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Annual Reports Here are year-to-year summaries of activities and accomplishments of the New York Association of Convenience Stores Inc., a private, not-for-profit trade association dedicated to unifying, representing, and serving New York's neighborhood convenience store industry. For members of the New York Association of Convenience Stores, 2007 was a year of extremes – extreme volatility in the motor fuel category, extreme pressure on overall profitability, and extreme frustration on major public policy issues. In the face of these challenges, NYACS continued to serve as a beacon of reassurance, a pipeline of information, a voice for fairness and common sense, and a mirror for a dynamic retail industry striving to manage the challenges of the 21st century marketplace. Here is a summary of NYACS’ 2007 activities on behalf of New York's dynamic community of neighborhood convenience stores. Legislative and Regulatory IssuesTax Fairness – Having been swept into office on the slogan “Day One, Everything Changes,” new Governor Eliot Spitzer infuriated and demoralized the C-store industry by breaking his promise and refusing to enforce the state law requiring collection of taxes on Native American sales of cigarettes and motor fuel to non-Native American New Yorkers. NYACS responded by preparing for another round of litigation, placing ads on TV stations in several upstate markets highlighting the contrast between the Governor’s words versus his inaction, and setting up a web-based system our members and allies could use to email the Governor demanding action. Motor Fuel – On the recommendation of its new Motor Fuel Subcommittee, chaired by Michael Newman of NOCO Express Shops, the Legislative Committee adopted a set of NYACS policy positions on motor fuel issues. It included opposition to mandating temperature compensation at the pump on the grounds that it would not benefit New York consumers. Bottle Bill – Working with our beverage industry allies, we again blocked expansion of the bottle bill to non-carbonated beverages. For the first time in three years, the legislation did not pass the Assembly. The battle, however, is certain to resume in 2008. Beer Rules – Excessively restrictive interpretations of alcoholic beverage control laws and regulations by the State Liquor Authority continued to bewilder convenience stores licensed by the SLA to sell beer. Lottery Commissions – We published a report, “Losing Odds: The Case for Higher Commissions for New York Lottery Retailers,” but our legislation to increase lottery commissions to 8% did not advance. Minimum Markup – We battled with downstate cigarette wholesalers over a fair schedule of wholesale and retail minimum markup increases, ending in a stalemate. Main Street Coalition – NYACS continued its participation in the New York Main Street Small Business Coalition to advance the broad interests of small businesses among state policymakers. Campaign Contributions – Convenience PAC, the political action committee through which NYACS supports candidates for state office who demonstrate an understanding of convenience store issues, contributed $18,000 to a total of 40 state candidates and political committees. Eye on Albany – NYACS published 13 issues of NYACS Eye on Albany, the periodic legislative e-bulletin. Membership Our annual member satisfaction survey found that 90% felt NYACS is moving in the right direction as an organization, and 82% felt they get a good return on their membership investment. Nevertheless, industry consolidation and greater ROI pressures continued to erode NYACS' retail membership count. We finished 2007 with 160 Retail Member companies, down 30 from year-end 2006, although store count remained almost the same. The Associate Member roster grew from 146 to 172 companies. We completed the transition from a July-to-June dues cycle to a calendar-year dues cycle. The Retail and Associate Boards approved a dues increase for 2008 – the first in four years – but in doing so directed that a plan be developed for improving membership recruitment, retention and our value proposition in the years to come. We again published a Membership Investment Menu to help interested Associate Members incorporate NYACS dues, events, sponsorships and advertising into their company budgets for 2008. This produced the first two “Spirit of NYACS” package memberships (Finkle Distributors and Philip Morris USA) and the first two “Pacesetter” package memberships (Mountain/Service Distributors and RJ Reynolds Tobacco). We continued to upgrade our web site, www.nyacs.org, to make it more useful to members and visitors. It now averages 5,750 visits per month. NYACS published 10 issues of STOREfronts, our monthly newsletter, keeping members abreast of industry news, issues and events. In between, we issued timely Member Advisories on topics such as federal tobacco legislation, state tax and regulatory changes, and ongoing disputes with the State Liquor