February 2024
Nevada’s Retail Sector: Navigating Economic Tides and New Challenges in 2024
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S ANOTHER ELECTION YEAR UNFOLDS, THE FAMILIAR adage ‘It’s the economy, stupid’ resonates strongly, especially in the retail sector. Originating from the Clinton presidential campaign in 1992, this phrase underscores a truth well-known in the business community: economic conditions are often a decisive factor in political outcomes. This year’s presidential election is no exception, with the economy playing a central role. National Retail Federation economist Jack Kleinhenz recently noted that the spending growth of 2023 might not be sustainable into 2024. His insights, grounded in extensive experience and analysis, point towards a potential cooling of the labor market, which could significantly impact consumer expectations and spending habits.
By Mary Lau, RAN CEO
rate hikes have not significantly slowed economic activity, and there are indications that rates may decrease again. Retailers, traditionally reliant on market trends, now find themselves increasingly turning to data analytics for guidance. Chief financial officers are now pivotal in shaping retail strategies, analyzing metrics like inflationadjusted GDP, unemployment Continued on page 2
Mary Lau Post-pandemic, consumer spending has been unprecedented. A combination of pentup demand and surplus savings led to a surge in spending, further amplified by record-low interest rates. This period saw a significant rise in cash-out refinancing and new home purchases, fueling consumer expenditure. Even as inflation soared and interest rates climbed, consumer spending remained robust. Despite predictions of a recession, the economy has shown resilience. Interest
INSIDE The Power of Retail Business in Politics...................3 Embracing AI: Why Consumers Expect Retailers to Adapt in 2024.......................4 Navigatng the Tide: Adjusting Business Strategies in the Era of Grassroots Political Funding......................5 Industry Updates.....................8 Organized Retail Crime...........9 Nevada’s Retail Recap: Unpacking Nevada’s 2023 Holiday Shopping Trends......11
Retail Association of Nevada • www.rannv.org
Nevada’s Retail Sector Continued from page 1
rates, wage growth, and crimes. Nevada has taken Finally, we expect market sustainability. This proactive steps in this the continued evolution data-driven approach battle by assigning a of the brick-and-mortar is a departure from the dedicated prosecutor to store. Many national more whimsical days of get more cases into the retailers are repurposing focusing on yearly color courtroom. Additionally, existing leases to support trends, like the popularity Sparks City Attorney Wes distribution of goods of “Viva Magenta.” Duncan has successfully purchased online. Malls, However, inflation implemented an while still generally continues to challenge ordinance in Sparks to healthy because of their consumers. Rising credit prosecute organized retail ability to provide ways card debt, home equity crime, sending a clear for consumers to shop loans, and dipping into message: retail crime in many stores at one savings accounts have will face stern action in location, are trending led to an increase in Nevada. toward mixed-use. We financial delinquencies. Retailers, meanwhile, are seeing an uptick in It’s crucial for retailers are recalibrating their the number of health to stay attuned to these strategies in response to care clinics in the same economic trends and a challenging business malls as retail stores as their potential impact on environment. On one these venues become consumer behavior. hand, there’s a struggle more community hubs The retail industry in 2024 to fill critical positions; and share the benefits of is bracing added “Looking ahead, 2024 is poised to be a for more foot pivotal year for the retail sector. The narrative traffic. than just economic extends beyond consumer spending and Some fluctuations. economic trends to include how retailers retailers Organized are are adapting to these changes.” retail crime choosing remains a significant on the other, there’s a to shift to off-mall stores, concern. While media trend of eliminating looking to change often highlights roles to reduce costs and their relationship with dramatic smash-andstreamline operations. customers from window grab incidents, it’s the The retail C-suite is also shoppers to deliberate sophisticated, quieter witnessing significant buyers. How this plays crime rings that are turnover, reflecting the out for the retailers that causing substantial losses. sector’s response to a depend on mall traffic Addressing this issue, the tough macroeconomic will be interesting in the National Retail Federation environment. These months to come. and Retail Industry changes can have a ripple Looking ahead, 2024 Leaders Association effect, especially on small is poised to be a pivotal are emphasizing the businesses in Nevada, year for the retail sector. importance of data in influencing lending The narrative extends distinguishing between patterns and overall beyond consumer different types of retail market confidence. spending and economic 2
