RAN October 2023

October 2023

The Vital Role of Retail in Nevada’s Economy

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EVADA’S RETAIL INDUSTRY STANDS AS A CORNERSTONE of our state’s economy, playing a pivotal role in driving economic health and prosperity within our communities. Navigating through the repercussions of the global pandemic, the sector has displayed resilience and adaptability, consistently meeting consumer demands and achieving new taxable sales records. This underscores its integral role in Nevada’s economic fabric.

Retailers in Nevada contribute an astounding $32.0 billion each year to our state’s economy. Their far-reaching operations generate more than $3.4 billion in tax revenue, enabling the provision of crucial state, county, and local government services.

From Carson City to Las Vegas, the influence of the retail industry weaves throughout the financial framework of our state.

The significance of this sector becomes even more evident as we commemorate Nevada’s

By Bryan Wachter

Bryan Wachter statehood each October.

Retailers participate in these celebrations, offering both a tangible connection to our state’s rich history and a glimpse into our economic potential. They launch seasonal sales and host events that not only honor our heritage but also unite our communities in a shared sense of Nevadan pride.

As we approach the winter months and the ensuing holiday season, retailers stand as a beacon amid the economic concerns. The holiday season often incites a surge in consumer spending, contributing to revenue projections and impacting the state’s

budget. Nevada’s retailers adeptly gear up for this season, initializing strategic planning, bolstering supply chains, and launching marketing initiatives to encourage consumer engagement.

Beyond their crucial economic contribution, Nevada’s retailers are deeply ingrained within our communities. These businesses, ranging from small independent stores to large retail chains, represent a significant source of employment and community engagement. Moreover, Continued on page 3

INSIDE Nevada Board of Pharmacy Update....................2 A Deep Dive into Nevada’s Democratic Process: From Bill to Law.........3 Birth of Commerce: Nevada’s First Retail Store...............................4 Industry Updates.....................5 2023 Nevada State of Retail.................................6, 7 2023 Nevada State of Pharmacy.............................8

Retail Association of Nevada • www.rannv.org

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Nevada Board of Pharmacy Update

By Liz MacMenamin

HE NEVADA before the legislative STATE BOARD commission for final OF PHARMACY approval.

HELD ONE OF The board also its eight yearly scheduled conducted workshops meetings on September to discuss actions and 6th and 7th, 2023, in Las regulations regarding Vegas, Nevada, at the durable medical Hilton Garden Inn. equipment, current laws, At this meeting, security requirements a public hearing was for pharmacies, conducted to discuss a the imposition of proposed amendment administrative fines Liz MacMenamin to the administrative based on NRS 639.2895, to research under the code, LCB (Legislative and pharmacists treating Register Of Administrative Counsel Bureau) file patients for opioid Regulations at www.leg.

No. R196–22. This addiction. state.nv.us/register/. If you amendment relates to the The proposed have any inquiries about licensing requirements for regulations are accessible regulations adopted in facilities treating narcotics on the Nevada Board of the last 4 years, please addiction to obtain a Pharmacy website. We contact our office, and license to administer encourage pharmacies we will assist you in opiate agonist treatment located in Nevada researching medication. The “We encourage pharmacies located in Nevada these updated regulation to review these new regulatory proposals and legislative will now require contact RAN with any concerns or questions.” changes. a dispensing Furthermore, board practitioner at such a to review these new staff are currently facility to secure informed regulatory proposals and developing a survey, at consent and procure a contact RAN with any the directive of board license with the Board concerns or questions. members, to send to of Pharmacy. The cost Moreover, it has been practicing pharmacists for this license, or the brought to our attention in Nevada. The board investigation for the that regulations adopted has decided to review license, will be set at $80 in at least the last four workplace practices and biennially. There was no years are not published has implied it believes in public comment on this under the administrative its capacity to influence regulation, and the board laws sections on the LCB your business practices. voted unanimously for website. To locate these It is hoped that this approval. It will now go changes, you will need 2

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survey will provide the necessary information to create a new regulatory environment for the practice of pharmacy in Nevada.

