USA
Retail Forecast 2017: Confident Shoppers, Growing Sales
For retailers, 2017 promises to be a good year. Consumers are expected to have more spendable money over the coming 12 months, thanks to anticipated increases in employment and wages. And major drivers of the economy – such as business investment and housing construction – are expected to continue their modest growth.
The fortunes of retailers depend on a growing economy and for the next 12 months, economists expect a vigorous increase in the Gross Domestic Product. For 2017, Moody’s expects GDP to grow 2.9 percent. That’s a healthy increase from the 1.6 percent growth expected when 2016 numbers are finally tallied.
Another area contributing to growth will be the housing market. Although starts are expected to be down somewhat from the previous two years, an easing in the credit market will help buyers and those new households will have to be furnished with lots of consumer goods.
But while a good year is expected for retailers, they must also address the challenges of rising labor costs and moderation in the number of consumer shopping trips. The cost of personnel and rents are continuing to increase and productivity improvement has been fairly flat. Further, deflation caused by lower energy prices and a strong dollar could dampen profits as they have done in 2016.
You can’t make more sales if fewer shoppers are coming through your doors.
With more people shopping online, even businesses that don’t compete directly with Internet sellers are seeing customer counts go down.
Is your traffic down? Unfortunately, most retailers are unable to answer that question accurately because only 10 to 15 percent are using traffic counters. If you aren’t, the first step to solving this problem is to start counting.
Then you need to examine your marketing and understand what drives traffic to your store, perhaps improving your social media activity or sending out frequent newsletters.
In the full article online, you'll find deep information on the pressures that are upcoming and the strategies you can put in place to buffer your business from economic winds while discovering new ideas for turning a good economy into a great one.
Avoid Costly Penalties for Overtime Violations: New Regulations Raise Stakes
More people than ever are qualifying for overtime, thanks to new rules from the U.S. Department of Labor. If you’re like most employers, you’re experiencing a surge in your “nonexempt” workforce and payroll. Moreover, you may find it difficult to decide who is exempt from overtime.
The DOL rules escalate the risk of making employee classification errors. The qualifying salary floor for “exempt” employees was raised to $913 per week. Employees paid less, must be classified as “nonexempt” and be paid time-and-a-half when working more than 40 hours per week. Individuals paid more than $913 weekly are exempt from overtime – maybe.
What should you do? First, determine if your business is covered by the law. Here’s the rule: The law covers any business that generates over $500,000 in annual gross revenue and is engaged in interstate commerce. But things get complicated fast. For example, even having credit cards processed in another state could qualify as interstate commerce.
Further, the $500,000 revenue limit may not save a very small store from the new rules. A business that does not generate $500,000 in annual revenues can still be subject on a “per employee” basis.