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trends to include how retailers are adapting to these changes. The rise in organized retail crime, shifts in hiring practices, and the flux in leadership within retail organizations underscore the need for a nimble and datadriven approach to retail management. In Nevada, the establishment of a statewide task force to tackle retail crime and decisive actions in Sparks are commendable steps, reflecting a proactive stance in addressing these challenges. As the retail landscape continues to evolve, the Retail Association of Nevada stands ready to guide and support our members through these changes. We’re not just observing trends; we’re actively participating in shaping the future of retail. Our focus is on ensuring that our businesses not only survive but thrive in this complex environment. The year ahead promises to be an eventful one, and we at RAN are committed to navigating it together with our members, armed with data, innovation, and a forward-looking perspective. ■
www.rannv.org • Retail Association of Nevada
The Power of Retail Business in Politics By Bryan Wachter
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HEN LOCAL BUSINESS OWNERS, ESPECIALLY those in retail, decide to run for political office, it’s a pretty big deal. You bring a fresh and practical perspective to the political scene. Here’s why your participation in politics is more important than ever to helping chart the future of our state. 1. In-Depth Economic Insight Owning a business isn’t an easy task. It involves intricate financial management, understanding market dynamics, and grappling with regulatory frameworks. As entrepreneurs, you have profound economic insights through your everyday experiences. When you step into politics, you carry this invaluable knowledge with you. This means you can develop and support policies that are not only ambitious but also pragmatic, effectively addressing the real-world challenges businesses face. 2. CommunityFocused Vision Retail business
owners are often deeply connected to their communities. You do more than just sell products; you foster relationships and contribute to local development. This intimate community connection means that when you enter the political arena, you prioritize local needs and well-being. Policies proposed by you are likely to be rooted in genuine community enhancement, from improving local infrastructure to advancing educational opportunities. 3. Nuanced Understanding of Employment Business leaders have a hands-on understanding of job creation and retention. You know the value of a stable job and the impact of losing one. This perspective is invaluable in political discussions around employment, labor laws, and workforce training. Business owners in office can offer nuanced insights into how various policies will affect job markets and advocate for strategies that promote job growth and economic stability. 4. Advocacy for Sensible Business Regulations Dealing with permits,
and the government. This role is crucial in creating a collaborative environment where both businesses and the broader community can thrive.
Bryan Wachter navigating through layers of regulations, and managing tax obligations is part of a business owner’s life. This experience equips you to advocate for more streamlined, sensible business policies. You can work towards simplifying regulatory complexities and fostering an environment that encourages business growth and innovation. 5. Bridging Business and Government Often, there’s a noticeable disconnect between government initiatives and the actual needs and challenges of businesses. Retail business owners in political roles can effectively bridge this gap. You can facilitate improved communication and understanding between the business community
Now Is The Time To Get Involved The 2024 election will be here before we know it, and it’s not too late to add your name to the ballot. Candidate filing begins March 4th, and there are many key races where a retail business leader would be a welcome addition to the race. If the time is not right but you still feel the call, let’s start talking about 2026 and beyond. The need for business leaders in our government is not going away, and when you enter the political realm, you bring a wealth of practical economic knowledge, a commitment to community welfare, and a nuanced understanding of the job market. Your involvement in politics is not just advantageous but essential for a well-rounded and effective approach to governance. Your participation in politics is a step towards more informed, communitycentric, and economically sound policymaking. ■
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Retail Association of Nevada • www.rannv.org
Embracing AI: Why Consumers Expect Retailers to Adapt in 2024 By Bryan Wachter
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N 2024, THE RETAIL INDUSTRY FACES A PIVOTAL MOMENT SHAPED BY evolving consumer expectations and technological