Board staff have connected with our organization and others in the industry to discuss this survey and hopefully allow industry-wide input.

If you would like to see the proposed questions, please contact our office.

The members of RAN’s chain drug committee were the ones at the forefront during the pandemic, ensuring that Nevada citizens could receive their coronavirus vaccines.

Amid those uncertain times, they ensured that citizens received their maintenance medications to stay healthy. We would like to express our gratitude to the community pharmacies and those pharmacists who were out there, dedicated to our welfare.

If you have questions or concerns about the regulatory process or changes to laws in Nevada, please contact our offices.

www.rannv.org • Retail Association of Nevada

A Deep Dive into Nevada’s Democratic Process: From Bill to Law

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EVADA’S GLEAMING REPUTATION AS A BASTION of civic engagement goes hand in hand with its commitment to a transparent legislative process. Though often overshadowed by the spectacle of national law-making, Nevada’s legislative system offers a compelling case study in democratic action.

Understanding the journey from bill to law in the Silver State provides critical insight into how Nevada’s thriving democracy operates.

As with any bill, the journey starts with an idea—most often born

RAN Staff Report

from the engagement of Nevadans with their elected representatives.

Anyone can propose a bill, but only a member of the Nevada State Legislature, comprising the Assembly and the Senate, can introduce it. This underscores the importance of active communication between citizens and their elected officials in shaping the legislative agenda.

Once drafted, the bill undergoes a first reading, and it’s referred to a committee, which is the crucible where much of the bill’s refinement happens.

Nevada boasts several standing committees, each

specializing in a certain field, such as education, health, or natural resources. Committees are balanced, incorporating representatives from both political parties to ensure bipartisan consideration.

During the committee stage, the bill is dissected, debated, and refined.

Public hearings offer a chance for citizens, interest groups, and experts to weigh in, creating an inclusive and wellrounded deliberation process. It’s here that the spirit of Nevada’s public engagement shines brightest, with robust citizen participation often steering the course of legislative discourse.

If the committee deems the bill worthwhile, it’s reported out with recommendations and proceeds to a second reading where it can be further amended. Should the bill pass this stage, it goes to a third reading and a roll call vote. A majority in the originating house— Assembly or Senate— transports the bill to the opposite chamber, where it embarks on a similar journey.

Once both chambers approve the bill, in identical form, it goes to the Governor. The Governor can either sign the bill into law, allow it to become law without their

to the shifting business climates, regulations, and consumer demands.

Whatever the challenges may be, our retailers stand as an integral component of our economic engine, persistently driving progress and prosperity.

Through the enforcement of responsible and common-sense business policies and strategic collaboration, we

can ensure Nevada’s retail industry thrives, benefitting not just the business community, but the entire state. Carrying us into a future where our retail industry continues to grow, innovate, and contribute to the overall economic health of Nevada. 

Continued on page 11

Vital Role Continued from page 1 retailers frequently lead local philanthropic efforts, embodying the spirit and resilience of Nevada and earning an invaluable place in our society.

The interconnection between Nevada’s economy and its retail industry emphasizes the importance of organizations like the Retail Association of Nevada.

As the leading advocate

for Nevada retailers, RAN champions the business environment by delivering effective advocacy at both local and state levels. Their tireless efforts ensure the interests of retailers are invariably considered by policy makers, collectively driving a more promising future for Nevada.

Looking ahead, Nevada’s retail industry will continue to adapt

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Retail Association of Nevada • www.rannv.org

Birth of Commerce: Nevada’s First Retail Store

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T THE HEART OF NEVADA’S VIBRANT HISTORY lies an unassuming yet significant landmark: the establishment of its first retail store. Amidst the shifting sands and rugged mountains, the birth of Nevada’s first commercial enterprise marked the emergence of a new era in this then sparsely populated territory.

The tale begins in 1851, long before Nevada achieved statehood, in the frontier settlement of Mormon Station, now known as Genoa. At that time, Nevada was merely a part of the Utah territory, a vast landscape filled with untapped potential.

