Retailers set up shop as Salt Lake is still the place for premier outdoor trade show

Across the Salt Palace convention floor, equipment for climbing, hiking, boating and biking began to emerge from storage containers and an army of mannequins was outfitted in brightly colored active shoes and apparel.

It was a maze of organized chaos, but by the time doors open at 9 a.m. this morning (Wednesday), it will be a bustling and polished trade show assembling nearly 1,300 retailers from across the country.


Debate arose last year about whether Salt Lake City's accommodations and infrastructure could continue to handle the crowds associated with outdoor industry's premier trade show, but an announcement in January settled the question:

"We kind of figured it would stay here," said Justin Kline, pausing with his colleagues Monday after
hanging a series of suspended lights at their booth, Princeton Tec. "It seems like the city benefits a lot for it, and puts a lot of resources into keeping it here … A lot of the alternative cities where they were thinking about having it didn't seem realistic."

The trade show has come to Utah every winter and summer for 16 years, bringing with it an estimated $40 million annually for the state.

Last year, 26,700 people attended the show, a 9 percent increase from 2011, and this summer's attendance is expected to match, according to a release from the Outdoor Industry Association.

The show is open only to qualified retailers, manufacturers, advocates and media within the industry, and registration fills up fast. As the show has grown, registration requirements for both vendors and participants have become stricter. Deseret News

New hunting group puts sights on Utah economy

When it comes to Utah’s outdoors, hunting is king. At least in terms of dollars and cents. At least in the last two years.

The economic impact of hunting in Utah surpassed that of fishing in 2011, despite the state’s anglers outnumbering hunters 2-1. Hunters also spend more than double what anglers spend on their sport annually. Since 2001, hunting throughout the West has put billions into state and local economies in taxes from outdoor sports.

Wildlife managers and other Utah leaders gathered at the State Capitol Wednesday to unveil the state chapter of Hunting Works for Utah, the seventh state added to the national organization.

Outdoor sports have fluctuated in the past few decades in numbers, while the amount people are spending has increased. In 2011, hunters spent close to $500 million on trips and equipment, an average of $2,334 per hunter, according to the U.S. Fish and Wildlife Service. Compare that to hunters in Utah spending about $886 per person. Still, the state ranks middle of the pack in most categories regarding outdoor sports and economic impact. Utah is 34th in the nation for hunting and angling participants with 493,000 in 2011, according to the Congressional Sportsmen’s Foundation. Salt Lake Tribune

Marketplace Fairness Act anything but, e‐tailer says

Currently, buyers are supposed to report Internet purchase taxes on their income tax filings but most do not. The Marketplace Fairness Act (MFA) would allow states to require all retailers, including “remote” retailers like Overstock.com, to collect and remit to states the sales and use taxes on customer buys.

Online sellers already are required to collect those taxes from customers in their own states, as Overstock.com does in Utah, and they must do so from out-of-state customers if they have a physical presence in the customer’s state. The MFA would allow states to force retailers to collect sales taxes on purchases in states where they have no physical presence. It would apply only to sellers with total sales of $1 million or more in annual sales in states where they have no physical presence.

But, for states to require that sales tax collection, they must meet certain tax simplification standards required by the MFA.

Without that simplification, companies face the prospect of dealing with more than 9,600 tax jurisdictions in the U.S. “It’s very difficult to collect a tax based on where the purchaser is,” Jonathan Johnson, executive vice chairman of Overstock.com’s board of directors said.

Most retailers now collect sales taxes at the point of sale — for example, a store in Fort Union charges a tax for the Fort Union jurisdiction — but the MFA would require collection based on a buyer’s location. The Enterprise

Twinkies ovens will fire up in 4 plants, refilling shelves

Look for Twinkies on store shelves in July. Four former Hostess snack cake bakeries around the country are scheduled to re-open within eight to 10 weeks.

Prior to shutting down, Hostess employed about 600 people in Utah at two bakeries, nearly a dozen retail stores and nine depots. Those bakeries remain closed. Salt Lake Tribune

Buyer Beware List

The Buyer Beware List is maintained by the Division of Consumer Protection (a division in the Utah Department of Commerce) to:

(1) protect consumers from individuals and businesses who have engaged in deceptive practices;
(2) supply consumers with pertinent information so as to aid them in their decision making; and
(3) encourage the development of fair consumer sales practices.

