November 24, 2017

Southeast Texans "shopping small" on Black Friday

KFDM.com
By Jessica Crawford

Shoppers rushed to stores this Black Friday in Southeast Texas, but it’s not only the big box retailers that are staying busy.

Cars lined the streets of Boston Avenue in Nederland as shoppers began their holiday shopping at small businesses in the area.

Small business owners are encouraging people to buy from local retailers ahead of Small Business Saturday (11/25).

“We’re parents and I’m a mother of twins and this is my life also,” says Jill Provost, owner of Chatzkie’s Home Decor.

She shares a building with her friend owns the Sassy Trendz Boutique in Nederland.

“We want people to come and support us small businesses,” says Provost. “We’ve worked so hard to get it together.”

According to a statement from Governor Greg Abbott, more than 98 percent of all businesses in Texas are considered “small businesses.”

Last year, more than $14 billion was spent at small businesses on Small Business Saturday, according to the Texas Retailers Association.

Read More: http://kfdm.com/news/local/southeast-texans-shopping-small-on-black-friday

November 24, 2017

Texas retailers forecast a strong shopping weekend amid strengthening economy

KXAN.com
By Chris Davis

AUSTIN (KXAN) — The Texas Retailers Association is predicting a big season for businesses big and small as the holiday shopping season officially kicks off this week.

That’s despite a slow start to Black Friday for stores in the shopping center at Interstate 35 and 51st Street in north Austin. Metal barricades lined the front of the Best Buy there, but just a handful of people waited behind them for the store to open. A few people shopped at the other stores in the strip mall, but the parking lot was empty for the most part through the traditional early-morning retail rush.

George Kelemen, president and CEO of the TRA, said the forecast looks strong for big box stores. “The economy’s good, consumers are ready to spend, and retailers are ready to provide them what they need,” he told KXAN this week.

Kelemen also expects this year to be good for smaller, local businesses, who in recent years have started merging a digital footprint with their brick-and-mortar storefronts.

Precision Camera and Video in Austin takes advantage of the big crowds expected through Friday and the weekend. Sales manager Mike Luxenberg said like the big box stores, they rely on sales to drive revenue that they rely on in the early part of the holiday shopping season.

“Most of our business is derived through people coming into the store,” Luxenberg said. “I think they see a great value in interacting with our salespeople and learning about the product before they purchase.”

The store sees two to three times as much business on Black Friday weekend as a normal weekend, he said, and they’ve seen increases in foot traffic in recent years. Having an online presence drives sales, not through their website, Luxenberg said, but by bringing more people through the doors.

That’s one of the keys, Kelemen said, to a successful weekend for local businesses.

“The ones that do a great job find a way to connect with those consumers and customers of theirs in multiple ways,” he said, “the traditional mailers, but also online, through social media.”

The TRA expects to see an uptick in total dollars spent this year, as the shopping season continues to start earlier. Some sales had already been drawing people to stores for a couple days as Black Friday approached and many will continue through the weekend.

Read More: http://kxan.com/2017/11/24/texas-retailers-forecast-a-strong-shopping-weekend-amid-strengthening-economy/

November 15, 2017

In the Cart – November 2017 Compilation

WIC Program Update

TX WIC Program Cost Containment

For a number of months, TX WIC has posted Cost Containment price averages from seven (7) to ten (10) days past the agreed upon date. We raised the issue and the concerns of compliance from our members with TX WIC about the problem and TX WIC stated their plan and goal is that vendors under normal circumstances log onto the web site and view price averages after the 20thof each month. TX WIC begins the closeout process of the prior month on the 15th. Right now and for the next few months until the agency can transition and cut over to their new system platform, which is expected to be completed in early 2018, we can expect for the next few months to continue to experience delays in cost-containment postings and that delay will average from 7-10 days longer than normal. TX WIC is posting the pricing averages as quickly as possible and they are taking this temporary delay into consideration when they analyze vendors on Cost Containment compliance.  If you have any cost containment questions, you can email the agency at: WICCostContainment@hhsc.state.tx.us or reach out to Joe Williams (936-258-3414) or jwilliams@txretailers.org.