advancements. Central to this transformation is the adoption of Artificial Intelligence (AI), a necessity for retailers to stay relevant and competitive. This necessity stems from a series of trends and statistics that underscore the growing influence of AI in the retail sector. 1. The Demand for HyperPersonalized Experiences AI’s ability to offer highly personalized shopping experiences has set a new standard in retail. Consumers, having experienced the benefits of tailored recommendations and personalized services, are increasingly expecting such features as standard practice. In 2023, Salesforce reports a significant 17% of shoppers using generative AI for purchase inspiration, indicating a rising trend in AIassisted shopping decisions. 2. AI’s Proven Impact on Sales The financial impact of 4
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AI in retail is hard to ignore. In 2023, AI was the driving force behind $194 billion in global online holiday shopping spend reported by Salesforce. This staggering figure highlights not only AI’s effectiveness in enhancing shopping experiences but also its role as a key contributor to the retail sector’s revenue. Retailers who have yet to adopt AI risk falling behind in both customer experience and financial performance. 3. Enhancing Efficiency and Customer Service AI-driven tools like chatbots and virtual assistants are redefining customer service standards. These tools offer immediate and round-the-clock assistance, addressing the modern consumer’s need for quick and efficient service. Retailers incorporating AI in customer service are perceived as more responsive and attuned to their customers’ needs. 4. Transforming In-Store Shopping with AI In the physical retail space, AI is enhancing the customer experience through innovative technologies like
smart shelves and interactive mirrors. These tools provide an interactive and informationrich shopping environment, aligning with the expectations of tech-savvy consumers. 5. Ethical and Sustainable Retail Practices AI enables retailers to make informed decisions that align with ethical and sustainable practices, a growing concern among consumers. AI-driven supply chain optimizations lead to reduced environmental impact, aligning with the consumers’ expectations for responsible retail practices. 6. A New Era of Online Shopping With the rise of e-commerce, consumers expect more than just a transactional online shopping experience. AI-driven innovations provide a more engaging and personalized online shopping journey. Augment reality (AR) allows virtual try-ons ranging from a new couch for the living room to makeup and clothing on your body. AI-enhanced search engines are the new norm, helping customers summarize countless pages of
search data to quickly answer questions. 7. Secure and Efficient Transactions In an age where data security is paramount, consumers expect secure and smooth transaction processes. AI’s role in enhancing security and streamlining checkouts is crucial in building customer trust and loyalty. 8. Keeping Pace with Market Trends
As AI becomes more prevalent in the retail industry, its adoption sets a baseline expectation among consumers. The market trend towards AI adoption influences consumer expectations, driving the demand for AI-powered shopping experiences. In 2024, embracing AI in retail is not a matter of choice but a strategic imperative. Consumers, having experienced the benefits of AI in their shopping journeys, now expect retailers to leverage this technology. Retailers who respond to these expectations are poised to offer superior customer experiences, foster loyalty, and stay competitive in a rapidly evolving market. ■
www.rannv.org • Retail Association of Nevada
Navigating the Tide: Adjusting Business Strategies in the Era of Grassroots Political Funding
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RAN Staff Report
HE SURGE views. This shift can lead campaigns, could be key in Las Vegas’ bustling OF SMALLto policy decisions that in rallying financial backing tourism and hospitality SCALE ONLINE don’t always gel with the for candidates who sector will have different DONATIONS needs of the business support a thriving business priorities and challenges in political campaigns has sector, such as stricter environment. compared to those in introduced a new dynamic environmental laws, higher Strategic engagement Reno’s growing tech in politics, particularly corporate taxes, or labor goes beyond money. It and logistics industries. noticeable in states like regulations that could involves being an active Recognizing and clearly Nevada. This grassrootsincrease operational costs voice in Nevada’s political communicating these led trend is reshaping the and reduce flexibility. arena. Considering the differences to legislators is political scene, often giving To navigate these state’s biennial legislative essential. fuel to candidates who, changes, Nevada’s sessions and their lasting At this pivotal moment, in previous eras, Nevada’s “The growing influence of small, individual donors may have lacked business leaders the establishment is fueling candidates with more populist or extreme are called to support necessary action. The rising views. This shift can lead to policy decisions that to win. For trend of smalldon’t always gel with the needs of the business Nevada’s business scale online sector, such as stricter environmental laws, higher donations is owners, this means adapting giving voice to corporate