National Retail Federation

Last updated

National Retail Federation
FormationJune 1911;112 years ago (1911-06)
TypeRetail trade association
Headquarters Washington, D.C., U.S.
Location
  • United States
Matthew Shay
Website www.nrf.com

The National Retail Federation (NRF) is the world's largest retail trade association. [1] Its members include department stores, catalog, Internet, and independent retailers, restaurants, grocery stores, multi-level marketing companies and vendors.

Contents

NRF represents the largest private-sector industry in the United States that contains over 3.8 million retail establishments, supporting more than 52 million employees. [2]

History

The NRF began in 1911 as the National Retail Dry Goods Association (NRDGA). This was also the year of its first annual meeting. In 1958, NRDGA was renamed the National Retail Merchants Association. In 1990, the association and the American Retail Federation merged to form the National Retail Federation. During all the years, an annual convention was held for members. [3] The National Retail Federation (NRF) is the world's largest retail trade association, with members including department store, specialty, discount, catalogue, Internet, and independent retailers, chain restaurants, and grocery stores. It is also an umbrella group that represents more than 100 associations of state, national and international retailers. [4]

In 2023, the group had to retract inaccurate claims it had made about the prevalence of organized shoplifting. The group had claimed that for 2021 nearly half of the industry's $94.5 billion in missing merchandise was the result of organized shoplifting. In doing so, the group amplified rhetoric that the United States was undergoing a wave of shoplifting. However, experts noted that the group used faulty data and that the figure was closer to 5%. [5]

Lobbying

NRF has argued that there is a harmful economic impact of the trade war with China. [6] [7] [8]

In November 2019, NRF called on lawmakers to adopt a “uniform and fair framework” for the handling of sensitive data. [9]

2017

The NRF successfully lobbied for passage of long-sought comprehensive tax reform that lowered rates for individuals and businesses alike, and said the measure would help create jobs while leaving workers with more take-home pay. During the year-long debate, NRF defeated a proposed “border adjustment tax” that would have driven up the price of imported consumers goods by 20 percent and which nearly sidetracked tax reform. The NRF's campaign against the import tax was highlighted by an infomercial-style television ad aired on Saturday Night Live that explained how the tax would raise prices and kill jobs. [10] [11]

NRF supported legislation passed by the House to repeal the Affordable Care Act and its employer mandate, which requires businesses to provide workers with health insurance at levels dictated by the government. Since passed in 2010, some retailers have kept payrolls below the 50-worker level to avoid triggering the law and to keep workers below the 30-hour a week definition of full time that requires coverage. The measure passed the House but died in the Senate. [12] [13]

NRF defeated an effort to repeal debit card swipe fee reform that has saved retailers and their customers an estimated $8 billion a year since 2011, blocking an effort to allow the card industry to resume price-fixing of debit card fees. [14] [15]

2018

After fighting for online sales tax collection in Congress and the courts for over 15 years, NRF welcomed a Supreme Court ruling in South Dakota v. Wayfair, Inc. allowing states to require online sellers to collect sales tax the same as local stores. The ruling came after NRF submitted friend-of-the-court briefs in the case arguing that modern software had removed any burden once associated with collecting sales tax and that the lack of sales tax collection had given online sellers an unfair price advantage over local stores. [16] [17]

NRF and other groups seeking patent reform won when the Supreme Court upheld a process that allows questionable patents to be reviewed administratively rather than requiring litigation. The ruling will help rein in “patent trolls,” which have targeted retailers with frivolous lawsuits over off-the-shelf technology and routine practices like attaching a file to an email. [18] [19]

2019

NRF championed a Department of Labor final rule, which expanded overtime pay eligibility. The final rule was applauded by NRF as a reasonable, thoughtful approach to updating the nation's overtime rates, bringing overtime eligibility up to speed with the modern economy. [20]

2020

NRF successfully advocated [21] for the CARES Act, signed into law in 2020 to provide relief for retailers affected by the COVID-19 pandemic which included: $350 billion Paycheck Protection Program, expansion of unemployment insurance, relief for retail workers and consumers and corrected the qualified improvement property (QIP) error in the 2017 Tax Cuts and Jobs Act (TCJA). [22]

2021

In September 2021, NRF launched an advocacy campaign "S.O.S: Save Our Shipments" in response to the crisis in American's supply chains. [23] The campaign outlined three ways to address the supply chain crisis, which included passing the $1.2 trillion infrastructure bill, adding more truck drivers to the workforce and passing the Ocean Shipping Reform Act. All three legislative items were enacted by 2022.