Reminder: WIC Quarterly Webinar/Conference Call Scheduled

 TX WIC Program has scheduled Wednesday, November 29th starting at 2:00 pm their next Webinar/conference call program update. If you haven’t received a “Save the Date” notice for this meeting from WIC TX and would like to participate or someone from your team to participate, please send Joe (jwilliams@txretailers.org) a note with the person and their e-mail address that would like to participate and will get them placed on the WIC meeting contact list. It is a great way to stay informed of changes as well as ask questions on issues of concern.

SNAP Program Updates

SNAP Program Transaction Fee Proposed

A major credit/debit card brand has proposed to USDA to lift the prohibition restricting interchange fees on SNAP transactions. Our national trade organizations (National Grocers Association, Food Marketing Institute and others) are actively engaged in opposition to this proposal and recently sent letters to U.S. House and Senate Agriculture Committee leaders opposing the efforts of the credit card (card networks) companies to lift the transaction fee regulations. This proposal would allow card networks to charge up to an average of 48 cents per SNAP transaction, which equates to an additional $1.3 billion cost to SNAP authorized retailers per year by conservative estimates. These extra costs not only would be devastating to SNAP Program participants throughout the nation, but place unrealistic and unnecessary costs to authorized SNAP Program vendors. National Association of Truck Stops has recently released a good article on the issue, please click here to review that article.

SNAP Program Statistics Update
We are continuing to see impact on the SNAP Program participation as well as the dollars spent due to Hurricane Harvey. We will continue to see the impact for several months.  September 2017 numbers also included the Supplemental (percentage of August benefits added to September benefits for participants in the 39 disaster counties) Benefits which was substantial.  You can see the drop off in October as it falls back to actual number of participant and one month of benefits placed in the accounts. I’m curious to see what November numbers will show as there was approximately 500,000 households in the 39 disaster counties that applied for D (Disaster) SNAP benefits. That was a one-time benefit of approximately $800.00 per household on a separate D-SNAP Lone Star Card.  In your stores you will see substantial increase in October and probably just as strong in November from those D-SNAP benefits being spent. Below current TX SNAP Program dollars we included the numbers from our sister states even though the national numbers lag behind by three months. November 17 and for sure December 18 should start to show an increase in normal SNAP participation due to some of the non-SNAP households receiving D-SNAP and now following D-SNAP will qualify for regular SNAP Benefits. Enclosed is the most current information available.

Please contact Joe Williams jwilliams@txretailers.org or 936-258-3414 if you have any questions regarding the statistics update.

Month        Cases          Participates                 Dollars                 Ave per Case
Sep 17     1,900,205       4,619,543             $568,834,988.00               $297.00
Oct 17      1,706,890       4,013,502             $458,326,985.00               $269.00

  • Note- September numbers include the supplemental benefits added to the participants located in the 39 disaster counties.

Twelve Month Rolling Average      
Sep-Oct 17  1,662,893     3,937,881          $454,429,672.00.00          $273.00

Look Back To Last Year (2016) at This Time
Oct 16      1,679,690         3,978,068            $457,601,047.00              $272.00
Nov 16     1,674,271         3,962,720            $455,228,418.00              $272.00
How do we compare on SNAP participation to our neighbors and nation-wide? Latest information is Aug 17 versus Aug16

State            Participation             Households/Cases             Benefits/Dollars
National        <5.3% >                       <3.7%>                                <5.0%>
Texas            <1.4%>                       <1.0%>                                <0.8%>
Louisiana       <17.2%>                    <15.7%>                               <6.2%>
Arkansas       <3.7%>                       <3.8%>                                <4.5%>
Oklahoma     <3.3%>                       <2.1%>                                <2.5%>
New Mexico   <4.0%>                      <1.8%>                                 <8.4%>

How do we compare on WIC Program participation to our neighbors and nation-wide? The latest numbers available are July 17 compared to July 16. 

State                                                Participation
National Average                                <5.5%>
Texas                                                  <4.2%>
Louisiana                                             <5.4%>
Arkansas                                             <4.5%>
Oklahoma                                            <6.3%>
New Mexico                                         <4.8%>
October 19, 2017

"Open Carry" of Blades, Knives, Etc.

Below are some frequently asked questions about Texas’s new “open carry” law. This is not legal advice.

What does this new “Open Carry” law mean?
Texans will now be able to openly carry blades: Machetes, Daggers, Spears, Bowie Knives, Swords. Anything with a blade longer than 5.5 inches is now legal to be openly carried.

