EVERYTHING
RETAIL
ANNUAL REPORT 2003
HIGHLIGHTS
03
: MEETIN
NRF was retail’s leading advocate in Washington, winning a battle to make national credit reporting standards permanent and convincing the Labor Department to update overtime rules, a move that will save retailers $285 million annually.
THE NATIONAL RETAIL FEDERATION is the retail industry’s largest advocacy organization, advancing the industry through professional seminars, trade conferences, publications and educational activities and influencing the development and content of legislation and public policy affecting retailing and the consumer. By bringing under the Federation umbrella more than 100 state, national and international retail associations that have members in most lines of retailing, NRF represents an industry which encompasses more than 1.4 million U.S. retail establishments, employs more than 20 million Americans — about 1 in 5 U.S. workers — and registered sales of $3.6 trillion in 2002. NRF also has a sizable international membership of more than 1,000 stores in 50 nations abroad.
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G THE NEEDS OF AN EVOLVING INDUSTRY 2003 marked the beginning of a successful new format for executive level networking meetings with the CFO Summit, CIO Summit/NRFtech and CEO Summit/Mid-Year Board Meeting.
CHAIRMAN’S MESSAGE he retail industry has undergone quite a transformation over the years. New technologies, strategies and partnerships are driving industry growth and change. Even in the midst of all this innovation, there is one simple phrase that remains constant: the customer is always right. It was true when retail first started and it is true today. Retail as we know it is in a constant state of flux. The discounters are selling highend merchandise, department stores are discounting and just about every Internet retailer has a traditional foundation. You can even buy gift cards for your favorite retailer at your local grocery store. Clearly the lines of retail have blurred as new technologies are helping the consumer change the way she shops. Retailers now find themselves needing to be everything to everyone. Through it all, the customer still needs to come first. We can innovate and redefine all we want. Having our customers on board will get us that much closer to success. The National Retail Federation works tirelessly for its members, helping us keep up with the changing nature of the industry and giving us the tools we need to best serve our customers. Through issue advocacy, research and education, NRF has clearly positioned itself as the true thought leader of our industry. The rapid pace of change will no doubt continue for the foreseeable future. As the retail picture continues to blur, we will look to NRF to help bring clarity and help us redefine retail for the future.
GORDON I. SEGAL Chairman of the Board and Chairman of the Executive Committee, National Retail Federation and CEO, Crate & Barrel
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HIGHLIGHTS
03
: MEETIN
NRF and other retail plaintiffs won a $3 billion settlement in a seven-year-old lawsuit against Visa and MasterCard’s debit card practices, establishing the right of retailers to choose what forms of payment to accept and saving the industry an estimated $100 billion in reduced fees through the end of the decade.
PRESIDENT’S LETTER t’s been an astonishing year. In 2003 retailers adopted a wealth of strategies to entice new customers into their stores, morphing into new formats, adopting new merchandise strategies and employing new technologies to keep ahead of the competition. The whirlwind of change was profound. And consumers responded. What emerged was an industry that drove the U.S. economy despite war, weakened consumer confidence, and losses in the manufacturing sector. Just as the retail industry has evolved, so too has NRF, quickening our pace to keep ahead of the tidal wave of change. In the past year, NRF, along with other retail plaintiffs, succeeded in a landmark lawsuit against Visa and MasterCard that established a merchant’s right to choose what kind of plastic to accept. Also in 2003, at NRF’s strong urging, Congress made national credit reporting standards permanent, the Bush Administration agreed to revamp out-of-date overtime rules that subjected retailers to needless lawsuits, and NRF continued to battle to reduce protectionist barriers abroad. NRF experienced exponential membership growth both in the U.S. and internationally. We launched our DecisionMaker Series, events tailored specifically for CEOs, CFOs and CIOs, and achieved unparalleled success. We published the first annual Retail Horizons report, an industry-wide benchmarking study that provides an in-depth review of key industry metrics. The NRF Foundation won a $2.8 million grant from the U.S. Department of Labor, allowing us to continue to expand customer service training programs around the U.S., and we launched NRF University wired, our distance learning program. The prism through which we examine all the accomplishments of 2003 demonstrates unprecedented change and retailing’s impressive knack for reinvention. Through our members’ vision of our industry, we can begin to see ourselves more clearly and realize the greater potential that exists for retailing and for NRF going forward.
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TRACY MULLIN President and CEO National Retail Federation
G THE NEEDS OF AN EVOLVING INDUSTRY TABLE OF CONTENTS
NRF
Retailers of all types and sizes selected NRF as their trade association in 2003. NRF saw increases in both international and domestic members as well as a 97% retention rate among current members.
Statement of Purpose............................................inside front cover
CONTENTS
Chairman’s Message..........................................................................1 President’s Letter ..............................................................................2 Officers and Board of Directors ....................................................4-5 Government Relations ......................................................................6 NRF DecisionMaker Series ............................................................10 Conferences ......................................................................................15 Public Relations................................................................................18 Membership ......................................................................................20 Advisory Committees ......................................................................26 NRF Divisions ..................................................................................30 NRF Foundation................................................................................34 STORES Magazine ............................................................................36 Financial Information ............................................inside back cover
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GORDON I. SEGAL Chief Executive Officer Crate & Barrel FIRST VICE CHAIRMAN OF THE BOARD AND CHAIRMAN OF THE FINANCE COMMITTEE
JAMES M. ZIMMERMAN Chairman and CEO Federated Department Stores, Inc. SECOND VICE CHAIRMAN OF THE BOARD
ARNOLD B. ZETCHER Chairman, President & CEO Talbots Inc. THIRD VICE CHAIRMAN OF THE BOARD
RON SACINO President & CEO Sacino’s Formalwear CHAIRMAN OF THE AWARDS & NOMINATIONS COMMITTEE
ARNOLD B. ZETCHER Chairman, President & CEO Talbots Inc. PRESIDENT AND CEO
TRACY MULLIN National Retail Federation CORPORATE SECRETARY
H. JAMES BAUM President Baum’s Inc. CHAIRMAN OF THE NRF FOUNDATION
ROBERT J. CORLISS President and CEO The Athlete’s Foot Group, Inc.
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BOARD OF DIRECTORS
OFFICERS
CHAIRMAN OF THE BOARD AND CHAIRMAN OF THE EXECUTIVE COMMITTEE
Michael Anthony Chairman, President, and CEO Brookstone, Inc. Thomas J. Bata, Sr. Honorary Chairman Bata Limited *Robert M. Beall II Chairman and CEO Beall’s, Inc. John M. Belk Chairman and CEO Belk, Inc. Adrian Bellamy Chairman The Body Shop, Inc. Raphael Benaroya Chairman, President and CEO United Retail Group, Inc. *Robert M. Benham President and CEO Balliet’s LLC Henry Berlin CEO Berlin’s Brothers, Inc. Dorrit J. Bern Chairman, President and CEO Charming Shoppes, Inc. Cem Boyner Vice Chairman and CEO Boyner Holding A.S.
Paul R. Charron Chairman and CEO Liz Claiborne Inc. *A. F. Dawahare President Dawahare’s, Inc. Andre L.S. de Botton President ACV Comercio e Participações Brian Devine Chairman, President and CEO PETCO Animal Supplies, Inc. Paul Dottle SVP, Retail American Express Company John L. Dunham President The May Department Stores Company John Eyler Chairman, President and CEO Toys “R” Us, Inc. *Donald G. Fisher Chairman GAP, Inc. Joe Flannery President Weaver’s, Inc. *Louis Fortunoff EVP and Human Resources Director Fortunoff Fine Jewelry & Silverware, Inc.
The Voice
National Retail Federation *Craig L. Fuller President and CEO National Association of Chain Drug Stores *Marvin J. Girouard Chairman and CEO Pier 1 Imports Inc. Robert A. Glick Chairman and CEO Dots, Inc. John M. Hancock Chief Executive MFI Furniture Group PLC Lisa M. Harper Chairman and CEO The Gymboree Corporation George Heller President and CEO Hudson’s Bay Company Philippe Houze Co-CEO Galeries Lafayette Group Elliot S. Jaffe Chairman The Dress Barn, Inc. *M. Farooq Kathwari Chairman, President and CEO Ethan Allen Inc.
*Daniel S.C. Koo Chairman Shui Hing (HK) Limited Kazumasa Koshiba President Isetan Company Limited *Alan J. Lacy Chairman and CEO Sears, Roebuck and Co. Joseph W. Levy Chairman Gottschalks Inc. Lovro Mandac Chairman Kaufhof Warenhaus AG
Mitchell B. Modell CEO Modell’s Sporting Goods Tom Moser Vice Chairman KPMG Edwin T. Mosher President Mosher’s Ltd. *Bruce Nelson Chairman and CEO Office Depot, Inc. Allen Questrom Chairman and CEO J.C. Penney Company, Inc.
Robert B. Mang CEO Galyan’s Trading Company
*Leonard H. Roberts Chairman and CEO RadioShack Corporation
Manfred Maus Chairman of Supervisory Board OBI Bau-und Heimwerkermärkte GmbH & Co.
*Daryl Routzahn President and CEO Routzahn’s
H. Michael May President May Brothers Clothing Company James F. McCann Chairman and CEO 1-800-FLOWERS.COM W. Alan McCollough Chairman, President and CEO Circuit City Stores, Inc.
Stephen I. Sadove Vice Chairman Saks Incorporated Walter J. Salmon Emeritus Professor of Retailing Harvard Business School Rowland Schaefer Chairman, President and CEO Claire’s Stores, Inc.
Kenneth E. Seiff Chairman, CEO and Treasurer Bluefly, Inc. Robert A. Smith Co-Vice Chairman The Neiman Marcus Group, Inc. J. Hill Stockton President and CEO Norman Stockton, Inc. Marcia Tabler VP Creative Operations Lands’ End Kip Tindell President and CEO The Container Store *Robert J. Ulrich Chairman and CEO Target Corporation John Watson COO HSN Barton A. Weitz Executive Director University of Florida
NATIONAL RETAIL FEDERATION | EVERYTHINGRETAIL
Carolee Friedlander President and CEO Carolee Designs, Inc.
Leslie H. Wexner Chairman and CEO Limited Brands
*denotes Executive Committee members
of Retail Worldwide
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GOVERNMENT RELATIONS
From left, NRF President and CEO, Tracy Mullin, Undersecretary for Economic Affairs, Kathleen Cooper, Commerce Secretary Donald Evans and Evans’ Chief of Staff, Lisi Kaufman at an economic roundtable in Washington, DC, July 21, 2003.
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NRF Protects Retail Interests in the Public Policy Arena NRF is consistently rated as one of the most influential and effective trade associations in Washington, offering policy expertise and representation on all legislative, regulatory and political issues at the federal level. In 2003, NRF lobbied Congress and federal agencies on dozens of issues directly affecting the retail industry. NRF representation – both proactive and defensive – brought the industry billions of dollars in economic benefits.
