STORES - October 2010 - (Page 80)

CONSIDER THIS / NRF NEWS Survey Finds Americans Will Cut Spending if VAT is Imposed As Congress continues to ponder a solution to the nation’s debt crisis, proposals to create a European-style Value Added Tax — essentially a federal sales tax — are not sitting well with consumers. Nearly two-thirds of Americans say a VAT would impact their spending on everything from cars and homes to groceries and medicines, according to a recent NRF survey conducted by BIGresearch. Consumers say they would pull back the most on dining out, clothing or accessories, groceries, entertainment and vacation travel. “These numbers are clear evidence of what common sense would tell even the most casual observer: If you tax spending at a time when the economy is still struggling to recover, consumers are going to spend less,” NRF president and CEO Matt Shay says. “With consumer spending representing two-thirds of the economy, a consumption tax If Congress created a new federal sales tax on all purchases, how much more would you be able to pay before you would change your current spending habits? All 18+ By Income Less than $55K $55K-plus on consumer spending, employment and gross domestic product that is expected to be released this month. For the latest news and research on VAT proposals, visit Halloween Spending Will be Less Scary for Retailers n keeping with tradition, millions of ghosts, goblins and witches will be hitting the streets this month to celebrate Halloween. According to a recent NRF survey conducted by BIGresearch, Americans will spend $66.28 on costumes, candy and decorations, bringing total Halloween spending to $5.8 billion. After hitting an all-time low in 2009, Halloween spending has returned to 2008 levels. While Halloween spending will rise, the economy is still impacting the celebration. According to the survey, three in 10 consumers say the economy will affect their plans, and many say they will be making their own costumes, using last year’s decorations or buying less candy as a result. The Halloween survey brings great news for costume retailers: Four in 10 Americans plan to don a costume, the highest percentage of people expected to do so in the survey’s history. Additionally, 11.5 percent of adults will dress their pets up, as well. For comprehensive information and trends for Halloween, visit I Any increase in sales taxes would impact my spending habits 1-4% 5-9% 10-14% 15-19% 20% or more Source: BIGresearch 63.9% 19.3 9.4 4.4 1.0 1.9 66.7% 17.8 8.5 4.1 0.8 2.0 59.3% 21.8 11.0 5.1 1.3 1.5 — by VAT or any other name — is not the path to recovery or a prudent way to address the federal deficit. The deficit needs to be reduced, but a VAT is not the answer.” When asked how Congress should address the growing federal deficit, 82 percent of survey respondents said lawmakers should spend less. However, a number of prominent members of Congress and policymakers have said in recent months that a VAT should at least be considered as a way to reduce the federal deficit, which is currently at its highest share of GDP since World War II. President Obama told his deficit reduction commission in April that nothing — including a VAT — should be considered off the table. While there are many kinds of VATs around the world, the most common is similar to a national sales tax and is paid by the consumer at the cash register. In addition to the survey, NRF has commissioned an indepth economic analysis of the impact a VAT might have 80 STORES / OCTOBER 2010 U.S. adults 18 and older were asked how much they planned to spend on the following Halloween-related items: Costume Candy Decorations Greeting cards Source: BIGresearch $23.37 $20.29 $18.66 $3.95 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES - October 2010

STORES - October 2010
Editor’s Page
President’s Page
Retail People
Customer Experience
Game Changer
Power Players
NRFtech Recap
Concept 2 Watch
Customized Shopping
Consumer Behavior
Software & Analytics
Crowd Control
Payment Fraud
ARTS Update
Point of View
NRF News
Retail Industry Calendar
End Cap

STORES - October 2010