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National Retail Federation 5/19/92 [OA 7574]
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5
5
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
May 19, 1992
REMARKS BY THE PRESIDENT
IN ADDRESS TO NATIONAL RETAIL FEDERATION
Room 450
old Executive Office Building
3:03 P.M. EDT
THE PRESIDENT: Let me first salute Lamar Alexander --
most of you know who he is -- our Secretary for Education. But as
we're trying to literally revolutionize American education -- give
kids a real break, give them a shot at excellence -- why, I can't
tell you how grateful I am to have him as Secretary. And he's doing
a superb job.
Tracy, President, thank you for having me here. And to
Joseph Antonini, I salute him, our Chairman. And thank you all very
much for coming.
I gather Pat Saiki has been here, right, or has she?
MS. MULLINS: She spoke to us this morning.
THE PRESIDENT: Yes. I want to say about Pat, when this
problem broke out there in Los Angeles, she took that SBA and really
rose to the occasion. And I think she's really trying to help in
that field. And, of course, what they're doing, SBA, across the
board, I hope, is beneficial in many ways to all business people in
this country.
But, as you know, these riots out there left a large
number of retail operators and a lot of small businesses devastated.
What happened in the Korea community, where it was particularly
concentrated, was just horrible -- and, of course, all communities.
But Pat did respond very swiftly. The SBA and then, also, FEMA, the
Federal Emergency Management Agency, made massive resources
available. The Federal Home Loan Bank is going to offer an
additional $600 million to finance the rebuilding of homes and
businesses there. And then we have a special task force to cut the
red tape and to make sure that these businesses get the help that
they deserve in record time.
So I wanted to just give you a report on that. I think
the federal government has responded promptly to the troubles out
there. The Governor and the Mayor have both thanked us for what
we've done, not only in this side but also in the law enforcement
side, by bringing to bear some of the U.S. Army, the 7th Infantry and
the Marines at a time when it was very dicey. And so I hope that our
response has been proper. But now we've got to go beyond this
tragedy and renew our commitment to bring hope and to bring
opportunity not just to Los Angeles but to every city.
And last week, we went to the Congress with six action-
oriented items. Again, I had a chance to repeat that, we had the
Democratic leaders and the Republican leaders into the White House
today. And the six points: the first one was a Weed and Seed
anticrime initiative, where you weed out the criminal elements and
then seed the neighborhoods with investments and jobs that,
hopefully, will bring opportunity to the communities.
MORE
- 2 -
The housing initiative is known as HOPE -- that's Home
Ownership for People Everywhere. We get hit saying, hey, we ought to
try some new ideas. We said this is a new idea. It really hasn't
been tried. It's a proposal we've had out there. But I happen to
feel that dignity comes with owning your own home an awful lot of the
time. And so we're going to press, and I think Congress now will be
much more receptive to that.
Education reform Lamar will talk about. But in terms of
meeting medium- and longer-range objectives, therein lies the answer.
These kids have got to be educated. They have got to understand that
gang warfare is no substitute for jobs. And so we're putting an
awful lot of stake on trying to get through now the education program
that I'm sure Lamar will describe to you.
Welfare reform -- you've got to be careful that you put
it forward in a very constructive way. And that, again, is what
we're trying to do. I read the case of the family the other day
where a little girl had managed to save pittance, her mother being on
welfare and the welfare law was such that she couldn't save anything
beyond $1,000. That seems to me to be counterproductive. So we're
trying to make reforms there, as well as reform the -- permit the
states to try new things through what we call the waiver process --
give waivers to the states from the existing guidelines and let them
try innovative answers, whether its learnfare or workfare or whatever
it is. So this one is important. Again, it transcends just Los
Angeles, but it's a national thing.
Strong job training programs for young people is a very
good one. And we've got Job Training 2000, which is like a one-stop
shopping for all the federal agencies to come together and help on
that one.
And then the enterprise zones approach. I was amazed,
but in everyplace I went both there in South Central, in the
Korean community and then in Pittsburgh and in Philadelphia --
there's an idea which really has unanimous support now. And so I am
very hopeful that this enterprise zones concept that passed the
Congress not in the form we wanted, but that passed the Congress
-- will be enacted into law. It will bring private capital and jobs
to the neighborhoods. It will act like a magnet, giving businesses a
break to locate in these tough areas. And, obviously, if it didn't
work and wasn't productive, they wouldn't stay. But at least it's an
idea that needs to be tried.
Now, on your business. I know the retailers have not
had it easy. You've been through some tough times, as have many
other sectors of the economy. I think there are reasons to be
encouraged overall. In the first quarter of this year, retail sales
were up by, I'm told, a strong three percent. And I want to tell you
that we are going to try to everything we can from here to ensure
that the growth continues.
It's odd, I just saw some new surveys, and the American
people still feel the economy is getting worse, even though most
economists now and most business people are saying, hey, it's
beginning to move. And I think you'll see some growth figures that
confirm that. But there's a psychological -- a confidence problem
out there that I'm sure adversely affects some of your interests --
some of your business. I think that can turn around now and I think
it will turn around.
And we are going to try to oversell where the economy
stands, but at least try to gun down some of this pessimism you get
on the top of every news broadcast across this country. I mean, they
don't -- there's never -- when a statistic comes out that's
favorable, somebody finds a bad one to offset it with or trying to
put a bad spin on it. But I believe things are beginning to move.
MORE
- 3 -
And I think most people in the country feel that way. And I hope
that that is immediately felt in the retail business.
In Washington, clearly, we've got to get our own house
in order. We have proposals before the Congress now that really
would help with the federal deficit. We are not going to get the
deficit down until we cap the growth of -- you don't have to cut --
but cap the growth of the mandatory programs. And there's no other
way to do it.
We've done fairly well by capping the discretionary
programs. But we've got to get discipline back. And that leaves me
to ask for your support for an idea that I've long been for,
advocated it in campaign after campaign, but that we may have a
chance to get through Congress now, and that is the balanced budget
amendment. It will have to be phased in -- it can't be done
overnight. But it can be phased in. And I really think it would
discipline not just the Congress, but any executive branch -- ours or
subsequent executive branches. And I would like to ask your support
on that because that's beginning to churn around in the Congress
right now.
Secondly, we are going to continue to go after red tape,
reduce federal red tape. It acts as a straight jacket. I was in
business once and I remember having to get -- that was way back in
the '50s and '60s -- and I remember the pain it was to have to go to
several agencies to get permits to go out and do our business. So we
are trying to simplify all that now, recognizing that every dollar
you spend conforming to some government mandate is a dollar that you
could spend in some way making sales to your customers more efficient
or reducing costs or whatever.
And as you may know, we have a moratorium now on new
federal regulations. It has been successful. And now we've renewed
it. We're speeding up those regulations that encourage growth. And
wherever- possible, we are actually cancelling regulations that
needlessly burden business.
I have certain responsibilities for safety, for the
environment, but I am convinced that up until now we've not found --
government hasn't found the proper balance. And we are really
working at this problem and I hope that we can prove to you that the
days of overregulation are just exactly that, that they are over.
But if you get examples from your businesses where that is not true,
please call them to our attention and let us try to help with this
bureaucracy out there where we have to fight to hold the line against
the excesses of regulation.
The IRS, just by way of example here, at our direction
has issued new rules to simplify the payroll tax system. And those
new rules are really going to reduce -- significantly, I might say--
the payroll costs of businesses. We're launching an experimental
program that will let employers make tax payments electronically.
And there is no reason why you should waste time and money doing
paperwork for the U.S. government.
And I also understand how crucial trade is to the growth
of your area -- this is a whole other point. In fact, I believe it
is crucial for every American. Our economic success at home depends
on our economic success abroad. We can no longer pull back in
isolation or into protectionism. We simply can't do it. There are
some bad politics in it. Maybe there are some good politics. I know
there's good common sense in this approach I've outlined.
I really appreciate what you all have done on behalf of
the North American Free Trade Agreement. And I am convinced that it
is in the interest of the American worker to get that agreement
passed. And when we get it, and I am confident we will, we're going
MORE
- 4 -
to have created a $6.5 trillion market with the North America Free
Trade Agreement -- $6.5 trillion market -- one of the largest of the
world.
And also on the GATT Round, we're moving forward there.
It's difficult -- the hangups -- I won't burden you with all the
details, but I'm telling you it's like pulling teeth getting the GATT
Round completed. But a successful GATT agreement could pump more
than $5 trillion into the global economy over 10 years. And our
share of that promises to top $1 trillion. And that means,
obviously, more and more better jobs for Americans. I think it means
better service for your customers, too, and I think it means better
prospects to make your businesses grow. I think the consumer is
helped here by prices being reasonable and more repetitive.
Now, I am committed to both the NAFTA and GATT Round
conclusions. And some call this trade policy optimistic, and in a
sense, I think they're right because I am optimistic about this
country. I refuse to be one of the pessimists when it comes to
where we stand in terms of the future. And the creativity and the
energy and the enthusiasm of the members of this organization are
just the best possible rebuttal to the pessimists.
So with your help I think we can demonstrate, as we're
coming out of this slow infinitesimal growth period, that we've got
plenty to be grateful for and that there's plenty of opportunity out
there. And the retailers have been in the lead for many sensible
fiscal proposals up there on Capitol Hill, and this is a good
opportunity just to say thank you from the bottom of a very, very
grateful heart.
And thank you for being with us today. And now I will
turn the program either to the chairman or to the other president,
depending how we want to do all of this. (Applause.)
END
3:14 P.M. EDT
IO-ANALYSIS.WKS Chart 2
Question: If the federal government could take one action to make operation
of your independent retail business easier and more productive, what would it be?
11.58%
33.68%
36.84%
17.89%
Dimish
Encourage banks
Enact some
Other
government
to expand
program of tax
regulation of
business loans
reform, including
businesses
lower tax rates for
businesses
Page 1
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This President and this Administration stand committed to
this growth -- you can count on it. And I personally appreciate
the strong support IMRA has announced -- support for my economic
growth package announced in my State of the Union address,
support for my regulatory reform initiatives, and your support
for our civil justice reforms that are in the Access to Justice
Act of 1992.
You're out there on the front lines of this economic
recovery. You understand the deadly process that can turn
regulatory red tape into pink slips for businesses. You've seen
how the hand of government can tie the Invisible Hand of a free
market at work. Together, we can bring real change to our
federal government. That's my goal and I need your support.
Barbara joins me in congratulating all of you on your
successful convention in beautiful Florida. Thank you, God bless
you, and God bless the United States of America.
Arising
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all boats.
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(Grossman/Simon)
May 13, 1992
Draft One
IMRA
PRESIDENTIAL VIDEO: INTERNATIONAL MASS RETAILERS ASSOCIATION
ROOM 459
MAY 18, 1992
I didn't want to let this convention go by without a "Hello"
and "Thank you" to all my friends from the International Mass
Retail Association. [[When Barbara found out you were down in
Orlando, she said you had probably seen enough of Dumbo and Goofy
without hearing from me. 11 What can I say, Barbara Bush --
America's Fairy Godmother. ]] Anyway, my best wishes and
congratulations to all my good friends and supporters --
especially your President, Bob Verdisco, and your Chairman of the
Board, Warren White.
I understand that my friend Norman Schwarzkopf is standing
by. When "The Bear" speaks, people listen -- or else they dive
into their bunkers. General Schwarzkopf is a man of courage who
helped us change the world. Now it's people like you, and the
International Mass Retail Association, that are helping us change
America.