As the California Gold Rush fueled a massive westward migration, settlers began to trickle into Nevada, igniting

RAN Staff Report

the need for commercial establishments to cater to the burgeoning population.

Seeing an opportunity, two enterprising brothers, Reese and Stephen Kinkead, decided to open the first retail store in the territory. Having previously served in the Mexican War and inspired by the spirit of westward expansion, they journeyed from Missouri to Nevada, carrying with them a vision of prosperity.

The Kinkead brothers’ store was far from the modern conception of a retail outlet. In essence, it was a humble log trading post, offering essential goods such as flour, sugar, coffee, and tools. Yet, this modest establishment symbolized the birth of commerce in a land where self-sufficiency was the rule rather than the exception.

The store quickly became a hub of the community, not only providing much-needed supplies but also serving as a gathering spot for the locals and a waypoint for weary travelers heading to California. It marked a transformation in the lives of Nevada’s inhabitants, signaling the shift from an entirely self-reliant existence to one of interdependence and community.

The establishment of the first retail store also marked the beginning of economic diversification in Nevada, laying the groundwork for what would become a bustling economy. It heralded the birth of a commercial culture that would pave the way for more advanced forms of trade and industry, culminating in the modern Nevada

Happy

NEVADA DAY 4

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we know today, a state defined as much by its vibrant commercial life as its rich natural resources.

The tale of the Kinkead brothers and Nevada’s first retail store may be a humble one, but it represents a significant milestone in Nevada’s history. This simple log trading post planted the seeds of economic growth and community development, embodying the spirit of enterprise that continues to shape Nevada’s identity. Today, as we walk through the bustling streets of Las Vegas or Reno, we can trace their vibrancy back to that first modest store in Genoa, a testament to the enduring spirit of commerce and community in the Silver State.

www.rannv.org • Retail Association of Nevada

Industry Updates

FMI FINDS PRICE AND VALUE AREN’T ONLY MOTIVATORS BEHIND PRIVATE BRANDS The Food Industry Association (FMI) has released the second part of the 2023 Power of Private Brands series survey, which shows an increasing trend toward private brand shopping.

The survey reveals that 96% of shoppers occasionally purchase store brands, and about 60% are buying private brands more frequently than in the past year.

Shoppers are motivated by factors beyond price and value, including the quality and taste of the products.

A significant 90% of shoppers plan to continue purchasing private brands even if grocery prices decrease, indicating growing loyalty toward store brands. The study demonstrates that private brands have become a crucial extension of a retailer’s brand and value proposition, shaping where customers choose to shop for food.

IMPORT CARGO SLOWING ALONG WITH SPENDING GROWTH According to the Global Port Tracker report by the National Retail Federation and Hackett Associates, the volume

of import cargo at the nation’s major container ports has peaked for the year and is expected to gradually decline into the holiday season. This decline is due to slowed growth in consumer spending, concerns over inflation and high interest rates, and operational adjustments by shipping carriers. The report indicates that ports handled 1.96 million Twenty-Foot Equivalent Units (TEUs) in August, up 2.3% from July, but down 13.5% year over year. Predictions for 2023 total 22.1 million TEUs, a decrease of 13.5% from the previous year, marking a shift in the demand for cargo imports.

NRF ECONOMIST SAYS U.S. ECONOMY STILL SHOWS RESILIENCE The US economy continues to grow despite challenges such as labor disputes, potential government shutdown, inflation, high interest rates, and a decrease in consumer confidence, according to NRF Chief Economist Jack Kleinhenz.

Despite these headwinds, the economy has proven resilient and continues to defy recession predictions.

While consumer spending grew by only 1.8% YoY adjusted for inflation, it did

not translate into weaker spending as spending rose 5.8% in August.

Kleinhenz suggests that the Federal Reserve is likely pleased that higher interest rates are impacting employment, economic output, and corporate results. Despite the challenges, NRF’s Monthly Economic Review indicates that incoming data suggests that 2023 could still have a “soft landing” instead of a recession.