taxes, or labor regulations that could to a changing more extreme increase operational costs and reduce flexibility.” environment political views, business community where political newcomers effects on the business which could lead to should consider a twoare making state legislative climate, it’s crucial for business-unfriendly pronged approach: decisions that can directly business owners to stay policies. To mitigate this, commitment to financial affect private sector on top of legislative business leaders must participation and strategic business operations. developments, engage step up their financial political engagement. Nevada’s diverse with lawmakers, participate backing of moderate Supporting centrist economy, spanning in hearings, and contribute and business-aligned and business-friendly from the bright lights of to policy discussions. Such candidates and deepen candidates through tourism and gaming to involvement ensures that their engagement in state financial means is essential. the business perspective the innovative fields of politics. This balanced But it’s not just about the mining and renewable is heard and considered in strategy is crucial for amount – it’s about how energy, is experiencing a policymaking. ensuring that the business these contributions are shift in legislative focus. Given Nevada’s unique community remains a key made. Embracing digital The growing influence of blend of industries and player in shaping Nevada’s platforms for political small, individual donors demographics, a one-sizeeconomic future. ■ donations, mirroring the is fueling candidates with fits-all approach won’t methods of grassroots more populist or extreme work. Business owners
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Retail Association of Nevada • www.rannv.org
TITUS TO LEAD NEVADA SENATE REPUBLICANS The Nevada Senate Republican Caucus has announced that Dr. Robin Titus will succeed Senator Seevers Gansert as the new Minority Leader. Senator Gansert, stepping down after a long tenure and many years of public service, intends to dedicate more time to her family while completing her term. Her leadership has been noted for her advocacy and service to the state’s residents. The Caucus expresses confidence in Dr. Titus’s leadership, highlighting a past of productive collaboration, and anticipates further advancement of their agenda and an increase in Senate seats, building on the progress made since 2020. News Release REPUBLICAN KASAMA WITHDRAWS FROM RACE TO DEFEND STATE ASSEMBLY SEAT Heidi Kasama, the Republican for Nevada’s competitive congressional district, has announced her withdrawal from the race to defend her current seat in the state Assembly. Kasama will focus on preventing a Democratic supermajority in the Assembly, which would impact Governor Joe Lombardo’s veto power. The move leaves conservative policy analyst Drew Johnson and former state Sen. Elizabeth Helgelien as the 6
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Nevada News remaining Republicans vying to challenge Democratic U.S. Rep. Susie Lee in the 3rd Congressional District. 8 News Now COUNTIES STRUGGLE TO FILL POLL WORKER POSITIONS AHEAD OF PRIMARIES Less than a month before Nevada’s presidential primaries, some counties, including Clark County and Douglas County, are facing a shortage of poll workers. Clark County has about 100 unfilled poll worker positions out of approximately 3,000 total, while roughly half of Douglas County’s positions remain vacant. The shortage is attributed to an exodus of election workers following threats and false claims of widespread voter fraud after the 2020 election. Nevada Secretary of State Cisco Aguilar is exploring initiatives to incentivize licensed attorneys to become poll workers and is working with counties to address the gaps. Aguilar and Attorney General Aaron Ford also discussed election security measures for the upcoming statewide elections. Nevada Independent CLARK COUNTY EDUCATORS PROPOSE LEGAL CHANGE FOR TEACHERS’ RIGHT TO STRIKE The Clark County Education Association
(CCEA) has filed a petition to allow Nevada teachers to strike, challenging the current prohibition against public employee strikes. They argue that arbitration is ineffective, as demonstrated by lengthy negotiations and teacher attrition. The union is concurrently contesting the anti-strike law’s constitutionality and has created a committee to gather support. If successful, the legislature will consider the proposal in 2025, or it may go to a state-wide vote in 2026. Nevada Current NONPROFIT AIMS TO CAP HIGH-INTEREST LOANS IN NEVADA A newly established nonprofit, Stop Predatory Lending NV, has initiated a campaign to impose a 36 percent annual interest rate cap on payday and title loans in Nevada. This effort challenges the state’s lack of a maximum interest rate, which has positioned Nevada among the states most affected by predatory lending practices. The organization must collect over 102,000 signatures for the Legislature to consider the measure in 2025; otherwise, it will appear on the 2026 ballot. The proposal also seeks to protect consumers’ bank accounts and wages from aggressive debt collection practices by raising the exempt amounts and tying them to inflation.
