Shopping

Sales Tax Ruling Benefits E-Tailers

June 30, 2018 By Twila Van Leer

Sales Tax Online Shopping — The losses in sales tax revenues from the online sales have cost states as much as $33 billion each year

The recent U.S. Supreme Court decision that will allow states to have online retailers collect sales taxes, just as local retailers do, will go a long way toward leveling the advantage the online businesses have historically had.

The court’s landmark 5-4 vote on the issue will take away the special break the e-tailers have enjoyed and overturns a 1992 decision that they were exempt from collecting sales taxes.

The Supreme Court ruling specifically addressed a South Dakota situation. That state filed a 2016 lawsuit against online retailers Wayfair, Overstock.com and Newegg over the issue of state tax collection. The high court decision means that online merchants can no longer claim an exemption from collecting sales taxes based on the fact that they have no presence in the states where they sell their wares.

Justice Anthony Kennedy, representing the majority of the justices, said that vast marketing changes no longer justify the practice. It has given the e-commerce marketers an “arbitrary advantage over their competitors who routinely collect state sales taxes,” he said.

The losses in sales tax revenues from the online sales have cost states as much as $33 billion each year, Kennedy noted. In 1992, only 2 percent of Americans had internet access. That figure today is about 89 percent and the percentage of online sales rises regularly. Today, some 9 percent of all retail sales are made on the net, and the rate is growing at four times the rate of the increases in the brick-and-mortar outlets.

Retailers in general applauded the Supreme Court action, realizing that it levels the playing field among merchants online and off. “The Supreme Court has acted correctly in recognizing that it’s time for outdated sales tax policies to change as well,” said Matthew Shay, president and CEO of the National Retail Federation.

Retailers are urging Congress to step up to the plate and craft additional legislation that will permanently resolve the inequities caused by the sales tax issue. The complexities grow as large e-tailers such as Amazon acquire smaller businesses and the mix between big-box stores and small outlets and the erosion of boundaries between in-state and out-of-state sales increases.

Maximize Your Experience at HomeGoods

May 14, 2018 By Twila Van Leer

HomeGoods is a little bit different. It’s a haven for those who love the thrill of a flea market, but with more panache. A constantly rotating inventory offers something new every few days in the home decor area. To maximize your shopping experience in this outlet, try these tips:

Week days are less hectic. You’ll avoid some of the competition for an unusually desirable item if your aren’t arm-wrestling a dozen other shoppers. Late morning and early afternoon are the times least likely to be congested.

Look clear to the back of a shelf. The store stacks items in rows several deep, so unless you have reached clear to the back of the shelf, you may be missing something that would interest you. Bathroom accessories, kitchen wares and art pieces tend to be in this category.

Keep tabs on HomeGoods stocking by viewing the app now and again. The store doesn’t sell online, but keeps its app up to date showing the latest great finds they are offering. Follow the store closest to you, where the app is updated daily.

Inventory turns over quickly. If you are interested in an item but want to think it over, it may not be there the next time you visit the store. They have a 30-day return policy, so you can try out that sofa pillow with the option of returning it before making a final decision. If you want to purchase something too large to fit in your vehicle, they will hold it for up to a week, giving you time to make arrangements. As you peruse what’s in the store, you may see items with tags marked “sold.” They are likely being held for pickup.

If the item you wanted disappears from your store before you get to it, try the other stores. Not each of them has the exact same choices as another.

If the item you are eyeing has a nick, scrape, stain or other minor damage, ask for a discount.

Red stickers on sale tags signify real deals. But they may have been manhandled in the process. Examine them closely for real damage. It’s possible the merchant is aware of the damage and has already discounted the item as much as he is going to, but it doesn’t hurt to ask.

If you’re afraid your discount purchase at HomeGoods means the item will be out of style soon, don’t be. The store’s buyers look for good deals all year regardless of “season” so they are constantly restocking with goods that may have been out for only a couple of months or so.

Coupons Count!

May 12, 2018 By Twila Van Leer

Coupons that offer reduced prices on food products and other items are worth the effort to find and they are so readily available that there is no excuse for not using them. From standard newspapers to mobile apps, they are just waiting for you to snap them up and save money on your purchases.

You can use digital coupons by printing them out to take on your shopping trip; electronically send them to a store loyalty card, using the card to redeem them at the checkout counter; or you can obtain and redeem them using an app.

Here are seven sources of coupons to get you started:

Coupons.com is probably the largest source for manufacturer’s coupons. You can print them from the website or access and redeem them via the Coupons.com app.

RedPlum.com. This outlet provides manufacturer coupons that you can print or save to a grocery store loyalty card.

SmartSource.com also offers manufacturer coupons that you can print, access via app or redeem through your grocery story loyalty card. SmartSource refers to the latter option as “Direct2Card.”

MamboSprouts.com specializes in printed coupons for natural and healthy products.