NRF WELCOMES SUPREME COURT DECISION TO TAKE UP DEBIT CARD SWIPE FEE CASE The U.S. Supreme Court has agreed to examine a lawsuit seeking the Federal Reserve to reduce its 12-year-old cap on “swipe” fees that banks charge merchants for processing debit card transactions. This decision comes after disagreements in appellate courts on whether the 2021 case was filed too late. The National Rsetail Federation (NRF) contends that the cap was set too high initially and hasn’t been updated as costs have fallen, leading to inflated costs for retailers and consumers.

The lawsuit brought by the Corner Post, a North Dakota convenience store, argues that the Federal

Reserve cap on debit card swipe fees, established in 2011, was higher than intended by Congress. The NRF has been advocating for fair swipe fees for over two decades.

NACDS PRAISES SENATE FINANCE COMMITTEE’S BIPARTISAN PRESS TOWARD “REAL PBM REFORM” The National Association of Chain Drug Stores (NACDS) has praised the introduction of the Modernizing and Ensuring PBM Accountability (MEPA) Act by Senate Finance Committee Chair Ron Wyden and Ranking Member Mike Crapo. The bill aims to increase transparency, accountability, and competition in pharmacy benefit manager (PBM) practices within the pharmaceutical supply chain. NACDS President and CEO Steven C. Anderson emphasized the necessity of PBM reforms for Medicare and Medicaid, asserting that it will prioritize people over PBM profits. NACDS remains committed to working with lawmakers to ensure pharmacy access for Medicare and Medicaid beneficiaries.

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Retail Association of Nevada • www.rannv.org

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www.rannv.org • Retail Association of Nevada

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Retail Association of Nevada • www.rannv.org

2023 NEVADA STATE OF PHARMACY FAST FACTS In 2022 pharmacies in Nevada employed more than 5,700 workers in nearly 500 establishments As of 2021 there are 2,613 licensed pharmacists and 4,681 registered pharmaceutical technicians eligible to work in a Nevada pharmacy In 2019 Nevada pharmacists filled more than 31,476,183 prescriptions

Nevada total pharmacy retail sales in 2019 exceeded $3.56 billion During FY 2022- 2023, Nevada pharmacy staff administered more than 1.25 million immunizations Nevada pharmacies administered two of every three COVID-19 vaccinations, a total of more than 3.1 million

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www.rannv.org • Retail Association of Nevada

Nevada News NEVADA SUPREME COURT DENIES TEACHERS’ UNION APPEAL IN ONGOING STRIKE DISPUTE The Nevada Supreme Court has rejected an appeal by the Clark County Education Association (CCEA) in its dispute with the Clark County School District (CCSD). The CCEA had appealed a District Court judge’s injunction against the union after a series of “mass sickouts” in the county were deemed “clearly a strike.” The Supreme Court’s twopage denial stated that they were “not persuaded that a stay is warranted.”

Nevada law prohibits public employees from striking, instead requiring arbitration if contract terms cannot be agreed upon. The CCSD declared an impasse in contract negotiations, leading to arbitration with the union, which could potentially take several months to resolve.

KTNV Las Vegas NEVADA REPUBLICAN CLUB LEADERS CALL FOR HALT TO 2024 PRESIDENTIAL CAUCUS Leaders of the Nevada Republican Club are urging members of the Nevada Republican Central Committee to

oppose the planned 2024 presidential caucus in the state. They argue that holding a caucus alongside the state-run primary will confuse and frustrate voters, potentially harming the Republican Party’s candidates and image. However, Nevada Republican Party Chairman Michael McDonald believes the caucus is necessary to protect Republicans’ right to select their presidential nominee, citing concerns with the state-run primary process. The party plans to send out messaging to inform Republicans about the caucus in the coming months.

Las Vegas Review-Journal U.S. DEPARTMENT OF TRANSPORTATION ALLOCATES $4.575 MILLION FOR URGENT FLOOD DAMAGE REPAIRS IN CALIFORNIA, NEVADA FEDERAL LANDS The U.S. Department of Transportation’s Federal Highway Administration has swiftly released $4.575 million in Emergency Relief funds for the National Park Service, the Forest Service, and the U.S. Fish & Wildlife Service. These funds will aid in repairing roads, trails, parking areas, and other infrastructure damaged

by Tropical Storm Hilary in

Death Valley National Park and other federal lands in California and Nevada.