IMRA [IM - rah] represents the overwhelming majority of the
nearly $170 billion mass retail industry -- the strongest segment
of overall retail. Recent retail stats paint a picture of an
economy on the rise. I have faith in this recovery -- because I
have faith in people like you. All of you have earned your stars
in turning this economy around.
create
greate for
a
then welfume. ltisthat simple
- we don't want to empower
the welfare bureare.
wedent hand to exporture
the housing bome
We areat to
empore people. the
MAY-08-'92 16:15 ID:
TEL NO:
#658 P02
IMRA
Orlando
last cant
DRAFT #2 - -
just before
GOOD MORNING. I DID NOT WANT TO LET THIS OPPORTUNITY OF YOUR
ANNUAL CONVENTION GO BY, WITHOUT THE CHANCE TO SAY "HELLO" AND
"THANK YOU" TO ALL MY FRIENDS FROM THE INTERNATIONAL MASS RETAIL
ASSOCIATION. MY SPECIAL BEST WISHES AND CONGRATULATIONS FOR HAVING
HAD A WONDERFUL CONVENTION TO MY GOOD FRIENDS AND SUPPORTERS ---
YOUR PRESIDENT, BOB VERDISCO, AND YOUR CHAIRMAN OF THE BOARD,
WARREN WHITE.
IUNDERSTAND THAT RETIRED GENERAL NORMAN SCHWARZKOPF IS UP ON
DECK AND THAT HE WILL BE ADDRESSING ALL OF YOU NEXT. HE HAS BEEN MY
TRUSTED FRIEND AND ADVISOR. AFTER HEARING "THE BEAR," YOU WILL KNOW
WHY WE WERE ABLE TO WIN SUCH A DECISIVE VICTORY IN OPERATION DESERT
STORM. HE IS A GREAT MAN, WHO WILL BE ADDRESSING A GREAT
ORGANIZATION.
THE INTERNATIONAL MASS RETAIL ASSOCIATION REPRESENTS THE
OVERWHELMING MAJORITY OF THE NEARLY $170 BILLION MASS RETAIL
INDUSTRY AND IS THE STRONGEST SEGMENT OF THE OVERALL RETAIL
INDUSTRY. RECENTLY, RETAIL STATISTICS HAVE BEEN PROVING THAT OUR
ECONOMY IS STARTING TO SHOW SIGNIFICANT SIGNS OF IMPROVEMENT. I AM
CONFIDENT THAT OUR ECONOMY IS REBOUNDING. ALL OF YOU HAVE PLAYED
MAY-08-'92 16:15 ID:
TEL NO:
#658 P03
INT'L MASS RETAIL
ASSOC. ANNUAL
A CRITICAL ROLE IN THIS TURNAROUND.
CONE.
I AM COMMITTED TO THIS GROWTH AND APPRECIATE THE STRONG
ANNOUNCED SUPPORT THAT IMRA [PRONOUNCED: IM - RA] HAS PROVIDED ME --
INCLUDING YOUR SUPPORT OF MY ECONOMIC GROWTH PACKAGE ANNOUNCED
IN MY STATE OF THE UNION ADDRESS, YOUR SUPPORT OF MY REGULATORY
REFORM INITIATIVES, AND YOUR SUPPORT OF OUR CIVIL JUSTICE REFORMS THAT
ARE IN THE ACCESS TO JUSTICE ACT OF 1992.
TOGETHER, WE CAN BRING REAL CHANGE TO OUR FEDERAL GOVERNMENT.
YOU AND ALL AMERICANS DESERVE AN EFFICIENT GOVERNMENT THAT DOES
NOT BURDEN YOU WITH REGULATORY OBSTACLES. THAT IS OUR GOAL.
I HOPE THAT I CAN COUNT ON YOUR CONTINUED SUPPORT DURING THIS
YEAR AND BEYOND.
BARBARA JOINS ME IN CONGRATULATING ALL OF YOU ON YOUR
SUCCESSFUL CONVENTION IN BEAUTIFUL FLORIDA. BEST WISHES FOR A
PROSPEROUS YEAR. THANK YOU AND GOD BLESS.
Interat
shoppiers
NOTE:
IMRA is sensitive to the term "discount retail" and prefers the term "mass retail."
Thank you for this consideration.
(Ferguson/Grossman)
May 15, 1992
Draft Two
XXX
X
RETAIL
PRESIDENTIAL REMARKS: NATIONAL RETAIL FEDERATION
MAY 19, 1992
ROOM 450
2:00 P.M.
(Acknowledgments)
I'm delighted to receive this award, and to have the chance
to visit with you today.
Before I go any further, let me say a few words about Los
Angeles. The recent riots, as you know, left a large number of
retail operators and other small businesses devastated. We've
FEMA
responded swiftly to the needs there. The Small Business
646-2400
Administration
X
X
Association and the Federal Emergency Management Agency have made
xx
massive resources available to the businesses victimized in Los
3692
Federal Home
Angeles. And the Federal Home Loan Bank system will offer an
Loan Board Bank
Crym
X
x
additional $600 million to finance the rebuilding of homes and
businesses.
703 903 3562
Diar Clarcy
FH Mortgage
But now we need to look beyond the immediate aftermath of
HOD
Corporation
this tragedy. We must renew our commitment to bring hope and 703)685-4500
opportunity not just to Los Angeles but to every American city.
Last week, I presented to congressional leaders a six-point
action plan to do just that: our "Weed and Seed" anti-crime
initiative; our HOPE housing initiative; education reform;
welfare reform; strong job-training programs for young people in
the inner city; and enterprise zones, to bring private capital
and jobs to neighborhoods that so desperately need them.
Federal Housing Ministration
HOD 708-1112
1-800- 1-800-FREDDIE FREDDIE
708-0120 Robkelner
Feb
March
April
37-2000 (30). 763-7038
130903 139879 151771 157376
2
I know that retail has been through tough times, as have
many other sectors of the economy. But there are reasons to be
NOWB
LT
encouraged. In the first quarter of this year, retail sales rose
Xt a strong 3 percent. I want to assure you that we're doing
XX
CEA Kitty
*5108
everything we can from here to ensure that this growth continues.
We've been taking steps to reduce federal red tape, which
too often acts as a straight jacket on your ability to compete.
Every dollar you spend conforming to some government mandate is a
dollar you could spend to serve your customers better. As
you
may know, we've implemented a moratorium on new federal
regulations. We're speeding up those regulations that encourage
growth -- and, wherever possible, we're cancelling regulations
that needlessly burden business. The days of over-regulation are
and
just that -- over.
For example, at my direction, the IRS has issued new rules
to simplify the payroll tax system. The new rules will save
businesses billions of dollars in payroll costs. We're also
launching an experimental program to let employers make tax
payments electronically. There's no reason you should waste time
and money doing the government's paperwork.
I also understand how crucial trade is to the growth of
your industry. In fact, it is crucial for every American,
because our economic success at home depends on our economic
success abroad. I appreciate the goód work the NRF has been
NRF
brochere
doing on behalf of our North X American Free Trade Agreement. When
3
XXXXX
we get that agreement -- and we will -- we will create a $6.5
trillion trading area, one of the largest in the world.
We're also moving forward with the GATT trade negotiations.
Dave
X
more
Walters USTR
A successful GATT agreement could pump $5 trillion into the
than
global x economy over X ten years. The U.S. share of that promises (5.25)
to top $1 trillion. And that means more and better jobs for
Americans, better service for your customers, and better
prospects to make your businesses grow.
Thank you for the opportunity to speak with you today, and
thank you this honor.
# # # #
FOR IMMEDIATE RELEASE
MAY14 1992
CONTACT: DALE TATE
(202) 783-7971
PRESIDENT BUSH, GOVERNOR CUOMO TO SPEAK
AT NATIONAL RETAIL FEDERATION CONFERENCE
The country's top retailers will hear from President Bush, New
York's Governor Mario Cuomo, Senate Republican Leader Bob Dole and
House Minority Whip Newt Gingrich, among others at The National Retail
Federation's (NRF) Annual Washington Leadership Conference on May 19
& 20.
President Bush will receive NRF's Leadership in Public Service
Award at the White House at 2:00 p.m. on May 19.
The following is a ]
Unless otherwise I
To Junifar
el
May 19
Date
Time 2:25
10:00 a.m.
Speec
WHILE YOU WERE OUT
Small
M
Jeff Vought
12:30 p.m.
Speec
of
)
2:00 p.m.
Prese
Phone
7983
Area Code
(Roon
Number
Extension
TELEPHONED
PLEASE CALL
4:00 p.m.
Speed
CALLED TO SEE YOU
WILL CALL AGAIN
Amer
WANTS TO SEE YOU
URGENT
RETURNED YOUR CALL
7:30 p.m.
Dinn
(Nati
Message
May 20
8:00 a.m
Spee
9:00 a.m.
Spee
Bobby
10:15 a.m.
Spee
Operator
AMPAD
EFFICIENCY©
23-021 CARBONLESS
12:00 p.m.
Speech by Sen. Bill Bradley (D-N.J.)
2:00 p.m.
Speech by Bernadette Budde, Political Director, BIPAC
Speech by Robert McDicken,
American Society of Association Executives
For additional information on NRF's Washington Leadership
Conference, please contact: Dale Tate (202) 783-7971
IO-ANALYSIS2.WKS Chart 4
Question: Are you beginning to see signs of real economic recovery in your business
or your geographic region?
35
30
25
Yes
No
20
15
10
5
0
Northeast
Middle Atlantic
Southeast
Midwest
Southwest
Northwest
Page 1
IO-ANALYSIS.WKS Chart 3
Question: Looking to the future, what are the three most critical policy areas
that need to be addressed by the federal government? (e.g. health care, tax
reform, federal deficit reduction, etc.)
27.38%
33.73%
1.59%
11.51%
25.79%
Health care
Federal deficit
Tax reform
reduction
Job training
Other
Page 1
D&
NATIONAL RETAIL FEDERATION
701 PENNSYLVANIA AVENUE, N.W.
SUITE 710
WASHINGTON, D.C. 20004
(202) 783-7971
ANDY :
ONE AREA L KORGOT TO
MENTION WAS TRADE, ESPECIALLY
CHINA MIN. WHICH is CXTICANCY
IMPORTANT To RETAILERS.
Auso, CAUTION, THE SURVEY
WAS OF OUR INDEPENDENT STOLES, I.E.
SMALL RETAILERS, AND THEREFORE
Joes NOT REFLECT TNE VIEWS OF OUR
B166ER MEMBERS, LIKE SEAKS, X-MART,
DENNEY'S THE MACCO
PLEASE CAU IF you NEED
more INFO.
THANKS,
DALE FATE
RETAIL SERVICES DIVISION
100 WEST 31 ST STREET, NEW YORK, NY 10001
(212) 244-8780
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May 13, 1992
Draft One
IMRA
PRESIDENTIAL VIDEO: INTERNATIONAL MASS RETAILERS ASSOCIATION
ROOM 459
MAY 18, 1992
I didn't want to let this convention go by without a "Hello"
and "Thank you" to all my friends from the International Mass
Retail Association. [[When Barbara found out you were down in
Orlando, she said you had probably seen enough of Dumbo and Goofy
without hearing from me. 11 What can I say, Barbara Bush --
America's Fairy Godmother. ]] Anyway, my best wishes and
congratulations to all my good friends and supporters --
especially your President, Bob Verdisco, and your Chairman of the
Board, Warren White.
I understand that my friend Norman Schwarzkopf is standing
by. When "The Bear" speaks, people listen -- or else they dive
into their bunkers. General Schwarzkopf is a man of courage who
helped us change the world. Now it's people like you, and the
International Mass Retail Association, that are helping us change
America.
IMRA [IM - rah] represents the overwhelming majority of the
nearly $170 billion mass retail industry -- the strongest segment
of overall retail. Recent retail stats paint a picture of an
economy on the rise. I have faith in this recovery -- because I
have faith in people like you. All of you have earned your stars
in turning this economy around.
This President and this Administration stand committed to
this growth -- you can count on it. And I personally appreciate
the strong support IMRA has announced --- support for my economic
growth package announced in my State of the Union address,
support for my regulatory reform initiatives, and your support
for our civil justice reforms that are in the Access to Justice
Act of 1992.
You're out there on the front lines of this economic
recovery. You understand the deadly process that can turn
regulatory red tape into pink slips for businesses. You've seen
how the hand of government can tie the Invisible Hand of a free
market at work. Together, we can bring real change to our
federal government. That's my goal and I need your support.
