefits guides for employ-ers were assembled from a variety of reputable resources and made available for free on NRF’s Retail Means Jobs health care resource

@RetailMeansJobs:

How will the Supreme Court ruling on #healthcare af-fect #retailers? Get informed about the issues at stake: retailmeansjobs.com/

healthcare #aca

“If the law doesn’t work for retailers, the

law doesn’t work.”

David French, Senior Vice President, Government Relations, The Hill,

July 31, 2012

HEaltH caRE aFFoRdability is

pERsistENt coNcERN

“For many, especially small businesses straining to survive in the struggling economy, the rising cost of health care has left them with no easy decisions about how to continue offering coverage to their workers. And some small-business owners have never been able to afford

coverage in the first place.”

Op-Ed by Neil Trautwein, Roll Call, May 14, 2012

obamacaRE REtail REcoil

“NRF’s vice president Neil Trautwein elaborates: ‘If you have 50 full-time, or full-time

equivalent employees, then you’re subject to the penalties,’ he says, which means a firm can ‘only grow so high before you can be penalized.’ NRF has a ‘health mandate cost calculator’ up on its website to help employers navigate the weeds, and they’ll need it.”

Mary Kissel, The Wall Street Journal, June 28, 2012


AprilrePreSenTIng reTaIL CommunITIeS: exPerTS, eduCaTIon and eVenTS

Across the 100-year history of NRF, the organization has worked hard to represent the wide spectrum of retail operations. But it was only in 2012 that NRF’s wide-ranging communities worked together to deliver education, thought leadership and expertise holistically to that vision.

With the creation of a new role of Senior Vice President of Communities, Vicki Cantrell has set a fresh vision for NRF’s specialized divisions, including Shop.org, ARTS (Association for Retail Technology Standards), Loss Prevention, the CIO Council and RAMA (Retail Advertis-ing and Marketing Association). While these communities have presented powerful value to their members to this day, each also brings a unique perspective to overarching retail issues, like mobile technology and meeting the needs of a channel-free shopper.

One of the first major projects spearheaded by Cantrell in 2012, was the Integrated Mobile Initia-tive (IMI), bringing together expertise, leadership and original content from all of NRF’s communities under one main program of work. The IMI pro-vides thought leadership on the practical imple-

mentation of mobile retailing across the retail industry. Through events and research the program will serve as a barometer of where the industry is, and where it will go with mobile technology development.

mobilE REtailiNg: WHy youR compaNy NEEds a macRo

appRoacH

Piece by piece we have dissected what mobile means to each of our communities. With Shop.org, we’ve evaluated

how mobile is changing the seamless multichannel consumer experience. At ARTS, we’ve developed a blueprint for retailers

looking to jump into the space. Within our loss prevention com-munity, we’ve evaluated the many ways mobile can both help and hinder asset protection. And with our CIOs next month, we’ll be talk-ing about how technology impacts data gathering and a customized user experience.

Through all of this, what have we learned? Well, that there aren’t too many groups – none to be exact – who are taking

a holistic approach on the issue and looking at how tech-nology impacts companies at the macro level.”

Vicki Cantrell, Senior Vice President of Commu-nities, Retail’s BIG Blog, August 9, 2012

“In the U.S. we’re hearing two key takeaways from our members on how to live in this omnichannel

world—first, make sure that the way you present your brand is optimized for the devices that your customers are using—and second, upgrade your in-store technology to meet your consumers’ needs.” – Matthew Shay, 4th Annual

Global E-Commerce Summit,

Barcelona, June 5, 2012

CHIEF INFORMATION OFFICER CHIEF FINANCIAL OFFICER CHIEF OPERATING OFFICER CHIEF EXECUTIVE OFFICER PRESIDENT OF DIRECT GENERAL COUNSEL CHIEF MARKETING OFFICER

Is our omnichannel strategy on par with the competition?

How will a new mobile payments system impact our audit?

Should we increase resources to our online division based on rate of growth?

What will our brand look like in 10 years?