2022

NRF successfully lobbied for passage of the Ocean Shipping Reform Act [24] to helps address longstanding systemic supply chain and port disruption issues that was signed into law [25] by President Biden in June 2022.

2023

In December 2023, NRF retracted a claim it had made in April that "nearly half" of retail inventory shrinkage in 2021 was attributable to organized retail crime (ORC). Data actually showed that 37% of shrinkage was attributable to all external theft, not limited to ORC. [26]

Conferences

In 2018, Big Show had more than 300 speakers, 500 exhibitors, 36,500 attendees and 500 sessions. [27] In 2019, Big Show had 500 speakers, 700 exhibitors, 37,000 attendees and 500 sessions. [28]

In 2020, Big Show had more than 300 speakers, 800 exhibitors, 40,000 attendees and 200 sessions. [29] [30] [31] In 2023, the 113th annual convention of the National Retail Federation, NRF 2023: Retail's Big Show, brought together more than 35,000 [32] attendees.

Leadership

In mid-March 2010, the NRF announced that Matt Shay, who had headed the International Franchise Association (IFA), would become NRF's president and CEO on May 10, 2010, replacing Tracy Mullin, who was retiring. [33] Mullin joined NRF in 1976 [34] and became president in 1993. [35] Shay joined the IFA in 1993 and was named president in 2004 and chief executive in 2007. [36]

During his time at the helm, Shay is credited with doubling the organization's revenue. The largest revenue source, conferences and conventions like the Big Show and Shop.org, increased by nearly two and a half times, and its net assets have quadrupled, according to information provided to Retail Dive from the NRF. [37] The organization's membership base has grown up to 18,000 retailers today, many of which are small businesses. Shay also notably brought on Walmart in 2013 after decades of courting.

Retail sales

The National Retail Federation releases an annual retail sales forecast each spring. NRF forecasted that 2024 retail sales would be between 2.5% and 3.5% to between $5.23 trillion and $5.28 trillion. [38]

Last year's annual retail sales grew to 7% over 2021 and totaled $4.9 trillion. This growth rate is above the pre-pandemic average annual retail sales growth of 3.6%. [39] Additionally, NRF issues a retail sales forecast for the winter holiday season. Retail sales during the 2022 November–December holiday season grew 5.3% over 2021 to $936.3 billion. [40]

COVID-19 Pandemic

Throughout the COVID-19 pandemic, NRF has asked the federal government to step in to support retailers coping with a serious downturn in discretionary spending. [41] In March, NRF called for mandatory default and foreclosure stays or federally ordered rent abatement to relieve retailers faced with closure orders. [41]

NRF also suggested government-backed loans and tax relief, including reinstatement of the net operating loss carryback, assistance with payroll costs, and expansion of employee retention tax credits to retailers with financial losses related to the decline in purchases of most goods beyond food and other essentials. [41]

In July, NRF asked for further financial assistance for retailers in a letter to congressional leadership. The letter requested an increase in funding to loan and financial assistance programs to help retailers retain employees, including expediting the Paycheck Protection Program loan forgiveness for all loans up to $150,000. [42]

In response to the COVID-19 pandemic, NRF's educational arm, the NRF Foundation, offered its introductory training course, Retail Industry Fundamentals, for free. [43] This was done to support individuals applying for the almost 1 million jobs posted by U.S. retailers. [43] NRF compiled those positions on its website job board. [44]

National associations and members represented

NRF members include department, specialty, discount, catalog, internet, independent stores, chain restaurants, drug stores, grocery stores and retail associations. [1] [45]

Related Research Articles

<span class="mw-page-title-main">Retail</span> Sale of goods and services

Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and then sells in smaller quantities to consumers for a profit. Retailers are the final link in the supply chain from producers to consumers.