Authority. For the third year in a row, NYACS members were among retailers from around the country featured in the annual “Ideas2Go” video presented by the National Association of Convenience Stores at its annual convention. They were Kenyon’s Variety, Super Saver/Grocery Delivery Service, NOCO Express Shops, and Wilson Farms Inc., all in Western New York. Leadership The Retail Board of Directors re-elected Gary Mikutel of Xtra Mart Convenience Stores as its Chairman and Case Marshall as Treasurer. Elected as a new Retail Board member was Jack Brayton of Manley’s Mighty Marts. The Associate Board of Directors elected Tom Purcell of McLane Northeast as Chairman, and Josh Altman of Mountain/Service Distributors as Vice Chairman, and David Geary of Philip Morris USA as Secretary. Events "NYACS Goes Hollywood" was the theme of our well attended Trade Show and Convention May 15-16 in Syracuse. It featured a huge Welcome Party at Coleman’s Authentic Irish Pub, a charming Chairman’s Banquet at the Everson Museum of Art, a ceremony recognizing 30 retail and exhibiting supplier companies marking a 5th, 10th, 25th or other milestone anniversary during 2007, and a variety of educational opportunities. Our Fall Conference in September in Lake Placid was highlighted by a visit to the Olympic ski jumping complex, a lakeside Vendor Appreciation Dinner featuring comedian/ventriloquist Pete Michaels, and balmy temperatures. We again held our annual Chairmen's Open golf tournament the day after the Fall Conference. Nearly 80 golfers enjoyed the Lake Placid Club, raising nearly $13,000 for Convenience PAC. Our Legislative Conference in January in Albany attracted 60 industry representatives, who broke into teams to visit 30 individual legislators on key issues for 2007. The luncheon featured an appearance by Senate Majority Leader Joseph Bruno and a Q&A session with top officials of the State Liquor Authority. Our third annual “NYACS Day at the Races” at Saratoga Race Course raised $5,000 for the NYACS Scholarship Foundation, with about 60 members and guests attending. Hall of Fame During the annual Chairman’s Banquet in Syracuse, Jim Curley of McLane Company and Bob Ray of Crowley Foods/HP Hood were inducted into the New York Convenience Store Hall of Fame. The Carl Tripi Award for low-profile, high-impact support of NYACS and the C-store trade was presented to Ned Dewey. Education and Training “Responsible Retailers of New York” – the educational partnership among NYACS, the Food Industry Alliance of New York State and the National Coalition for Responsible Tobacco Retailing (We Card) – conducted four tobacco and alcohol sales training seminars around the state, training 98 individuals from eight retail companies. The NYACS Scholarship Foundation awarded $3,000 in college scholarships to undergraduate students whose families are involved in the convenience store business. The $1,000 Emmy Seng Scholarship was awarded to Ian Mikutel of Glens Falls NY, an Information Technology major at RIT. For the first time, $2,500 in RONY Trust Scholarships were awarded to Kerrie Leslie, Corry PA, Math/Economics, Penn State, $750; Allen Light, Westmoreland NY, Music, SUNY Oneonta, $750; and Anthony Yates, Tonawanda NY, Early Childhood Education, Buffalo State, $750. In addition, $500 NYACS Scholarships were awarded to Christopher Castronovo, Hilton NY, Communications, Monroe Community College, and Amanda Voorhis, Panama NY, Biology, Clarion University. Administration Christine Bruck joined the NYACS staff as Membership Coordinator, working with President James Calvin and Director of Programs and Events Amy Baldovin to manage NYACS events, projects, and member relations as a team.
Through it all, NYACS continued to serve as a beacon of reassurance, a pipeline of information, a voice for fairness and common sense, and a mirror for a dynamic retail industry striving to manage the challenges of the 21st century marketplace. Here is a summary of NYACS’ 2006 activities and accomplishments on behalf of New York's neighborhood convenience stores. Membership For the third straight year, our annual Issues Survey included several questions about member satisfaction, and the results remained strongly positive. Nearly 100% of those responding said NYACS is moving in the right direction legislatively and as an organization. 