Pitch question to

NRF’s Financial

Executives Council

for thoughts.

Read retail case study from Shop.org’s Annual Summit: Finish Line, Cabela’s execs: Company culture and young talent key to omnichannel success.

Is neuromarketing worth a look?

Will data security legislation impact our ability to provide a personalized shopping experience?

Review retail case study

from Retail’s BIG Show First

Look track: Get inside their

heads: 12 factors that

impact whether customers

click “buy”

How can we utilize our website to improve customer experience and increase conversion?

What does our shopper want to see from us on social media platforms?

Pitch question to

NRF’s General

Counsels Forum for

thoughts.

Can we balance the risks and rewards of mobile payment systems in store?

Watch Joe LaRocca’s popular LP ’12 keynote: Mobile POS: The

good, the bad and the ugly

How can we leverage big data to drive to a personalized experience?

Review retail case study

from NRFtech ’12 and

send to CMO: How data is

driving the future of

fashion at ModCloth

Our mobile app capabilities seem inconsistent with customer needs. How should we fix this?

Review ARTS

mobile

integration

whitepaper

and send to

internal team.

What’s the best way to update our legacy system?

Work with ARTS to find

cost-effective strategy

available through standards.

Are we staffed appropriately for Black Friday shoppers in store?

Is our organization structured for the next generation of retail? Connect with execs

from Retail’s BIG Show

Organization of the

Future session.

“Most importantly, we understand that a retailer’s international strategy is heavily dependent on operations, technology and marketing partners and systems to prosper in a fierce and changing global marketplace.” –Vicki Cantrell, March 12, 2012, Retail across borders:

6 considerations for international expansion.

Mobile is growing so fast. Can we keep up?

Are our mid-level managers leveraging peer-to-peer collaboration? Ensure digital

managers attend at least one Shop.org regional dinner.

Shop.org Forecasts Online Holiday Sales to Grow 12% Over Last Holiday Season

NEWS

How do we partner, learn from, and simultaneously compete with the retail tech titans?

Review trends in retail innovation in the tech titan era from NRFtech ’12

Send around

NRF’s crowd

control

guidelines as a refresher for

store managers.

Are we ready to expand internationally?How can we adjust our supply chain model to better deliver on marketing promises?

Read retail case study

from NRF’s Supply Chain

Summit ’12: How Sears

adjusts the supply chain

model for an

omnichannel

reality.

Shop.org State of

Retailing Online report

shows retailers leveraging

tablets to elevate brand,

boost sales

NEWS

Survey Finds Consumers

Using Pinterest to Engage

With Retailers More Than

Facebook, Twitter

NEWS

NRF BLOG: A/B testing: The secret to successful conversion


@GovernorOMalley:

Vote for Baltimore’s own “Falls Road Running” Store for

the “This is Retail” contest. retailmeansjobs.com/JimAdams

@NRFnews:

@RepTierney shows support for constituent & #ThisisRetail Top 20 finalist @Cakes4Occasions

cc @RetailMeansJobs

MayTeLLIng reTaIL’S STory

Retail is more than just selling product for profit. Retail impacts philanthropy, community revitalization and innovation. And that’s the story retailers took to Capitol Hill this year dur-ing NRF’s Washington Leadership Conference (WLC) as executives met with more than 70 lawmakers from their respective communities.

Over the previous 76 years, WLC created opportunities for meetings between retail execu-tives and their elected officials to address critical policy issues in the industry. The 2012 event found a dynamic new platform: NRF’s “This is Retail” video contest, which sought vid-eos from retailers across America and awarded cash prizes for the best retail story. The contest culminated in the chance of a lifetime: to sit down with lawmakers and explain just how their businesses impacted their com-munities back home.