Where can’t someone openly carry something with a blade now?

  • Bars and restaurants that derive 51% or more of their income from the sale or service of alcoholic beverages for on-premise consumption.
  • Schools and universities.
  • Polling places.
  • Secure areas of airports.
  • Racetracks.
  • High school, collegiate or professional sporting events (unless the person is a participant in the event and a location-restricted knife is used in the event).
  • Correctional facilities.
  • Hospitals, nursing homes and mental hospitals (unless written authorization is given).
  • Amusement parks.
  • Churches, synagogues or other established places of religious worship.

My place of business isn’t on the list. What if I don’t want someone openly carrying a blade in my store?

  • If someone enters a business and the owner or an employee don’t want them carrying, they can ask them to leave the premises.

Are there any age restrictions on openly carrying something with a blade?

  • People under age 18 will not be allowed to carry such blades if not directly supervised by a parent or guardian.

What’s the punishment if someone violates the new “Open Carry” law?

  • Violating the law could result in a third-degree felony charge, punishable by up to 10 years in prison and a maximum $10,000 fine.
October 19, 2017

Texting and Driving FAQ

Below are some frequently asked questions about Texas’s new texting and driving ban. This is not legal advice.

What is actually banned?

  • You can’t use a cellphone to “read, write, or send an electronic message” while your vehicle is moving. There are exceptions for the use of cellphones in an emergency situation (or if the driver believes the situation is an emergency). The texting and driving ban does not apply if the vehicle is stopped. Drivers 18 and younger are banned from using a cellphone at any point while driving a vehicle.

What can I still do on my phone while driving?

  • Anything that isn’t “read, write, or send an electronic message.“ You can use your phone’s GPS, use Spotify, Apple Music, etc. to play music, using an app on your phone that doesn’t “read, write, or send an electronic message,” make phone calls, use the Internet.

Can I get pulled over if the police think I am texting?

  • Yes. You can be pulled over if the officer thinks you were texting.

Do I need to get a hands-free device?

  • The texting and driving ban doesn’t require you to use a hands-free device.

Please note that some local ordinances may be stricter when it comes to using a cellphone while driving.

October 15, 2017

In the Cart – October 2017 Compilation

Meat Grind Regulation Update
USDA inspectors are out in the market checking grocers that grind meat products in their stores if they are following the record keeping guidelines implemented by USDA IN 2015. We had a report of an inspector asking to check the record keeping at one of our member stores in South Texas this month. To refresh everyone on the requirements you can click here for the link to the FAQ (frequently asked questions) on the Meat Grind Rule or another good review is a blog on the issue from Food Marketing Institute (FMI).

Menu Labeling Update
FDA (Food & Drug Agency) Commissioner Gottlieb released a statement late last month indicating that the agency would be releasing guidance on its menu labeling regulation later this year.  There is a bill our industry supports that is still working its way in the House of Representatives House titled the Common Sense Nutrition Disclosure Act (H.R. 772). All of the discussion these days is on Tax Reform so not sure how soon Menu Labeling discussion might take place on the House Calendar.  Please click here to review the Menu Labeling Requirements that might impact your businesses.

Overtime Pay
In late August, Judge Mazzant (Obama Administration Appointee) in the U.S. District Court for the Eastern District of Texas ruled against the Department of Labor’s overtime rule (proposed in the last administration) , which would have doubled the salary threshold to over $47,000. The judge invalidated the rule, saying that it was not consistent with congressional intent, which was for the duties test to be the primary focus of the exemption, not salary. Last week’s action follows a temporary injunction placed on the rule ahead of its December 2016 effective date. Click here to read the article from USA News. To review the requirements of the Overtime Rule, click here.

SNAP RETAILER STANDARDS DEFINED IN 2016
FINAL RULE NOW WAIVED
USDA/FNS is now starting to implement some of the provisions of the 2014 Farm Bill defined in the final rules issued by FNS back in December 2016.  Those provisions or enhancement of the standards as to stocking requirements were recently overruled by Congress in the Consolidated Appropriations Act of 2017.  As a reminder, the Consolidated Appropriations Act requires:

  • That FNS not implement the change from 3 to 7 varieties of staple foods in each of the 4 staple foods categories,
  • That FNS revert to the former definition of variety, and
  • That FNS maintain the requirement for perishable items in 2 staple food categories rather than moving to a requirement for perishables in 3 of the 4 staple foods categories.