= NRF won enactment of legislation to renew Fair Credit Reporting Act provisions that bar states from enacting laws that would interfere with uniform national standards for credit reporting. The provisions were set to expire December 31, 2003, and their loss would have driven up the cost of credit, reduced customer service and made functions like instant credit difficult.
LEGAL/LEGISLATIVE/REGULATORY ACTIVITY
= NRF convinced the U.S. Department of Labor to comprehensively update “white collar” overtime regulations under the Fair Labor Standards Act for the first time in 50 years. By reducing litigation from overtime disputes, the update could save retailers $285 million a year in legal costs.
= President Bush’s $330 billion 2003 tax cut, strongly supported by NRF, included withholding cuts and Child Tax Credit rebate checks that put billions of dollars in extra spending money into consumers’ pockets in time for the 2003 back-to-school season. Economists credited the cuts as one of the factors behind improved retail sales in 2003.
= NRF persuaded lawmakers to introduce legislation that would allow states that simplify sales tax laws to require that all remote sellers – including mail-order and Internet merchants – collect sales tax. Once enacted, the legislation will end remote sellers’ unfair price advantage and create a level playing field where all merchants play by the same tax rules.
= A lawsuit brought by NRF and major retailers against Visa and MasterCard’s debit card practices was settled in favor of retailers. The settlement included $3 billion in damages along with changes in card practices that should save retailers an estimated $100 billion through the end of the decade.
= For the fourth congressional session in a row, bankruptcy reform legislation that would save the business community $4 billion a year was passed overwhelmingly by the House with NRF’s support. Backers are now waiting for Majority Leader Bill Frist to schedule the measure for a vote in the Senate. = NRF emphasized retail’s top trade priorities while hosting key committee chairmen and other members of Congress at the World Trade Organization conference in Cancun.
NRF Senior Vice President and General Counsel, Mallory Duncan, left, testifies at a House Financial Services Committee hearing on the Fair Credit Reporting Act in Washington, DC, July 9, 2003. At right is attorney Michael McEneney, who testified on behalf of the U.S. Chamber of Commerce.
JCPenney Vice President and Associate General Counsel and member of the NRF Policy Council Bob Hood, left, discusses key legislation with House Financial Services Committee Chairman Michael Oxley, R-OH.
range of children’s merchandise. The proposal would have cost retailers millions of dollars to issue the cards, provide return postage and maintain records, needlessly duplicating efforts already put forth by manufacturers. = NRF won House passage of Association Health Plan legislation, which would allow small retailers to band together through trade associations in order to purchase employee health insurance group rates otherwise only available to companies with large numbers of employees. The proposal could save companies between 15 and 30 percent of current premiums.
NATIONAL RETAIL FEDERATION | EVERYTHINGRETAIL
The failure of the Cancun conference to produce a worldwide trade agreement threatens to delay the elimination of tariffs and accompanying cost savings for U.S. retailers and consumers, but talks should resume in 2004. The relationships forged during the conference will help NRF push for favorable action on these and other trade issues.
U.S Senator Christopher “Kit” Bond, R-MO, right, with U.S. Senator Jim Talent, also R-MO at an NRF Meeting in Washington, DC.
= The House passed class action reform legislation that would reduce the number of frivolous lawsuits faced by retailers and other businesses by forcing more cases into federal court. Major retailers have been a particular target of forum shopping because the presence of stores in multiple states makes it easy for plaintiffs’ attorneys to find a sympathetic judge. Maureen Riehl, NRF Vice President and State and Government Relations Counsel, speaks at a news conference announcing introduction of the Simplified Sales and Use Tax Act.
= NRF convinced the Consumer Product Safety Commission to scrap a plan that would have required retailers to issue and collect product registration cards for a wide U.S. Treasury Secretary John Snow discusses the holiday retail sales outlook at a private breakfast meeting with NRF member CEOs in New York City, including Paul Charron, Chairman and CEO, Liz Claiborne; Fred Wilson, President & CEO, Saks Fifth Avenue; Allen Questrom, Chairman and CEO, JCPenney; Steve Sadove, Vice Chairman, Saks Incorporated; Farooq Kathwari, Chairman, President and CEO, Ethan Allen; Gordon Segal, CEO, Crate and Barrel; Tracy Mullin, President and CEO, NRF; and Louis Fortunoff, EVP, Fortunoff Fine Jewelry and Silverware.
= NRF won House approval of legislation to make repeal of the federal estate tax permanent. Permanent repeal is important to small, family-owned businesses, which often must be sold to pay estate taxes. Temporary phase-out began in 2001 but the tax will return in 2011 if a permanent repeal is not enacted. Left to right, Steve Pfister, NRF Senior Vice President for Government Relations, and Nate Garvis, Target Corp. Vice President for Government Affairs and Chairman of the NRF Policy Council, discuss key issues with U.S. Senator Robert Bennett, R-UT.
Left to right, U.S. Secretary of the Treasury John Snow, Sears, Roebuck and Co. CEO Alan Lacy and Crate and Barrel CEO Gordon Segal at the NRF Mid-Year Board Meeting and CEO Washington Summit.
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House Majority Whip Roy Blunt, R-MO, addresses the crowd during the NRF Washington Leadership Conference.
GOVERNMENT RELATIONS
= NRF convinced lawmakers to introduce legislation that would make organized retail theft a federal felony. Criminals stealing more than $5,000 in goods during a sixmonth period and then offering them for retail sale could face 10 years in prison.
As part of NRF's Grassroots efforts, U.S. Representative Jim Gerlach, R-PA, speaks to NRF retail members about key retail issues in Wyomissing, PA.
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= NRF stood up to textile protectionists and convinced the U.S. government not to impose quotas at levels that would have effectively ended trade with Vietnam and cost apparel retailers hundreds of millions of dollars. The agreement signed between the two nations will allow up to $1.65 billion in annual trade, with an annual increase of 2 percent for wool products and 7 percent for cotton.
POLITICAL ACTIVITY = 2003 wasn’t an election year, but NRF’s RetailPAC nonetheless remained active by contributing more than $50,000 to the campaigns of more than 30 House and Senate candidates from RetailPAC, and hosting retail fund-raising events for a dozen House and Senate members that raised more than $160,000. NRF’s support went to a “who’s who” of prominent lawmakers such as Senate Banking Committee Chairman Richard Shelby; Senate Finance Committee Chairman Charles Grassley; Senate Health, Education, Labor and Pensions Committee Chairman Judd Gregg; House Majority Whip Roy Blunt; and House Financial Services Committee Chairman Mike Oxley. Separate from fund-raising activities, NRF also hosted a series of “Retail Education Event” breakfasts across the country, where local retailers could meet freshmen Members of Congress and educate them on the industry’s legislative priorities.
State and National Conference Highlights State-Level Retail Issues
NRF’s 68th Annual Washington Leadership Conference brought close to 150 retail executives, state retail association leaders and independent storeowners from across the nation together to meet with members of Congress on critical retail priorities. Commerce Department Undersecretary for Economic Affairs Kathleen Cooper, Senate Republican Conference Vice Chairwoman Kay Bailey Hutchison, R-TX, and House Majority Whip Roy Blunt, R-MO, were the main speakers during the June meeting in Washington. The conference also included events with Senate Finance Committee Chairman Charles Grassley, R-Iowa, and Senator Blanche Lincoln, D-AR. Cooper gave NRF credit for helping to pass President Bush’s $350 billion 2003 tax cut, which pumped billions of dollars of extra spending cash into consumers’ pockets during the back-to-school spending season and helped boost retail sales. Hutchison and Blunt promised help on industry tax priorities such as making the estate tax repeal permanent, shortening the depreciation period on retail improvements and requiring that remote sellers play by the same sales tax rules as brick-andmortar stores. Other key discussion topics during the two-day event included bankruptcy reform, trade issues, Fair Credit Reporting Act reauthorization, health insurance costs and spam e-mail. In addition to attending briefings and speeches, retailers fanned out across Capitol Hill for dozens of lobbying meetings with lawmakers and their staffs. The conference also included the traditional congressional reception at the U.S. Capitol attended by a number of prominent lawmakers.
More than 150 retail executives from across the nation gathered on Cape Cod this year for NRF’s 27th Annual Conference of State and National Retail Executives. While NRF’s government affairs efforts in Washington are focused primarily on federal issues, the state and national conference provides an annual forum for retail executives to network and discuss issues of concern to the retail industry on the state level. All 50 state retail associations are invited to attend. In addition to the state associations, a number of specialized national associations participate, such as NRF’s National Council of Chain Restaurants division, the National Association of Chain Drug Stores, the Food Marketing Institute and the Direct Selling Association. The conference also receives strong participation from major retailers and companies that provide services to retailers. For the first time, NRF co-hosted the conference with the International Mass Retail Association, a specialty group that became an NRF member during 2003. A highlight of this year’s conference was the presentation of NRF’s annual Legislator of the Year award to New York State Senator Stephen M. Saland. Retail Council of New York State President and CEO James Quaremba received the Thomas Weyant Award for State Retail Association Achievement. The conference featured discussions on supply chain security, sales tax simplification, proposed new overtime rules, electronics recycling and other issues. The conference also included the annual meeting of the Conference of State Retail Associations.
U.S. Senator Kay Bailey Huthchison, R-TX, addresses retail attendees at the Washington Leadership Conference.
NATIONAL RETAIL FEDERATION | EVERYTHINGRETAIL
NRF Washington Leadership Conference Takes Retail Issues to Capitol Hill
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CEO
NRF DECISIONMAKER SERIES
WASHINGTON SUMMIT
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NRF’s successful new DecisionMaker Series networking meetings for senior corporate executives brought CEOs, CFOs and CIOs together in three separate events in 2003 to discuss common issues, share information and learn about the factors that are affecting our industry.
NRF’s Mid-Year Board Meeting and CEO Washington Summit featured an impressive lineup of Congressional and Administration leaders including White House Chief of Staff Andrew Card, Commerce Secretary Donald Evans, Speaker of the House Dennis Hastert,
Senate Majority Leader Bill Frist (R-TN), shares a lighthearted moment with members of NRF’s Board of Directors during the 2003 CEO Washington Summit.
Speaker of the House, Dennis Hastert, R-IL, speaks with Alan Lacy, Chairman and CEO, Sears.
Senate Majority Leader Bill Frist, Senate Minority Leader Tom Daschle and a number of committee chairmen. Discussions centered on tax policy, health insurance costs, tort reform, Fair Credit Reporting Act reauthorization, elimination of trade quotas in 2005, and bankruptcy reform. Networking included a private reception and dinner with Treasury Secretary John Snow.
Gordon Segal, CEO of Crate & Barrel and Chairman of the NRF Board of Directors, left, shakes hands with U.S. Secretary of Commerce, Donald Evans, after Evans spoke at NRF's Mid-Year Board Meeting and CEO Washington Summit.