Prior to making the trip to Capitol Hill, the three finalists along with hundreds of other retail executives attending WLC, were reminded by CNN Political Analyst and Commentator Paul Begala of how important their cause is to America. “We were born into this great land of oppor-tunity. And as retailers, your careers are in the ‘American Dream’ business.” It was the American Dream theme that resonated throughout visits with lawmakers.

tiERNEy visits cakEs FoR occasioNs

iN daNvERs

“U.S. Representative John Tierney visited Cakes for Occasions owner Kelly Delaney recently to congratulate the bakery on being named a finalist for the National Retail Federation’s ‘This is Retail’ video contest.”

Justin Rice, Boston.com, April 5, 2012

@RepSchilling:

IL-17 #smallbiz woman, Susan Kaufman from @marketalleywine is in the final 3 for @NRFnews #Thisisretail video contest! retailmeansjobs.com/

SusanKaufman

@FLGovScott:

Let’s help #ThePol-kaDotPress win the Ntl. Re-tail Fed. video contest. They’re the only FL biz who made it to the finals. thepol-

kadotpress.com


NRF oFFERiNg $25,000 FoR bEst REtail stoRy

“Do you have one of the best retail stories in America? No, that’s not a typo, we do mean stories, not stores, although the two need not be mutually exclusive!”

Lauren Parker, Accessories Magazine, January 27, 2012

BeHIND THe SceNeS: FINDINg AmeRIcA’S BeST ReTAIl STORy

The video contest was the narrative behind NRF’s Retail Means Jobs campaign which dem-onstrated retail’s unique role as a significant contributor of jobs, innovation and consumer value in America. In all, hundreds of videos were submitted from across the nation repre-senting national chains, medium-sized retailers and small town shops. But it was the success stories of small town retailers that won hearts and votes across the country.

With one million votes cast across the length of the contest, Tanna Dang, owner of Eden in Love in Honolulu, Hawaii; Susan Kaufman, owner of Market Alley Wines in Monmouth, Illinois; and Kim Williams, owner of the Polka Dot Press in Tallahassee, Florida were chosen as NRF’s “This Is Retail” finalists. By May, when the winners visited D.C., their Congressio-nal representatives already knew their stories by virtue of local press, ads and social media hype.

(Clockwise) Panelists from NRF’s government relations team update attendees of WLC ’12; Macy’s Chairman, President and CEO Terry Lundgren greets Senator Mike Enzi, a former Wyoming retailer; NRF’s This is Retail winners; Senior Vice President Government Relations David French.


JuneBuILdIng The nexT generaTIon of reTaIL LeaderS

As retailers continue to look for ways to set themselves apart from their competitors, they need to be sure they’re hiring – and retaining – the best talent possible. From private meet-ings to keynote sessions, retail executives have spoken frequently over the past year about the importance of building the next generation of retail leaders and promoting retail careers.

The NRF Foundation, the nonprofit arm of NRF, funded in part by donations from retail industry supporters, is specifically dedicated to bringing students from campuses across the United States into the folds of the retail industry, supporting them every step of the way and showing the limitless opportunities a career in retail can offer.

In March 2012, Ellen Davis was named the new Executive Director of the NRF Foundation. After carrying out an extensive survey with retail execu-tives and university faculty, Davis set about clarifying the Foundation’s mission and creating a new vision to better serve retailers, universities and students aspiring to enter the field.

“Our affiliation with the NRF Foundation has opened up opportunities to spotlight the nearly unending variety of retail careers available, the exceptional leaders in the industry and the amaz-ing opportunities to excel in retailing. The NRF Foundation is vital in helping our top students understand how vital retailing is to our economy and how important a career in the industry is.” Jerry O’Brien, Executive Director, Kohl’s Center for Retailing Excellence, University of Wisconsin-Madison

Congratulations to the Fall 2012 recipients of the Ray M. Greenly Scholarship.nrffoundation.com/scholarships


One of the Foundation’s most notable successes in 2012 was expanding its college and university partner program. In 2012, more than two dozen schools, such as the Jay H. Baker Retailing Center at the Wharton School of Business and the University of Phoenix, chose to partner with the NRF Foundation, giving their students access into the NRF

Student Association and admission to exclusive networking opportunities with retailers and recruiters at Retail’s BIG Show

in New York City.