Manufacturer websites are provided by the manufacturer direct to customers. Check the websites to determine if your favorite products are represented. Some of the giants that have many products include them in one place. For example, Procter & Gamble has its P&G Everyday program while General Mills provides its coupons via Tablespoon. Kellogg’s websites offers printable coupons after registering.

Many retailers provide coupons through their websites as well. Walgreen’s, for example, passes along manufacturer coupons that can be added to your loyalty card with just the click of a button.

Kroger and Target are among the retailers that offer manufacturer coupons on their mobile apps. You can check your favorite retailers’ websites or search a legitimate app store such as Apple’s App store or Google Play.

See, it’s simple. What are you waiting for? Start saving now the coupon way.

Learning From Toys R Us Failure

April 2, 2018 By Twila Van Leer

Toys R Us Closing — Toys R Us announced that it will close or sell more than 700 stores across the country.

Well, Toys Rn’t Us any more. The company’s announcement that it will close or sell more than 700 stores across the country is a commentary on today’s American shopping habits and how retailers are coping – or not.

The toy giant, one of Santa’s favorite outlets, just hasn’t been able to compete with online buying. Its more than 30,000 employees are joining the ranks of the unemployed.

Because Toys R Us filled such a special niche in the market, many families are watching its demise with heavy hearts. Buying toys, they say, is different. They and their kiddies want to touch and test out the products before buying. The end of the toy store will mean the end of a special experience for the children who were treated to regular trips to see the goodies. But the likelihood is that most of these families will join the march to online shopping.

But in the retail market, where survival of the fittest rules, the Toys R Us closing will have its effect on other major outlets.

The companies that make toys and games are likely to feel the difference. Toys R Us has served as a test ground or “incubator” for new toys. Hasbro and Mattel, who have stood at the apex of toy-making for years, will feel the pinch and then likely increase their use of major retailers such as Walmart, Target and Amazon. Toys R Us has accounted for 11 percent of Mattel sales in recent years, and about 9 percent for Hasbro’s sales.

Experts in the toy market predict that smaller toy companies will have a hard time because Toys R Us accounted for up to 40 percent of their sales, in some instances. The Walmart and Target stores have less space to display toys and may offer fewer of the toys produced by the smaller companies. Hasbro and Mattel may look at creating smaller toys to survive in the new marketing schemes.

The large malls where the toy company has tended to settle its stores will find themselves with big blanks to fill. Some of them have watched the Toys R Us struggle and have been looking for new tenants already.

Not everyone is assuming that Toys R Us is down for the count. Some retailers that appeared dead have created new incarnations for themselves. Consider American Apparel, which declared bankruptcy and closed its stores last year. It was revived by another company and is enjoying a second life as an online-only clothing store.

Jeffery, Toys R Us’ long-necked giraffe spokes-animal, could find new ways to sell his wares. There will always be a market for toys.

Americans Are Shopping Differently

March 19, 2018 By Twila Van Leer

Americans aren’t shopping like they used to do, and that is having a great effect on retailers as they try to cope with the added competition posed by online buying and other technology-related changes in the market.

Nobody feels the changes as much as the shelf-stockers, sales personnel, cashiers and others who used to handle things with no competition. They are hustling to address changes in customer behavior and preferences.

Mundane tasks like tracking inventory and checking out customers have been automated and the retailers are trying to capitalize on the thing they do have – direct contact with the buyer.

Sometimes the retailer is interacting in a whole new way. A Best Buy clerk, for instance, may find himself in the customer’s home helping to compare and analyze the choices in electronics. At Walmart, a worker skims the aisles hand-picking products to fill online orders. They will be delivered to the consumer who waits in a car outside the store.

Some advocates for the retail workers believe this may over time mean fewer, but better-paid, employees. As of now, the better pay part of the equation has not been apparent.

With many customers using their electronics to compare prices before making any buying decisions, the nature of in-store selling are changing, Sometimes, a clerk spends time explaining the merchandise, only to have the customer comment, “I’ll buy it online.” Sales people have to work harder to hold their ground.

In 2017, some 66,500 retail jobs disappeared. Some of that loss was made up by hires in accounting jobs in distribution/call centers. The hardest-hit areas of retailing are in clothing and consumer electronics. Department stores have been hardest hit, but many small businesses also are feeling the pinch.

Retailers who survive are scrambling to meet the challenges. The jobs they offer are likely to involve new duties. How these jobs will change depends on three factors: the pace at which online shopping expands; the changes that occur with robotics and shifts in hourly pay. Entry level jobs in retailing will disappear. There will be more pressure to perform. So far, surveys of these personnel show, the pay has not kept pace with the new demands.

Walmart, hustling to meet the Amazon challenge, now has 18,000 personal shoppers with very specific guidelines to do the picking for customers. They have 30 seconds to find an item or, if it is not available, to find a suitable substitute. They report that they come to know the tastes of certain repeat customers and routinely satisfy their shopping desires.

Target stores, too, are training more specialized sales persons in such areas as clothing, consumer electronics and beauty products. They pay them more for the expertise they bring to the job, which results in greater sales.