Barbara joins me in congratulating all of you on your
successful convention in beautiful Florida. Thank you, God bless
you, and God bless the United States of America.
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
May 19, 1992
REMARKS BY THE PRESIDENT
IN ADDRESS TO NATIONAL RETAIL FEDERATION
Room 450
Old Executive Office Building
3:03 P.M. EDT
THE PRESIDENT: Let me first salute Lamar Alexander --
most of you know who he is -- our Secretary for Education. But as
we're trying to literally revolutionize American education -- give
kids a real break, give them a shot at excellence -- why, I can't
tell you how grateful I am to have him as Secretary. And he's doing
a superb job.
Tracy, President, thank you for having me here. And to
Joseph Antonini, I salute him, our Chairman. And thank you all very
much for coming.
I gather Pat Saiki has been here, right, or has she?
MS. MULLINS: She spoke to us this morning.
THE PRESIDENT: Yes. I want to say about Pat, when this
problem broke out there in Los Angeles, she took that SBA and really
rose to the occasion. And I think she's really trying to help in
that field. And, of course, what they're doing, SBA, across the
board, I hope, is beneficial in many ways to all business people in
this country.
But, as you know, these riots out there left a large
number of retail operators and a lot of small businesses devastated.
What happened in the Korea community, where it was particularly
concentrated, was just horrible -- and, of course, all communities.
But Pat did respond very swiftly. The SBA and then, also, FEMA, the
Federal Emergency Management Agency, made massive resources
available. The Federal Home Loan Bank is going to offer an
additional $600 million to finance the rebuilding of homes and
businesses there. And then we have a special task force to cut the
red tape and to make sure that these businesses get the help that
they deserve in record time.
So I wanted to just give you a report on that. I think
the federal government has responded promptly to the troubles out
there. The Governor and the Mayor have both thanked us for what
we've done, not only in this side but also in the law enforcement
side, by bringing to bear some of the U.S. Army, the 7th Infantry and
the Marines at a time when it was very dicey. And so I hope that our
response has been proper. But now we've got to go beyond this
tragedy and renew our commitment to bring hope and to bring
opportunity not just to Los Angeles but to every city.
And last week, we went to the Congress with six action-
oriented items. Again, I had a chance to repeat that, we had the
Democratic leaders and the Republican leaders into the White House
today. And the six points: the first one was a Weed and Seed
anticrime initiative, where you weed out the criminal elements and
then seed the neighborhoods with investments and jobs that,
hopefully, will bring opportunity to the communities.
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The housing initiative is known as HOPE -- that's Home
Ownership for People Everywhere. We get hit saying, hey, we ought to
try some new ideas. We said this is a new idea. It really hasn't
been tried. It's a proposal we've had out there. But I happen to
feel that dignity comes with owning your own home an awful lot of the
time. And so we're going to press, and I think Congress now will be
much more receptive to that.
Education reform Lamar will talk about. But in terms of
meeting medium- and longer-range objectives, therein lies the answer.
These kids have got to be educated. They have got to understand that
gang warfare is no substitute for jobs. And so we're putting an
awful lot of stake on trying to get through now the education program
that I'm sure Lamar will describe to you.
Welfare reform -- you've got to be careful that you put
it forward in a very constructive way. And that, again, is what
we're trying to do. I read the case of the family the other day
where a little girl had managed to save pittance, her mother being on
welfare and the welfare law was such that she couldn't save anything
beyond $1,000. That seems to me to be counterproductive. So we're
trying to make reforms there, as well as reform the -- permit the
states to try new things through what we call the waiver process --
give waivers to the states from the existing guidelines and let them
try innovative answers, whether its learnfare or workfare or whatever
it is. So this one is important. Again, it transcends just Los
Angeles, but it's a national thing.
Strong job training programs for young people is a very
good one. And we've got Job Training 2000, which is like a one-stop
shopping for all the federal agencies to come together and help on
that one.
And then the enterprise zones approach. I was amazed,
but in everyplace I went both there in South Central, in the
Korean community and then in Pittsburgh and in Philadelphia --
there's an idea which really has unanimous support now. And so I am
very hopeful that this enterprise zones concept that passed the
Congress not in the form we wanted, but that passed the Congress
-- will be enacted into law. It will bring private capital and jobs
to the neighborhoods. It will act like a magnet, giving businesses a
break to locate in these tough areas. And, obviously, if it didn't
work and wasn't productive, they wouldn't stay. But at least it's an
idea that needs to be tried.
Now, on your business. I know the retailers have not
had it easy. You've been through some tough times, as have many
other sectors of the economy. I think there are reasons to be
encouraged overall. In the first quarter of this year, retail sales
were up by, I'm told, a strong three percent. And I want to tell you
that we are going to try to everything we can from here to ensure
that the growth continues.
It's odd, I just saw some new surveys, and the American
people still feel the economy is getting worse, even though most
economists now and most business people are saying, hey, it's
beginning to move. And I think you'll see some growth figures that
confirm that. But there's a psychological -- a confidence problem
out there that I'm sure adversely affects some of your interests --
some of your business. I think that can turn around now and I think
it will turn around.
And we are going to try to oversell where the economy
stands, but at least try to gun down some of this pessimism you get
on the top of every news broadcast across this country. I mean, they
don't -- there's never -- when a statistic comes out that's
favorable, somebody finds a bad one to offset it with or trying to
put a bad spin on it. But I believe things are beginning to move.
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And I think most people in the country feel that way. And I hope
that that is immediately felt in the retail business.
In Washington, clearly, we've got to get our own house
in order. We have proposals before the Congress now that really
would help with the federal deficit. We are not going to get the
deficit down until we cap the growth of -- you don't have to cut --
but cap the growth of the mandatory programs. And there's no other
way to do it.
We've done fairly well by capping the discretionary
programs. But we've got to get discipline back. And that leaves me
to ask for your support for an idea that I've long been for,
advocated it in campaign after campaign, but that we may have a
chance to get through Congress now, and that is the balanced budget
amendment. It will have to be phased in -- it can't be done
overnight. But it can be phased in. And I really think it would
discipline not just the Congress, but any executive branch -- ours or
subsequent executive branches. And I would like to ask your support
on that because that's beginning to churn around in the Congress
right now.
Secondly, we are going to continue to go after red tape,
reduce federal red tape. It acts as a straight jacket. I was in
business once and I remember having to get -- that was way back in
the '50s and '60s -- and I remember the pain it was to have to go to
several agencies to get permits to go out and do our business. So we
are trying to simplify all that now, recognizing that every dollar
you spend conforming to some government mandate is a dollar that you
could spend in some way making sales to your customers more efficient
or reducing costs or whatever.
And as you may know, we have a moratorium now on new
federal regulations. It has been successful. And now we've renewed
it. We're speeding up those regulations that encourage growth. And
wherever possible, we are actually cancelling regulations that
needlessly burden business.
I have certain responsibilities for safety, for the
environment, but I am convinced that up until now we've not found --
government hasn't found the proper balance. And we are really
working at this problem and I hope that we can prove to you that the
days of overregulation are just exactly that, that they are over.
But if you get examples from your businesses where that is not true,
please call them to our attention and let us try to help with this
bureaucracy out there where we have to fight to hold the line against
the excesses of regulation.
The IRS, just by way of example here, at our direction
has issued new rules to simplify the payroll tax system. And those
new rules are really going to reduce -- significantly, I might say--
the payroll costs of businesses. We're launching an experimental
program that will let employers make tax payments electronically.
And there is no reason why you should waste time and money doing
paperwork for the U.S. government.
And I also understand how crucial trade is to the growth
of your area -- this is a whole other point. In fact, I believe it
is crucial for every American. Our economic success at home depends
on our economic success abroad. We can no longer pull back in
isolation or into protectionism. We simply can't do it. There are
some bad politics in it. Maybe there are some good politics. I know
there's good common sense in this approach I've outlined.
I really appreciate what you all have done on behalf of
the North American Free Trade Agreement. And I am convinced that it
is in the interest of the American worker to get that agreement
passed. And when we get it, and I am confident we will, we're going
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to have created a $6.5 trillion market with the North America Free
Trade Agreement - $6.5 trillion market -- one of the largest of the
world.
And also on the GATT Round, we're moving forward there.
It's difficult -- the hangups -- I won't burden you with all the
details, but I'm telling you it's like pulling teeth getting the GATT
Round completed. But a successful GATT agreement could pump more
than $5 trillion into the global economy over 10 years. And our
share of that promises to top $1 trillion. And that means,
obviously, more and more better jobs for Americans. I think it means
better service for your customers, too, and I think it means better
prospects to make your businesses grow. I think the consumer is
helped here by prices being reasonable and more repetitive.
Now, I am committed to both the NAFTA and GATT Round
conclusions. And some call this trade policy optimistic, and in a
sense, I think they're right because I am optimistic about this
country. I refuse to be one of the pessimists when it comes to
where we stand in terms of the future. And the creativity and the
energy and the enthusiasm of the members of this organization are
just the best possible rebuttal to the pessimists.
So with your help I think we can demonstrate, as we're
coming out of this slow infinitesimal growth period, that we've got
plenty to be grateful for and that there's plenty of opportunity out
there. And the retailers have been in the lead for many sensible
fiscal proposals up there on Capitol Hill, and this is a good
opportunity just to say thank you from the bottom of a very, very
grateful heart.
And thank you for being with us today. And now I will
turn the program either to the chairman or to the other president,
depending how we want to do all of this. (Applause.)
END
3:14 P.M. EDT
National Retail
FEDERATION
ANNUAL REPORT
WHY A FEDERATION?
The National Retail Federation is the single retail trade
organization which speaks with one voice for virtually the entire
spectrum of the industry. By bringing under the Federation
umbrella associations which have members in most lines of the
retail business, and associations in all 50 states and the District of
Columbia, the Federation represents an industry which encom-
passes over one million U.S. retail establishments, employs nearly
20 million people and registered sales in excess of $1.8 trillion in
1990. The NRF also has a sizable international membership of
1,000 stores in 50 nations abroad.
Dall 783-7971 Tall
MISSION STATEMENT
THE NATIONAL RETAIL FEDERATION
IS THE RETAIL INDUSTRY'S
LARGEST ADVOCACY ORGANIZATION
WHICH INFLUENCES THE
DEVELOPMENT AND CONTENT OF
LEGISLATION AND PUBLIC POLICY
AFFECTING RETAILING AND THE CONSUMER
AND ADVANCES THE RETAIL INDUSTRY
THROUGH PROFESSIONAL SEMINARS,
TRADE CONFERENCES, PUBLICATIONS
AND EDUCATIONAL ACTIVITIES.
Chairman's Message
t has been suggested that the basic measure of success for business in today's
economic climate is that it has managed to survive. The wise - and, ultimately,
successful - retailer survives by using every useful tool available. And one tool
which increases in value in tough economic times is membership in the National
Retail Federation.
As you read through this Annual Report, you will be reminded of the many
ways the NRF has been responsible for protecting your business interests.
Perhaps it's been through key amendments which minimize the impact of
government intrusion in your company's daily operations. Or perhaps you
derived some benefit from attending an industry meeting
William R. Howell
and exchanging information with peers about new cost
saving solutions to business problems.
Chairman and CEO
You will see in this report how the Federation has positioned its
J.C. Penney Company, Inc.
members to succeed in tough times. Effective representation, access to
Chairman of the Board and
governmental decision makers and to experts in virtually every phase of
Chairman of the
retail operations, immediate information on industry trends - these are only
a few of the benefits provided by the NRF which help you to improve your
Executive Committee
productivity and profitability.
National Retail Federation
Tough businesses survive tough times. Your active membership in the
National Retail Federation is key to your success as you look to survive - and, we trust, to
prosper - in the coming years.
1991: Year of Crisis -
Year of Achievement
he year just ended has been one of tremendous uncertainty and
John J. Schultz
challenge for retailers. As 1991 began the nation faced war in the
Executive Director
Persian Gulf, and few Americans felt confident enough about our
National Retail Federation
long-term economic outlook to be vigorous consumers. That
President
caution lasted throughout the year. And compounding the
troubles which accompanied this year of economic
Retail Services Division
uncertainty were govern-
mental actions - and inaction - to make the daily
operation of busiess more difficult.