In 2012, the Ray M. Greenly Scholarship Fund, administered by the NRF Foundation, distributed over $200,000 to dozens of deserving

students across the United States. These funds will help with tuition fees and enable students to attend NRF’s educational events.

In addition, the Foundation also provided professional certification and workforce training for thousands of high schools, colleges and workforce agencies looking to provide entry-level qualifications for people interested in working in retail.

Under the new direction of Davis, the NRF Foundation set an impressive path for moving forward and delivering on its objectives for students, retailers and universities.

NRF On Campus is the social media headquarters for the NRF Foundation. Hundreds of students and educators follow the page for the latest news about events, scholarships, jobs,

internships and networking op-portunities in the retail world.

The retail industry employs nearly

1 in 4

working teenagers=10,000

The retail industry has added nearly

300,000 non-seasonal employees across the last 2 years.

retail employees over the age of 24

has a college degree

1 in 369.2%of

ret

ail e

mpl

oyee

s are employed full-time


A level playing field is critical to spur growth, pro-mote success within the retail industry, and to really make our customers happy with our services and our prices.” Teresa Miller, small business owner, Treats Unleashed, Kansas City, Missouri.

@NRFnews:

During his floor speech, @SenatorDurbin

acknowledges the National Retail Federation’s support for the Marketplace Fairness Act. #efairness

JulyLeVeLIng The PLayIng fIeLd for aLL reTaILerS: adVoCaTIng for SaLeS Tax faIrneSS

Sales tax policies affect retail businesses in more ways than meets the eye: point-of-sale tech-nology, collection reporting, staffing and accounting operations – and a healthy understanding of these issues was the goal of NRF’s summer-long campaign to promote sales tax fairness.

Regardless of whether you sell on Main Street, in bustling Manhattan or purely online, clarity for state sales tax collection requirements would go a long way in streamlining retail opera-tions and ensuring retailers can effectively abide by state sales tax laws.

While a number of states have passed their own legislation to ad-dress the issue, NRF believes the solution to sales tax collection requires a federal law that is fair, flexible, and applies to all sellers.

For the second consecutive year, The Hill newspaper named Senior

Vice President of Government Relations David French one of its top lobbyists. The

newspaper – well regarded and respected inside the Beltway with government and public policy stakeholders – cited NRF’s success in defending and advancing the retail industry’s victory on swipe fees, and the association’s momentum on leveling

the sales tax playing field between lo-cal retailers and online sellers.

@RetailMeansJobs:

An uneven #salestax playing field hurts local economies, jobs and governments. See what @NRFnews is doing about it: retailmeansjobs/efairness

NRF’S SAleS TAX FAIRNeSS cAmPAIgN, AS SeeN IN:

On NRF Facebook page

NRF worked hard to tell this story in Washington and around the country through paid advertising, an online petition, outreach to state retail associations, nationwide

events, social media, and videos featuring businesses affected by the issue.

NRF helped drive the dialogue nationwide with significant news coverage, including stories in The Wall Street Journal, National Journal, Women’s Wear Daily, Bloomberg, and The Hill. NRF President and CEO Matthew Shay participated in an editorial board with the Sun Times, hometown paper of Senator Durbin (D-IL), which resulted in the placement of a op-ed in his name. He also penned an op-ed in the Cincinnati Enquirer and on the McClatchy wire, which ran in over two dozen papers nationwide, spreading NRF’s message from coast to coast.


back-to-scHool sHoppERs spENd 27% moRE WHEN buyiNg oNliNE

Mashable, August 14, 2012

Trends Impacting Back-to-School Spending in 2012

AugustTrendSPoTTIng: The BaCK-To-SChooL ShoPPer

An unusually strong winter—driven by sales of cold weather attire and bright, trendy fash-ions—was followed by a rocky spring, which made forecasting summer and back-to-school sales particularly difficult this year. After one of the hottest Julys on record, combined with extreme drought conditions for many states across the country, the U.S. Department of Com-merce reported in July that June retail sales missed expectations, showing a consumer who was clearly hesitant to spend on anything other than the essentials, such as health and per-sonal care items and grocery products. At that time, NRF’s Chief Economist Jack Kleinhenz stated that the data was “discouraging but not demoralizing.”