Previous legislative attempts to regulate high-interest loans have stalled, despite evidence of noncompliance among lenders and a history of regulatory dissatisfaction. Nevada Independent NEVADA GOVERNOR REINSTATES PRE-PANDEMIC OFFICE WORK POLICY Nevada’s Governor Joe Lombardo has reinstated the pre-pandemic office work requirements for state employees, overturning the more lenient remote work guidelines. This return to office directive aligns with an executive order from January, aiming for a July 1, 2023, deadline, which was pushed back due to the acquisition of new office buildings. The recent policy describes remote work as a “limited discretionary privilege” and emphasizes that it should not become a widespread practice among executive branch employees. Governor Lombardo has previously expressed concerns over the impact of remote work on public service and efficiency, correlating in-office presence with better service delivery. The policy change comes amid national trends showing a gradual reduction in remote work since the peak of the pandemic. ■ Nevada Independent
www.rannv.org • Retail Association of Nevada
CONSUMERS INCREASINGLY BELIEVE GROCERS SUPPORT THEIR HEALTH GOALS A recent report from The Food Industry Association reveals that half of surveyed consumers believe their primary grocery store aligns with their health goals, showing a 4% increase from 2022. The study indicates a positive trend in grocers’ efforts to integrate health and nutrition into their offerings, with consumers moving away from restrictive diets and embracing a variety of dietary claims. The report emphasizes the role of registered dietitian nutritionists in personalizing nutrition recommendations, providing evidence-based messaging, and offering in-store and online services. As grocers enhance their connections between health and food, the study suggests opportunities for improvement in the perception of healthiness for store brands among certain consumers. Grocery Dive 2024 GROCERY INDUSTRY TRENDS THAT’LL RESHAPE THE LANDSCAPE Walmart is expected to strengthen its position, particularly in e-commerce, emphasizing express delivery services. Grocers aim to enhance in-store experiences, offering authenticity and curated
National News culinary offerings. E-commerce fulfillment is predicted to center on stores, with a shift towards hybrid automation solutions. Retail media networks mature as grocers leverage data for personalized experiences, while AI, especially generative AI, plays a growing role in shaping omnichannel platforms and customer experiences. Grocery Dive 2024 RETAIL TRENDS AMID ECONOMIC SHIFTS AND INNOVATIONS Heading into 2024, retailers face a mix of challenges and opportunities. Cautious consumer spending remains a concern, with the potential for distressed retailers facing bankruptcy. Retail theft becomes a complex issue, with efforts to quantify organized retail crime hampered by confusing terminology—the C-suite witnesses significant turnover, especially in marketing roles, reflecting the evolving macroeconomic environment. Layoffs persist as a cost-cutting measure, impacting both financially struggling and successful retailers. Retailers explore off-mall strategies to adapt to changing consumer behaviors, while the use of credit cards and buy now, pay later plans raises concerns about consumer debt. Marketing strategies
evolve with technology integration, featuring virtual experiences and shoppable content, both online and offline. Balancing economic pressures with technological advancements, retailers aim to navigate the complexities of the retail landscape in the coming year. Retail Dive FED FACES HURDLES IN ACHIEVING 2% TARGET While the Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures price index, recorded 2.6% annually in November, reaching the Fed’s 2% target may prove challenging. Despite a rapid decline from its peak, Fed officials anticipate it will take approximately two more years to achieve a firm 2%. The initial inflation surge was attributed to pandemic-induced supply chain disruptions and heightened demand, leading to an interest rate hike. However, as supply chains normalize and demand stabilizes, the remaining inflationary components, particularly in housing and services, become “sticky” and less responsive to market changes. Skepticism exists regarding the difficulty of the “last mile” to 2% inflation, with some economists suggesting it may not be as formidable as projected by the Fed. Recent data, such as the December Consumer
Price Index report, indicates potential bumps on the road to reaching the inflation target. CNN ONLINE HOLIDAY SPENDING SURGES TO RECORD-BREAKING HEIGHTS During the holiday season, online spending surged by 4.9% year over year, reaching a record $222.1 billion on retailers’ websites and apps from November 1 to December 31, as reported by Adobe Analytics. This growth was driven by increased purchases rather than higher prices, with discounts hitting record highs during the season. The use of buy now, pay later options also contributed to the boost, reaching an all-time high and accounting for $16.6 billion in online spending, a 14% increase from the previous year’s holiday period. Cyber Week alone contributed $38 billion to online holiday sales. The strong spending during this period could positively impact major retailers like Walmart, Amazon, Target, and Macy’s, whose fourthquarter earnings reports will reveal their performance in attracting holiday dollars. However, concerns linger about potential consumer spending constraints in the new year due to overspending during the holiday season. ■ CNBC