This list is comprised of those individuals and businesses that have been found by the Division to have committed deceptive practices or other violations and have failed to comply with the Division's order to pay a fine or other order. Consumer Protection

Click here to view a list of current scams that the Division has investigated or been made aware.

The U.S. economy: What’s come back, and what hasn’t

Many of the U.S. economy’s vital signs have recovered from the damage done by the Great Recession.

The economy is not back to full health, with unemployment at 7.6 percent and with 3 million fewer jobs than when the recession began. And although the housing market is improving, that engine of economic growth and job creation still has far to go before it can be declared healthy.

After five painful years, it’s nearly back to where it started when the recession began. What’s different now is that the trends are much healthier.

What’s back:

• Household wealth
• Retail sales
• Layoffs
• Foreclosures
• Stock market
• GDP (Gross Domestic Product)

 What’s not back:

• Total jobs
• Unemployment rate
• Housing
• Auto sales
• Industrial output

Get more detail here: Salt Lake Tribune

A Lesson on the Tax Code

The New York Times points out something rather interesting about an otherwise mundane business story. Wal-Mart's fourth-quarter earnings report tells the tale of how changes in the tax code has both helped corporations and hurt them.

As the Times puts it, during the fourth quarter of last year, "the tax code gave and the tax code took away."

The paper explains:

"The company reported higher-than-expected fourth-quarter earnings on Thursday of $1.67 a share, up from $1.51 a share a year ago, largely because of tax credits that brought its corporate tax rate lower than usual.

"But the recent payroll-tax increase and an Internal Revenue Service delay in processing tax returns hit consumers, and that affected the holiday period and sales in February. For the fiscal fourth quarter, which ended Jan. 31, sales at stores open at least a year rose 1 percent at Wal-Mart stores in the United States; analysts had expected a 1.7 percent increase."

The earnings report today adds a bit of context to the internal emails published by Bloomberg last week.

In them company executives worried about early February sales which Jerry Murray, Wal-Mart's vice president of finance and logistics, said were "a total disaster."

In another email Cameron Geiger, senior vice president of Wal-Mart U.S. Replenishment, wonders, "Where are all the customers? And where's their money?"

The official word from the earnings report, this morning, was less dire.

"Customers know about it and are adjusting," he said. "We don't have a clear vision of how they'll continue to behave throughout the year."

According to CNN Money, Wal-Mart U.S. CEO Bill Simon told investors that the company was well aware that that payroll-tax increase was affecting its customers. NPR

Where did $116 billion spent on Valentine’s Day last year go?

 

A little over $1 billion was spent on candy for Valentine’s Day last year, according to this graphic by H&R Block. Here is how much American's spend every Valentine’s Day. Deseret News 

 

By the Numbers: How Americans Spend Their Money

Last year, Americans spent $10.7 trillion shopping. With that much dough, you could buy over 2000 aircraft carriers, 300 private islands, and still have money left over for a latte. Here’s a taste of the things we bought—and how much we spent on them. Mental Floss

Powered by Tableau

Target matching rivals’ online prices year-round

Target Corp. is pledging to match prices of select online rivals year-round, a move that underscores how physical and online retailing is being meshed.

Matching online prices is rare but expected to become more common as shoppers move increasingly online. Target, the nation’s second-largest discounter behind Walmart Stores Inc., said it will match prices that customers find on identical products at top online retailers, all the time. The online list includes Amazon.com, as well as the websites of Walmart, Best Buy, Toys R Us and Babies R Us.

Target’s move follows a similar holiday price match that began Nov. 1 and ended Dec. 16. Target is also making permanent its holiday offer of matching prices of items found at its stores with those on its website. And for the first time it will include products that are out of stock on Target.com.

The moves follow a disappointing holiday shopping season for the Minneapolis-based retailer, hurt by stiffer competition from online rivals and stores such as Walmart that have hammered its low prices. It’s also the latest step from brick-and-mortar stores to combat "showrooming" — a growing trend for customers to browse stores to check out products, and then go online to buy the same products for less.