Beginning on January 17, 2018, when USDA/FNS receives new applications, they will assess eligibility under the requirements of the final rule that are unaffected by the Consolidated Appropriations Act.  The USDA/FNS SNAP Program webpage has been updated to reflect the new guidelines combining the former Enhanced SNAP Retailer Regulations and the Consolidated Appropriations Act provisions to eliminate any confusion.

  • A quick overall outline on what the January 17, 2018, requirements mean at the store level can be found here.
  • Guidance on the definition of variety can be found here.
  • Guidance on what constitutes a stocking unit for purposes of depth of stock can be found here.
  • Guidance on the definition of accessory foods, which are eligible foods but are not counted as staples for purposes of store eligibility, can be found here.

USDA/FNS plans to hold  a webinar in early December 2017 to review the changes to stocking provisions that become effective in January.  We will send out to Food Council the details of the webinar when it becomes available.

Beverage Tax Overturned in Illinois
We just received word from Illinois Grocers Association that Cook County Officials voted 15 to 1 to overturn the Sweetened Beverage Tax in Cook County Illinois. Please click here to read article on the issue.

It was interesting that in August, USDA/FNS had stated that the Beverage Tax violated SNAP Rules.

This issue is getting a lot of action. Michigan Legislature just passed a bill banning local excise taxes on groceries (sales of food and drinks) MI HB4999 (17R), which is now its way to the Governor for signature and he is expected to sign the bill. There hasn’t been discussions in any of Michigan communities of adopting a sugary beverage tax like Seattle, San Francisco, or Philadelphia but this legislation will make sure no Michigan communities go down that path.

SNAP Program Statistics Update
I’m not sure the numbers from the SNAP Program participation will mean much this month as far as checking for trends. Hurricane Harvey had a significant impact on our communities across the state and that impact is noted in SNAP statistics as well. USDA/FNS approved Supplemental SNAP Benefits to those SNAP participants in the 39 counties impacted by Harvey. So September numbers shows that significant increase across all categories. We don’t know if they will post the Disaster SNAP Benefits to non-SNAP households impacted by Harvey that lived in the 39 disaster declared counties.  But I’m sure a certain percentage of them may qualify for SNAP on the regular program. We won’t know the impact until October/November numbers are released.  Also included the numbers from our sister states even though the national numbers lag behind by three months.

Please contact Joe Williams jwilliams@txretailers.org or 936-258-3414 if you have any questions regarding the statistics update.

Month        Cases          Participates                 Dollars                 Ave per Case
Aug 17     1,646,902       3,882,875             $446,109,579.00               $271.00
Sep 17     1,900,205       4,619,543             $568,834,988.00               $297.00
   +15.38%         +18.97%                +27.51%                  +02.95%

Twelve Month Rolling Average      
Aug-Sep 17   1,662,893     3,937,081          $454,429,672.00               $273.00

Look Back To Last Year (2016) at This Time
Sept 16    1,672,398        3,965,556            $455,269,970.00               $272.00
Oct 16      !,679,690         3,978,068            $457,601,047.00              $272.00

How do we compare on SNAP participation to our neighbors and nation-wide? Latest information is July 17 versus July16

State            Participation             Households/cases             Benefits/Dollars
National        <4.9% >                       <3.6%>                                <5.0%>
Texas            <1.1%>                       <0.5%>                                <0.8%>
Louisiana       <4.9%>                       <4.2%>                                <6.2%>
Arkansas       <6.0%>                       <6.2%>                                <4.5%>
Oklahoma     <3.2%>                       <2.1%>                                <2.5%>
New Mexico   <6.1%>                      <4.2%>                                 <8.4%>

How do we compare on WIC Program participation tour neighbors and nation-wide? The latest numbers available are July 17 compared to July 16. 