<span class="mw-page-title-main">Shoplifting</span> Theft of goods from a retail establishment

Shoplifting, shop theft, retail theft, or retail fraud is the theft of goods from a retail establishment during business hours, typically by concealing a store item on one's person, in pockets, under clothes or in a bag, and leaving the store without paying. With clothing, shoplifters may put on items from the store and leave the store wearing the clothes. The terms shoplifting and shoplifter are not usually defined in law. The crime of shoplifting generally falls under the legal classification of larceny. Shoplifting is distinct from burglary, robbery, or armed robbery. In the retail industry, the word shrinkage can be used to refer to merchandise lost by shoplifting, but the word also includes loss by other means, such as waste, uninsured damage to products and theft by store employees.

<span class="mw-page-title-main">Black Friday (shopping)</span> Friday following Thanksgiving in the United States

Black Friday is the Friday after Thanksgiving in the United States. It traditionally marks the start of the Christmas shopping season in the United States. Many stores offer highly promoted sales at discounted prices and often open early, sometimes as early as midnight or even on Thanksgiving. Some stores' sales continue to Monday or for a week.

<span class="mw-page-title-main">Toys "R" Us</span> American international toy, clothing and baby product retailer

Toys "R" Us is an American toy, clothing, and baby product retailer owned by Tru Kids and various others. The company was founded in 1948; its first store was built in April 1948, with its headquarters located in Parsippany-Troy Hills, New Jersey, in the New York metropolitan area.

<span class="mw-page-title-main">Woolworths Group (Australia)</span> Australian multinational retail company

Woolworths Group Limited is an Australian multinational retail and finance company, primarily known for the operation of its retail chain Woolworths Supermarkets across Australia, Woolworths in New Zealand and its discount department store Big W. Headquartered in Bella Vista, Sydney, it is the largest company in Australia by revenue and number of employees, and the second-largest in New Zealand.

<span class="mw-page-title-main">Retail loss prevention</span> Practices to reduce loss of goods in retail stores

Retail loss prevention is a set of practices employed by retail companies to preserve profit. Loss prevention is mainly found within the retail sector but also can be found within other business environments.

<span class="mw-page-title-main">Liquor store</span> Retail shop that sells alcohol

A liquor store is a retail business that predominantly sells prepackaged alcoholic beverages, including liquors, wine or beer, usually intended to be consumed off the store's premises. Depending on region and local idiom, they may also be called an off-licence, off-sale, bottle shop, bottle store or, colloquially, bottle-o, liquor store or other similar terms. A very limited number of jurisdictions have an alcohol monopoly. In US states that are alcoholic beverage control (ABC) states, the term ABC store may be used.

Lane Crawford (HK) Limited is a retail company founded in 1850 operating specialist department stores selling luxury goods in Hong Kong and Mainland China. It is headquartered in One Island South, Wong Chuk Hang.

<span class="mw-page-title-main">Self-checkout</span> Machine for customers to complete a retail transaction

Self-checkouts (SCOs), also known as assisted checkouts (ACOs) or self-service checkouts, are machines that provide a mechanism for customers to complete their own transaction from a retailer without needing a traditional staffed checkout. When using SCOs, customers scan item barcodes before paying for their total shop without needing one-to-one staff assistance. Self-checkouts are used mainly in supermarkets, although they are not uncommon in department or convenience stores. Most self-checkout areas are supervised by at least one staff member, often assisting customers process transactions, correcting prices, or otherwise providing service.

<span class="mw-page-title-main">National Association of Convenience Stores</span>

The National Association of Convenience Stores (NACS) is a trade association representing the convenience and fuel retailing industry. Founded in 1961, NACS has thousands of member companies, primarily in the United States but also in about 50 other countries. NACS conducts market research, hosts conferences and trade shows, and conducts political and legal advocacy. NACS is particularly concerned with the regulation of motor fuels, high credit card swipe fees, and labor law.

Organized retail crime (ORC) refers to professional criminal enterprises ranging from regional gangs to international crime rings and other organized crime focussing on retail environments. Operations include truckjacking, shoplifting, smash and grab, cargo theft, and cargo diversion. One person acting alone is not considered an example of organized retail crime. Working in teams, some create distractions while others steal items judiciously, indiscriminately or violently. Often, they are stocking up on specified items at the request of the organized crime or gang leader. It is not uncommon for the criminals to have accomplices working in the retail store or corporation.