Many major stores have offered price matching guarantees for local competitors’ brick-and-mortar stores, but it wasn’t until this past holiday season that the focus was on matching online prices. Analysts believe that the trend will increase as stores are realizing they need to wake up to the increasing shift among consumers to online, which accounted for about 10 percent of holiday sales this past season. Still, such policies can be difficult in practice, because online prices tend to be lower and fluctuate often.

Joel Bines, managing director and co-head of the retail practice at AlixPartners and other analysts say the online price match policies are also tough to implement given the constant fluctuation of online prices, even in the same day. That was particularly evident around Thanksgiving week. From Nov. 19 to Nov. 30 Amazon.com doubled the average number of promoted products it changed prices on each day compared with the same period a year ago, according to Dynamite Data, which tracks online prices.

Still, having a price match policy in place is essential for cheap chic Target, analysts say. The discounter, known for selling trendy merchandise and staples like toothpaste under the same roof, has seen uneven sales growth since the economic downturn as it tries to convince frugal shoppers it has good prices. This past holiday season, Target chose to limit promotions to preserve profits. That resulted in muted sales in November and December. However, Target expects fourth-quarter earnings to meet or possibly top the low end of its previous outlook. Salt Lake Tribune

Retailers Hope for Strong Post-holiday Sales

The International Council of Shopping Centers said Wednesday that retail sales for the week ended Dec. 22 were up just 0.7%, but the group says it's sticking to its forecast for a 3% increase in sales for the whole holiday season.

The ICSC estimate is in contrast to the 0.7% sales increase MasterCard Advisors said it saw in the two months leading up to Christmas. Mastercard's estimate is for sales using cash, check and all credit cards in key holiday categories, including luxury goods, clothing, electronics and furnishings, as well as online sales. Still, Mastercard says it represents just 30% to 35% of the U.S. retail sales except for cars, groceries and restaurants.

Last year, Mastercard's estimate for the same period was up 2%. The official National Retail Federation tally of 2011's sales, however, showed they were up 5.6%.

MasterCard did note that sales the week after Christmas account for about 15% of holiday sales, so that could brighten the picture. And the National Retail Federation is sticking to its estimate that holiday sales will be up 4.1%.

When shoppers show up to redeem gift cards and return or exchange gifts, they often spend far more than the value of the gifts or cards. Gift cards are the most popular last minute gift, according to a Consumer Reports poll. And their sales aren't counted until they are redeemed.

Michael McNamera, vice president of research for Mastercard Advisors Spending Pulse, agrees the big winter storm that hit northern areas of the country may well have kept people home, but could have benefitted online sales.

Online sales Christmas Day were up 22.4% for over Christmas 2011, according to the IBM Digital Analytics Benchmark, out Wednesday. All those new iPads may have paid off for other retailers. The iPad drove more retail shopping than any other mobile device - with 12.5% of online sales.

Niemira said the weekly sales out today were being compared to a week last year that included Christmas Eve, so he expects current week's sales will be boosted even more by the calendar shift. His group is holding to its prediction of a 4% to 4.5% increase in December retail sales and a 3.0% increase overall for the holiday season. USA Today

Consumer Advocates Offer Advice for Safe Cyber Monday Shopping

With record online sales projected for this holiday season, Internet shoppers are being warned to be aware of potential danger in cyberspace.

The Utah Division of Consumer Protection released its annual list of shopping tips for Cyber Monday to keep consumers safe when buying this year's latest holiday gifts.

According to the National Retail Federation, 2012 holiday retail sales are expected to hit about $586 billion, a 4.1 percent increase over last year.

"Consumers will be flooded with offers as retailers send out emails to your smartphone and computer," said Francine Giani, executive director of the state Commerce Department. "Make sure your holiday game plan includes protecting your credit information, using reputable merchants and checking the terms of sales twice before completing a purchase whether it's in-store or online."



According to digital tracking firm comScore Inc., "Cyber Monday" continues to grow in popularity as consumers spent $1.25 million online in 2011 during the Monday after Thanksgiving.