But more than halfway through August, many forecasts began to trend upwards again. Ac-cording to an NRF study, July retail sales increased 0.8 percent from the previous month and 1.2 percent year-over-year. This increase can, in large part, be attributed to the second biggest shopping season of the year: back-to-school. During that same time, traffic at major U.S. retail ports was expected to rise more than 6 percent over 2011 as retailers begin to stock up for the holidays ahead.

This year back-to-school shopping was as important as ever, as the aver-age person with school-aged children planned to spend about $688 on everything from school supplies and denim pants to laptops and foot-wear. Add in what people intended to spend on their college student – an average of $907 – and total combined spending on school and college merchandise was expected to top $83 billion.

By the end of summer, when millions of children and their parents had checked off their back-to-school shopping lists, combined sales for July and August grew 3.5 percent over the previous year, a positive sign that consumers still had the ability and desire to spend. With a solid back-to-school season under their belts, retailers started looking towards the bigger piece of the pie – the holiday season.

@NRFnews:

RT @bettyinthe-loop: .@NRFnews CEO Matt Shay says #1 issue for back-to-school shoppers: The econo-

my. #bts

85% of shoppers say the economywill impact how, what, when, where and why they shop for school and college items.

Since 2003, online shopping has quadrupled for back-to-school – and this year, smart shoppers are heading online in droves to comparison shop and find the best value.

85%

2007

10.9 % 21.4 39.6% %

2003 2012

Percentage of school shoppers buying at least one item online

874$

Online Shoppers Set to Spend More And by more, quite a bit more! On average, shoppers heading

online will spend $874 on average for back-to-school supplies, a

increase above the overall shopper

average. 27%

back-to-scHool looks up

“This is something most parents consider virtually mandatory,” said NRF Chief Executive Matthew Shay. “They want to send their kids back to school with the clothes and supplies they need.”

Matthew Shay, President and CEO, Wall Street Journal,

July 19, 2012


9.3 retail companies on Pinterest,

6.9 retailers they followon Facebook

8.5 retailers they track via Twitter.

compared to the average

and the

U.S. shoppers follow an average of

(Clockwise) Nordstrom President of Direct Jamie Nordstrom; Shop.org Executive Director Vicki Cantrell; Toys “R” Us Chairman and CEO Jerry Storch; and Forrester Research Principal Analyst Sucharita Mulpuru take the stage at Shop.org’s 2012 Annual Summit.

SeptemberLeadIng The InduSTry on dIgITaL reTaIL

As consumer adoption of technology accelerates, retailers are looking to Shop.org, NRF’s digital division, to lead the industry in research, events, knowledge sharing and trendspot-ting. No other digital trend was hotter in 2012 than mobile, especially key insights into how consumers shop through their devices. This year, Shop.org’s State of Retailing Online report found that half of retailers say their average order value via a tablet is now higher than tra-ditional web sales. In response, brands are investing in mobile marketing and on average, 3.9 percent of their total interactive marketing budgets this year were dedicated to mobile advertising, suggesting a strategy of testing and measuring consumer response.

Shop.org’s Social and Mobile Commerce Study also took a deep dive into shopper’s expec-tations and behaviors when it comes to social shopping, as the survey found that consumers are using Pinterest to engage with retailers more than Facebook or Twitter. Overall, almost two out of five online consumers follow retailers through one or more social networking sites.

With much talk of mobile and social, and how they relate to local in-store sales, digital retail executives within the Shop.org community shared that many brands in the industry are mov-ing toward a channel-neutral approach to retail. At Shop.org’s record-breaking 2012 An-nual Summit, a popular track included sessions by Cabela’s, The Finish Line, Toys “R” Us and J.Crew on the importance of an omnichannel view of retail, as well as a keynote by Jamie Nordstrom, President of Nordstrom Direct, who shared tips and tactics for integrating multi-channel and store teams.