97% said NYACS is important to their business, and 95% said they get a good return on their investment. However, only 48% agreed with the statement “The C-store business in NYS is healthy and strong.” NYACS once again held Retail Member dues at $125 per store per year, to a maximum $3,000 per company, and Associate Member dues at $500 per company. Nevertheless, industry consolidation and increased ROI pressures continue to erode NYACS' membership count and dues revenue. We finished 2006 with 190 Retail Member companies, down from 200 at year-end 2005, and 146 Associate Member companies, down from 179. The Retail Board and Associate Board jointly decided to shift the NYACS dues cycle to a calendar year. As in the past, we invoiced existing members July 1 for a full year’s dues, and then invoiced them January 1 for the remaining six months of 2007 to complete the transition. As part of our 20th anniversary observance, NYACS offered several “20-20 Briefings” – a 20-minute members-only conference call, held on the 20th of the month, focusing on a timely issue of importance to C-store retailers. Due to limited participation, they were discontinued in the fall. For the first time, at the suggestion of the Associate Board, we published a membership investment menu to help interested Associate Members incorporate NYACS dues, events, sponsorships and advertising into their company budgets for 2007. Another first was a “sellathon” organized by the Membership Committee the day before the trade show, with committee volunteers phoning non-member retailers in the Syracuse area inviting them to join NYACS and encouraging them to attend the trade show. We continued to upgrade our web site, www.nyacs.org, to make it more useful to members and visitors. It is now averaging 5,300 visits per month. We published 10 issues of STOREfronts, the monthly NYACS newsletter, keeping members abreast of industry news, issues and events. 89% of members responding to the annual survey said they always read STOREfronts thoroughly. In between newsletter issues, we issued timely Member Advisories to the membership on topics such as the transition to a cents-per-gallon state sales tax on motor fuel, new pseudroephedrine restrictions, the conversion to ultra-low sulfur diesel, expanded Sunday beer hours, the beer signage brouhaha, and another increase in the minimum wage and weekly salary. We also continued to keep members and non-members informed through the monthly trade paper, Northeast C-$tore Journal. NYACS won an Association Excellence Award for Membership from the Empire State Society of Association Executives. It honors the "New York's Foremost Convenience Store Families" member recognition/retention program we developed in conjunction with NYACS' 2004 "We Are Family" trade show. Leadership The Retail Board of Directors elected Gary Mikutel of Xtra Mart Convenience Stores as its Chairman, succeeding Mickey Jamal of Chestnut Petroleum Distributors, who was commended for his service. Elected as a new Retail Board members were Daniel Shanahan of Wilson Farms Inc., Buffalo, and Devin Spencer of Riverside Gas & Oil, Chestertown. The Associate Board of Directors elected Maura O'Toole of Bailey Haskell & LaLonde as Chair, Tom Purcell of McLane Northeast as Vice Chair, and Josh Altman of Mountain/Service Distributors as Secretary. Elected as new Associate Board members were Jamie Galus of Pepsi Bottling Group, Marcia Russo of Acosta Sales and Marketing, and Mike Andre of U.S. Smokeless Tobacco Brands. Events In observance of NYACS’ 20th anniversary, "Then and Now" was the theme of our well-attended Trade Show and Convention May 16-17 in Syracuse. It featured a mobbed Welcome Party at Coleman’s Authentic Irish Pub, a heartwarming Chairman’s Banquet at Greystone Castle, a grand prize of a 3-night stay in Las Vegas for the NACS Show, a ceremony recognizing 30 retail and exhibiting supplier companies that were marking a 5th, 10th, 25th or other milestone anniversary during 2006, and a variety of educational opportunities. But the biggest 20th anniversary bash occurred at our Fall Conference September 26 in Alexandria Bay, site of the very first NYACS trade show in 1986. Following a sunset cruise on the St. Lawrence River, members traveled to the Thousand Islands Club for an anniversary dinner. The highlighted was a “NYACS’ Got Talent” variety show featuring music, magic, stories and photos celebrating NYACS people, events, and issues of the past 20 years. For the second year in a row, we held our annual Chairmen's Open golf tournament the day after the Fall Conference in the same place. Nearly 100 golfers enjoyed Thousand Islands Country Club, raising nearly $17,000 for Convenience PAC. The committee introduced some new twists, such as “girligans,” logoed shoe bags, and “gimme strings.” We held the second annual “NYACS Day at the Races” at Saratoga Race Course to raise money for the NYACS Scholarship Foundation, with about 40 members and guests attending. Hall of Fame During the annual Chairman’s Banquet May 16 in Canastota, Dick Verona of Verona Oil Co., Al Wiley of Country Convenience Food Stores, and LaFayette Jones of Upstate Farms Cooperative were inducted into the New York Convenience Store Hall of Fame. Sadly, Mr. Wiley died several days later after a long illness. As part of the ceremony, for the first time, the Carl Tripi Award – a new category of recognition for low-profile, high-impact support of NYACS and the C-store trade – was presented to Ted Marshall of Pit Stop Convenience and Carol Taylor of Taylor’s Mini Mart. Education and Training In partnership with the Food Industry Alliance of New York State, NYACS introduced a new online training