The specter of increased taxes was with us
daily, as the Congress searched for new revenue
sources to fund necessary programs. Each new
proposal was analyzed by NRF staff and members, so
that the impact of these proposals on retailing and on
consumers could be communicated to legislators.
Strong retail support for the successful conclusion
of the GATT negotiations and a new North American
Schultz
Free Trade Agreement was urged through an aggressive
campaign mounted by NRF's international trade arm,
the Retail Industry Trade Action Coalition (RITAC).
RITAC undertook a vigorous lobbying and media campaign with retail involvement at
the most senior levels. Other legislative efforts to restrict open markets occupied much
of NRF's time and were forcefully and successfully opposed.
The passage of a civil rights bill requiring radical changes in retail operations
challenged NRF to develop a retail-specific manual and series of seminars to help
retailers come into compliance with the new law and avoid costly litigation. Both the
manual and seminars have received high marks from satisfied - and relieved -
retailers.
Finally, the industry was faced with the equivalent of a "Saturday night massacre"
when the Senate, in response to an off-hand remark by President Bush, voted over-
whelmingly to place a cap on credit card interest rates. The action, coming late one
Tracy Mullin
President
Government and
Public Affairs Division
National Retail
Federation
night at the end of the legislative session, provoked a
swift and thunderous reaction from an already-belea-
guered retail community. The message to Capitol Hill
was a clear and resounding "No!" And the message
was carried by retailers of all sizes from all segments of
the industry and by the strong grassroots network of the
state and national retail associations. Clearly, it was a
textbook case of an effective campaign - culminating in victory - one which is only
possible when a structure such as the NRF's is in place.
This difficult economic climate impacted on the NRF Retail Services Division as well
as on our own members.
A re-organization was instituted at NRF to reduce expenses, to re-train staff, and to
develop long-term strategic plans for the Federation. The goal is to provide more relevant
and significant member services and programs.
The conferences and exhibitions which provide NRF members with a forum for idea
exchange, exposure to winning business strategies, and to the technologies that will ensure
our future success as an industry are currently undergoing significant re-evaluation, re-
structuring and re-focusing to address member-expressed needs. It is these conferences -
currently providing 45 percent of NRF revenues - that offer the single greatest opportunity
for incremental revenue generation to the Federation in the future.
In 1991, conference attendance, for the most part, held its own or improved, under-
scoring both NRF's success in understanding and re-orienting our programs, and this
industry's recognition of the rapidity with which change is affecting us.
Retailers set new records for active participation in NRF activities this year, and that
participation has generated a level of excitement and commitment among the staff to
achieve even more for the industry in 1992. We look forward to working with you next
year.
4
Annual Convention
and Exposition
The 80th NRF Annual Retail Industry Convention, the largest
gathering of retail executives in the world, provided the
opportunity for NRF members and staff to identify issues and
Bookston
trends which would create challenges for retailing in 1991 and
to develop plans for NRF's public policy agenda and educa-
tional programs throughout the year.
Thousands of executives from retailing, as well as
Convention attendees
were able to purchase the
service and vendor firms, attended the four-day conven-
latest NRF publications
tion and exposition, held in January in New York City.
covering a wide range of
subjects at the Annual
More than 65 sessions, developed by NRF's Retail
Convention bookstore.
Services Division, featured over 200 experts speaking
on virtually every aspect of retailing of interest to both
large national chains and small independent stores. A
series of open-ended roundtable discussions gave
retailers an opportunity to discuss common problems
and to identify issues and trends of particular impor-
tance to future planning efforts.
The NRF Board of Directors, holding its semi-
annual meeting, devoted considerable special attention
to discussion of national public policy issues. Reacting
to assessments, developed by NRF's Government and
Public Affairs staff, of legislative and regulatory
activities which would impact the daily operation of
Harwell Proffitt, Chairman of the Executive Committee,
retailers' business or the national or international
Proffitt's, Inc. and Leo M. Rodgers, Jr., President, Balliet's, Inc.,
economic climate, the Board agreed to the legislative
got a personal view of the press and its political agenda from
Hodding Carter, host of the PBS show "Capital Journal," who
priorities of the Federation for 1991. Clear emphasis
addressed attendees of the Curtain Raising Luncheon.
was given to efforts to strengthen the weak economy,
ensure greater access to free trade in open markets, and
provide positive leadership in developing a program to
provide affordable, quality health care to all Americans.
Distinguished retailers were honored at the 1991
Annual Convention. The 1991 NRF Gold Medal,
5
Over 500 retailers
attended one
convention
session
forecasting the
economic outlook
retailing's most prestigious award, was given to Marvin
for retailing.
Traub, Chairman of Bloomingdale's.
Others who were honored were Jorgen Basse, Chief
Executive Officer, Magasin du Nord, Copenhagen,
Denmark, who received the International Award, and
STORES
David A. Horr, President and Treasurer, Marting's
Department Store, Portsmouth, Ohio, who was pre-
A LIFESTYLE
sented the Independent Retailer of the Year Award.
The Federation also awarded Silver Plaques to Fred
Hamacher, Vice President, Compensation and Benefits,
Dayton Hudson Corporation and to Sumpter Priddy,
NRF GOLD
MEDAL WINNER
President, Virginia Retail Merchants Association.
Marvin S. Traub
Chairman,
Work began early in 1991 to prepare for NRF's
81st Annual Convention in January 1992, slotted to be
1991 NRF Gold Medal recipient
one of the strongest in years. Seventy CEOs,
was Marvin S. Traub, Chairman,
Bloomingdale's.
chairpeople and presidents, among others, will explore
strategies, technologies, and operations to bolster the
Fred Hamacher, Vice President,
industry. Special programs have been created,
Compensation and Benefits,
including:
Dayton Hudson Corporation,
was congratulated by Dayton
Visions and visionaries exploring the economic,
Hudson Chairman and CEO
RETAILING
governmental, global, technological and sociological
Kenneth Macke, on being
1992
presented the NRF Silver Plaque.
dynamics which will reinforce and re-direct the retailing
TOUGH
industry.
CHALLENGES
NEW
Five days of "nuts and bolts" sessions on sound
STRATEGIES
business-practices for the independent and smaller
JANUARY 12-15
NEW YORK CITY
retailer, virtually a conference within the convention.
Two and a half days for international retail
NRF's 1992 Annual Retail Industry
members which will provide a concise overview of the
Convention and Exposition will focus
on new ideas and strategies to deal
United States' retailing scene.
with the challenges of the nineties.
Retail Directions Exposition, the marketplace for
tomorrow's technology, equipment, systems and services.
6
Government and
Public Affairs Division
1991 WASHINGTON LEADERSHIP CONFERENCE
The 56th Annual Washington Leadership Conference clearly
upheld the tradition of providing NRF members the opportunity
to discuss major legislative issues of concern to the retail
President George Bush
industry with leaders of government at the highest levels.
greeted NRF Chairman
Over 130 retail chief executive officers and senior retail
William R. Howell
and NRF President Tracy
executives attended this year's conference, held May 22-23.
Mullin before addressing
The centerpiece of the event was a meeting in the
Federation members.
White House briefing room with President Bush, who
publicly thanked NRF and its members for their major
contribution to ensure that his Administration be
United States Trade
granted fast track negotiating authority to complete the
Representative Carla S. Hills
shared a light moment with
critical Uruguay Round of GATT trade negotiations.
NRF Chairman Howell and
The Congress, due in large part to efforts undertaken by
Donald G. Fisher, Chairman
and CEO, The Gap, Inc., prior
NRF members, had voted to grant the President the
to her dinner address.
authority only the evening before the Presidential
briefing.
NRF members also enjoyed a reception and dinner
at the elegant Mexican Cultural Institute at which they
were greeted by His Excellency the Ambassador of
Mexico and heard an after dinner address by Ambassa-
dor Carla Hills, the U.S. Special Trade Representative.
Citicorp Establishment Services hosted 150 attendees at dinner
at the Mexican Cultural Institute, while The Washington Post
Company sponsored the evening's cocktail reception.
Left, K mart Chairman, President and CEO Joseph Antonini
thanked Thomas Ferguson, President, The Washington Post
Company. Right, Citicorp Establishment Services executives
Phil Carter and Bob Horan were the evening's hosts.
7
Labor Secretary Lynn
Martin (left) and
Democratic House
Leadership member
Rep. Vic Fazio of
California presented
opposing points of
view on legislative
initiatives.
Labor Secretary Lynn Martin discussed the
Administration's efforts to fashion new pension
legislation and to undertake a "glass ceiling" initiative
House Ways and Means
Committee Chairman
in the workplace. Rep. Vic Fazio (D-CA), fifth-ranking
Dan Rostenkowski (D-IL)
member of the House leadership, briefed attendees on
discussed possible
congressional action on
political and legislative items.
tax measures at the
House Ways and Means Committee Chairman Dan
NRF Board of Directors
meeting.
Rostenkowski (D-IL) was guest speaker at the NRF
Board of Directors meeting, discussing with Board
members the potential for tax legislation in the 102nd
Congress. And attendees were treated to a lively
exchange between conservative journalist Fred Barnes
of The New Republic and liberal writer and commenta-
tor Juan Williams of The Washington Post.
In addition, numerous board and committee
meetings were held during the two-day session, notably
the Independent Stores Board and the Federation's
Government and Legal Affairs Committee.
Conservative commentator Fred Barnes
of The New Republic and liberal journalist
Juan Williams of The Washington Post provided a
lively interchange on economic, political and
social issues at a panel session moderated by
Charles H. Reynolds, Jr, Chairman, Reynolds
Brothers, Inc.
NRF President Jack Schultz led a discussion
of NRF services at the meeting of the
Independent Stores Board of Directors.
8
TAX AND BUDGET POLICY
The 102nd Congress opened on a sour note with members
on both sides of the aisle keenly aware that the tax and budget
debate would continue to be waged in sometimes strident
tones as the general economic outlook was grim. Few were
predicting that the recession would end before mid-year, and
most in Congress were forced to admit that the economy could
South Dakota
not begin to grow without bold and comprehensive action on
Democratic Senator
Tom Daschle, a member
the part of government leaders. But bold initiatives would
of the Senate Finance
require courage, leadership and cooperation between
Committee, addressed
the NRF Taxation
increasingly partisan Republicans and Democrats, and
Committee at a dinner
political courage and leadership were in short supply.
preceding its October
meeting in Washington.
The specter of the 1992 national elections influ-
enced debates and public declarations from Capitol Hill
and the White House throughout the year. The disen-
chantment of the American public with its leaders'
ability to halt the recessionary spiral, create new jobs,
and begin to bring the deficit under control threatened
to impact not only the presidential election, but con-
gressional races as well. And the voters continued to
send a strong message to elected officials that they
would not tolerate tax increases.
The Omnibus Budget Reconciliation Act, signed
into law in 1990, set new rules for a five-year deficit
reduction target that had been a common goal of the
budget negotiators. As a result, Congress was forced to
adhere strictly to the "pay-as-you-go" terms of the
Another Senate Finance Committee member, Senator David Pryor (D-AR),
budget agreement and the Congress cast about for other
was flanked by NRF President Tracy Mullin and Frank Gunter,
Vice President Taxes, May Department Stores Company, Inc., and
possible revenue sources which might be tapped
Chairman of NRF's Taxation Committee, as he engaged in an informal and
without inflaming voters' anger. Increasing the
candid exchange of views with members of the Committee.
corporate income tax rate, limiting the deductibility of
advertising expenses, and setting new luxury excise
taxes on consumer electronics were three items given
serious consideration prior to final congressional
approval of the 1990 budget package. Each would have
a direct negative impact on retailing. Yet, while 1991
was characterized by substantial public posturing over
the need to address the deficit and the desire of some in
9
Congress to give middle class voters a tax break, none
of the many measures introduced managed to gain
approval.