<span class="mw-page-title-main">B&M</span> Variety retailers in the United Kingdom

B&M European Value Retail S.A., trading as B&M, is a British multinational variety store chain founded in 1978 and incorporated in Luxembourg. It is listed on the London Stock Exchange, and is a constituent of the FTSE 100 Index.

Return fraud is the act of defrauding a retail store by means of the return process. There are various ways in which this crime is committed. For example, the offender may return stolen merchandise to secure cash, steal receipts or receipt tape to enable a falsified return, or use somebody else's receipt to try to return an item picked up from a store shelf.

<span class="mw-page-title-main">Product return</span>

In retail, a product return is the process of a customer taking previously purchased merchandise back to the retailer, and in turn receiving a refund in the original form of payment, exchange.

<span class="mw-page-title-main">Reliance Retail</span> Indian retail company

Reliance Retail is an Indian retail company and a subsidiary of Reliance Industries. Founded in 2006, it is the largest retailer in India in terms of revenue. Its retail outlets offer foods, groceries, apparel, footwear, toys, home improvement products, electronic goods, and farm implements and inputs. As of 2023, it has over 245,000 employees at 18,000 store locations in 7,000 towns. Apart from physical stores, the company also sells products on its e-commerce channels.

<span class="mw-page-title-main">Retail's BIG Show</span> Annual New York City retail trade show

Retail's Big Show, or the NRF Annual Convention & EXPO, is the flagship industry event of the National Retail Federation (NRF).

<span class="mw-page-title-main">Retail apocalypse</span> Widespread decline in physical retail stores

Retail apocalypse refers to the closing of numerous brick-and-mortar retail stores, especially those of large chains, beginning around 2010 and accelerating due to the mandatory closures during the COVID-19 pandemic.

South Dakota v. Wayfair, Inc., 585 U.S. ___ (2018), was a United States Supreme Court case that held by a 5–4 majority that states may charge tax on purchases made from out-of-state sellers even if the seller does not have a physical presence in the taxing state. The decision overturned Quill Corp. v. North Dakota (1992), which had held that the Dormant Commerce Clause barred states from compelling retailers to collect sales or use taxes in connection with mail order or Internet sales made to their residents unless those retailers have a physical presence in the taxing state.

The NRF Foundation is a 501(c)(3) nonprofit and the philanthropic arm of the National Retail Federation.

<span class="mw-page-title-main">Impact of the COVID-19 pandemic on retail</span> Aspect of viral outbreak

The COVID-19 pandemic has taken a sharp economic toll on the retail industry worldwide as many retailers and shopping centers were forced to shut down for months due to mandated stay-at-home orders. As a result of these closures, online retailers received a major boost in sales as customers looked for alternative ways to shop and the effects of the retail apocalypse were exacerbated. A number of notable retailers filed for bankruptcy including Ascena Retail Group, Debenhams, Arcadia Group, Brooks Brothers, GNC, J. C. Penney, Lord & Taylor and Neiman Marcus.