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Retail Association of Nevada • www.rannv.org
Industry Updates
RILA CALLS ON FEDERAL RESERVE TO KEEP SWIPE FEES RELIEF ON TRACK The Retail Industry Leaders Association (RILA) has submitted a letter to the Federal Reserve Board of Governors, advocating for the maintenance of the standard 90-day comment period on proposed rules for debit interchange fees. RILA’s Executive Vice President, Austen Jensen, praised the Federal Reserve’s efforts to lower these rates, criticizing big banks and card networks for their attempts over the past twelve years to circumvent the Durbin Amendment. The letter argues that these entities have persistently sought to evade the law’s intent and hinder regulations, which has negatively impacted retailers nationwide. RILA insists that extending the comment period or delaying rule-making would further empower large financial institutions at the expense of retailers and consumers. The association commends the Board’s initial steps to align debit interchange fees with actual market costs and urges the continuation of this approach, emphasizing the need for biannual reviews to ensure fees remain reasonable and proportional. NRF RELEASES RETAIL PRINCIPLES FOR ARTIFICIAL INTELLIGENCE The National Retail 8
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Federation (NRF) has introduced its Principles for the Use of Artificial Intelligence in the Retail Sector, aiming to guide the industry’s AI governance and strategic planning. These principles, formulated by NRF’s Center for Digital Risk & Innovation, are designed to ensure responsible AI governance, foster consumer trust, and promote continuous innovation in AI technology use within retail. Christian Beckner, Executive Director of the NRF Center for Digital Risk & Innovation, emphasizes the importance of these principles as retailers of all sizes are increasingly incorporating AI into their operations. The guidelines are categorized into four key areas: Governance and Risk Management, Customer Engagement and Trust, Workforce Applications and Use, and Business Partner Accountability. These principles aim to manage AI risks, maintain transparency with customers, oversee AI’s impact on employees, and set clear expectations for business partners providing AI tools. The NRF Center for Digital Risk & Innovation, a hub for addressing technology issues with significant policy and risk management implications, plans to release further reports and guidelines to help retailers implement these principles effectively.
FMI REPORTS CONTINUED EVOLUTION IN GROCERY FOODSERVICE AND IN-STORE BAKERY TRENDS FMI – The Food Industry Association has released two reports highlighting the increasing value of foodservice and in-store bakery departments in retail. The reports reveal a growing trend among shoppers to replace restaurant meals with retail foodservice options, with a 25% increase in this behavior. Rick Stein, FMI’s vice president of fresh foods, notes that shoppers are opting for ‘hybrid meals’ combining scratch cooking with pre-prepared items from foodservice, deli, and bakery departments. Cost is a significant factor in foodservice choices, with 47% of shoppers prioritizing it and a notable rise in deliprepared lunches among hybrid workers. Health and well-being are also key considerations, with 65% of shoppers focusing on nutrition in deli-prepared foods, though satisfaction with healthy options remains low. The reports suggest differentiation in foodservice and bakery through features like a variety of cuisines, online ordering, and convenient pick-up or delivery options. For the in-store bakery, incorporating technology for ordering specialty items and emphasizing freshness and
meal complementation are important strategies to add value for shoppers. NACDS POLL SHOWS STRONG SUPPORT FOR COMMUNITY PHARMACIST The National Association of Chain Drug Stores (NACDS) commissioned a survey by Morning Consult in October 2023 that revealed strong public support for pharmacy services in the United States. The survey, involving 10,031 adults, showed that 85% of respondents find it easy to access pharmacies, marking the highest accessibility rating among tested healthcare professionals and destinations. Furthermore, 81% believe it’s crucial for states to update policies to maintain the level of pharmacy services (like vaccination, testing, and treatment) available during the COVID-19 pandemic. There is also substantial support for pharmacists to test and treat common illnesses (74%) and minor conditions (70%), as well as to administer HIV tests (71%) and prescribe preventative HIV medications (65% for PrEP and 67% for PEP). The data, representing a diverse demographic cross-section, indicates a strong consensus on the importance and accessibility of pharmacy services. ■
www.rannv.org • Retail Association of Nevada
