Posts Tagged ‘national retail federation’

Nevada Retailers Expect $245 Million In Back-To-School Spending, Up 15 Percent Over 2011

By Sean Whaley | 8:45 am August 15th, 2012

CARSON CITY – Nevada retailers and their online counterparts expect to see $245 million in spending on back-to-school merchandise for public school children this year, a 15.4 percent increase over spending levels in 2011, the Retail Association of Nevada (RAN) reported today.

College spending in Nevada is expected to generate another $134 million in what is as the second biggest consumer event for retailers behind the winter holidays, according to the National Retail Federation. The NRF reports that combined K-12 and college spending will reach $83.8 billion this year.

Photo via Wikimedia Commons.

“Parents want to make sure their kids have everything they need to start the new school year and are willing to spend more than ever on school-related necessities,” said Mary Lau, president of RAN. “However, the economy remains a concern in most households, which will have an impact on the way families shop. Bargain-hunting will remain important to budget-conscious consumers.”

According to the latest survey results from the NRF, families nationwide with children in grades K-12 are expected to spend an average of $689 on clothing, backpacks and other supplies. The latest estimate is a 14.1-percent increase from the estimated $604 spent last year.

According to demographics released by Nielsen Marketplace, there are approximately 1 million households in Nevada, and 34 percent (or 355,000 households) have one or more children in grades K-12. Assuming national trends as reported by the NRF generally hold true for Nevada families, total spending in the state will reach approximately $245 million. Due to an increase in both the count of families with children entering elementary or middle school, and an increase in spending per family, back-to-school spending in the state is expected to increase 15.4 percent compared to last year when total spending was an estimated $212 million.

As for college-bound students, the NRF estimates families will spend an average of $907 on new clothes, dormitory or apartment furniture and other college supplies. Compared to last year’s estimate of $809, college spending is expected to increase 12.2 percent.

Utilizing the latest estimate of Nevada residents who will be enrolled in undergraduate and graduate degree programs within and outside of Nevada in the coming school year released by the U.S. Census Bureau’s American Community Survey, aggregate back-to-school spending on college supplies is expected to increase this year as well. Again, assuming Nevada residents follow national trends, college spending is estimated to reach $134 million, compared to $120 million in 2011.

Bryan Wachter, director of government affairs for RAN, said back-to-school spending is exceeded only by the Christmas holiday season.

“Back-to-school is for a specific purpose, and we feel we can measure it pretty accurately,” he said.

Wachter said clothing and electronics, from calculators to laptops to phones, are the big spending categories.

“Electronics, not quite but almost, total clothing,” he said. “The average person is going to spend about $250 per student on clothing and we’re going to spend about $225 on electronics.”

The spending increase is due in part to some increased confidence among Nevadans that their jobs are more secure, Wachter said.

The Internet is continuing to grow as a preferred shopping “destination” for back-to-school items. Approximately 39.6 percent of consumers will be using the Internet to shop for needed supplies, nearly double the 2007 estimate. That said, discount stores are expected to be the most popular shopping destination, with 67.1 percent of consumers planning to shop there. Department stores followed with 59.9 percent.

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Audio clips:

Bryan Wachter of RAN says back-to-school shopping is a huge event for retailers:

081512Wachter1 :15 on back-to-school items.”

Wachter says spending on electronics now nearly equals spending on clothes:

081512Wachter2 :12 $225 on electronics.”

Campaign Launched Urging Congress To OK Internet Sales Tax Collections – Nevada Delegation Split

By Sean Whaley | 9:14 am May 31st, 2012

CARSON CITY – The National Retail Federation has launched a nationwide 60-day campaign to raise awareness among lawmakers and the public on how what it calls a loophole exempting online sales from sales tax is hurting local communities and job creation.

If Nevada’s five-member Congressional delegation is any indication, the group has its work cut out for it, with three members opposed and two supportive of the idea to allow states to tax online sales.

“Our current sales tax system unfairly favors one set of retailers over another,” NRF President and CEO Matthew Shay said. “Congress is naming winners and losers by its failure to address this issue, and the brick-and-mortar retailers who create jobs across our country want action on this issue now.”

Illustration by Pictofigo via Wikimedia Commons.

The national push, begun earlier this month, comes on the heels of Nevada Gov. Brian Sandoval’s agreement with Amazon to begin collecting sales taxes on Nevada online purchases beginning Jan. 1, 2014, or sooner if federal legislation is passed to allow states to collect revenues from internet purchases.

The agreement also calls for the state and the Fortune 500 company to work together for immediate enactment of federal legislation that will address the needs of states, retailers and consumers by creating a simplified and equitable framework for sales tax collection.

But members of Nevada’s Congressional delegation are divided on the question.

U.S. Sen. Dean Heller, R-Nev., and Rep. Joe Heck, R-Nev., have previously said they oppose such legislation, called the “Main Street Fairness Act.”

Rep. Shelley Berkley, D-Nev., is also opposed.

“We need to ensure that Nevada’s small businesses have the tools they need to grow and create jobs without burdensome taxes and additional red tape,” she said in a statement issued Wednesday. “For this reason, I will continue to support unrestricted Internet sales in Nevada and throughout the U.S.”

Rep. Mark Amodei, R-Nev., who participated in a hearing on the issue last year as a member of the House Judiciary Committee, said Wednesday he is open to the idea, depending on the specific wording of a measure that would come up for a vote.

The current system of ignoring Internet sales while collecting sales taxes from local retailers is an “artificial tax administration policy I don’t think anyone approved,” he said. “It just kind of happened. I would sure like to look at something.”

Retailers of all types should be playing on the same field for tax purposes, Amodei said.