State                                                Participation
National Average                                 <4.9%>
Texas                                                  <4.2%>
Louisiana                                             <5.4%>
Arkansas                                             <4.5%>
Oklahoma                                            <6.3%>
New Mexico                                         <6.1%>
September 20, 2017

In the Cart – September 2017 Compilation

WIC eWIC Software Update
Version 4 (V4) Update (Conversion to X9.93 2008)

The Texas WIC EBT Staff are working with Solutran and other Smartcard WIC states to develop standardized V4 capability. We anticipate these enhancements to be included in the new system, which is planned for early 2018. Texas and other Smartcard states will continue to support the existing V2 (X9.93 2002) claim files until not allowed by USDA FNS, so systems developers are not yet required to move to V4.  There is an FNS mandate requiring retailer implementation of V4 before the end of 2018. Texas WIC doesn’t have a schedule of dates for implementation yet. It is critical for us to know those dates so we can properly budget time and costs to update our systems.

TX WIC Split Tender
Just a reminder that effective October 1, 2017, all WIC Vendors POS Systems will be required to accept Split Tender transactions from WIC participants. Generally this software update is handled by your POS provider. The software update and certification must be approved and tested by Texas WIC.The good news is that this process will increase your redemption of fruits and vegetables via the WIC Cash Value Voucher (CVV). Please click here to see the WIC Vendor Alert issued on the issue this summer.

Hurricane Harvey Update
Fuel Waivers

As a result of the continuing impacts on Gulf Coast-area refineries and disruption to the fuel distribution system caused by Hurricane Harvey; EPA has waived requirements for reformulated gasoline through September 26 and low volatility conventional gasoline through September 15 in Texas.
TX SNAP Program Harvey Temporary Changes

Please click on the link below to review the changes made to the SNAP Program in Texas top deal with the after effects to participants and future participants in the SNAP Program. This link outlines early benefit distribution, automatic replacement benefits, extension of benefits, hot food waiver, and working on what is called Disaster SNAP benefits which would be short term benefits for those families recovering from Hurricane Harvey damage, click here.
Disaster SNAP Program Benefits Approved for Texas

Disaster SNAP Program benefits have been approved for 39 counties in Texas. D-SNAP as it is commonly called are temporary benefits that allow folks displaced by an event like Hurricane Harvey to apply for SNAP on a short term basis. There is a disaster income limit qualification but includes disaster related expenses in the determination. This is a benefit that could help not only some of our customers but our impacted employees as well. To review the note and information from USDA/FNS, click here.
TX WIC Program Harvey Temporary Changes

Texas WIC Program also implemented temporary changes allowing flexibility with some of the major product categories and is effective from September 3- September 24, 2017.  Reminder- this flexibility with egg, fluid milk, and bread is only to be used in the event the participant’s prescribed authorized food item isn’t available. Cost Containment guidelines still are a consideration. Click here to review the temporary changes implemented by TX WIC.
August 28, 2017

Hurricane Harvey: Houston Area Store Status

Houston area grocery and retail stores are working hard to reopen after Hurricane Harvey.
Below are links to store closures and openings for these retailers.

Academy Sports & Outdoors: At peak, they have had as many as 32 stores and their corporate office closed. They are opening stores as soon as it’s safe in the impacted communities to serve customers as they begin to recover from Hurricane Harvey, and in many cases, they have open our doors for a short time just to fulfill first responder’s needs across the affected communities. You can go to Academy.com and click on “Find a Store” at the top for info. on what stores are opened or closed near you.

Brookshire Brothers Food & Pharmacy: Stores in the following cities are open: Cleveland, Liberty, Katy, New Caney, Livingston, Coldspring, Onalaska, Huntsville, Magnolia, Montgomery, Hempstead, Dayton, Sour Lake, Vidor, Silsbee, Kountz, Brenham, Ganado, and Hallettsville.

Foodarama: Each of the Foodarama locations are open. They were expecting deliveries on Wednesday, August 30, 2017. Due to looting and vandalism, they are not keeping regular hours at this time. Most stores will close by 6 pm, probably for the next week or so.

FoodTown: Plans to be open 8 – 5 starting Monday, August 28, 2017. Note: This depends on issues in the location of each store & the number of employees that are able to reach the store.

HEB

Home Depot

Kroger

Lowe’s

Petco: All stores are open, while some are open and have limited hours. The Aldine and Lake Jackson stores are closed (Updated 9/1/2017).

Randall’s: Planning to open as many stores as able to Monday by 9AM. Stores they open will have product and employees to service customers.

Target

Walgreen’s: As of Monday morning, Walgreen’s had 171 stores closed, approximately 25 without power (Updated 8/28/2017).

Walmart