Organized Retail Crime SPARKS POLICE ARREST RETAIL THEFT RING SUSPECT Sparks Police Department arrested Howard Anthony Gloyd, 33, on felony charges related to his participation in at least five retail thefts. The arrest took place at the Nike Store on Scheels Drive, where Gloyd was reportedly stealing again. Facing charges of participating in a retail theft ring, grand larceny, misdemeanor theft, possession of drug paraphernalia, and failure to register with law enforcement, Gloyd was released on his own recognizance. The arrest followed multiple reports of thefts involving Gloyd. KOLO Reno HPD’S HOLIDAY “BLITZ” NETS DOZENS OF ARRESTS IN RETAIL CRACKDOWN The Henderson Police Department (HPD) has launched targeted operations, termed “blitz,” to combat retail theft during the holiday season. The operations involve collaboration between property detectives, patrol officers, and store loss prevention staff to apprehend shoplifters and thieves. With 40 arrests made and over $6,400 in stolen property
recovered, the initiative aims to deter retail crime and address the concerns of local merchants. Repeat offenders, including those with active warrants for other crimes, have been among those taken into custody during the blitz. The crackdown will continue through the holiday season. Fox 5 Las Vegas RPD ARRESTS 10 IN RETAIL THEFT CRACKDOWN The Reno Police Department (RPD) conducted targeted operations at two Safeway stores to combat retail theft. The two-day operation resulted in eight citations, six misdemeanor arrests, and four felony arrests, with some of those detained being juveniles. Commander Daniel Bond emphasized that this is just the beginning of proactive efforts to combat retail theft in Reno. The police department plans to collaborate more with local retailers in 2024 to conduct such operations more frequently. Residents are urged not to interfere with shoplifters for their safety. 2 News Reno
MAN LINKED TO NEVADA THEFT GROUP FACES CHARGES IN ST. GEORGE, UTAH John Dennis McCaw, a 43-year-old from Las Vegas, Nevada, faces new charges after being linked to a series of thefts involving several retailers on River Road. McCaw, who was initially
arrested on December 9 for stealing over $850 in merchandise from a sporting goods store, has been connected to further thefts totaling more than $3,300. Following his capture, police found additional stolen items in a rented Dodge Durango and identified McCaw as a participant in the crime spree. Despite claiming he was not directly involved in taking the items, McCaw admitted to being paid for his role in the thefts. He is currently being held without bail on multiple
charges, including thirddegree felony theft and a pattern of unlawful activity. The full extent of the group’s activities and the involvement of other suspects remain under investigation. St George News CROSS-STATE RETAIL THEFT SUSPECTS ARRESTED IN PLACER COUNTY During a traffic stop in Auburn, California, CHP officers discovered a large retail theft operation involving over 100 stolen items from Nevada and California, valued at nearly $5,000. The unlicensed driver and her boyfriend, who had a felony warrant, were detained. Efforts are underway with multiple agencies to return the stolen goods, including items already returned to Safeway, Dick’s Sporting Goods, and JC Penny. Remaining items, including 22 bottles of alcohol, are awaiting identification of the rightful retailers. ■ KTXL FOX40
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Retail Association of Nevada • www.rannv.org
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www.rannv.org • Retail Association of Nevada
Nevada’s Retail Recap: Unpacking Nevada’s 2023 Holiday Shopping Trends
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S WE USHER IN A NEW YEAR, IT’S CRUCIAL TO LOOK BACK and analyze the trends and dynamics that shaped the retail industry in Nevada during the bustling 2023 holiday season. This period, traditionally the zenith of retail activity, offers valuable insights into consumer behavior, economic resilience, and the evolving landscape of commerce in our state. In a year that posed its fair share of economic challenges, the Nevada retail sector not only demonstrated remarkable adaptability but also achieved significant growth. This report, drawing on the latest data from the U.S. Census Bureau and insights from industry experts, aims to unpack these trends, providing a nuanced understanding of the forces that drove the 2023 holiday shopping season in Nevada. In a year marked by economic challenges and inflationary pressures, Nevada’s retail landscape showed remarkable resilience and growth, as evidenced by the latest U.S. Census Bureau data. This report delves into the key trends and figures that shaped Nevada’s retail industry during the 2023 holiday season, painting a picture of a sector
RAN Staff Report