In the last days of the session, Congress approved a
six-month extension of the targeted jobs tax credit to
give employers of hard-to-place workers a tax credit of
up to $2,400 for a first-year employee. The credit will
expire June 30, 1992, but further extension will likely
be considered in the second session.
The Congress managed to have signed into law
only one major piece of tax legislation - a bill to
extend unemployment insurance benefits to jobless
workers whose original benefits had already run out.
Senate Assistant Minority Leader Alan K Simpson (R-WY)
The effort to get this bill enacted was characteristic of
discussed the politics of enacting tax and budget initiatives in
the current political situation; President Bush rejected
the 102nd Congress with members of the NRF Government and
Legal Affairs Committee (GALA) at one of its monthly meetings.
two measures before finally signing a third bill. The
action took over six months to complete.
The Outlook for 1992
As Congress adjourned for 1991, the outlook for
the end of the recession was uncertain and President
Bush's popularity was in a downward spiral because of
failed leadership on domestic and economic issues.
House Ways and Means
Committee member
Thus, the second session of the 102nd Congress is
Rep. Marty Russo (D-IL)
set forth the committee's
likely to focus on a variety of tax and budget issues in
agenda for the remainder
an effort to pass an economic stimulus package. Both
of the session at an NRF
Gala Committee meeting.
the Democrats who control the Congress and Republi-
cans who generally have supported the President's
economic program desperately need to show evidence
of leadership before facing the electorate. In 1992,
retailers are likely to see a repetition of last year's
threats as the search for additional revenue sources to
fund domestic programs and reduce the federal deficit
continues.
10
INTERNATIONAL TRADE
In 1986, trade ministers and representatives from 92
countries around the world met in Punta del Este, Uruguay, and
agreed to begin a new four-year round of multilateral trade
talks under the international treaty known as the General
Senator Phil Gramm (R-TX),
Agreement on Tariffs and Trade (GATT). Since that time,
one of the Congress's
chief advocates of
preliminary meetings have been underway on a variety of
free trade, discussed
issues, including phasing out the Multi-Fiber Arrangement
major trade objectives
with members of the
(MFA) which governs textile and apparel imports. Intensive
Retail Industry Trade
negotiations have taken place since the summer of 1990 and
Action Coalition (RITAC)
Executive Committee
continued throughout 1991.
at its July meeting.
For retailers, the Uruguay Round presents a real
opportunity to gain a freer textile and apparel trading
regime. NRF and its trade arm, the Retail Industry
Trade Action Coalition (RITAC), have played a pivotal
role in the effort to phase out the MFA and assure a
swift and successful completion of the Uruguay Round.
RITAC has also actively worked for a successful
negotiation of the North American Free Trade Agree-
ment (NAFTA), which would provide retailers substan-
tial new freedom in sourcing within Mexico. RITAC
representatives have enjoyed unprecedented participa-
FOUR SEASONS
tion in the numerous Uruguay Round and NAFTA
WASHINGTON, D.C.
negotiating sessions and RITAC continues to encourage
other retail companies to become more actively in-
Deputy Under Secretary of State for Economic and Agricultural Affairs Michael
Young addressed the RITAC Executive Committee as RITAC Chairman Leslie H.
volved as cleared advisors to the talks.
Wexner, Chairman of the Board and CEO, The Limited, Inc., listened intently.
Retailing had several key, but hard-fought, legisla-
tive victories in the area of international trade in 1991.
The early months of the year were spent lobbying
Ambassador Ronald Sorini,
Deputy U.S. Trade Represen-
members of Congress to grant President Bush "fast
tative, discussed the Bush
track" negotiating authority for implementing trade
Administration's strategy for
concluding the Uruguay Round
agreements so critical to the successful conclusion and
of GATT negotiations
implementation of the Uruguay Round and the North
with members of the RITAC
Steering Committee.
11
American Free Trade Agreement. NRF, through
RITAC, mounted a massive grassroots effort and
organized the broadest possible coalition in support of
the extension of fast track authority.
Despite a major lobbying and publicity campaign
in opposition to fast track extension carried out by
organized labor and other protectionist allies, we were
successful in gaining Congressional approval. Presi-
dent Bush personally credited retailers as being vital to
the success of the effort when he briefed participants at
NRF's Washington Leadership Conference in May.
Another issue which commanded RITAC's
Rep. Tim Penny (D-MN), right, thanked retailers for their past support at a
attention in 1991 was the extension of Most Favored
fundraising breakfast RITAC hosted in his honor. House Ways and Means
Nation (MFN) status for China, which met strong
Committee Chairman Dan Rostenkowski (D-IL), center, made a guest appearance
on Rep. Penny's behalf. RITAC Steering Committee Chairman James Hale,
opposition in the Congress. Because of problems in
Senior Vice President, General Counsel, Dayton Hudson Corporation,
U.S. relations with China over human rights violations,
introduced his fellow Minnesotan at the event.
weapons proliferation and trade frictions, a number of
bills were introduced in both the House and Senate
which would attach rigorous conditions to extension
of MFN.
China is one of the top suppliers of footwear,
textiles, apparel and toys to the United States. There-
Senator Larry Craig (R-ID),
fore, loss of MFN status would dramatically increase
a key ally on trade
legislation, spoke to the
the cost of goods from China and would have a signifi-
RITAC Steering Committee
cant adverse impact on the price and availability of
about trade issues at a
monthly RITAC meeting in
goods which retailers offer consumers. But many
Washington.
members of Congress view the extension of MFN status
to China more as a political than a consumer issue. The
House underscored the political nature of the issue
when, in the closing hours of the last congressional
session, they voted 409 to 21 to impose specific
sanctions on Chinese trade with the U.S. This over-
whelming vote was viewed as a signal to the Chinese
that they must mend their ways before the Congress
will be willing to extend China's unconditional MFN
status. The issue is certain to resurface as the 1992
elections approach.
12
LABOR AND HUMAN RESOURCES
Once again, workplace issues occupied priority attention
as Democrats revealed their agenda for the 102nd Congress.
Of the first five bills introduced in the new session, three were
labor measures, signaling the leadership's intention to push
Rep. Austin Murphy (D-PA),
for significant gains in this legislative area. The civil rights
Chairman of the House
legislation, which President Bush had successfully vetoed in
Labor Standards Subcom-
mittee, was featured
the 101st Congress, came roaring back to stoke the rhetorical
speaker at the NRF
fires over the issue of quotas. On the heels of civil rights the
Committee on Employment
Law's semi-annual
now-perennial family and medical leave legislation was
spring meeting.
reintroduced, despite clear signals that the President would
not sign a bill mandating family leave. The bill has been
continuously modified in an effort to gain sufficient votes to
preclude a successful veto. It will be a high priority issue in
1992.
A new issue, the primary objective of organized
labor, was striker replacement legislation which would
deny employers the right to permanently replace
striking workers during a walkout. Another solid labor
issue gaining committee approval late in the session is a
David Nexon, Majority Health Counsel to the Senate Labor and Human
measure to require employers to notify employees when
Resources Committee, discussed pending health care initiatives as
they are being monitored in the workplace. And the
NRF President Tracy Mullin and Charles Lotter, General Counsel, J.C.
Penney Co., Inc, NRF GALA Committee Chairman, listened.
debate over how to resolve the nation's health care
crisis spawned a staggering number of bills ranging
from national health insurance measures to 100%
deductibility of health insurance premiums for small
businesses.
All the debate was not limited to Capitol Hill,
however, as regulators at the Justice Department, the
Equal Employment Opportunity Commission and the
Architectural and Transportation Barriers Compliance
NRF's Task Force on Health Care Reform
Board attempted to formulate regulations which fairly
held its initial meeting to examine
pending legislation, discuss common
implemented the legislative intent of the recently-
ground and develop a set of principles
enacted Americans With Disabilities Act.
which will form the framework for the
NRF's position on health care reform.
Civil Rights Act
The three-year struggle over legislation to overturn
a series of Supreme Court decisions and make it easier
for workers to sue for discrimination or harassment in
the workplace came to a sudden end in October when
the President, in a stunning reversal, stated he would
13
sign a compromise civil rights bill. The new law, which
is still likely to encourage litigation, only partially
addressed retailers' concerns by placing caps on previ-
ously unlimited compensatory and punitive awards
available to plaintiffs. Moreover, despite the Bush
Administration's assertion that "this is not a quota bill,"
the language of the new law will likely force employers
NRF Vice President Steve Pfister testified before both the Architectural
to meet numerical quotas in an effort to avoid charges of
and Transportation Barriers Compliance Board and the Justice Department
to put forth retailing's concerns about vague language and overreaching
discrimination.
requirements of the newly-passed Americans With Disabilities Act.
Americans With Disabilities Act Regulations
With enactment of the ADA in August 1990, the
real task became interpreting the bill's many unfamiliar
or unclear terms in practical terms and fashioning
Gordon Segal, President
and CEO, Crate and Barrel,
regulations to preserve the law's spirit without unneces-
presented testimony
before a Justice
sarily burdening businesses attempting to comply with
Department panel in
the law. For retailing, the burden of meeting the bill's
Chicago which pointed out
requirements for employment and public accommoda-
problems of complying
with the Americans With
tion is enormous. NRF took an active role, testifying
Disabilities Act specific
to retail stores.
before the three relevant governmental agencies and
presenting pragmatic recommendations for improving
the regulations to allow retailers to successfully employ
and accommodate the disabled.
Upon release of the regulations, NRF offered
compliance seminars in San Francisco, Dallas and
John Wodatch, Director of the
Washington, DC and developed a retail-specific compli-
Office of Americans With
Disabilities Act, U. S. Department
ance manual which is currently available to members.
of Justice, discussed his
department's efforts to formulate
Mandatory Employee Health Insurance
broad and fair regulations and
In an attempt to more positively impact the
enforcement procedures at one of
the NRF-sponsored seminars on
longstanding debate on national health insurance, NRF
the ADA.
assembled a Task Force on Health Care Reform which
held the first in a series of meetings in October to begin
to formulate a set of principles which retailers could
support in an effort to provide access to health care for
all Americans. The group acknowledged that a serious
health crisis exists and that the retail industry must be
proactive in providing leadership on this critical issue on
Capitol Hill and in all other appropriate forums.
14
CREDIT LEGISLATION
Credit unexpectedly became a burning issue for retailers
late in the legislative session when an unwitting remark by
President Bush that he would "like to see credit card rates
come down," prompted Senator Alfonse D'Amato (R-NY) to
offer an amendment to the Senate banking bill capping credit
card rates at four percent over the Treasury insufficiency rate.
The move would have effectively made the top rate 14% at the
time the amendment was offered. NRF immediately mounted a
vigorous grassroots lobbying and media campaign, with
unprecedented involvement by retail chief executive officers
and strong support from NRF's member state and national
retail associations. The effort was successful in preventing
the rate cap amendment or any study which could automati-
cally trigger a rate cap from being adopted.
In earlier action on credit issues, Ralph E. Spurgin,
President and Chief Executive Officer, Limited Credit
Ralph E. Spurgin, President and CEO, Limited Credit Services,
Services, Inc., testified in the House of Representatives
Inc., testified on NRF's behalf before a House committee on
legislation amending the Fair Credit Reporting Act.
on behalf of NRF on legislation amending the Fair
Credit Reporting Act which would place new costly and
overreaching compliance obligations and impose civil
liability on retailers who furnish customer payment
information to credit bureaus. Calling the amendments
unnecessary, Spurgin urged that they not be adopted.
Also in June, Peter R. Fisher, Executive Vice
President - Credit Merchandise Group, Sears, Roebuck
Peter R. Fisher, Executive
Vice President Credit
and Co., testified for NRF before a Senate subcommit-
Merchandise Group, Sears,
tee on consumer bankruptcy. Fisher outlined the
Roebuck and Co., presented
testimony before a Senate
significant recent increase in consumer bankruptcies
subcommittee on consumer
and its effect on retailers. He offered specific recom-
bankruptcy, offering suggestions
for positive reform of the
mendations for reform of the Bankruptcy Code to target
Bankruptcy Code.
abusive bankruptcy filings and offered suggestions for
procedural changes which would ensure that creditors
have adequate information with which to act when a
debtor files for bankruptcy.