A statement from the office of U.S. Sen. Harry Reid, D-Nev., said he also supports giving states the authority to require online retailers to collect their sales tax.

Three Republican candidates seeking the 4th Congressional seat in the 2012 general election recently spoke in favor of such legislation in a debate on the Face To Face television program. Barbara Cegavske, Danny Tarkanian and Dan Schwartz all said they favored such legislation.

Sandoval estimates Nevada will receive between $15 million and $20 million a year under the agreement with Amazon, which mirrors those signed in several other states. Tax revenues to Nevada could total $200 million a year if all online purchases were assessed the state sales tax, he said. Nevada’s sales tax rate varies by county and ranges between 6.85 and 8.1 percent.

Sandoval recently said he pursued the agreement after the online sales tax collection issue was brought to him by the Retail Association of Nevada (RAN), which praised the deal announced in April.

Bryan Wachter, director of Government Affairs for RAN, said the national campaign is aimed at educating the public and policy makers. While “mom and pop” stores on Main Street are required to collect the sales tax, Internet companies have been treated differently, he said.

“Even though they’re both doing the same amount of business for the same customers, they are treated as two different entities and we just think that needs to stop,” Wachter said. “Government should create level playing fields and allow the market to be able to decide what business model works and doesn’t work. And so that’s really the main focus of the E-Fairness campaign, is government should treat everybody the same. Fair is fair.”

The proposals in Congress are asking that states be allowed to decide if they want to collect sales taxes on internet sales, he said. A lot of states have budget problems right now that could be partially addressed with such revenue, Wachter said.

There are a lot of struggling businesses in Nevada that face an additional hurdle because of the sales tax issue, he said.

Shay said the federation will mobilize the retail industry, “so every retailer – regardless of whether they sell their merchandise online, through the mail or in a store on Main Street – can compete on a level playing field. This debate is about local retailers who make major contributions to their local communities being forced to operate in an unfair sales tax environment while out-of-state competitors are handed a huge advantage.”

The campaign includes an online petition that merchants and consumers can sign, a series of videos featuring small retailers talking about the competitive disadvantage they face, and print and online advertising in targeted states and congressional districts.

The sales tax issue was created by a 1992 U.S. Supreme Court decision in Quill v. North Dakota that ruled that “remote sellers” – which include Internet, mail-order and “1-800” sellers on radio or television – can only be required to collect sales tax in states where they have a physical presence, such as their headquarters or a store or warehouse.

Shay said the court ruling means that most online sales go untaxed and has placed local retailers at a competitive price disadvantage. It also costs state and local governments an estimated $24 billion a year in tax revenues.

“Retail is retail, be it online or in a store,” he said. “All retailers should compete on a level playing field with the same set of sales tax rules. It is only fair.”

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Audio clips:

Bryan Wachter with the Retail Association of Nevada says the two types of businesses are being treated differently and the practice needs to stop:

053012Wachter1 :29 needs to stop.”

Wachter says government should treat everybody the same:

053012Wachter2 :14 Fair is fair.”

 

 

 

 

 

 

 

Back To School Spending Could Be Boon To Nevada Retailers Hit Hard By Recession

By Nevada News Bureau Staff | 4:08 pm August 3rd, 2010

CARSON CITY – Nevada families with school-age children will spend $174 million for back-to-school supplies this month if spending trends track with national estimates, the Retail Association of Nevada reported today.

Just under 30 percent of an estimated one million households in Nevada are expected to have one or more children in grades kindergarten through 12. According to the National Retail Federation (NRF), the average American family will spend $606 on clothes, shoes, supplies and electronics to prepare to head back to school. This translates into approximately $174 million in back-to-school spending by Nevada families.

Nevada’s estimated 435,000 school children are headed back to school at the end of August, and if spending trends in Nevada resemble those being reported nationally, they will be spending approximately 10.5 percent more per family than last year.

Mary Lau, president of the Retail Association of Nevada, said: “If national forecasts hold true, a 10.5 percent increase in back-to-school spending would be fantastic news for Nevada retailers. However, increased national spending forecasts this past Christmas shopping season did not come to pass for many of them.

“Consequently, we remain cautiously optimistic that increased expectations for spending during this back-to-school shopping season will materialize within the state,” she said.

With Nevada having the highest unemployment rate in the nation at 14.2 percent as of June, “it seems somewhat unlikely that we will witness the extent of increases expected for the nation’s retailers,” Lau said.

The largest category of back-to-school spending is clothing, with families estimating they will spend $225 on pants, shirts, and jackets, among other apparel. The latest taxable sales results in Nevada suggest clothing sales are on the rise, with sales up 10.7 percent year-over-year for the month of May.

Overall Nevada taxable sales have been lagging for many months, however, with growth seen only once in 21 monthly reports through May 2010.

In the NRF survey, electronics were a close second, with families expecting to spend $182 on laptops, smart phones and MP3 players. Families expected to spend $103 on shoes, and finally, $96 on school supplies.

Families with college-aged students are expected to spend $616, down slightly from the previous year’s $618, on new apparel, furniture, school supplies and electronics. With the U.S. Census Bureau’s American Community Survey estimating 127,000 students enrolled in college and graduate programs in Nevada, this translates into an estimated additional $78 million spent by those requiring back-to-school purchases to pursue higher learning.

The Retail Association of Nevada also reports that in addition to having the highest unemployment rate in the nation, the state has one of the highest rates of homelessness among school children and school children living in poverty. Despite smatterings of positive developments in the state, challenging economic conditions may depress back-to-school expenditures for a significant number of families this season, the association said.

The data was generated for the association by Applied Analysis, a Nevada-based firm providing information and analyses for the public and private sectors.