NRF Board of Directors Chairman Gordon Segal, left, shakes hands with Senator Robert Bennett, R-UT, Chairman of the House-Senate Joint Economic Committee. Senate Budget Committee Chairman, Don Nickles (R-OK), discusses tax and budget measures as Gordon Segal, CEO, Crate & Barrel and Tracy Mullin President and CEO, NRF listen.
Senate Minority Leader, Tom Daschle, D-SD, jokes with the crowd as Gordon Segal, CEO, Crate & Barrel watches.
Senate Finance Committee Chairman Charles Grassley, R-IA, speaks to the NRF Board of Directors.
Senate Foreign Relations Committee Chairman Richard Lugar (R-IN), answers directors’ questions about current international affairs.
Senate Judiciary Committee Chairman Orrin Hatch, R-UT, speaks to NRF board members. At right is Ron Sacino, President and CEO of Sacino’s Formalwear and chairman of the NRF Independent Stores Board.
NATIONAL RETAIL FEDERATION | EVERYTHINGRETAIL
Mitchell Modell, CEO, Modell’s Sporting Goods, Alan Lacy, Chairman and CEO, Sears, M. Farooq Kathwari, Chairman, President and CEO, Ethan Allen, Daryl Routzahn, President and CEO, Routzahn’s, Robert Benham, President and CEO, Balliet’s, Kip Tindell, President and CEO,The Container Store, and Robert Beall II, Chairman and CEO, Beall’s, listen to a presentation on key retail issues.
White House Chief of Staff, Andrew Card, addresses the NRF Board at a private meeting during the CEO Washington Summit.
11 Treasury Secretary John Snow speaks with Chairman and CEO, Federated Department Stores, Jim Zimmerman.
NRF DECISION MAKER SERIES
CFO
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IT Leadership Summit Focuses on Emerging Technologies and Issues Facing the Retail Industry
June’s CFO Summit in Washington brought together senior financial executives from leading retailers across the country to discuss strategies to improve their bottom line. Topics focused on maximizing the ROI of technology investments; managing the cost of human capital investments; and using corporate governance to maximize a company’s value. In addition to lively roundtable discussions, networking included a Dine-Around-D.C. restaurant-hopping event that provided for interaction in small, intimate groups with a gathering at the end for coffee and dessert.
NRF’s CIO Council, the retail industry’s established corps of premier retail CIOs, advanced and refined its annual invitation-only summit in San Diego last August. Retail IT leaders representing the depth and diversity of the industry convened to network with peers, learn from experts, discover innovative ideas and gain awareness of the latest technologies through the accumulated wisdom of the trade’s early adopters. Global participation and interest was clear as retailers from over seven countries were represented, including Mexico, Canada, Venezuela, Spain, Saudi Arabia, Germany and the United Kingdom.
Selected Key Trends and issues included: = Offshore Software Development. There is a marked resurgence in selective outsourcing as retailers of all sizes are in self-reflection mode to review task management and core competencies in response to the relentless pressure to reduce costs. This was indicated in the NRFtech attendee poll that revealed that 62% of attendees thought that project cost was the largest benefit of offshore development. Technology leaders are increasingly using offshore resources to handle software maintenance and devel-
U.S. Treasury Department Assistant Secretary for Tax Policy Pamela F. Olson speaks at the National Retail Federation CFO Summit in Washington, DC, June 18, 2003.
CFO Summit Attendees listen to a presentation on strategies to improve the bottom line.
Robin Lynas, CIO, Mark’s Work WearHouse (Canada), speaks at NRFtech on his company’s POS initiatives.
Chris Carroll from The Bombay Co. enjoys the luncheon speaker.
Dave Hogan, SVP and CIO, NRF, during introductions at NRFtech 2003.
Victoria Cantrell, CIO, Giorgio Armani Corporation, in attendance.
NRFtech 2003
= Fraud Prevention. An excess of $1 billion per year can be traced to payment fraud in terms of ID theft, counterfeit, lost/stolen payment devices, consumer-not-present purchases and payment kiting. Merchants, along with the government and consumers, share in the responsibility of fraud issues and implications, and continue to look at a combination of technology and best practices in fraud prevention technology. Speed, detection, and simplicity, with the interest in retaining the customer relationship were marked as essential needs.
= POS Selection. Point of sale is on the radar screen of retail CIOs as it tops the list of major technology investments. A distinct trend for open systems that provide retailer requirements for flexibility, enriched customer service at the point of sale, a move to real time retailing and cost management is duly recognized. New POS selections will also provide the prerequisite and blueprint to future enhanced technologies such as chip and PIN. An NRFtech audio response system poll indicated that over 43% of attendees plan on replacing both hardware and software components over the next 18 months (from August 2003). = Radio Frequency Identification (RFID). Touted as the retail industry’s Next Big Thing, RFID promises were revealed as Metro AG, a $54 billion retail giant, unveiled its vision of the future by employing a powerful combination of wireless equipment and RFID technology that boosted in-store efficiency, micro-marketing and ended long checkout lines. Wireless-controlled price displays, smart shelves with re-stock knowledge, handheld scanners for tracking in-store products, and shopping carts with touch-
NATIONAL RETAIL FEDERATION | EVERYTHINGRETAIL
opment and other time-consuming areas where retailers simply don’t have the inhouse expertise. Retail CIOs look favorably on the noted advantages of cost, quality, value, process and an increase in agility and productivity. Selective outsourcing enables the required flexibility and control needed to support the fast-growing scope and scale of infrastructure as sales increase and companies move toward globalization.
CIO
Natalia Caamano from Centrobeco C.A (Venezuela), takes advantage of the Cyber Café.
Offshore Software Development Panel Discussion with Retail CIOs. Moderator Brian Kilcourse, former CIO of Longs Drugs & Director of Research, Retail Systems Alert Advisory Service, hosts a CIO panel discussion on offshore software development with Bill Homa, CIO, Hannaford Bros, Cathy Curless, CIO, Payless ShoeSource, Richard Baldyga, Infosys and Rick Jewell, Oracle.
Jon Dell’Antonia, VP, IT, OshKosh B’Gosh, Inc., questions an NRFtech panel.
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Eric Peters, Manhattan Associates, discusses the latest in RFID.
Donna Arnold from The Bombay Co. and Germaine Palangdao, NRF, look on.
NRF DECISION MAKER SERIES
screens enabling automatic checkout and instore directions were displayed via video. RFID is seen as having a big impact on the retail industry supply chain over the next ten years with widespread adoption estimated at five years. General trends include pilots, marked by building scalable business cases and processes and incorporating widespread testing and prototyping. While retailers may vary in levels of urgency in their RFID approach, those that continue movement down this path are seen as retaining their competitive ability in the future. Terry Corley, SVP & CIO, Army & Air Force Exchange Service and Dale Achabal, Director, Retail Management Institute, Santa Clara University, take time during a break.
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Zygmunt Mierdorf, CIO of Metro AG (Germany’s largest retailer) shares concepts of the “Store of the Future” initiative – a concept store designed to test RFID and cutting-edge technologies under real-world conditions.
Joe Giordano, VP, Business and Product Development, Speedpass Network, Exxon Mobil Corporation, shares his experience in fraud prevention technology.
= Supply Chain. Supply chain management continues to be a priority issue for the retail CIO as a core source of strategic value and ROI via efficiencies in business process
Food retailer CIOs Zygmunt Mierdorf of Metro AG (Germany) and Bill Homa, Hannaford Bros. get together during a break.
Bill Homa, CIO, Hannaford Bros. during a panel discussion.
improvement and technology deployment. Increased demand-chain visibility, control across the enterprise, as well as connecting customers and data directly into the supply chain are seen as drivers to reduce operational costs, improve customer service and maximize profits. A number of NRF CIO Council members have noted the implementation of new merchandising, warehouse management and supply chain management solutions to achieve these very goals. Many are quickly shifting to XML to enable communications with suppliers and others are choosing third-party solutions. Enriched customer service, cost management and best practices were the focus of this marquee summit. Attendees noted anticipation and excitement at both the challenges and promises of the future of retail technology. Members will convene again at 2004 NRFtech: IT Leadership Summit, August 8–10, San Diego.
Evelyn Follit, CIO, RadioShack, Randy Mott, CIO, Dell, and Steven Raish, CIO, JCPenney, share time during a break.
Tim Viskocil of Henkel Consumer Adhesives talks about RFID initiatives from the supplier side.
Retail’s BIG Show was even bigger in January 2003, growing into the larger space on the upper level of the Javitz Convention Center. And the retail industry descended en masse on New York City for the NRF 92nd Annual Convention & EXPO. Retail’s BIG Show is known for its expert speakers, wide variety of educational programming, networking events and massive exhibit hall. Although the economy was stalling at the time, attendance was strong: more than 12,000 retail industry professionals and partners from 50 countries attended the premier industry gathering. 327 companies took Metro AG CEO, part in the EXPO, offering Hans-Joachim Korber, the latest products and left, accepts the NRF International Retailer of the services available Year Award from Gordon Segal, to retailers.
Left to right, Jean Paul Giraud, CEO of the Fnac division of French retailer Pinault-Printemps-Redoute, Dennis Madsen, President and CEO of Recreational Equipment Inc., and Tom Cole, Chairman of Federated Logistics and Operations division of Federated Department Stores, participate in a panel on the future of customer experience.
CEO of Crate & Barrel and Chairman of the Board of Directors, NRF. Ethan Allen Chairman, President and CEO, M. Farooq Kathwari, left, receives the NRF Gold Medal Award from NRF Board Chairman and CEO of Crate and Barrel, Gordon Segal.
Paul Charron, Chairman and CEO, Liz Claiborne, moderates the Tuesday morning Super Session.
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CONFERENCES
Retail’s BIG Show: NRF 92nd Annual Convention & EXPO
Kenneth Chenault, Chairman and CEO of American Express, welcomes attendees to the Annual Retail Industry Awards Luncheon. Bruce Nelson, Chairman & CEO, Office Depot shares his thoughts on the importance of staying competitive in a super session panel discussion.
Payless ShoeSource CEO, Steven Douglass speaks about managing strategic flexibility in a world of retail change at the Tuesday Super Session.