15
In October NRF presented testimony on the
Consumer Credit Reporting Act before a House
subcommittee. Appearing on behalf of NRF, John V.
Skinner, President and Chief Executive Officer,
Jewelers Financial Services, Inc., a subsidiary of Zale
Corporation, stated NRF's opposition to the measure,
which would create substantial compliance obligations
and impose major civil and administrative liability on
credit grantors. Such action, Skinner asserted, would
be an unnecessary and unwarranted departure from
current longstanding policy, and should be rejected.
NRF also submitted statements to the House
Banking Committee on other credit matters, notably
NRF expressed its opposition to changes in the Consumer Credit
proposed changes in credit card disclosure require-
Reporting Act which would adversely impact retailing in testimony
ments, and to the Senate Banking Committee as part of
delivered by John V. Skinner, President and CEO, Jewelers Financial
Services, Inc., a subsidiary of Zale Corporation.
its oversight hearings on the Fair Credit Reporting Act.
1992 is likely to see a refocusing on the issue of
credit card interest rates, with Congressional hearings
expected early in the year. In addition, efforts to amend
the Fair Credit Reporting Act to require credit grantors
to provide new disclosures could resurface. All in all,
artives Portsmouth
concern
the second session promises to be very active on the
Horr featured
time
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in television morning NELSON show
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The massive lobbying effort to defeat an
amendment to cap credit card interest rates
included substantial media contacts to mount
grassroots support and action.
16
RETAILING AND THE ENVIRONMENT
In response to growing public concern about environmen-
tal issues, the NRF's Clean Environment Committee estab-
lished a task force to develop a national policy on packaging
and solid waste for the retail industry. The Task Force
released its policy statement in late 1990, outlining five basic
strategies for managing the solid waste "stream." They are:
source reduction, reuse, recycling, composting and disposal.
The policy statement is being used by NRF and its
member companies and associations as a resource in
developing an industry response to legislative propos-
als at the federal and state levels. One such federal
initiative, introduced in April, 1991, would establish an
eleven person Products and Packaging Advisory
Board, intended to recommend ways to develop and
implement a voluntary program to:
Keith Tice, National Director, Packaging and Labeling, Sears, Roebuck and
minimize packaging in the waste stream;
Co., urged the Federal Trade Commission to work with the states,
business and environmental groups to develop clear environmental claims in
reduce the consumption of scarce natural
product labeling and advertising. Below, FTC Chairman Janet D. Steiger
resources in packaging;
asked questions after hearing Mr. Tice's statement.
maximize the recycling and reuse of packaging;
reduce litter; and
assure that human health and the environment are
not harmed as a result of the use and disposal of
packaging and products.
NRF, recognizing that such legislation limiting
packaging material for commercial products, or
requiring retailers to become recycling centers for
waste oil, batteries, cans or other products will have a
direct impact on retail operations, is closely monitoring
congressional activity on the bill.
In other activity, Keith Tice, National Director,
Packaging and Labeling, Sears, Roebuck and Co.,
testified on behalf of NRF before the Bureau of
Consumer Protection of the Federal Trade Commission
on whether additional guidance to the public is needed
17
on environmental advertising and labeling and what
format and scope any additional guidance should take.
He urged the FTC to work with the states, industry and
environmental organizations to develop one set of clear
guidelines establishing definitions for environmental
marketing claims to be used in the labeling, packaging
and promotion of products on the basis of environmen-
tal attributes.
Finally, the NRF Clean Environment Committee
met at NRF's Washington office in November to
discuss current federal and state legislative and
regulatory activity. The Committee also heard from
invited speakers Stephen Gold of Citizens for the
Presenting a variety of viewpoints
Environment, Daniel Weiss of the Sierra Club's
on recent environmental activity to
the NRF Clean Environment
Environmental Quality Program, and Rick Swigart of
Committee at its November meeting
the Council for Solid Waste Solutions.
were, top to bottom, Stephen Gold, Citizens for the Environment,
Rick Swigart, Council for Solid Waste Solutions and Daniel Weiss of
the Sierra Club's Environmental Quality Programs.
18
PRIVACY ISSUES
Telemarketing Fraud
Legislation not enacted in the last Congress resurfaced in
the 102nd Congress which would subject many legitimate
telephone business transactions to additional, unnecessary
requirements and costs. Retailers have opposed such
measures which allow state attorneys general and private
parties to bring telemarketing action claims in federal courts.
NRF conveyed its major concerns in testimony
before the House Transportation and Hazardous
Materials Subcommittee in May. Also, in conjunction
with other business groups, NRF established the
Alliance for Proper Telemarketing, a broad-based
business coalition, to lobby in opposition to the
legislation and to seek modifications in the bill.
Legislation to Limit Telephone Solicitation
Wearing a mantle of protecting consumers' rights,
legislation has been introduced to make it unlawful for
any person to make a "telephone solicitation" to any
telephone subscriber without first consulting govern-
NRF Vice President and General Counsel
ment-mandated nationwide lists of persons who object
Michael Altier testified before the House
to receiving such calls. A subsequent version of the
Transportation and Hazardous Materials
Subcommittee in opposition to legislation
legislation would require prior express consent of a
which would severely restrict
party before such calls could be made.
telephone business solicitations.
NRF has actively and vigorously opposed such
legislation which, while intending to prevent nuisance
calls, would unnecessarily restrict and impede the
normal, natural and necessary business transactions
between retailers and the consumer. As part of NRF's
efforts, significant modifications were incorporated
into the Congressionally-approved measure.
In addition, legislation was introduced which
would prohibit virtually all use of automatic dialing
equipment with a prerecorded message to residential
customers without prior consent of the called party.
An amended version of this legislation was approved
and sent to the President prior to adjournment.
19
NRF CONGRESSIONAL RECEPTION
The NRF Government and Public Affairs Division welcomed
nearly 50 members of the House and Senate as well as almost
200 NRF members, Capitol Hill staff members and other
friends to a "Welcome Back" reception February 20. The
Rep. David Nagle
evening provided an opportunity for members and staff to
(D-IA), right, bid
visit NRF's new offices, visit with retail constituents from
farewell to his
longtime friend
home districts and say goodbye to retiring NRF Vice President
and retiring NRF
Lee Williams. No Washington reception is complete without a
Vice President
Lee Williams.
modicum of political or legislative business, however, and
Congressional members and staff were questioned about the
year's legislative agenda.
NRF members got down to serious business the
following morning when the Government and Legal
Raymond Messina, Attorney, J.C. Penney
Company, Inc., with second-term
Arkansas Democratic Senator
Congresswoman Susan Molinari (R-NY).
Dale Bumpers praised NRF's
Lee Williams for his long years
of service to government and
to retailing.
RITAC International Counsel
William Kay Daines, right, greeted
fellow Utah native and freshman
Democratic Congressman
William Orton.
Barry Thomson, Senior Vice President, Administration,
Woolworth Corporation, greeted a Republican member of
the New York delegation, Rep. Bill Green.
20
Affairs Committee, the Federation's primary policy
making body on legislative and regulatory issues, held
Rep. Lee Hamilton (D-IN),
its first meeting during the new Congress. Rep. Lee
member of the House
Foreign Affairs Committee,
Hamilton (D-IN), member of the House Foreign
briefed members of NRF's
Affairs Committee, gave GALA members a frank
GALA Committee on the
Persian Gulf Conflict.
inside look at the Persian Gulf conflict, which was
underway at the time. Rep. Hamilton, Vice Chair of
the Joint Economic Committee, also addressed timely
economic issues.
Rep. Philip M. Crane (R-IL)
greeted Kelly McNamara, Vice
President and Director, Federal
Governmental Affairs, Dean
Witter Financial Services Group.
Senator Christopher Bond (R-MO), left, was welcomed
by Frank Williams, Vice President, Government and
Employee Relations, of the St. Louis-based May
Department Stores Company.
Rep. Austin Murphy (D-PA), left, discussed local affairs with
Tom Weyant, President, Pennsylvania Retailers Association.
NRF Vice President Steve Pfister and
Vermont's Republican Senator James
Jeffords discussed recent events in the
Senate Labor Committee while enjoying
the evening.
21
Independent
Stores
The Independent Stores component of NRF's membership
comprises thousands of retail members, a key element of the
NRF grassroots network. The vitality of this segment of the
retail community is important to the health of the nation and
serves as the barometer of its economic condition.
The Independent Stores Board of Directors met
three times in 1991, in conjunction with the Annual
NRF President Jack Schultz joined members of the Independent
Stores Board of Directors when it met in May in
Convention and the Washington Leadership Confer-
conjunction with the Washington Leadership Conference.
ence in May and again in NRF's Washington office in
October. Prior to the May board meeting a dinner for
the Independent Stores Board was held to provide an
Independent Stores
informal opportunity to exchange information. At the
Board members
enjoyed an informal
October meeting, Senator Dale Bumpers (D-AR),
opportunity to discuss
Chairman of the Senate Small Business Committee,
mutual concerns and
developments at dinner
joined members for an informal discussion of eco-
in Washington in May.
nomic issues.
NRF was invited to participate in a small business
trade mission to EC '92, sponsored by the Department
John Young, President,
of Commerce and the Small Business Administration.
Gingles Department Store,
Daryl Routzahn, President, Routzahn's, and Vice
introduced Senator Dale
Bumpers (D-AR) at the
Chairman of the Independent Stores Board, partici-
October meeting of the
pated as NRF's representative in the four-day fact-
Independent Stores Board.
finding mission to Brussels. Mr. Routzahn reported
his findings at the October meeting of the Board.
Finally, in 1991 NRF sponsored programs on
David Horr, Chairman, Treasurer and CFO,
Marting's Department Stores, left, was
Fundamentals of Merchandising and Advanced
congratulated by Kenneth A. Macke,
Merchandising, geared specifically to independent
Chairman and CEO, Dayton Hudson
Corporation, upon receiving the NRF
stores. In addition, a full day of program sessions at
Independent Retailer of the Year Award
the January Convention was devoted to this audience,
in January.
dealing with such topics as attracting more shoppers,
gross margin improvement, recruiting and retaining
employees, strategic business planning, and other
subjects.
22
State and National
Retail Associations
ANNUAL CONFERENCE OF STATE AND NATIONAL
RETAIL ASSOCIATION EXECUTIVES
Newport, Rhode Island, was the scenic location for the
1991 Annual Conference of State and National Retail
Association Executives, September 23-26. Over 120 corporate
and association executives and spouses attended the many
sessions devoted to association management topics, panel
discussions on issues impacting retailers which are currently
being debated at the federal and state legislatures, analysis
of political trends and specific political races, industry trends
and other timely topics.
The Conference highlight was a Keynote Address
by Bernard F. Brennan, Chairman, President and CEO
Bernard F. Brennan, Chairman,
President and CEO, Montgomery Ward &
of Montgomery Ward and Co. Mr. Brennan discussed
Nationally-known political
Co., Inc., presented the keynote
analyst Charles Cook, author of
the recent strategy which transformed Montgomery
address at the Conference.
The Cook Report, analyzed
Ward from a bureaucratic mass merchandising com-
political races and trends.
pany to a profitable specialty retail merchant. The
group was also addressed by Rhode Island Attorney
General James E. O'Neil, by Commander William
Nelson of the U.S. Naval War College and other
nationally-known speakers.
Washington lawyer
G. John Tysse alerted
attendees to the many
pitfalls facing retailers in
interpreting the requirements
of the Americans With
Disabilities Act.
23
Noted futurist Jeffrey Hallett challenged
conference participants to rethink organizational
structures which will change in the coming
decade.