The historic rainfall from this storm led to flash flooding and debris flow, causing extensive damage to transportation facilities.

This allocation is the initial installment to support essential transportation restoration. Additional funding will be provided as needed to address the aftermath of the storm.

Department of Transportation News Release RESORTS, CONSUMER ADVOCATE CHALLENGE NEVADA ENERGY RATE HIKE APPROVAL Several major resorts and the Attorney General’s Bureau of Consumer Protection are contesting the approval of a more than $19 million rate hike for NV Energy customers in Southern Nevada.

They argue that the appointment of a hearing officer to cast the deciding vote, which resulted in the rate hike approval, was unnecessary and not statutorily required.

Furthermore, they claim that the rate hike would cause an illegal cost shift to certain utility customers and did not adequately assess the socialized benefits associated with the costs. The rate hike

would affect customers in both Southern and Northern Nevada and could double the average monthly charge. The Public Utilities Commission has 40 days to grant or deny a petition for reconsideration, with the possibility of judicial review if parties are unsatisfied with the final decision.

Nevada Current NEVADA RECEIVES NEARLY $27 MILLION FOR IMPROVED DRINKING WATER Nevada has been awarded nearly $27 million to enhance its drinking water infrastructure. The funding, provided by the EPA, will support the planning, design, and construction of eligible drinking water and public water improvement projects in the state.

Congresswoman Susie Lee emphasized the importance of access to safe and clean drinking water for all Nevadans, particularly during a severe drought. She credited the Bipartisan Infrastructure Law for delivering a significant portion of the grant award and expressed her commitment to securing long-term investments for southern Nevada.

KOLO Reno

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Retail Association of Nevada • www.rannv.org

National News HOLIDAY SALES EXPECTED TO INCREASE BY 3.5% Deloitte’s latest report predicts that holiday sales for the 2023 season, spanning from November to January, will see a 3.5% to 4.6% growth compared to the previous year. The estimated holiday sales range from $1.54 trillion to $1.56 trillion, indicating a more moderate increase than the 7.6% surge observed last year, which reached $1.49 trillion.

E-commerce sales are anticipated to experience significant growth, with a year-over-year increase of 10.3% to 12.8%, potentially reaching a range of $278 billion to $284 billion.

Retail Dive MACY’S, INC. TO HIRE OVER 38,000 SEASONAL WORKERS Macy’s, Inc. is gearing up for the holiday season by announcing its intention to employ over 38,000 seasonal workers across its Macy’s, Bloomingdale’s, and Bluemercury stores, as well as its distribution centers.

This year’s hiring figures are consistent with those from 2022, with the company offering convenient and swift application processes for interested candidates. In addition 10

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to an online application procedure, Macy’s, Inc. will host in-person hiring events on September 21 and October 19 at its stores and supply chain locations. The company emphasizes that it is seeking candidates who can enhance the holiday shopping experience for customers and offer competitive pay, a vibrant culture, and diverse retail career opportunities.

Yahoo Finance HIGHER GASOLINE PRICES DRIVE RETAIL SALES UP IN AUGUST U.S. retail sales grew in August, with higher gas prices boosting spending, while expenditures on other items increased modestly. The Commerce Department reported a 0.6% rise in retail sales for August, faster than July’s 0.5% gain and the fifth consecutive month of growth, surpassing economists’ expectations.

Gasoline station spending surged by 5.2% last month, driven by spiking oil prices due to OPEC+ production cuts, strong demand, and disruptions in Libya.

Excluding gas station sales, retail spending increased by a more modest 0.2%.

Despite the summer’s strong spending, U.S. consumers face challenges

ahead, such as the restart of student loan payments and tougher lending standards, which may affect spending in the coming months.