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RAC2003
CONFERENCES
RETAIL ADVERTISING CONFERENCE
Retail marketers got connected at the 51st annual Retail Advertising Conference, held at the Chicago Hilton, February 5-7, 2003. More than 900 attendees including retail marketing professionals and representatives from television, radio, print and advertising agencies took advantage of this opportunity to share their knowledge and passion for the industry we love, loathe and couldn’t possibly leave. Through a partnership with Second City TV and Ambrosi, RAC attendees were entertained with satirical comedy through the production of “SKU YOU”, which presented the retail industry through their unique style of improv. They showed us retail like we’d never seen it before. Speakers for RAC included Gordon Cooke, President/CEO, J. Jill Group, Inc., Mike Potter, Chairman/CEO, Big Lots, Gordon Segal,
Founder/CEO, Crate & Barrel and Jim McDowell, VP Marketing, BMW North America, LLC. The RAC Awards Dinner presented the best and brightest television, radio and print advertising work from around the world. Marshall Field’s was awarded the Best of the Best taking home the top honors of RAC 2003 and Michael Francis, Executive Vice President, Marketing, Target Corporation was inducted into the Retail Advertising Hall of Fame. Gordon Segal, CEO, Crate and Barrel speaks about his passion for retailing in his keynote address at the 51st annual Retail Advertising Conference at the Chicago Hilton. Mark Pearson, President of Ambrosi, prepares the crowd for a presentation by Second City that gave us an entirely different view of our industry.
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Michael Francis, EVP Marketing, Target Corporation, accepts his induction into the Retail Hall of Fame during the RAC Awards Dinner.
Rich Mellor, DVP, Loss Prevention, Helzberg Diamond Shops, addresses the crowd at the opening of the Wednesday general session.
The Loss Prevention Advisory Council produced another impactful and educational conference for the Loss Prevention community. This year’s conference featured a memorable keynote from nononsense motivational speaker Larry Wingate, and our largest exhibitor floor in the history of the conference. Key areas of focus this year have been organized retail crime, online auction fraud, identity theft and the development of RFID technologies and its application to loss prevention. There is also increased focus on improving the working relationship between retail management and mall management during times of threat or crisis. There will be continued focus on Risk Management in the retail environment and the Internal Audit Advisory Council has evolved its purpose and its goals and is now known as the Risk Management and Control Executives Advisory Council.
CRMretail The second NRF CRMretail Conference, held March 19-21, 2003 in Baltimore, MD, hosted an impressive cross-section of retail CRM management. Attendees from marketing, IT, and customer service sectors gathered to hear case studies and to explore new solutions. The “CRMretail Study,” presented in partnership with Ogden Associates and Gartner Dataquest, revealed market strategies and techniques across channels, enabling systems and tools, and CRM adoption cycles and challenges. This research led the group to consider the effects of measuring quality in all processes that impact the customer experience. Through the CRM Idea Exchange Network, NRF continues to follow the developments of CRM programs and initiatives in retail. This network facilitates communication between retail executives who are responsible for the implementation of CRM in their companies. The 2004 conference will feature a Disney Institute presentation on customer loyalty. CRM remains an area of high interest and capital investment for retailers.
NATIONAL RETAIL FEDERATION | EVERYTHINGRETAIL
LOSS PREVENTION
Brian Wright, Director, Marketing Budgets and Analysis, Saks Department Stores answers questions from the audience at this year’s CRMretail conference.
Teresa Finn from Interelate introduces retail industry experts panel for the CRMretail conference.
Attendees watch a general session presentation on the big screen. NRF’s Loss Prevention Conference & Exhibition continues to grow beyond expectations.
Tim Anglum, Director-CRM Systems for Best Buy served as Chairman of the NRF CRM Idea Exchange network. Tim is seated here with Michael Leblanc from Hudson’s Bay answering questions during a panel discussion on CRM Best Practices.
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PUBLIC RELATIONS
…www.nrf.com
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NRF continues to be viewed as the thought leader of the retail industry, providing the news media and analysts with accurate information and insightful commentary about ongoing issues such as the economy, retail sales, retail trends and public policy issues facing the industry. In 2003, we also helped assess the impact of one-time events such as the war in Iraq that influenced consumer confidence and the huge power blackout that closed countless stores in the Northeast and Midwest in August. Major PR campaigns also helped push important legislative goals such as Fair Credit Reporting Act reauthorization, the Fair Labor Standards Act overtime update and sales tax simplification, among others. NRF provides groundbreaking research to the media and the media look to NRF first for information on holiday sales and a “pulse” on retailing trends. In 2003, NRF: = Expanded the NRF Consumer Intentions and Actions survey to develop careful analysis of all retail holiday trends and industry segments.
= Hosted a widely covered news conference in Times Square to announce NRF’s holiday sales forecast. The announcement quickly emerged as a big story and helped set a positive tone going into the vital holiday months. = NRF was quoted or mentioned in nearly 3,000 articles including 37 in the New York Times, 38 in the Washington Post, 29 in the Wall Street Journal and 24 in USA Today. = NRF appeared on virtually all major network and cable TV news programs including ABC, CBS, NBC, Fox, CNN, CNBC and Bloomberg, and earned coverage in major magazines such as Newsweek and U.S. News and World Report. NRF spokespeople were cited by all of the major wire services and in a number of major local newspapers across the country, including the Los Angeles Times, the Atlanta JournalConstitution, the Cleveland Plain Dealer, the Minneapolis Star-Tribune and the Chicago Sun-Times to name just a few.
NRF continues to be viewed as the thought leader of the retail industry NRF President and CEO Tracy Mullin discusses the state of the retail industry during an interview on CNBC’s Morning Call
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= The NRF News Photo Service made nearly 100 news photos from NRF events available to the media on a same-day basis. The service also fills the needs of member companies needing photos in a hurry. = The Public Relations section of the NRF web site, serving NRF members, the media and the analyst community, has been redesigned to make it even easier to find critical industry information such as archived news releases, full reports of consumer research and executive biographies.
Steven J. Pfister, NRF Senior Vice President, Government Relations, is asked about key legislative issues during an interview on NBC Nightly News
Toys “R” Us Vice Chairman Richard L. Markee speaks at a National Retail Federation news conference to announce the annual holiday sales forecast September 16, 2003, at the Toys “R” Us Times Square store in New York City.
NRF Chief Economist Rosalind Wells discusses NRF's retail sales outlook with members of the press during a news conference in New York City
Swan Lake Barbie, left, assists U.S. Treasury Secretary John Snow, center, in selecting holiday gifts for his grandchildren at Toys “R” Us in New York. At right is Toys “R” Us Chairman, President and CEO, John Eyler.
NATIONAL RETAIL FEDERATION | EVERYTHINGRETAIL
= The NRF Radio Actuality Line was upgraded to allow radio stations to download sound bites from www.nrf.com/radio rather than over a telephone line. The upgrade improves sound quality and allows sound bites on multiple topics to be offered simultaneously. Deadline-driven radio stations from coast to coast have made use of the 24/7 service, helping expand NRF’s outreach to the broadcast media.
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MEMBERSHIP
For the third year in a row, NRF’s membership mix has maintained a healthy cross-section of all segments, with increases in the sports and entertainment categories. And in 2003, for the first time since fiscal year 2000, NRF exceeded goals for new member recruitment and retention. We’re proud that the majority of the 2003 STORES Magazine Top 100 Specialty Retailers are NRF members. NRF’s member base is the broadest and most experienced gathering of retailers anywhere. This depth of knowledge makes our member committees, list serves, and advisory boards the industry’s best. = International retailers are 15% of NRF total membership = Online retailing is 6% of NRF total membership
Member Feedback Creates Superb Value Proposition In 2003, NRF expanded the content on our “Members Only” web site, launched new value-added services, and spent time visiting retailers personally to learn the wants and needs of our expanding member base. From March to September 2003, NRF staff visited over 30 retail companies in Atlanta, Chicago, New York, London, Houston, San Diego, the Dominican Republic, Los Angeles, Columbus, OH, and San Francisco.
Members-Only Web Site Enhancements Fosters Knowledge Transfer Now members can visit the “Member Service Center” and look up member staff by retail issue, subscribe to NRF’s nine specialty newsletters, and in test mode as of this printing, renew their NRF membership online. Members can also send a friend membership information!
= 17% of NRF’s membership are retailers under $1 million in annual sales = 30% of NRF’s membership are retailers with annual sales over $100 million
2003 RETAIL MEMBERSHIP BY TYPE “We joined NRF and Shop.org because we share a common goal…to make retail better. We are striving to be a great company that both our customers and employees can look up to. NRF provides us with the knowledge and tools to make this happen.”
Food, Beverage 1% Sports, Entertainment 4%
Hardware, House Ctrs., Housewares 2% Furniture Jewelry 5% 2%
Specialty (Auto, Drug, Office, Pet, Toys) 40%
Discount Dept. Stores — Eric Lituchy, CEO, 3% DelightfulDeliveries.com, Syosset, NY Department Stores 14%
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Computers, Electronics 1%
Arts, Collectibles, Gifts 6%
Apparel, Accessories, Shoes 22%
“Although I have been a member of NRF with previous organizations for many years, I was not fully utilizing all of the benefits. When NRF came to present all the facets of the organization to Giorgio Armani, we included representatives from many areas of our company for the meeting. As a result, everyone from the “C-level” to store personnel is utilizing the many benefits that NRF Membership entails. The benefits derived from expanding our use of all that is offered certainly pays for the membership fee.” — Victoria Cantrell, SVP/CIO, Giorgio Armani Corporation, New York, NY
Monitor the latest legislation through the stateby-state monitoring tool “iStateLink” or click through our “Alerts” section. Download surveys, NRF seminar handouts, reports from NRF’s business partners, and telebriefing transcripts under the “Retail Discipline Topics” in: = Business Continuity = Finance = Human Resources = Information Technology = Marketing = Supply Chain
New Services Increase Member Collaboration NRF’s DecisionMaker Series was launched in 2003 — a series of c-level, invitation-only events for the retail CEO, CIO, and CFO. NRF members can send their representatives free of charge to these intimate, issue-specific briefings. NRF SmartBrief, an e-newsletter compiling daily headlines and media features from dozens of sources, is a free subscription service launched summer 2003. Best Practice Telebriefings, launched last year and offered quarterly, have now been expanded to monthly calls. NRF committees determine the content, and all NRF members
“We place a high value on our NRF membership. Our active participation in NRF’s Financial Executives Council has enabled us to work with fellow members in shaping accounting principles that impact our industry. The benchmarking data and the information exchanges on critical accounting and finance topics are tools we use to keep pace with today’s fastchanging business and regulatory environment.” — Darren R. Jackson, EVP/Finance and CFO, Best Buy Co., Richfield, MN
NATIONAL RETAIL FEDERATION | EVERYTHINGRETAIL
Carleen Kohut, NRF Senior Vice President and CFO, visits with NRF Member Silver Lining.
A photo opportunity for the management team from NRF member, Pebble Beach Company, during a member visit by NRF staff.