Noted futurist Jeffrey Hallett, principal and co-
founder of the firm PresentFutures, gave conference
participants a sense of how organizations, including
retail corporations, will change within the decade of the
90's, and discussed the policy implications of the
State and National Retail
Association Executives, corporate
anticipated changes. Implications of current and future
retail executives and NRF
legislative and regulatory activities were examined
Government and Public Affairs
Division staff members presented a
when representatives from state and national associa-
series of panel discussions on
tions and retail companies joined NRF staff to discuss
federal and state intitiatives in
international trade, health care
federal and state initiatives in the areas of international
access and environment.
trade, environment and health care.
This year's conference featured a charity casino
night at which attendees played to win exciting prizes
donated by NRF member retail companies. The
premier event benefited the Guillain-Barre' Syndrome
Foundation International and the Warren, RI, Rotary
Club, whose members acted as guest croupiers. The
lively and enjoyable evening netted over $3,000 for
charity.
NRF President Tracy
Mullin presented retiring
Virginia Retail Merchants
Association President
Sumpter Priddy with a
check to benefit the
Guillain-Barre' Syndrome
Foundation International
at the conclusion of a
charity casino night.
24
OTHER STATE AND NATIONAL ASSOCIATION ACTIVITIES
NRF's state retail association members, in addition to
fulfilling their primary charge of protecting the legislative
interests of retailers at the 50 state capitols, devoted
considerable time and effort in 1991, along with the NRF
member national associations, to retailing's interests at the
federal level. A number of grassroots campaigns were
mounted, notably on fast track negotiating authority for the
Fellow State Retail Association Executives honored Sumpter Priddy,
President and renewal of MFN status for China in the area of
retiring president, Virginia Retail Merchants Association, with a dinner
prior to his receiving the NRF Silver Plaque at the Annual Convention.
international trade, civil rights and striker replacement
legislation in the area of employee legislation, and in the
defeat of a measure to cap credit card interest rates. The
strength and commitment of the industry's grassroots,
realized in its association members, is a key reason for the
Federation's high regard among Administration officials and
members of Congress.
In non-legislative activities, the Virginia Retail
Merchants Association's retiring president, Sumpter
Priddy, was honored at the January convention with
State and National Retail Association Executives and corporate retail
executives met in Washington in March to discuss
the NRF Silver Plaque, awarded each year to two
strengthening the NRF-association member relationship.
industry executives for outstanding service to retail-
ing. A number of fellow state association executives
joined the NRF Washington staff in honoring him at a
dinner at the Russian Tea Room the evening before the
presentation.
An ad hoc group of 20 state and national associa-
tion executives and executives from major retail
companies met in Washington in March to continue
work on strengthening the NRF-association member
relationship through greater cooperative effort.
Finally, at September's Annual Conference in
Newly-elected officers of the
Newport, state association executives voted to form a
National Association of State
Retail Association Executives
new professional association, the National Association
are, left to right, Bill Kundrat
of State Retail Association Executives. The group will
(Florida), David Vite (Illinois),
Chris Kindsvatter (Michigan)
work closely with NRF staff to share expertise in
and David Dank (Oklahoma).
association management and legislative matters. David
Vite (Illinois) was elected President, David Dank
(Oklahoma) was named Vice President, Bill Kundrat
(Florida) was elected '92 Conference Chairman and
Chris Kindsvatter (Michigan) was named Secretary/
Treasurer.
25
Business Services:
Conferences, Exhibitions
and Publications
The 1991 calendar year was a busy and productive one for
the Retail Services Division. Many member programs,
surveys, publications and cost-saving benefits were devel-
oped to enhance productivity.
CONVENTIONS AND MEETINGS
Retailing's most important Annual Convention
and Exposition was followed by 66 Board and Com-
mittee Meetings, more than 100 Business Advisory
Meetings with smaller and independent retailers, and
21 Conferences and Exhibitions, many of which are
described below:
Management Conferences
Financial Executives. Focus was on general
management as well as financial issues recognizing
that today's CFO is a critical partner in the strategic
planning and management process. An Exhibition was
part of this conference.
Retail executives in session at an NRF conference
enjoyed the opportunities to catch up on the latest
Business Outlook. This new conference helped
business techniques and changes.
retailers focus and refine their strategic and financial
plans for the critically important fall season.
Credit Management. Senior credit executives
and experts explored significant industry changes,
including outsourcing, credit and privacy legislation
26
and productivity issues. An extensive Exhibition was
part of this conference.
Customer Service. This critical industry confer-
ence explored changing customer values, the resulting
new selling strategies, corporate culture-building, and
effective service programs for diverse retail channels
and their respective needs. Vendor workshops accom-
panied the conference.
Marketing/Merchandising Conferences
Fundamentals of Merchandising/Advanced
Technology even enhanced NRF conferences where,
Merchandising. NRF conducts this on-going series
through advanced projection systems and TV
monitoring, speakers demonstrated computer
during key market weeks to help owners, managers
technology at work; 3-D store planning via CAD;
and buyers to merchandise, manage and time their
advertising design, layout, and retouching.
inventories to minimized markdowns and maximize
profits for their stores.
Principles of Retailing. This comprehensive
overview of how a retailing firm operates offered a
brush-up for retailing executives and an introduction
for executives working in consultancy roles with the
retailing industry.
Credit Marketing. Attendees focused on enhanc-
ing customer utilization of credit cards including
offering retailers extensive new options for customer
service, database marketing and profitability. An
Exhibition was part of this conference.
Associate and retail members had the
Visual Merchandising. Two conferences
opportunity to meet, network, and learn together at
addressed the marketing contributions, customer-
the booth of an NRF business exhibitor.
driven needs and service approaches today's visual
merchandisers must understand and implement to close
the sale at point of purchase.
Technology Conferences
RisCON. Retailing's leading forum for technol-
ogy. A conference on the systems, services, communi-
cations, hardware, software and requisite management
techniques which will provide competitive advantage,
in fact, survival, to retailers as they approach the 21st
27
Century. This conference was accompanied by NRF's
second largest Exhibition, acknowledged as the best on
retailing technology.
In-Store Systems (POS). This conference
focused on technological nerve centers that integrate
point-of-sale activities, back room functions and
customer service - all to improve the retailer's sales
and operating productivity.
Special Subject Conferences
Credit Collections. This conference covered
NRF covered the world to expose members to
practical, timely information on managing all phases of
the latest services, systems, technologies
today's credit collection function from bankruptcy
and equipment which can help improve their
bottom-line performance.
procedures to consumer rights; from technology to
recession collection strategies.
Loss Prevention. Conference attendees shared
in-depth coverage of systems, methods, procedures,
technology and training techniques to reduce inventory
shortage, theft and fraud. An extensive Exhibition
accompanied this conference.
Logistics. Attendees learned to streamline
operations, to apply quick response and EDI to
RISCON91
m
TECHNOLOGY IN
distribution, as well as to execute transportation
DIF
NATIONAL
strategies. An Exhibition accompanied this
STOP
FERENA
conference.
de
VS
PURICU
Quick Response. Two seminars explored the
merc
what and why of QR along with its potential applica-
CONP
time
tions to your business.
to
new york
the bottom line!"
december
LOSS
Internal Audit. This comprehensive retail
PREVENTION
auditing conference incorporated both basic and
CONFERENCE
advanced and EDP auditing, plus an audit management
track to identify areas of cost reduction and strengthen
In 1991, thousands of retailing executives
attended the 21 conferences, covering a broad
internal control.
range of business functions, produced by NRF's
staff of retailing professionals.
28
COST-SAVING BENEFITS VIA MEMBERSHIP
SpecNet
This spectacular new program can offer NRF
members up to 30 percent cost reduction on their
annual voice-communication expenses.
NaBANCO
Credit card processing and authorization of
MasterCard and Visa at special reduced NRF member
rates.
Dodson's Worker's Compensation Program
Newly negotiated group dividend returned 10
percent to participating 1991 members.
Check Authorization
This low-cost check authorization program
continues to offer NRF members a preferred starting
rate and reduced start-up costs.
29
STUDIES AND PUBLICATIONS
Studies
Barcoding Study
Vendor Partnership Survey
Specialty Store Turnover Survey
STORES
Internal Audit Departmental Operations Survey
STORES
The smart new format and
Quick Response Survey
expanded business
content of STORES
Loss Prevention Survey
magazine has continued to
100 Leading Department Stores
JOSEPHLE
garner industry
ANTONINI
recognition. More
100 Leading Specialty Stores
important, the new format
has generated high levels
Publications
of advertiser awareness
and interest in a tough
STORES was enhanced by a newly formatted
advertising climate.
layout and with new features that focus on key retail
executives and concepts in retailing. These changes
have been well received by readers as well as the
Decisive Tools for Decision Makers
New MOR and FOR-1991 Editions
advertisers who provide important support to the NRF.
A publishing industry trend of declining advertising
1991 EDITION
1991 EDITION
revenue began to turn in 1991 and STORES' January
\
Operating
Operating
1992 issue will close NRF's '91 fiscal year with a
Results
Results
OF RETAIL STORES
record breaking number of paid advertisers.
1990
RETAIL STORES
Division
**********
Sivision
Merchandising and Operating Results -
published annually
Order Today, Don't Delay
Financial and Operating Results -
National Retail Federation
published annually
NRF published numerous documents that provide
Retail Control - published monthly
important industry benchmarks, standards and
guidelines. Members provide the data vital to
Retail Sales Outlook - published quarterly
production of quality materials, then benefit from
the valuable reference data and business tools that
for NRF
result. The annual MOR-FOR publications are a good
Retail Technology 1992 - Directory
example.
Sales Release Calendar (4-5-4)
Color/Size Standards - Directory
30
NRF Advisory Boards
and Committees
Advisory Boards and Committees, staffed by volunteer
direction; that lends credibility and substance to NRF; that
member executives, are the driving force of the Federation.
sets the direction for all NRF functions. These Boards and
It is this group of executives that provides advice and
Committees, including presiding chairpeople, include:
Accounting Principles
Government & Legal
Operations
Loss Prevention Specialty
James Freeman
Affairs GALA
Wayne Hussey
Chain
Vice President and Chief
Charles R. Lotter, Esq.
Senior Vice President,
Peter Dimas
Financial Officer
Sr. V.P., Secty. & General
Operations and Store Planning
Manager of Loss Prevention
Dillards
Counsel
Goudchaux/Maison Blanche
Chess King
J.C. Penney Co., Inc.
Personnel
Clean Environment
Personnel Specialty Chain
Information Systems
Phil Johnson
S. William Manteria
Wilfred Ray
Associate General Counsel &
Allen Williams
Senior Vice President,
Vice President, Personnel
Director of Environmental
Vice President, Information
Human Resources
U.S. Specialty Retailing
Management
Systems
Saks Fifth Avenue
Woolworth Corp.
Belk Stores Services, Inc.
Real Estate Specialty Chain
Postal and Transportation
Barrie Wood
Internal Audit
Peter J. Brock
Vice President, Real Estate
Credit Management
Robert Rito
Director of Transportation
Merry-Go-Round Entreprises,
John Skinner
Director of Internal Audit
J.C. Penney Company, Inc.
Inc.
President and Chief Executive
Kmart Corporation
Officer
Sales Promotion/Marketing
SpecNet
Jeweler's Financial Services, Inc.
International Board of
Timothy Worcester
Chair: January '92 election
(Zale Corp.)
Directors
Senior Vice President,
Andre' de Botton
Store Planning, Design and
Credit Management Legislative
Sales Promotion/Marketing
Chief Executive Officer
Visual Merchandising
Steering Cte.
Lazarus
MESBLA S/A
Donald Docken, Co-Chair
Ralph E. Spurgin
Rio de Janiero
State Retail Associations
Senior Vice President,
President and CEO
David Vite
Merchandise Presentation
Limited Credit Services, Inc.
International Trade
President
Montgomery Ward & Co., Inc.
RITAC Executive Cte.
Employee Benefits
Illinois Retail Merchants Assn.
Leslie H. Wexner
Wayne Visbeen, Co-Chair
Fred Hamacher
Chairman and CEO
Director of Advertising, Store
Vice President, Compensation
The Limited, Inc.
and Benefits
Specialty Chain
Design
and Visual Merchandising
Dayton Hudson Corporation
International Trade
Executive Committees
Gantos
RITAC Steering Cte.