References

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  2. ↑ "Business Fallout: Airlines Beg for Aid; Google Launches Site". The New York Times . Associated Press. 21 March 2020. Retrieved 25 March 2020.
  3. ↑ "NRF Turns 100: A century at the heart of retail’s evolution." Retail Timeline sidebar. STORES magazine, February 2011, pages 26, 29, 30.
  4. ↑ Merchants, The Ohio Council of Retail. "National Reach | The Ohio Council of Retail Merchants" . Retrieved 21 June 2019.
  5. ↑ Medina, Eduardo (8 December 2023). "Retail Group Retracts Startling Claim About 'Organized' Shoplifting". The New York Times. ISSN   0362-4331.
  6. ↑ Fernandez, Henry (17 June 2019). "Tariffs aren't only way to solve problems with China, NRF's David French says". FOXBusiness. Retrieved 17 April 2020.
  7. ↑ Collins, Michael. "Businesses, farmers tell Trump China tariffs would backfire: 'We are shooting ourselves in the foot'". USA Today . Retrieved 17 April 2020.
  8. ↑ "Rail News - NRF: Retail imports to see final tariff-driven surge of 2019. For Railroad Career Professionals". Progressive Railroading. Retrieved 17 April 2020.
  9. ↑ Gangitano, Alex (22 November 2019). "Retailers lead coalition to urge Congress to pass a federal privacy bill". The Hill . Retrieved 24 April 2020.
  10. ↑ Thomas, Lauren (19 July 2017). "Retailers' fight against a border adjustment tax looks to be heating back up". CNBC. Retrieved 6 September 2018.
  11. ↑ "Why a commercial about tax policy will run during SNL this week". The Washington Post . Retrieved 6 September 2018.
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  13. ↑ Tara. "Affordable Care Act Implications for Small Businesses". www.frf.org. Retrieved 11 September 2018.
  14. ↑ "NRF Consumer Survey Debit Card Swipe Fees | PYMNTS.com". www.pymnts.com. 6 July 2016. Retrieved 12 September 2018.
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  17. ↑ "15 Amicus Briefs Filed in Support of South Dakota Sales Tax Fairness Petition to Supreme Court". the American Booksellers Association. 14 November 2017. Retrieved 5 September 2018.
  18. ↑ "Patent trolls' favorite target? Not tech. Retail". Fortune. Retrieved 6 September 2018.
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  20. ↑ "US Department of Labor issues final overtime rule". DOL.gov.
  21. ↑ "Retailers Welcome Legislation to Expand Small Business Pandemic Loans | 2020-04-23 | Security Magazine". www.securitymagazine.com. Retrieved 1 September 2023.
  22. ↑ Tostado, Alex (22 April 2020). "NRF Lauds Legislation to Expand Funding for Small Businesses by $300B Amid Pandemic". REBusinessOnline. Retrieved 1 September 2023.
  23. ↑ "NRF praises the House passing of Ocean Shipping Reform Act 2022". Stationary Trends. 14 June 2022.
  24. ↑ "NRF Calls On Biden Administration To Eliminate China Tariffs To Ease Inflation | SGB Media Online". sgbonline.com. Retrieved 1 September 2023.
  25. ↑ House, The White (16 June 2022). "Bill Signed: S. 3580". The White House. Retrieved 1 September 2023.
  26. ↑ Fonrouge, Gabrielle (7 December 2023). "Retail lobby group's retraction of key crime claim shows how hard it is to track theft". CNBC.
  27. ↑ "The NRF Big Show: Apparel's Top 20 Takeaways". Apparel Magazine. Retrieved 25 September 2018.
  28. ↑ Krenzin, Keneavy. "Reimagining Retail - NRF Big Show 2019 Recap". blog.agilenceinc.com. Retrieved 16 April 2019.
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  30. ↑ "Commentary: Three Standout Trends from NRF 2020". Chain Store Age. 7 February 2020. Retrieved 30 April 2020.
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  32. ↑ Verdon, Joan. "Retailers Are Looking For Ways To Sell Smarter In 2023 And Beyond". Forbes. Retrieved 1 September 2023.
  33. ↑ Ylan Q. Mui (18 March 2010). "National Retail Federation to name Matt Shay as new president". The Washington Post .
  34. ↑ "National Perspective: Tracy Mullin", Business Strategies Magazine, November 2005
  35. ↑ Greg Jacobson, "Mullin ensures NRF stays nimble", MMR, May 2005
  36. ↑ Elissa Elan (17 March 2010). "Shay leaves IFA to lead retail group". Restaurant News.
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  39. ↑ "The Future Of Retail: What The Stats Say About Retailers In 2023". Forbes. Retrieved 29 September 2023.
  40. ↑ Rajesh, Ananya Mariam; Chatterjee, Aatrayee; Rajesh, Ananya Mariam (18 January 2023). "U.S. holiday sales miss estimates as inflation weighs on demand - NRF". Reuters. Retrieved 29 September 2023.
  41. 1 2 3 "NRF pushes government to come to retail's aid". Retail Dive. Retrieved 7 August 2020.
  42. ↑ "Retail industry calls for targeted relief amid coronavirus pandemic". The Hill . 21 July 2020. Retrieved 19 August 2020.
  43. 1 2 "National Retail Foundation Offering Free Online Trading During Pandemic". MH&L. 24 April 2020. Retrieved 27 August 2020.
  44. ↑ "The National Retail Federation steps up to support the fashion industry". fashionunited.uk. 11 May 2020. Retrieved 24 September 2020.
  45. ↑ "The transformation of the NRF — and how Matthew Shay envisions the future". Retail Dive. Retrieved 24 September 2018.
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