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are welcome to dial in. Visit “Members Only” to stay informed on upcoming calls regarding: = Customer Relationship Management = Financial Executive Issues = Emerging Trends in Wage and Hour Litigation
MEMBERSHIP
Member Benefits In January 2003, the National Retail Federation and Retex partnered to create an expanded, effective and efficient buying group program. Using a cooperative group-buying concept, Retex negotiates pricing agreements to help companies take advantage of state-of-the-art technologies. Retex aligns itself with the top providers of products and services to enhance an organization’s profitability. The list of available programs continues to grow and includes: = Voice, Data & Internet Products = Audio, Video and Web Conferencing = Credit and Debit Card Processing = Information Security Solutions = Arbitration and Mediation Services and more Additionally, NRF members continue to receive Work Opportunity Tax Credit (WOTC) and Welfare to Work (WtW) administration, State Incentive consulting and other money saving programs through Member Services partner, CIC Enterprises. Members can expect NRF to look for new cost saving programs and service providers in 2004.
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“We joined NRF for a plethora of reasons, the most important of which is in recognition of the fact that it is a fantastic vehicle through which to access industry best practices…[NRF] consistently strives to improve the value it delivers to the membership, of which the daily electronic NRF SmartBrief is perhaps the best and most recent example.” — Ron Hall, VP Operations, Gordmans Inc., Omaha, NE
NATIONAL RETAIL FEDERATION | EVERYTHINGRETAIL
NRF STRATEGIC PARTNERSHIPS
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NRF LAUNCHES In June 2003, NRF launched the International Retail Federation (IRF); a global division of the National Retail Federation designed to more effectively meet the needs of our growing international member base. IRF members represent an industry that registers roughly $7 trillion in sales worldwide. IRF serves the needs of retailers based outside the United States through networking events, education, services and other resources needed to achieve success in the face of today’s competitive environment.
MEMBERSHIP
FORUM FOR INTERNATIONAL RETAIL ASSOCIATION EXECS EXPANDS IRF has 35 international retail trade associations as participants in their global roundtable, the Forum for International Retail Association Executives. IRF welcomed the following new FIRAE members in 2003: = EuroHandelsinstitut e.V. – Germany = Hellenic Retail Business Association – Greece
to give our international members a better experience at NRF events such as: = Simultaneous translation into Spanish, Portuguese, Chinese and Japanese for more than 45% of educational sessions at NRF’s Annual Convention & EXPO and, for the first time ever, Spanish translation at NRF’s Loss Prevention Conference for 40% of sessions – at no additional cost to registrants. = Special registration rates for foreign delegations in an effort to make attendance less cost-prohibitive for international travelers. As a result, more than 1,500 delegates representing more than 50 nations from outside of the US attended the Convention. = The NRF Foundation recognized Ms. Petra van Vuuren, of Van Vuuren Mode B.V, Netherlands, as the first recipient of the NRF Conference Scholarship Program. This $3,000 scholarship covered her full-delegate registration to the NRF Annual Convention, as well as travel and hotel accommodations in New York.
IRF EXPANDS SERVICES TO INTERNATIONAL DELEGATIONS IN 2003
= A new International Reception at NRF’s Loss Prevention Conference that allowed members of the Loss Prevention committee to meet international retailers and exchange information on various loss prevention issues.
Working collaboratively with NRF staff, IRF was successful in adding more services targeted
= Joint meeting of members of the Mexican Retailers Association’s (ANTAD) Loss
= European Retail Round Table – Belgium
NRF staff and US retailers meet with the Mexican retailer delegation to the NRF Loss Prevention Conference in San Antonio. From left to right Francisco Martín, ANTAD, Tatiana Tolentino, NRF, Dan Butler, NRF, Mike Keenan, Ross Stores, Álvaro Osorio, Servicios Corporativos Home Mart, Karen Knobloch, NRF, Richard Mellor, Helzberg Diamond Shops, Hugo Pablote, Por Distinción, and Gabriel Montes, El Puerto de Liverpool.
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Internatio
onal Services Division IRF AND NRF STAFF VISIT RETAILERS WORLDWIDE IN 2003 In July, NRF staff attended the Dominican Republic’s retail association Board meeting (ONEC). NRF staff also took time out from the 1st ARTS – NRF Retail Standards Summit in London, October 1, 2003 to visit with leading UK retailers, Selfridges plc, Woolworths plc,
J Sainsbury plc and Dixons Group plc. In addition, they also met with associations IGD and the British Retail Consortium to discuss how NRF and ARTS can collaborate with them in the coming year. “The reason I joined NRF was that I believe that retail in the United States is ahead of the rest of the world by at least five years, if not more. By joining NRF, I have the chance to see what will be coming to Europe, prepare myself better for it and generally get good ideas which I can use for my own company.” — Sofika Eleftheroudakis, Managing Director, G.C. Eleftheroudakis S.A., Greece
NATIONAL RETAIL FEDERATION | EVERYTHINGRETAIL
Prevention Committee with their peers on NRF’s Loss Prevention Committees and exchanges of information on various LP issues.
China Chain Store & Franchise Association (CCFA) delegation visit the NRF offices to meet with Terri Dort, President of NCCR and Tatiana Tolentino, Manager of International Operations for NRF.
The Forum for International Retail Association Executives, January 2003 Annual Meeting.
Left to right, Rich Gallagher, NRF Vice President and Publisher of STORES Magazine, David Martinez, President, ANTAD, Tracy Mullin, President and CEO, NRF (back row), Tatiana Tolentino, Manager, International Operations, NRF, Karen Knobloch, Senior Vice President, Member Services, NRF, Rogelio Rodriguez, VP, ANTAD and Dave Hogan, Senior Vice President and CIO, NRF during a visit to the NRF offices in Washington, DC.
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ADVISORY COMMITTEES 26
BOARD OF DIRECTORS & STANDING COMMITTEES
ADVISORY BOARDS, COUNCILS, AND COMMITTEES
BOARD OF DIRECTORS
NRF relies on an interactive committee structure, open to NRF members in good standing, for the formulation and execution of policies, guidelines, standards and strategies consistent with retail industry objectives. The NRF committees are, without exception, designed to be representative of the industry and reflect its breadth and diversity. They are comprised of industry specialists in their individual fields who give generously of their time and knowledge to set policy and help develop positions on important retail operations or public policy issues which will benefit the industry at large.
The NRF Board of Directors is the governing body that oversees the activities of the Federation. It is comprised of leading retail chief executive officers representing the breadth and diversity of the industry. Regular meetings of the Board of Directors are held in January in New York City in conjunction with the Annual Convention & EXPO and again in the spring or early summer. NRF staff contact: Tracy Mullin
EXECUTIVE COMMITTEE NRF’s Executive Committee has most of the authority of the Board of Directors and serves as the ad hoc committee to determine strategic planning and direction for the Federation. Each member of the Executive Committee is elected by the Board of Directors. The Chairman of the Board of Directors presides over the NRF Executive Committee. NRF staff contact: Tracy Mullin
Existing for the purpose of advancing the retail industry, NRF councils and committees may engage in a number of activities, including: = Information exchange
FINANCE COMMITTEE
= Setting of public policy positions
This committee is elected by the Board of Directors and is one of three standing committees. It oversees the finances of the Federation including reviewing and recommending the Federation’s budget to the Executive Committee and the Board of Directors. The committee also advises the Board on general matters relating to financial and accounting issues. NRF staff contact: Carleen C. Kohut
= Research
AWARDS AND NOMINATIONS COMMITTEE NRF’s Awards and Nominations Committee reviews nominations for Directors and members, and prepares slates of nominees for consideration by the Board and for election by the NRF membership. The Awards and Nominations Committee also makes recommendations for recipients of NRF awards and honors, including the NRF Gold Medal, International Retailer of the Year, Retail Innovator of the Year, Distinguished Service, American Spirit, Leadership in Public Service and the Silver Plaque Awards. NRF staff contact: Tracy Mullin
INDEPENDENT STORES BOARD Comprised exclusively of chief executives of independent member firms, members of the Independent Stores Board provide invaluable advice to NRF in the development of programs and services, especially in the areas of conferences and member discounts, to meet the needs of the smaller stores community. The Independent Stores Board advises the Executive Committee on matters related to small store retailing and works closely with NRF staff to ensure that services, programs and government representation accurately address the current and future issues confronting independent retailers. NRF staff contact: Steve Pfister
NRF FOUNDATION BOARD OF DIRECTORS This Board of Directors, made up of chief executives of major retail and supplier-partner firms, directs and oversees the programs, activities and functions of the NRF Foundation, the non-profit research and education arm of the National Retail Federation. Members are elected by the NRFF Board. NRF staff contact: Katherine Mance
= Benchmarking = Product development = Shared opportunities for purchase of services = Presentation of testimony = Standards setting = Publishing
ADA TASK FORCE A group comprised of NRF retail members interested in the Americans with Disabilities Act and any resulting or pending federal regulations or litigation. NRF staff contact: Mallory B. Duncan
ASSOCIATION FOR RETAIL TECHNOLOGY STANDARDS (ARTS) CONSORTIUM EUROPE ARTS Consortium Europe is the formal organization of ARTS European members to support standards development by organizing committees to enhance the Data Model and develop XML documents and messages. This work supplements the efforts of similar US based committees. ARTS staff contact: Richard E. Mader
CFA PRODUCT REGISTRATION COMMITTEE The committee was set up in response to a petition from the Consumer Federation of America (CFA) to the Consumer Product Safety Commission (CPSC) that retailers, manufacturers and distributors be required to collect and house consumer contact information on products sold for a period of 20 years via a pre-paid mail back postcard. The intent of the cards is to provide accurate information in the event of a recall. All NRF members are welcome to join. NRF staff contact: Elizabeth Treanor
National Retail Federation CIO COUNCIL
CRM RETAIL IDEA EXCHANGE
ENVIRONMENTAL COMMITTEE
An invitation-only committee made up of retailing’s most prominent chief information officers. It meets in winter, spring and summer to discuss issues of common interest, promising technologies, and to take a proactive stance on creating new technology environments. It provides a valuable opportunity for peers to share ideas and experiences, and in doing so helps guide the National Retail Federation technical staff to create new projects that reflect the industry’s needs. NRF staff contact: David Hogan
The group discusses issues and concerns related to implementing Customer Relationship Management (CRM) initiatives in their companies. Comprised of large and small retailers, the group focuses on the integration of technology, marketing, operations and strategy in the retail environment to drive sales and profitability. The group also contributes educational content for NRF’s CRMretail conference. NRF staff contact: Dan Butler
The committee works to formulate industry positions and responses to address the various product stewardship initiatives and environmental sourcing protests that are now on the rise. While many NRF member companies have undertaken various environmental initiatives independently, our hope is to provide a coordinated retail response to ecological criticisms. NRF staff contact: Elizabeth Treanor
This committee serves as NRF’s technical committee on labor law and employee relations matters, and is comprised of retail industry corporate executives and independent labor counsel, as well as human resource and employee relations executives from NRF member companies and associations. Each year, the CEL files amicus curiae briefs in high profile cases pending before the NLRB and federal courts. NRF staff contact: Katherine Lugar
COUNCIL ON DIVERSITY The NRF Council on Diversity leverages the knowledge and expertise of its members to influence the direction of diversity practices within the retail industry. Such practices not only serve an important moral cause but also have a profound impact on the growth and prosperity of the business. The Council educates the industry, media, public interest groups and the general public regarding the multiple benefits of a formal diversity awareness program. NRF staff contact: Dan Butler
CREDIT EXECUTIVES COMMITTEE This committee provides NRF with strategic and operational advice related to consumer credit issues, including federal legislative and regulatory policy, the standardized credit bureau reporting format, as well as file integrity among retail credit grantors. This group of senior credit executives meets at least twice a year. NRF staff contact: Mallory B. Duncan
CREDIT – BANKRUPTCY WORKING GROUP A subcommittee of NRF’s Credit Executives Committee, this group focuses on legislative, regulatory and other solutions to combat rising consumer bankruptcies. NRF staff contacts: Mallory B. Duncan / Katherine Lugar
DATA MODEL COMMITTEE (ARTS) This committee shapes the future of the ARTS Data Model. They propose enhancements, prioritize activities and approve all changes to the Model. ARTS staff contact: Richard E. Mader
DIGITAL ASSET MANAGEMENT COMMITTEE (ARTS) This committee reports to the CIO Council and focuses on improvements in image metadata management, including identification methodology and transport guidelines for merchandise information (images and product descriptions) used in multiple-channel retailing. This committee is open to NRF retailer and manufacturer members that are responsible for the management of merchandise data in their catalog, Web or brick-and-mortar stores. NRF staff contact: Germaine Palangdao