Employment Law
James T. Hale, Esq.
Specialty Chain CEOs
Taxation
Joseph F. Vella
Senior VP, General Counsel
Donald G. Fisher
Frank D. Gunter
Vice President Employee
Dayton Hudson Corporation
Chairman and CEO
Vice President, Taxes
Relations and Selling Serv.
The Gap
May Department Stores Co., Inc.
Federated Dept. Stores, Inc./
Lawyers Cte.
Allied Stores Corp.
Michael R. Moran, Esq.
Advertising Specialty Chain
Traffic
VP, Sec. and General Counsel
Bert Briskin, Co-Chair
Richard Silverberg
Financial Executives
Spiegel, Inc.
Executive Vice President
Director of Transportation
Joseph McEvoy
Store Planning and Real Estate
Saks Fifth Avenue
Loss Prevention
Brooks Fashions
Food Services
James W. Lee
David E. Leathers
Vice President, Loss
Divisional Food Manager
Prevention Shortage Control
The Boston Store
Marshall's
31
Specialty Chain
Executive Groups
In 1991, NRF continued its services to specialty store
chains, conducting two major benchmark studies that should
provide valuable information to the nation's specialty chains.
The first, a wage and salary survey of specialty
chains, documents the average pay, wage increases,
and incentive plans for such positions as district
manager, store manager, assistant manager, full-time
and part-time sales associates. This study was released
in 1991.
The second, a study of the turnover rates of store
management and personnel, includes such information
as reasons for leaving, and is expected to be widely
used by specialty retailers. It will be released in early
1992.
The Specialty Chain Executive Groups continue to
be structured in a manner which addresses key issue
areas:
Chief Executive Officers
Personnel
Real Estate
Loss Prevention
Sales Promotion - Marketing
32
International
Members
NRF continues its commitment to serve its international
members at a time when trade and physical boundaries are
tumbling in all areas of the globe.
With the advent of the free trade agreement with
Canada in 1991, and the anticipation of EC '92, NRF
seeks to develop programs that will bring together
retailers from all over the world to share their common
problems and opportunities.
At the January 1992 Annual Convention, NRF
planned three days of sessions, called an Executive
Symposium for International Retailers, to examine
critical issues that will reshape retailing in the 1990s.
Financial
Information
BUDGETED REVENUE FISCAL YEAR END 2/92
Total $13,252,000
Membership Dues - 29.2%
Annual Convention & Exposition - 21.7%
Other 3.7%
Special Projects - 1.4%
Educational Programs & Exhibits ⑉ 23.4%
Publications - 3.9%
STORES Magazine - 16.7%
BUDGETED EXPENSES FISCAL YEAR END 2/92
TOTAL $13,250,000
Educational Programs & Exhibits - 9.4%
Annual Convention & Exposition - 6.8%
STORES Magazine - 13.8%
Publications - 3.0%
Government & Public Affairs - 19.2%
Special Projects - 2.3%
Retail Services - 45.5%*
* Indirect expenses supporting all services to members:
education; membership development; information;
research; exhibitions; and staff support functions,
e.g.finance, fulfillment, etc.
John M. Hancock
* Kenneth A. Macke
* Charles H. Reynolds, Jr.
Andrew J. Soffel
CEO
Chairman and CEO
Chairman
President & CEO
W.H. Smith Group Inc.
Dayton Hudson Corporation
Reynolds Brothers, Inc.
Crowley, Milner & Company
* Philip M. Hawley
Richard H. Madsen
William V. Roberti
Martin L. Stein
Chairman & CEO
President & CEO
President & CEO
President
Carter Hawley Hale Stores
ZCMI
Brooks Brothers
The Melart Jewelers, Inc.
* Thomas A. Hays
Frank H. Maier, Jr.
* Leo M. Rodgers, Jr.
Leonard H. Straus
President
President
President, Balliet's, Inc.
Chairman of the Board
The May Department Stores
Maier & Berkele
Walter J. Salmon
Thrifty Corporation
Leonard Herring
Robert Mancuso
Stanley Roth, Sr.
Michael D. Sullivan
President & CEO
Chairman
Professor of Retailing
President & CEO
Lowe's Companies
Pergament Home Centers
Harvard Business School
Merry-Go-Round Enterprises,
Inc.
Fred M. Horne
Kenneth E. Mansfield
C. George Scala
President
President, G. H. Bass Retail
Chairman and CEO
Robert J. Tarr, Jr.
Horne's, Inc.
G.H. Bass & Company
Lechmere, Inc.
President & CEO
The Neiman Marcus Group,
David R. Huhn
* Arthur Martinez
Gordon I. Segal
Inc.
Chairman and CEO
Vice Chairman
President & CEO
Merchantile Stores
Saks Fifth Avenue
Crate & Barrel
George W. Townson
Company, Inc.
Chairman, President & CEO
Bertrand Maus
Donald V. Seibert
Frederick's of Hollywood
Emery L. Jahnke
Chairman of the Supervisory
Former Chairman of the Board
President & CEO
Board
J.C. Penney Company, Inc.
David Vite
Vanity Shop of
Au Printemps, S.A.
President
Grand Forks, Inc.
* Boake A. Sells
Illinois Retail Merchants Assn.
Gilbert G. McCurdy
Chairman and CEO
Wilbur Stone Jones, Jr.
Chairman of the Board & CEO
Revco, D.S., Inc.
William E. Watts
President
McCurdy & Company, Inc.
President & CEO
Stone & Thomas
* Harold E. Sells
General Nutrition Corporation
* Richard D. McRae
Chairman and CEO
L. Daniel Jorndt
Chairman, McRae's, Inc.
Woolworth Corporation
Leslie H. Wexner
President & Chief Oper.
Chairman and CEO
Officer
Peter L. Metcalf
M. Arthur Shafer
The Limited, Inc.
Walgreen Company
President
President, Nobbson
Creative Cooking, Inc.
* Marjory Williams
Merwin Kaminstein
Richard Sharpe
President
Chairman, President & CEO
Georges Meyer
Chairman
She, Inc.
Brookstone Company, Inc.
Chairman and CEO
Sears Canada, Inc.
Galeries Lafayette
Ms. Margaret S. Wilson
Gertrude S. Kisber
* John J. Shea
Chairman & CEO
Chairman
Michael Moorman
Vice Chairman, President and
Scarbroughs
Kisber's Department Store,
Chairman and CEO
CEO
Inc.
Peebles, Inc.
Spiegel, Inc.
Keiichi Yasuda
Chairman and CEO
James L. Kittle
Donald C. Onasch
* Earl L. Sherlock
Ohgiya Jusco., Ltd.
Chairman and CEO
President
President
Kittle's, Inc.
Liberty House
Chappell's
Arnold B. Zetcher
President & CEO
James Knabe
* Harwell W. Proffitt
Richard D. Siegel
Talbots
President & CEO
Chairman of the Executive
President
Brooks Fashions, Inc.
Committee
Dunkirk Shoes, Inc.
* Ronald L. Ziegler
Proffitt's Inc.
President
Daniel S.C. Koo
Ikard Smith
Natl. Assn. of Chain Drug
Chairman
Allen I. Questrom
Chairman of the Board &
Stores
The Shui Hing Co., Ltd.
Chairman and CEO
Director
Federated Stores, Inc.
McClurkan's, Inc.
* John F. Luchsinger
Vice President
Brian E. Quinn
Leonard M. Snyder
Swezey's Department Stores
Chairman and Chief Executive
Chairman of the Board & CEO
Coles Myer Ltd.
Lamonts Apparel, Inc.
Richard M. Lynn
* Executive Committee
Chairman, CEO
* Barbara J. Rackes
S.H. Heironimus Co., Inc.
President
Rackes, Inc.
1991 OFFICERS AND BOARD OF DIRECTORS
Chairman of the Board
First Vice Chairman of the Board
Second Vice Chairman of the Board
* William R. Howell
* Joseph E. Antonini
* Bernard F. Brennan
Chairman of the Board and CEO
Chairman, President and CEO
Chairman, President and CEO
J.C. Penney Company, Inc.
Kmart Corporation
Montgomery Ward & Company, Inc.
Third Vice Chairman of the Board
Chairman of the Finance Committee
Secretary
* David A. Horr
* Francis R. Strawbridge, III
* Phillip T. Davidson
Chairman, Treasurer and CFO
Chairman of the Board
Co-Chairman & Co-CEO
Marting's Department Store
Strawbridge & Clothier
D&L Venture Corp.
Executive Director and President -
President - Government and
Retail Services Division
Public Affairs Division
* John J. Schultz
* Tracy Mullin
National Retail Federation Inc.
National Retail Federation Inc.
New York, NY
Washington, DC
Robert B. Adam
Wayland H. Cato, Jr.
Noel Davidson
* Edward S. Finkelstein
Chairman of the Board & CEO
Chairman and President
Group President
Chairman & CEO
Adam Meldrum & Anderson
The Cato Corporation
Women's Specialty Retailing
R.H. Macy & Co., Inc.
Marvin Aronowitz
William R. Chaney
* A. F. Dawahare
Donald G. Fisher
Director
Chairman of the Board & CEO
President
Chairman and CEO
Oshman's Sporting Goods, Inc.
Tiffany & Company
Dawahare's Inc.
The Gap, Inc.
Arnold H. Aronson
* Richard F. Clayton
* Andre De Botton
Joseph A. Flannery
Chairman & CEO
Chairman and CEO
CEO, Mesbla, S.A.
President
Woodward & Lothrop/John
STOR Furnishings International
Weaver's, Inc.
Wanamaker
Theodore Deikel
* A.J. Cohen, Jr.
Chairman and CEO
* J. Russell Fowler
Thomas J. Bata, Sr.
President
Fingerhut Companies, Inc.
Chairman of the Board & CEO
Chairman, Bata Limited
Lady Jane, Inc.
Jacobson Stores, Inc.
William Dillard
* H. James Baum
Piergiorgio Coin
Chairman of the Board & CEO
Stephen J. Furst
President, Baum's Inc.
Chairman and CEO
Dillard Department Stores, Inc.
President
Coin S.P.A.
Hess's Department Stores, Inc.
Robert M. Beall, II
George R. Eaton
President
Frank M. Cole
President
Stanley Goldstein
Beall's Department Stores, Inc.
Partner
T. Eaton Company Ltd.
CEO
John M. Belk
Cole Department Store
Melville Corporation
Julian I. Edison
Chairman
Douglas H. Collister
Chairman of the Exec. Cmte.
A. Dan Gordman
Belk Stores Services, Inc.
President
Edison Brothers Stores, Inc.
CEO and Chairman
Kistler-Collister & Co., Inc.
Rudolf E. Bitterli
Richman Gordman Stores, Inc.
William R. Embry, Jr.
Chairman and CEO
Daniel D. Condon
President
* William Thomas Gould
The Globe Stores
President
Embry's
President & CEO
Gerald H. Blum
James E. Condon & Sons, Inc.
Younker's, Inc.
John H. Epple
President
Robert J. Corliss
President
Gerald Gura
Gottschalk, Inc.
President & CEO
University Bookstore
President & CEO
June Gingles Brown
Herman's Sporting Goods, Inc.
CWT Specialty Stores
Jack Eugster
Chairman of the Board
* Laurence E. Cudmore
Chairman, President & CEO
Max Gutmann
Gingles Department Store
President
The Musicland Group
Chairman of the Board
* Lorenzo T. Carlisle, III
Retail Merchandise Group
The Elder-Beerman Stores Corp.
Sears, Roebuck and Co.
John Fairley
Chairman, President & CEO
President & CEO
John P. Hacala
Carlisle Retailers, Inc.
E.L. Nichols Store
President & CEO
Spencer Gifts Inc.
NATIONAL
Retail
FEDERATION
Government and
Retail Services Division
Public Affairs Division
100 West 31st Street
701 Pennsylvania Avenue, NW
New York, New York 10001
Suite 710
212/244-8780
Washington, DC 20004
202/783-7971
JANUARY 1992