CNN WALMART’S INVESTS IN INVENTORY SOFTWARE FOR UPCOMING HOLIDAY SEASON As the critical holiday shopping season approaches, Walmart is banking on sophisticated inventory software to make smart stocking decisions. Developed in 2019, Walmart’s machinelearning algorithm utilizes weather patterns and historical sales data from its 4,700 U.S. stores to predict inventory requirements.

This software, among other innovative solutions, is Walmart’s response to prevent overstocking issues that plagued it last year. By leveraging algorithms and robotics, Walmart aims to ensure its inventories align with customer demand, boosting profitability.

Walmart’s significant tech team in India has been instrumental in developing such software, enhancing order assembly efficiency for pickup and delivery. Precise inventory management holds the potential for higher

returns, a crucial strategy in the face of a potentially challenging holiday season.

Reuters WALMART, ALBERTSONS EMBRACE EXPRESS DELIVERY FOR ULTIMATE SHOPPER CONVENIENCE In response to the ongoing demand for convenience, retail giants Walmart and Albertsons have introduced express delivery options that promise to reach consumers in as little as 30 minutes.

Walmart, with its late-night express delivery service now available at 4,000 stores nationwide, allows customers to place orders as late as 9:30 p.m. and receive their groceries and essentials by 10 p.m. on the same day. Additionally, they’ve introduced features like Live Shopper for real-time communication with personal shoppers and Walmart+ In Home, offering home delivery and placement of groceries for Walmart+ members.

Albertsons, on the other hand, has rolled out Flash Service, enabling customers to receive their orders within 30 to 50 minutes, with options for both pickup and delivery.

Kiplinger

www.rannv.org • Retail Association of Nevada

From Bill to Law Continued from page 3 signature, or veto it. A veto sends the bill back to the Legislature, but it can still become law if twothirds of each house vote to override the veto. This mechanism underscores the system of checks and balances within Nevada’s government, a cornerstone of American democracy.

There are exceptions to this process. Budget bills, for instance, originate in the Assembly. Bills proposing constitutional

amendments must be approved in identical form by two successive legislative sessions and then by a majority of voters in a general election. Such complexities underscore the deliberative nature of law-making designed to protect and balance diverse interests.

The journey from bill to law in Nevada, with its various stages and opportunities for amendment and public

comment, embodies the democratic principles of transparency, inclusivity, and deliberation.

This process underscores the vital importance of public engagement in Nevada’s legislative process. From an idea’s inception to its incarnation as a law, the voices of Nevadans echo through the halls of their State Legislature.

It is this chorus of civic engagement, amplified by a transparent

legislative process, that continues to make Nevada a shining example of robust American democracy.

Nevada’s model demonstrates that a bill’s journey into law isn’t merely a political process but a testament to the power of engaged citizenship, reminding us that our laws, like our democracy, are as vibrant and responsive as we collectively endeavor them to be.

Important Information for SIG Members NRS requires all existing members of a self-insured group to be notified of all new members.

NRNSIG new members are listed below.

Foundation Builders LLC Masque LLC dba Wolf Putts NADHC at Decatur Inc NRNSIG members who wish to register a negative vote on a new group member, please write NRNSIG at 575 S. Saliman Road, Carson City, NV 89701, indicating which member and the reason(s) for the negative vote.

“Workers’ comp that works for you” Retail Association of Nevada

Membership Information: Find out more about RAN’s self insured group. Call Pro Group, 800-859-3177, or the RAN office at 775-882-1700.

Don’t forget to check out our website, www.RANNV.org.

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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.

Mary F. Lau President/CEO Bryan Wachter Senior Vice President Elizabeth MacMenamin Vice President of Government Affairs Piper Brown Vice President, Finance and Administration Megan Bedera Editor Sue Arzillo, Alphabet Soup Inc. Newsletter Design & Layout

THANK YOU PHARMACISTS AND PHARMACY TECHNICIANS National Pharmacy Week is an annual observance that acknowledges the invaluable contributions that pharmacists and pharmacy technicians make to keeping our communities safe and healthy.