E-COMMERCE POLICY WORKING GROUP This committee is made up of policy, legal, and IT experts from retail companies with a presence on the Internet. The group addresses e-commerce issues from a policy perspective as they affect retailers in the fast-paced world of e-tailing. NRF staff contact: Elizabeth Treanor
ELECTRONICS RECYCLING WORKING GROUP This working group is for retailers interested in developing and advancing an industry position on electronics recycling. Several state legislatures have begun to move toward requiring some form of electronics product recycling typically paid for with an advanced fee collected at point of sale. A federal bill has also been introduced requiring fees and recycling for computers. All NRF members are welcome to join this committee. NRF staff contact: Elizabeth Treanor
This Council, comprised principally of Chief Financial Officers of member firms, represents all segments of the retail industry. Members focus on business strategies and monitor retail industry financial services activities, with special attention devoted to tax and accounting issues. This group also provides important input into the development of program content for key NRF conferences and other educational programs. NRF staff contact: Carleen C. Kohut
FORUM FOR INTERNATIONAL RETAIL ASSOCIATION EXECUTIVES The FIRAE seeks to promote the free exchange of information among national retail trade associations around the world and works to identify opportunities for cooperation in research and education. The FIRAE has members in Asia, Europe, South America and North America; membership is open to all national retail associations outside the United States. NRF staff contact: Tatiana Tolentino
NATIONAL RETAIL FEDERATION | EVERYTHINGRETAIL
COMMITTEE ON EMPLOYMENT LAW
FINANCIAL EXECUTIVES COUNCIL
GENERAL COUNSELS FORUM This invitation-only council is limited to the most senior legal officers among NRF’s retail membership. Two to three times each year they meet to share strategy and ideas for addressing cutting edge legal and management issues of concern to retail law departments, such as alternative dispute resolution, antitrust trends, advertising, benchmarking of legal programs and securities law issues, as well as other matters. NRF staff contact: Mallory B. Duncan
GOVERNMENT AFFAIRS POLICY COUNCIL The NRF Government Affairs Policy Council is the Federation’s principal policy-making body on federal legislative and regulatory issues. Receiving input from other NRF technical committees, the Policy Council reviews pending and proposed legislation and regulation and sets official policy positions as well as implementing strategies and tactics. This invitation-only council is comprised of corporate representatives as well as state and national association executives. NRF staff contact: Katherine Lugar
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ADVISORY BOARDS, COUNCILS, AND COMMITTEES (continued) HEALTH & EMPLOYEE BENEFITS COMMITTEE
ITAC — CUSTOMS SUBCOMMITTEE
LOSS PREVENTION ADVISORY COUNCIL
This committee consists of senior-level retail benefits executives who provide technical input on a wide range of health and other benefit issues. The committee meets on an ad hoc basis as needed. NRF staff contact: Katherine Lugar
This subcommittee of the ITAC provides guidance and technical expertise on customs and trade facilitation issues affecting retailers as well as relations between the Bureau of Customs and Border Protection and the importing community. The subcommittee confers on an ad hoc basis. NRF staff contact: Erik Autor
This council meets frequently to discuss common problems confronting the security industry and to share new ideas on product and program results. The council is also active in the planning of the Loss Prevention Conference and Exhibition. The council was instrumental in the development of a new series of informational brochures on a variety of loss prevention topics to benefit smaller retail companies. NRF staff contact: Dan Butler
HUMAN RESOURCES SPECIALTY STORE ROUNDTABLE This committee is concerned with organizational issues in field operations and compensation and benefit considerations for specialty store chains. It conducts an annual Specialty Store Compensation and Benefit Survey for the retail industry. NRF staff contact: Dan Butler
INTERNATIONAL TRADE ADVISORY COMMITTEE (ITAC) The ITAC members include senior retail sourcing, compliance, and government relations executives and general counsels who are responsible for international trade, customs, and international labor issues for their companies both on the legislative and regulatory fronts. In 2003, the ITAC played a key role in representing the industry’s interests in eliminating U.S. and foreign trade barriers and facilitating trade. The ITAC meets two times a year and confers monthly by conference call. It has five subcommittees to address specific issues. NRF staff contact: Erik Autor
ITAC — SUPPLIER COMPLIANCE SUBCOMMITTEE This subcommittee of the ITAC formulates the industry’s response to concerns raised about “sweat shop” working conditions in U.S. and international manufacturing operations. In 2003, the subcommittee and an ethical sourcing taskforce worked at the NRF board direction on a retail industry ethical sourcing initiative to better coordinate efforts to ensure that retail suppliers adhere to recognized labor norms for their workforce. The subcommittee confers on an ad hoc basis. NRF staff contact: Erik Autor
ITAC — HARDGOODS SUBCOMMITTEE This subcommittee of the ITAC provides guidance and technical expertise on trade issues that specifically affect consumer products other than textiles and apparel. The subcommittee confers on an ad hoc basis. NRF staff contact: Erik Autor
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This subcommittee of the Loss Prevention Advisory Council meets annually and by conference call quarterly to discuss the issues that women face in advancing their careers in retail loss prevention. The group is open to female executives in the loss prevention division of retail companies. NRF Staff Contact: Denise Brassé
NATIONAL INVESTIGATORS NETWORK ITAC — TRANSPORTATION LOGISTICS AND SUPPLY CHAIN SECURITY SUBCOMMITTEE This subcommittee of the ITAC provides guidance and technical expertise on issues affecting retailers’ management and security of their international supply chains and is also a working group of the NRF Loss Prevention Committee. The subcommittee confers on an ad hoc basis. NRF staff contact: Erik Autor
The Network meets annually and hosts quarterly conference calls. This group allows retail investigators to network with each other on critical issues and cases at local, regional and national levels. Comprised of corporate executives with primary responsibility for investigation of major cases for retailers. NRF staff contact: Dan Butler
ORGANIZED RETAIL CRIME/THEFT TASK FORCE
ITAC — SOFTGOODS SUBCOMMITTEE This subcommittee of the ITAC provides guidance and technical expertise on trade issues that specifically affect textiles and apparel. The subcommittee confers on an ad hoc basis. NRF staff contact: Erik Autor
LOSS PREVENTION — WOMEN IN LOSS PREVENTION CAUCUS
ITAC — TRADE REMEDIES SUBCOMMITTEE This subcommittee of the ITAC provides guidance and technical and legal expertise on antidumping, countervailing duty, safeguards, as well as other trade remedies actions affecting consumer goods. The subcommittee confers on an ad hoc basis. NRF staff contact: Erik Autor
IXRETAIL TECHNICAL COMMITTEE (ARTS) The IXRetail Technical Committee develops XML documents and messages for use within the retail enterprise. It is composed of XML experts from both vendors and retailers. ARTS staff contact: Richard E. Mader
The task force meets as needed to discuss legislative remedies to this growing problem. In addition, the task force compiles statistics and anecdotal information as background. NRF staff contact: Elizabeth Treanor
POSTAL WORKING GROUP This working group provides guidance to NRF in representing retailers on matters before Capitol Hill, the Postal Rate Commission and the United States Postal Service. The committee’s primary focus is first-class mail. The committee also provides testimony on proposed federal legislation which affects mailers generally. The committee meets on an ad hoc basis. NRF staff contact: Chad Davis
National Retail Federation This committee effectively communicates existing and potential product safety problems within the retail industry and addresses emerging product safety issues by providing substantive and strategic input into the development of industry public policy. In addition, the committee provides comments on proposed regulations before the Consumer Product Safety Commission and communicates the industry’s position on key issues. NRF staff contact: Chad Davis
RETAIL PRIVACY COMMITTEE The Retail Privacy Committee is composed of senior retail representatives with responsibility for aspects of company operations that affect customer and employee privacy. Due to the breadth of the subject, it is intended to be a cross-functional committee. Most companies have more than one representative on the Committee to ensure their marketing, information systems, human resource, operations and loss prevention interests are represented. Government and public interest group initiatives that could restrict retailers’ use and reuse of personal data, either directly or through limitations on access to credit bureaus, mailing lists, demographic files or other sources fall within the purview of the committee. The committee meets on a regular basis. NRF staff contacts: Mallory B. Duncan / Elizabeth Treanor
RETAILER’S WORK-LIFE FORUM The forum meets to examine the challenges of the hourly employee that prevent them from being able to fulfill their work schedule. This creative and unique group examines such important issues as child care, elder care and financial planning initiatives that will give the hourly employee assistance in solving the problems that prevent them from working their schedule. This group works to encourage research and to consider legislative actions in the Work-Life arena. NRF staff contact: Dan Butler
RISK MANAGEMENT & CONTROL EXECUTIVES ADVISORY COUNCIL In addition to planning the annual Risk Management and Control Executives Conference, this council conducts forums for the exchange of ideas and solutions to industry risk and audit concerns. This group’s mission is to enhance the risk management and control practices within the industry by providing training and development on emerging issues and to exchange information through a healthy network of professionals. In addition, the Council endeavors to ensure appropriate knowledge, tools and techniques are introduced in the retail industry with respect to risk management, internal audit and compliance practices within member companies. The Council is comprised of individuals responsible for internal audit, risk management and compliance and may include such job titles as Chief Audit Executive, Chief Risk Officer and Compliance Officer. Representatives from the public accounting firms actively participate as members of this council. NRF staff contact: Dan Butler
STRATEGIC SUPPLY CHAIN COUNCIL This new Council is comprised of retailers, research firms, and software application suppliers. The mission of the Council is to address emerging supply and demand chain trends, to identify retail requirements, and to educate all three distinct communities on best practices, efficiencies and opportunities. NRF staff contact: Dave Hogan
TAX — ALTERNATIVE TAX SYSTEMS TASK FORCE A task force of the Taxation Committee and Policy Council, this group is comprised of senior retail tax and governmental affairs executives and economists from major retail companies who have specific interest in consumption taxes. The Task Force is responsible for initiating and producing research related to tax reform and its impact on retailing and disseminating the results in appropriate forums. NRF staff contact: Steve Pfister
TAX — LCM WORKING GROUP This subcommittee reports to the Taxation Committee. Members utilize the Lower of Cost or Market accounting mechanism and work to educate lawmakers about its importance to retailers and consumers. Attempts have been made in recent years to eliminate this GAAP account practice for federal revenue reasons. NRF staff contacts: Steve Pfister / Chad Davis
TAX — TAX REFORM WORKING GROUP This is a subcommittee of the Taxation Committee. Its primary purpose is to evaluate and educate retailers, lawmakers and consumers of consequences associated with major national tax reform proposals, including a flat tax or national retail sales tax (NRST). It has commissioned a multi-year study of leading reform proposals and utilizes these results to highlight the ramifications of a NRST on the economy and consumers. NRF staff contacts: Steve Pfister / Chad Davis
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PRODUCT SAFETY COMMITTEE
TAX — TENANT CONSTRUCTION ALLOWANCE TAXATION COMMITTEE The Taxation Committee provides senior retail tax executives a forum to discuss industry-related tax issues and serves as an invaluable information and networking resource. The Committee meets three times a year to discuss issues affecting the industry and advises NRF on emerging tax legislation and regulations likely to affect retailers, their businesses, and their customers. Briefings and discussions focus on Federal legislation, regulations, audit issues, and state and local tax matters. The Committee develops legislation, submits testimony, and provides witnesses to represent industry concerns before Congress, Treasury, and the IRS. It also produces publications and memorandums on current retail tax issues. NRF staff contacts: Steve Pfister / Chad Davis
This subcommittee reports to the Taxation Committee. It focuses on legislative and regulatory activism in an effort to provide a clarification of tax treatment of both tenant and construction allowances (inducements) provided to retailers by owners and developers. NRF staff contacts: Steve Pfister / Chad Davis
TAX — WOTC WORKING GROUP This ad hoc committee is comprised of corporate Work Opportunity Tax Credits (WOTC) administrators and meets by conference call to discuss specific program procedures and updates when necessary. NRF staff contacts: Steve Pfister / Chad Davis
UNIFIEDPOS TECHNICAL COMMITTEE (ARTS) The Committee enhances and maintains the Technical Specification, the foundation for both JavaPOS and OPOS. ARTS staff contact: Richard E. Mader
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Alan Lacy, Chairman and CEO, Sears, Roebuck and Co., shares information about the relaunch of Sears.com.