“This year’s Shop.org Summit was by far the best event I attended in 2012. Networking with other leaders across the retail industry gave me new insights and perspectives which I could never have hoped to get without actually being at the event itself.”Peter Cobb, Co-Founder, EVP, eBags Inc.

@shoporgsummit:

RT @retailgeek: 4000 attendees at #shoporg12 this year to talk digital com-merce. If you have an ‘add to cart’ button, you should be here!

retailmeansjobs/ efairness

@shoporg:

Great stat from Chris Ladd (@FinishLine) via Deloitte study: Customers with retailers’ app are 64% more likely to buy in-store

#shoporg12


OctoberadVoCaTIng for reTaILerS on SwIPe feeS

Swiping a credit or debit card at a register has become second nature to consumers. The convenience makes shopping at a store or online quick, easy and seamless. But when you look behind the plastic, there’s quite a bit more to it – most importantly, the structure of hidden swipe fees set by banks and credit card companies that hardly match the actual cost to process the transaction. They have tripled in the past decade, and when a 2010 law was passed, there was no competition or recourse for retailers to stop these fees from rising further.

Swipe fees are a percentage taken by banks from retailers each time a credit card is swiped to make a purchase, and they have skyrocketed to unsustainable levels for the industry in recent years. While these percentages vary, the end result is the same: swipe fees account for the third highest expense for retailers, while also driving up consumer prices for the aver-age household by $427 a year. So, NRF jumped into action when the credit card industry proposed a one-sided settlement that would put an end to a retailer’s ability to combat swipe fees.

Swipe Fees Add Up

2% of each transaction over one yearadds up quickly:

That’s

$427in swipe fees a year,

per houseould.

Over the last year Americans spent

$50 billion on retail via credit/debit


@NRFnews:

RT @mainemerchants: More details on the Visa/Mastercard settlement from @NRFnews. Worth a read. retailmeans-jobs.com/swipefees #swipefees

Representing the full range of merchants who could be included in this class action lawsuit, NRF’s Board of Directors approved efforts to ensure a solution would be presented that was equitable to the broad merchant community. The proposed $7.25 billion settlement was a one-time payout that amounted to pennies on the dollar for banks and credit card compa-nies – or less than three months’ worth of swipe fees collected by these institutions – a clear lose-lose-lose proposition for merchants, consumers, and competition.

The battle is far from over. While the litigation process runs its course, NRF continues to pro-actively seek legislation that introduces transparency and competition that would bring these fees down to a reasonable level. Most importantly, NRF will continue to pursue a system that will not compromise future entrepreneurs and innovators who would be burdened by these skyrocketing fees.

battlE ovER dEbit caRd sWipE FEEs goEs oN

“If retailers were keeping the savings in-stead of passing them on to customers, profit margins would have risen… Clothing retailers such as Urban Outfitters are using the savings provided by lower swipe fees to offer discounts or promotions on specific items.”

Mallory Duncan, SVP and General Coun-sel, NRF, USA Today, May 10, 2012

NRF’S SwIPe Fee cAmPAIgN, AS SeeN IN:

“What we need are changes in the rules that bring about transparency and competition that would be here for years to come.”

Mallory Duncan, SVP and General Counsel, CBS News, July 13, 2012


NovemberPoLITICS and The eLeCTIon: The ImPaCT on reTaIL

Throughout the fall, as NRF surveyed shoppers on their spending plans for Halloween and the winter holidays, one trend emerged loud and clear: eight in 10 consumers noted that the uncertain economic climate would impact their spending habits. Heeding this staggering figure, NRF and other business groups called lawmakers’ and public officials’ attention to consumer sentiment via media outreach, events and lobbying on Capitol Hill. Underlining the dramatic impact that a stalemate situation in Washington could have on consumer senti-ment and the holiday season for retailers all across the country, NRF lobbied hard for legislators to avoid the oncoming “fiscal cliff” of massive tax hikes and spending cuts sched-uled to take effect in January of 2013.