The National Retail Federation estimates that more than 52 percent of consumers will purchase a holiday gift online this year. Shop.org projected a 12 percent increase in online holiday shopping with $96 billion in cyber sales between November and December 2012.

"Internet fraud is our division's top consumer complaint," explained Traci Gundersen, director of the Division of Consumer Protection. "Don't forget to read the fine print, such as the return policy and product warranty, before you cross that gift off your list." Deseret News

Halloween spooky spending gives merchants a treat

Ryan Heugly, owner of Mask Costumes, with outlets in Salt Lake City and Taylorsville, said many of his customers are do-it-yourselfers, preferring to put together their own costumes. This year, local favorites are superheroes and zombies.

Despite the economy, Halloween has become the state’s second-highest season for retail revenues, said David Davis president of the Utah Retail Merchants Association. Grocers also are seeing an uptick in sales.

"Along with spending on costumes, decorations and candy, people get hungry," he said. "Anytime you get people together for parties and other social gatherings, there’s always food." Salt Lake Tribune

Utah stores not on initial Sears-Kmart hit list

No Sears or Kmart stores in Utah are among 70 outlets named on a list of at least 100 stores nationwide that will be shuttered in a cost-cutting measure. Utah is not out of the woods yet. More stores are expected to be named at a later date. Salt Lake Tribune

Zombies worth over $5 billion to U.S. economy

Zombies may be the walking undead, but their contribution to Main Street’s economy is very much alive. In modern times, the zombie genre has evolved from a cult following to a highly popular theme. 24/7 Wall St. estimates that the today’s zombie genre economy is worth billions of dollars.

Think way beyond zombie movie ticket sales. Think about DVD sales, video games, comic books, novels, Halloween costumes, zombie walks, merchandise, conventions and even zombie art. Add to that all of the websites, homemade movies, Facebook sites, YouTube sites and other forms of “digital” zombies, not to mention music. And if you think the financial tab has been high so far, by the end of 2012 the tab is going to be far larger. MSNBC

Note: Unfortunately, we don't have any data on how much zombies are worth to the Utah economy. . . .

Most Utah liquor stores to stay open

Faced with a host of liquor store closures, Utah imbibers stared down state officials and on Tuesday, lawmakers blinked. Nine Utah liquor stores targeted for closing this summer will stay open at least until February of next year. In addition, store operating hours will not be cut, and more than 100 liquor store employees, slated for layoffs, will keep their jobs. Salt Lake Tribune

Jobs springing up in Utah, from health care to Home Depot

At its medical center in Murray, Intermountain Healthcare formally opened its Homer Warner Center for Informatics Research, a facility dedicated to optimizing the use of information in health and biomedicine. The center employs about 60 people but could add a couple of hundred positions in the next decade, high-paying jobs that in some cases will reach six figures, said Marc Probst, Intermountain Healthcare’s chief technology officer.

On another front, the 23 Home Depot stores in Utah launched a campaign to hire about 500 temporary employees for the busy spring planting season. The best among those part-time hires have chances of being kept on full time by the home improvement retailer, which is looking to hire 60,000 seasonal people nationally, said Marty Tanner, who oversees half of Utah’s Home Depots from an office in the east Sandy store. Salt Lake Tribune

Megaplex to break ground in Centerville

Officials will break ground Thursday on a 14-screen movie theater in Centerville. The theater, which will include a digital IMAX screen, will be located at Legacy Crossing, between I-15 and Legacy Parkway near Parrish Lane. When the theater is completed in fall 2011, it will be the seventh in Davis County. The Deseret News

Utah gas prices are highest in lower 48 states

Gas prices in Utah have fallen below the $3 mark, but they remain among the highest in the U.S.

On Tuesday, the average cost of a gallon of regular unleaded in Utah was $2.98, according to AAA Utah. That's 16 cents lower than last month's AAA Utah report, which came out on May 11.

But gas prices in Utah are third-highest in the U.S., after Alaska, where motorists paid $3.51 per gallon on Tuesday, and Hawaii, where they paid $3.50.

The national average price was $2.72, down 18 cents in the last month. The Deseret News