“... the annual Shop.org study – an authoritative barometer of the state of Internet shopping…” — The Wall Street Journal
Michael Dell, Chairman, Dell Corporation, talks about the future of the computer in an era of technology convergence.
NRF DIVISIONS
Helping Retailers Improve their Internet and Multichannel Retail Business According to Shop.org’s premier annual industry study, State of Retailing Online 6.0, online spending in 2003 is expected to approach the $100 billion mark, a 26 percent increase compared to 2002. As the industry grew in 2003, so too did Shop.org. Shop.org saw a second year in a row of significant growth in its membership, event attendance and its stature as the authority in retailing online. As NRF’s online group, almost 300 leading companies are part of the Shop.org community where they enjoy a non-commercial forum for the exchange of information, lessonslearned and expertise.
HIGHLIGHTS FROM 2003 INCLUDE: = As of November 2003, Shop.org membership is on pace to grow 40 percent for the year. Shop.org’s membership represents the leaders in the industry and includes 8 of the Top 10 Specialty Retailers (STORES Magazine, August 2003). = Shop.org released the 6th version of its annual State of Retailing Online research study conducted in partnership with Forrester Research. The study is based on confidential financial data provided by more than 130 companies. Media coverage included The Wall Street Journal, The New York Times, CNN, and many other business and trade publications. = Shop.org conducted its annual eHoliday Mood Study. The study included bi-weekly surveys of more than 100 retailers in November and December and allowed retailers to benchmark their Internet and
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“Office Depot participates in Shop.org because it provides terrific networking opportunities with ‘Best in Class eRetailers,’ up to date eCommerce marketplace metrics and informational seminars. It’s an important resource for anyone in eBusiness.” — Monica Luechtefeld, Executive Vice President, E-Commerce, Office Depot
multichannel retail performance during the critical holiday season. = The Shop.org Annual Summit attracted more than 750 interactive retail executives who gathered to network, share information and hear keynote speakers such as Dell, Inc. Chairman and CEO Michael Dell and Sears Chairman, President and CEO Alan Lacy. = Shop.org held two retaileronly 1.5 day workshops: Elaine Rubin, SVP, Strategy = Best Practices in Online & Business Development, 1-800-FLOWERS.com, Inc., Marketing, Miami, addresses the crowd. Florida = Best Practices in Online Merchandising Workshop, Sonoma, California
SHOP.ORG MISSION Shop.org’s mission is to help the members significantly improve their multichannel retail capabilities by addressing the evolving opportunities and issues related to the Internet and integration with other channels.
Providing Key Connections For Retail Marketing Pros The Retail Advertising & Marketing Association (RAMA) is a trade association of retail marketing and advertising professionals, plus their counterparts on the agency, media and service-provider sides of the business. RAMA is a division of NRF. RAMA is the producer of the world-famous Retail Advertising Conference (RAC), the largest single gathering of retail marketing and advertising executives in the industry today. The 51st annual Retail Advertising Conference was held at the Chicago Hilton, February 5-7, 2003. More than 900 professionals were in attendance. RAMA also is sponsor of the RAC Awards Competition, the industry’s most prestigious
NATIONAL RETAIL FEDERATION | EVERYTHINGRETAIL
Brad Davis, Executive Vice President, Marketing, Washington Mutual Bank, shares his thoughts on creativity and leadership with the RAC audience.
creative contest for retail broadcast and print advertising. RAMA connects retail marketing and advertising professionals with their peers. Through the Retail Advertising Conference (RAC), workshops and other events, RAMA members interact with their colleagues in the field, sharing insights and experiences. RAMA also brings together members with leading experts on timely issues of relevance to the industry. RAMA connects in-house retail marketing pros with their counterparts in the agency and business partner realm. RAMA continues to provide value to their membership through partnerships and research with BIGresearch. The CIA (Consumer Intentions and Actions Survey), is a valuable product that RAMA members get free each month and can subscribe to the full service at a discount. RAMA’s Board of Directors and Executive Committee continue to provide guidance and support that helps make RAMA and RAC the leaders in retail marketing. RAMA’s Board is made up of over 50 senior marketing professionals and is representative of the RAMA membership including retailers, media companies, advertising agencies, consultants and more. RAMA’s Executive Committee includes 12 senior retail marketing executives from leading retail companies including Wal-Mart, Carson Pirie Scott, Linens N Things, Toys R Us, Target, The Home Depot, J.C. Penney, Kohl’s, Lands’ End, Best Buy, Mervyn’s, Macy’s West and more.
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ARTS Consultant Richard Halter in Japan to conduct training in the POSlog schema so that ARTS standards can be transmitted to a wider market, October 2003.
Helping Members Achieve Success The National Council of Chain Restaurants (NCCR) is comprised of nearly 40 of the largest chain restaurants in the United States. Through the last four decades, NCCR has harnessed the power of the industry to advance sound public policy that helps its members achieve success, create jobs, and grow. Unlike many trade associations, NCCR focuses on the big issues without big bureaucracy. In 2003, NCCR vigorously pursued the industry’s interests in policy areas including: = Wage and Benefits Policy = The Work Opportunity Tax Credit
NRF DIVISIONS
= Health Care Reform
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eral court, notwithstanding a plaintiff’s initial choice to file in state court. NCCR is proud of its amicus curiae contributions in both of these member company favorable Supreme Court decisions. Dick Crawford, Vice President, Government Relations, McDonalds, left, with Nick Zuk, Assistant Secretary and Corporate Counsel, White Castle and Chairman, NCCR at a dinner during the NCCR Annual Meeting sponsored by Coca Cola.
= Immigration Laws = Obesity and frivolous lawsuits This year NCCR filed amicus (friend of the court) briefs in two U.S.Supreme Court cases of great significance to chain restaurant companies. The first case, Green Tree Financial Corp. v. Bazzle, involved the issue of class action procedures in arbitration proceedings where the arbitration agreement does not address class action remedies. NCCR urged the Supreme Court not to allow class action remedies to be read into an arbitration agreement that is otherwise silent on the issue. The Court ruled that arbitrators must decide this issue in each case. The second case, Breuer v. Jim’s Concrete of Brevard, resolved the issue of whether employers have a right to remove to federal court cases involving minimum wage and overtime claims under federal law that were filed against them in state courts. Most employers would prefer that such lawsuits be heard in federal court, and the Supreme Court confirmed that employers can choose fed-
A full house at the ARTS – NRF Retail Standards Summit in London, UK, September 2003.
ARTS Sets New Standard of Success The Association for Retail Technology Standards (ARTS), the standards division of the National Retail Federation, achieved new heights in service to the industry, releasing numerous products in 2003 and raising its profile in the world of IT standards. Many retailers and their vendors saved IT dollars and expanded their options for future change by implementing ARTS standards. As a clear demonstration of the value that retailers find in the standards, ARTS was pleased to welcome new members such as Borders Group (US), Harrods Limited (UK), Hollywood Entertainment Corporation (US), Librerías Gandhi (Mexico), Manor AG (Switzerland),
ARTS 2003 ACCOMPLISHMENTS: Version 4.0 of the ARTS Data Model, the first version capable of supporting the reporting functions multi-store corporate enterprise, was released in March. This version greatly expanded the utility of the Model as the principal data design for new applications. British department store chain House of Fraser plc and video retailer Hollywood Entertainment Corporation are new users. In addition, several vendors such as IBM Corporation and NCR Corporation have already enrolled in the Data Model conformance testing program. IXRetail, the ARTS committee that builds on the ARTS Data Model to develop XML schemas and message sets for application-to-application integration, doubled the number of schemas available to the public, releasing three new XML schemas in 2003: Digital Asset Management, to communicate images between retailers and suppliers; Stored Value, to integrate
Gift Certificate and Loyalty programs to POS; and Remote Equipment Monitoring and Control (REMC), to manage field equipment remotely to increase up-time, thus minimizing service disruption to customers. Perhaps the most significant IXRetail accomplishment was the release of POSlog version 2. POSlog captures all the data from the POS application for use in all associated applications and has already been adopted by 360Commerce, Datavantage, IBM, ISS, NCR, Triversity and Unipower Solutions. The UnifiedPOS committee released version 1.8 of the ARTS standard for connecting peripheral devices to Point of Sale (POS) systems that are application independent, allowing retailers to select best-of-breed devices from multiple vendors. This release includes two new important functions, connection of smartcard readers and reporting of device statistics.