8 in 10 U.S. consumers said uncertain

economic conditions would impact their spendingNRF President and CEO Matthew Shay joined executives from other leading associations for a “Conversations with Power” panel discussion on the 2012 elections, the economy and the looming fiscal cliff. From left to right: Business Roundtable President John Engler; Mark French, CEO, Leading Authorities; Katty Kay, BBC America; Tom Donohue, President, U.S. Chamber of Commerce, Jay Timmons, President, National Association of Manufacturers, Matthew Shay, President and CEO, National Retail Federation

(Photo: David Bohrer, National Association of Manufacturers)


@RetailMeansJobs:

Looking for the candidates’ stance on key #retail issues? Look no further than our #Election2012 resource center retailmeans-

jobs.com/election

Economic policies and employment numbers were also a main focus in this election year; with retail supporting 42 million jobs across the country, the impact of “retail’s voice” on Election Day was a powerful one. In an effort to get-out-the-retail-vote, NRF launched a Retail Means Vote campaign encouraging retailers, retail employees and consumers to exercise their right to vote and to consider retail issues in the voting booth. In coordination with member companies and state retail organizations, NRF’s Retail Means Votes microsite served as an online voter education resource generating thousands of website visits. The site also enabled visitors to register to vote, obtain an absentee ballot, find their polling place and learn about the positions of candidates for federal office.

@RetailMeansJobs:

The #Election2012 land-scape: See how the Senato-rial, House and Presidential races break down retailmeansjobs.com/

election

REtail mEaNs votEs: WHy REtailERs

sHould gEt to tHE polls tHis yEaR

“Retail Means Votes seeks to engage and activate the entire retail industry, so that re-tail owners, employees and customers alike can make educated decisions at the voting booth with retail’s priorities in mind.”

David French, SVP, Government Relations, Retail’s BIG Blog,

October 4, 2012

ElEctioN 2012 iN REviEW: tHE impact oN REtail

“The top issue facing our nation the day after the election is the same as it was the day before the election—the economy.”

Matthew Shay, President and CEO, Retail’s BIG Blog, November 7, 2012


NRF on the Airwaves

DecemberTrendSPoTTIng: hoLIday foreCaSTS and ConSumer SPendIng

The last month of the calendar is always the most wonderful time of the year for retailers. The 2012 holiday season was no exception. With a little help from NRF and its communities, retail-ers were prepared to meet a new season of top-notch customer service, sales and cheer.

With consumers starting their holiday shopping even earlier this year, NRF and its spokes-people served as the go-to resource for business reporters and media producers for analysis and trends throughout the holiday season with more than 36,000 mentions over November and December.


35 million

72 million

More than

Americans visited retailers’ stores and websites on Thanksgiving Day.

$59 billion,Total spending over the Thanksgiving weekend topped

a 13% increase over 2011.

60%Over

of retailers said they’d begin marketing online holiday promotions by the end of October.

9 out of 10online retailers planned to offer some kind of free shipping this year.

Almost half of holiday shoppers said they shopped online on Black Friday.

Americans planned to shop for a holiday gift from the office this year.

Cyber Monday shoppers spent an average of

$194 online.

FREE

8 in 10 Americans said they planned to take advantage of retailers’ promotions over the Thanksgiving weekend to buy non-gift items, or self gifts

The Most Wonderful Time of the YearAhead of the holiday season, NRF released its annual holiday sales forecast projecting holiday retail sales to reach $586 billion, a 4.1 percent rise from 2011. For the first time ever, Shop.org also released an online holiday sales forecast, predicting that holiday e-sales would grow 12% over 2011. But the new research didn’t stop there.


SToreS – STORES Magazine is published monthly by NRF and features news and analysis on a broad spectrum of issues facing retail execu-tives. The magazine is available in print, digital and mobile versions.

retail Sales outlook – NRF’s Retail Sales Outlook

is a quarterly report on industry sales, providing a thorough overview of the current retail climate and projecting retail industry sales for the year.

nCCr ethanol report - This National Council

of Chain Restaurants report examines the effects of the use of corn-based ethanol required by the federal Renewable Fuel Standard on the chain restau-rant industry and its small busi-ness franchisees.