that has not only weathered the storm but thrived amidst adversity. According to the data released, core retail sales during the 2023 holiday season witnessed a significant upswing, growing by 3.8 percent over the previous year to a record-setting $964.4 billion. Jack Kleinhenz, Chief Economist at the National Retail Federation (NRF), encapsulates this sentiment, noting, “Consumer spending was remarkably resilient throughout 2023 and finished the year with a solid pace for the holiday season.” Despite the shadow of inflation looming over households, a noticeable easing in the prices of goods, combined with a robust labor market, played pivotal roles in bolstering this season’s retail success. A pivotal shift was observed in Nevada’s holiday shopping patterns, with a departure from the traditional Black Friday-centric approach. An impressive 55 percent of consumers took advantage of early holiday sales, reflecting a growing trend towards extended shopping seasons. This shift in consumer behavior paid dividends during the Thanksgiving weekend and Cyber Monday, as Nevada experienced a
surge in consumer activity. An estimated $609.0 million was spent by approximately 1.9 million people, covering a range of purchases from gifts and decorations to various merchandise. The NRF’s survey data offers further insights. Over the five-day period encompassing Cyber Monday, shoppers spent an average of $321.41, with $226.55 earmarked specifically for gifts and holiday items. While 121.4 million U.S. consumers chose in-store shopping—a slight 1.1 percent dip from 2022— the online shopping sphere saw a 3.1 percent increase, attracting 134.2 million consumers. Notably, Black Friday emerged as the peak day for both in-store (with 76.2 million shoppers) and online shopping (attracting 90.6 million consumers). Cyber Monday followed closely as the second favorite day for online shopping, drawing in 73.1 million consumers. This year’s holiday total, which isn’t adjusted for inflation, encompasses both online and other non-store sales, the latter witnessing an 8.2 percent rise to $276.8 billion. This growth is indicative of the evolving consumer preference towards digital platforms and the increasing
integration of online and offline retail experiences. The employment landscape in Nevada’s retail sector also saw significant developments. As reported by the Las Vegas ReviewJournal, the state’s labor force reached an all-time high in November, with over 42,000 jobs created since the previous year. Despite this growth, Nevada’s employment rate hovered around 5 percent, approximately 1.7 percent above the national average. David Schmidt, DETR Chief Economist, highlighted the importance of November for holiday hiring in the retail industry. In 2023, over 4,000 jobs were added in this month alone, a figure that notably doubles the hiring rate of the previous year, signaling stronger market expectations for the holiday season. In summary, the 2023 holiday season in Nevada has been a testament to the resilience and adaptability of the retail industry. From early shopping trends to a rise in digital consumerism, the sector has demonstrated its ability to navigate and capitalize on changing market dynamics, setting a robust foundation for continued growth and innovation in the years to come. ■
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Nevada News Nevada News is published by the Retail Association of Nevada, a nonpartisan, nonprofit corporation founded in 1969 representing the Retail Community, the Chain Drug Council and the Grocery Industry Council.
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RAN Member Updates
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NGAGEMENT WITH THE COMMUNITY LIES AT THE heart of our retail strategy in the Reno/Sparks area. We actively contribute to over 100 nonprofits through various means, including donations, product offerings, donation certificates, and unique assistance initiatives. For instance, for more than three decades, we have supported local Boy Scout troops by providing both assistance and financial aid during their Christmas tree sales at our stores. We are strong
Moana Nursery (Reno/Sparks)
advocates of the City of Reno’s ReLeaf Reno program, dedicated to enhancing our local canopy by providing Moana grown trees at a significant discount for residents. Additionally, we actively participate in the Keep Truckee Meadows Beautiful (KTMB) Raise the River fundraiser. Our commitment extends to school and hospital landscapes and gardens, as well as organizations supporting veterans. We work closely with Urban Roots, Boy’s & Girl’s Club, Humane Society, SPCA, Salvation Army, and numerous others.
Our support is diverse, ranging from $250 gift cards for nonprofit auctions to substantial $30,000 support checks and product donations. We take pride in our extensive and inclusive involvement with the community, reflecting our dedication to making a positive impact in Reno/ Sparks. This emphasis carries over to our investments in substantial, new northern Nevada farm and greenhouse initiatives, creating locally grown in Nevada, superior products for our customers and positive local economic impact.
Most recently, we celebrated Think Pink week and donated $24,000 to Mom’s On The Run and the Mammovan fighting cancer activities. We were the major donor for the installation of large shade trees at the shade-less Mamie Towles school. ■ If you have updates you would like to be included in future newsletters, please submit to info@rannv.org. We would like to know how your business is giving back to our communities and how retailers are investing in our state. Please include examples of scholarships, community grants, new construction, business growth, etc.