OTHER NEWS AND EVENTS: ARTS and NRF took a major step in internationalizing our services in October, 2003, holding the Retail Standards Summit in London. This one-day educational event was co-hosted by ARTS and NRF, attracting a large audience of CIOs and Managers responsible for implementing IT applications at the corporate level. Reebok and Wal-Mart presentations were among the highlights of the Summit. ARTS and the NRF CIO Council initiated their first joint project in 2003, the development of standard Requests for Proposal (RFP). By consolidating the best of many retailers’ RFPs into one document, the Joint Committee is developing standard RFPs to guide retailer selection of many applications. The first standard RFP for POS was released in November and is being used by several retailers to select the best for their business and helping them reduce the risk of overlooking critical functions or contract conditions.
PLANS FOR 2004: ARTS and NRF intend to capitalize on the success of the London Retail Standards Summit by continuing to promote international expansion through international events and by cooperating with other standards groups. ARTS will also continue to develop the multistore functions of the Data Model and will begin work on new standard RFPs at the request of ARTS and NRF members.
NATIONAL RETAIL FEDERATION | EVERYTHINGRETAIL
Office Depot (US), Sobeys Inc. (Canada) and Toys “R” Us Inc. (US). At the NRF 92nd Annual Convention, Smart and Final Inc. and KB Toys made presentations on how their successful implementations of the ARTS Data Model and the new XML POSlog schema provided a more stable and flexible POS environment as well as better service to their customers. The ARTS Standards Pavilion on the main exhibit floor showcased the power and flexibility of standards-based applications by 360Commerce, afterBot, Cyberdata, IBM, Microsoft, NCR, Retek, Sun Microsystems, Triversity, Ultimate Technology and Wincor Nixdorf with real-time demonstrations of ARTS standards at work.
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NRF Foundation Builds Career Currency for a High Growth Industry
NRF FOUNDATION
Again this year, NRF Foundation marked new milestones as it built on previous efforts to provide programs and tools to develop a knowledgeable, professional, committed next generation of retailers. Highlights of the year include:
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AN UNPRECEDENTED LINKAGE Under a new $2.8 million grant from the U.S. Department of Labor, the NRF Foundation continues to build “career currency” for retail workers and to enhance their value for employers. The effort builds on work previously undertaken in developing and expanding the use of Retail Skills Centers and related education and training, as well as certification credentials. In addition, the grant allows NRFF to work directly with retailers to create industry tools and learning that will benefit the industry and demonstrate cross-industry opportunities. NRFF is exploring new locations for Retail Skills Centers across the country in partnership with a growing list of major shopping center developers, including Westfield, Kravco, Mills, Glimcher, Willmorite, and General Growth Properties. These developers recognize that centers have become valuable resources for their tenants. As part of the grant proposal, NRFF will designate a minimum of 6 regional “hubs” to serve as demonstration sites and learning laboratories. Where possible, Skills Centers will be colocated or linked with national workforce system One-Stop career centers to increase access and potential for the public employment and training system to serve retail companies. By working with the public system, NRFF hopes to make retail the recommended industry of choice for job services recruiters and counselors, and to equip trainers with programs that encourage and prepare workers for retail careers.
Applicants who successfully complete the assessment in Professional Customer Service can apply for national certification and receive a certificate and lapel pin to document that they have achieved the industry’s only prestigious recognition for excellence in customer service.
This year, existing Retail Skills Centers continue to expand programs and outreach, adding new training offerings, more job fairs, customized training program and placement services to retailers and other employers. Funding to support these efforts came from local, regional and state governments, foundations and corporations, retailers and local business partners.
CERTIFYING TOMORROW’S LEADERS Nearly 250 high school students (and a number of teachers) took the NRF Foundation’s Professional Customer Service Certification Assessment as part of career education events at the April 2003 International DECA Conference. CVS Pharmacy, Finish Line and the Florida Retail Federation sponsored this inaugural testing event. The passing rate was excellent – and for good reason. This segment of high school and college students – a major portion of the front-line retail workforce – learns specific professional and career skills as part of their academic preparation. NRF Foundation’s Customer Service & Sales Skills Standards, developed by retailers, are integrated into Marketing Education/DECA curriculum, providing a basis for students to pass the NRF Foundation’s Professional Customer Service Certification Assessment. NRFF continues to build new relationships with student associations, school systems and colleges and universities, like its longstanding
NRF Foundation’s new and improved Retail Careers and Advancement website serves as a resource for students and others seeking to pursue retail as a career, providing information on skills and education necessary, diversity of career options, an online job bank through NRFF partner CareerBuilder,com, and much more. Retailers linking their career websites can position their companies for consideration as employers.
partnership with DECA, at the national, state, and local levels to promote employer-driven education and credentials. These partners, brought together with retail human resource and recruiting executives through NRF Foundation’s new Education and Advancement Committee, will continue to create and implement programs that drive student awareness of diverse and rewarding career opportunities in retail and acquisition of necessary skills to ensure their success in those careers.
The new site has increased NRFF’s ability to position retailing as a career destination rather than only a place to find short-term jobs. Indeed, through a partnership with CareerBuilder.com, visitors to the site can immediately link to the site and pursue positions in retail at many levels. Traffic to the site continues to grow weekly, and new and creative means will continue to be employed to build interest in retail for life among young people.
TAKING CAREERS TO THE “KIDS”
SHARING INDUSTRY INFORMATION
The NRF Foundation completed a major revamp of its website, www.nrf.com/foundation, in August, and now provides retailers user friendly, one-stop shopping for education and training products and services. A special section of the website, www.nrf/retailcareers.com, is particularly worthy of note. Designed to appeal primarily to high school and college students, the site features interactive activities, all of which educate users about retail as an industry, as an economic force, and as a great place to find a challenging career. Profiles of current successful retailers’ career paths provide information on the diversity of opportunities in retail and interesting and sometimes highly non-traditional ways careers have unfolded. Participating retailers’ career websites and educational institutions sites are linked, offering young visitors an opportunity to compare working for various companies, or to pursue postsecondary education, specifically in retail. Projects designed by NRF Foundation staff and coordinated through outreach to colleges and high schools, drives students into those sites, offering maximum visibility for linked retailers or colleges with a generation making a career choice.
Fulfilling its mission to provide timely research on industry trends and practices, NRF Foundation this year released the inaugural edition of Retail Horizons: Benchmarks 2002, Forecasts 2003 at NRF’s Annual Convention in January. This comprehensive state of the industry report, created in partnership with BearingPoint (formerly KPMG Consulting) revealed key information in eight areas of retail operations. A second survey was fielded in July and, with more than one hundred retailers furnishing information through an expanded survey, the 2003-2004 edition is sure to become a must-have for retailers, analysts and industry business partners. It will be released once again at the NRF Annual Convention in January 2004. American Express and NRF Foundation partnered this year to produce Customer Service Excellence 2004, selecting the Southwest Retail Center for Education and Research, University of Arizona to conduct the study on their behalf.
The second annual BIG Silent Auction, held during the NRF Convention and EXPO, realized proceeds of $91,000 to help underwrite expansion of NRF Foundation career development programs. Nearly 90 retailers, business partners and Foundation friends contributed items for auction and others were willing bidders.
Job fairs are only one of the many benefits to retailers fortunate to have a Retail Skills Center in their geographic area. Here retailers at Jersey Gardens have the opportunity to interview talent recruits and, in some instances, trained by RSC personnel.
A group of students completing the Philadelphia Youth Network WorkReady program, developed by staff of NRF Foundation and the Retail Skills Center at King of Prussia, for the Philadelphia Workforce Investment Board Youth Council, look pleased with themselves on completing their studies.
NATIONAL RETAIL FEDERATION | EVERYTHINGRETAIL
Students receiving the highest score on the national assessment in Professional Customer Service during the DECA national conference were awarded $500 scholarships, courtesy of The Finish Line. Pictured, l-r: Shana Mack, NRF Foundation; Destree Hafeman, Preble H.S., Wisconsin; Jenny Werwie, Bradford H.S., Wisconsin; and Jeff Koehne, Sr. Recruiter and Trainer, The Finish Line.
Personal attention and coaching are key to the success of recruitment and training programs at the NRF Foundation-affiliated Retail Skills Centers.
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MAGAZINE
STORES Readers Get the Inside Scoop on the Retail Industry
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In a competitive industry, being on top of the latest trends, hottest ideas and consumer attitudes is necessary to achieve success. STORES Magazine, NRF’s monthly magazine, offers an insider’s view of the retail industry. Insightful articles, worldwide coverage of retailing, and buying guides with the latest products and services are just some of benefits that come with a STORES subscription. The STORES Magazine “Top 100 Retailers” earns coverage in the nation’s leading newspapers, and STORES spokespeople frequently offer their insights about the industry in the mainstream national media. In 2003, STORES launched LP and Security Trends, a bi-monthly magazine presenting integral information on loss prevention and security operations. In November, STORES released the first annual Consumer Credit Survey, a detailed analysis of how shoppers use their credit cards. With more options to complete a purchase than ever before, this groundbreaking study examines the thought patterns behind consumers’ credit behavior. STORES continues to publish the yearly Retail Industry Buying Guide and Software Sourcebook, helping retailers of all sizes and in all industry segments find the products, services, and software applications needed to run a successful enterprise. STORES also publishes the Retail Deals e-newsletter, a bi-weekly publication that keeps retailers and product and service providers abreast of the latest IT developments, including new hardware and software applications, retail implementations worldwide, personnel changes, and other important retail IT information. STORES Online (www.stores.org) serves as a valuable resource for retail industry professionals and offers an industry calendar and other important and timely information. During 2003, STORES maintained its No. 1 position as the best-read and best-rated magazine for senior retail executives in all industry segments.
THE BEST READ AND BEST RATED MAGAZINE FOR SENIOR RETAIL EXECUTIVES
FINANCIALS Source of Funds Member Dues 21%
Your Dues $ Hard at Work: NRF members receive more than $3 in products and services for every $1 of dues paid. STORES magazine, Retail’s BIG Show and other NRF conferences provide significant resources to underwrite NRF member benefits.
Non-Dues Revenues 79%
Use of Funds Revenue Producing Programs 39%
Member Programs 61%
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325 7th Street, NW Suite 1100 Washington, DC 20004 (202) 783-7971 Fax: (202) 737-2849 www.nrf.com