Soro – Produced annually in partnership with For-rester Research, Shop.org’s State of Retailing Online (SORO) study brings details of all aspects of e-commerce - from marketing, social media and mobile to KPIs, mobile and profitability - to the online retail community.

Crowd Control guidelines – NRF’s Loss Pre-vention community produces Effective Crowd Management Guidelines every year to assist retailers in planning advanced measures to protect their stores, customers and employees when managing large crowds.

arTS Social Blueprint – The ARTS Social Blueprint serves as a background report for retailers developing a social me-dia program. In further collabora-tion with the NRF communities, future versions will expand on how employees and sales associates can use social to increase customer service and operational efficiencies.

SToreS annual Lists – STORES Magazine pub-lishes yearly ranking reports for retailers, analysts and vendors, including: STORES Top 100 Retailers, Hot 100 Retailers (fastest-growing retailers), Favor-ite 50 (shoppers’ favorite online retailers) and Top 250 Global Retailers.

4-5-4 Calendar – NRF’s 4-5-4 calendar serves as a voluntary guide for the retail industry and ensures sales comparability between years by dividing the year into months based on a 4 weeks/5 weeks/4 weeks format. The calen-dar also establishes sales release dates, which have historically been on the first Thursday following the month’s end.

arTS mobile – ARTS Mobile Integration white paper expands upon retail integra-tion case studies illustrating the business process, mechanics and capabilities necessary to create and implement mobile solutions.

SToreS – Every month, STORES Magazine covers a wide range of topics for retail executives including: retail tech-nology, supply chain and logistics, credit and payment systems, loss prevention, human resources, online and mobile retailing, communications, marketing, mer-chandising and other vital store operations.

washington retail Insight – Washington insiders and public policy experts look to NRF’s Washington Retail Insight weekly newsletter for the latest information on public policy issues affecting the retail industry.

holiday Survival Kit – NRF’s yearly Holiday Survival Kit serves as a guide for reporters and retailers, offering a one-stop-shop for historical information on holiday sales, employment data and holiday trends.

Fourth Quarter:Released October 9, 2012

www.nrf.comRetail Sales Outlook Fourth Quarter

RETAILERS TO SEE SOLID GAINS THIS HOLIDAY SEASONAuthored by: Jack Kleinhenz, Ph.D., NRF Chief Economist

0.00

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2002

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2011

2012

Holiday Jobs 585K to 625K in 2012 Holiday Sales Up 4.1% in 2012Despite high anxiety about the U.S. economy, NRF is forecasting holiday sales will grow 4.1 percent this year to $586.1 billion — below last year’s 5.6 percent growth but above the 10-year average of 3.3 percent. E-commerce has become an important component of retailers’ success and mobile is expected to play an increasing role this holiday season. NRF is forecasting “non-store” sales, including e-commerce, will grow 12 percent in 2012, to between $92 billion and $96 billion. Retailers are expected to hire an additional 585,000 to 625,000 workers for the holiday season. That is in line with last year’s hiring of 607,000 seasonal workers.

HOLIDAY SALES GROWTH IS GOOD

www.nccr.net/ethanol-study

View ReportFederal Ethanol Policies and

Chain Restaurant Food Costs

“The chain restaurant industry isn’t anti-ethanol.

We simply believe it is time for the ethanol industry

to stand on its own, as restaurant owners and

operators do every day.”

– NCCR Executive Director Rob GreenThe Wall Street Journal, 11/28/2012 NRF’S 2012 HOLIDAY SURVIVAL KIT

HOLIDAY FORECASTS, CONSUMER TRENDS

AND HISTORICAL RETAIL SALES DATA FROM

THE NATIONAL RETAIL FEDERATION

www.nrf.com/holidays

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