STORES Magazine - September 2008 - (Page 88)

INSIDE TRACK Compiled by Anastasia Van Engelen NRFnews Ullman Discusses Economy, IT Priorities at NRFtech MYRON E. (Mike) Ullman III, chairman and CEO of J.C. Penney Co. and chairman of the NRF board of directors, spoke about the company’s IT initiatives, growth strategy and the mindset of shoppers last month during a session at NRFtech in Broomfield, Colo. The session, which also included JCPenney CIO Tom Nealon, involved Myron (Mike) Ullman tough questions from the audience about the success of new private-label brands, challenges with PCI compliance, the importance of keeping retail associates engaged and the economy. Every consumer who has a home has doubts about equity, Ullman said, which impacts what he calls “the consumer balance sheet.” He added that the volatility of the stock market has diminished the value of shoppers’ investments in a 401K, which also has impacted spending. Ullman told the crowd of 200 retail industry technology leaders that he doesn’t expect things to change anytime soon, noting that it would be “unwise to think this is going to be a quick turnaround.” Despite the current economic environment, Ullman said JCPenney would be increasing investments in IT and a cross-channel strategy. NRFtech also featured sessions by top-level IT practitioners from Kohl’s, Zappos.com, Staples, The Children’s Place and Kroger on issues including data security, supply chain execution and near-field communications. Read more about NRFtech at www.nrfblogs.com. & WHO WHAT WHEN pose of reselling the items” and make such activity — including the transportation, sale or receipt of stolen retail goods — a federal crime. A second bill, the Combating Organized Retail Crime Act of 2008, would require enhanced sentencing guidelines for ORC. Both measures would address online fencing of stolen goods by setting new requirements for Internet auction sites. A third bill, the E-Fencing Enforcement Act of 2008, would focus on Internet fencing. According to NRF’s annual survey on the issue, a record 85 percent of retailers reported that they were victims of ORC in the past year. Retailers lose between $15 billion and $30 billion to ORC each year, according to the FBI and retail loss prevention experts. Organized retail crime rings typically target everyday consumer products that are in high demand and easy to steal. The merchandise is typically resold at pawn shops, flea markets and on the Internet. Rebates Helped, But Impacted by Rising Costs NRF told a congressional committee this summer that tax rebate checks intended to stimulate the economy helped retail sales significantly, but that the impact was diluted by high grocery and gasoline prices and that consumer spending would benefit from additional stimulus measures. NRF vice president and tax counsel Rachelle Bernstein testified before the House Small Business Committee that a survey by BIGresearch found Rachelle consumers who Bernstein had received their rebate checks spent 42.9 percent of the money, but that nearly half was spent on gasoline or necessities such as groceries. The sum of those two categories surpassed all other spending combined. Bernstein said the rebates helped boost retail sales, but “a compelling case can be made” for a second round of stimulus and that any new stimulus bill “should once again include relief for the consumer.” WWW.STORES.ORG NRF Pushes Legislation to Federalize ORC LEGISLATION long sought by NRF to make organized retail crime a federal offense has been introduced in congress. The Organized Retail Crime Act of 2008 is an attempt to stop a growing problem that costs retailers and consumers as much as $30 billion a year and threatens public safety through the sale of tainted goods. The bill would define organized retail crime as “the acquiring of retail merchandise by illegal means for the pur88 STORES / SEPTEMBER 2008 http://Zappos.com http://www.nrfblogs.com http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - September 2008

STORES Magazine - September 2008 Contents Executive Editor's Page President's Page Office Depot Unveils First Green Store Dunkin’ Donuts Debuts DDSMART What Shoppers Think 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Are You a Facebook Fan? RFID Concept2Watch E-commerce Supply Chain Marketing ERP Credit Web Optimization LP Vantage Point Newsbeat Cover Story LP Program Building Biometrics Industry Perspective Customer Service Site Selection E-Commerce LOEB Retail Letter Arts Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - September 2008

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