program to give members a convenient way to comply with the new mandatory food safety training law, which requires food establishments licensed by Ag & Markets to have one employee certified as having completed eight hours of food safety training over a two-year period. “Responsible Retailers of New York” – the educational partnership among NYACS, the Food Industry Alliance of New York State and the National Coalition for Responsible Tobacco Retailing (We Card) – conducted eight tobacco and alcohol sales training seminars around the state, training 161 individuals from 28 retail companies. At our Trade Show and Convention, NYACS offered workshops titled "Get A-R-M-E-D for Battle" and "20 Proven Ways to Build a Top-Performing Team" presented by Harold Lloyd of H. Lloyd Associates, a panel discussion of leading New York retailers titled "The Next 20 Years of Convenience Retailing," and several "Profit Center" breakout workshops on topics such as "The Gold in Technology," "Maximizing the Tobacco Category,” and "Home Delivery Horizons.” We also hosted "Single-Store Rx”a chance for independent retailers to have a free, 30-minute private consultations with Harold Lloyd on a topic of their choice. The NYACS Scholarship Foundation awarded $3,000 in college scholarships to undergraduate students whose families are involved in the convenience store business. The $1,000 Emmy Seng Scholarship was awarded to Megan Clark of Scottsville NY, a Studio Art major at Nazareth College, Rochester, concentrating in Photography. Her father, Richard Clark, works for Frito Lay. Four others receive $500 scholarships: Gianna Casale of Waterford NY, a Biochemistry and Biophysics major at Rensselaer Polytechnic Institute (Casco Service/Hess Mart); Stephanie Doktor of Corfu, Business, Canisius College (EHJ&K Sales Inc.); Elise Kidd of Munnsville, Communications, SUNY Fredonia (Reinhardt Corp.); and Nicole Wheelock of Ilion, Special Education/Childhood Education, SUNY Cortland (Nice N Easy Grocery Shoppes). Administration The NYACS staff – President James Calvin, Director of Programs and Events Amy Baldovin, and Membership Coordinator Victoria Morrell – remained intact and continued to manage events, projects, and member relations as a team. Financially, NYACS remained strong, finishing the year on budget and with a healthy reserve. NYACS renewed its lease with the Food Industry Alliance of New York State for office space on the third floor of 130 Washington Avenue, two blocks from the Capitol, through October 2008. Tax Fairness IssueWhen Governor Pataki refused to enforce the new law requiring collection of taxes on Native American sales of cigarettes and motor fuel to non-Native American New Yorkers when it took effect March 1, 2006, NYACS took action. Along with Nice N Easy Grocery Shoppes and MWS Enterprises Inc., NYACS sued the Governor, his Tax Department, and five wholesale distributors who were ignoring the law by continuing to supply Native American stores with tax-free cigarettes in violation of the law. One distributor subsequently discontinued the practice voluntarily; a sixth one did so just before the suit was filed. In the summer, we presented our case in State Supreme Court before Judge E. Michael Kavanaugh, arguing that no governor may choose not to enforce a law duly enacted by the Legislature. On November 17, he dismissed our suit – not on the merits, but because he felt we lacked “standing” to bring such an action. NYACS filed intent to appeal. Meanwhile, Attorney General Spitzer was working behind the scenes to achieve the same goal – full and fair tax collection. He notified cigarette manufacturers that if they were knowingly supplying distributors who were delivering tax-free cigarettes to tribal retailers, they were essentially supporting an illegal practice. In response, one manufacturer, Philip Morris USA, courageously stepped forward and informed the distributors involved that they risked losing supply if the practice did not stop by August 10. As the deadline approached, some tribal stores began running short of PM product. But one of the distributors, Day Wholesale, applied to State Supreme Court for, and on August 17 Judge Rose Sconiers granted, a restraining order barring Spitzer from enforcing the tax collection law, and Philip Morris had no choice but to suspend its new policy. Judge Sconiers’ ruling, however, does not preclude Mr. Spitzer, when he becomes Governor in 2007, from having his Tax Department implement the tax collection law by issuing the tax-exempt coupons to Native American tribes necessary to preserve the outright tax exemption on Indian sales to other Indians. Regulatory Challenges Outdoor beer signs – In October, without warning, convenience stores began being told by their beer distributor that they had to remove any signs outside the store advertising beer. It turned out to be a crackdown by the State Liquor Authority on “gifts” from distributors to retailers, even outdoor signage. And this turned out to be part of a broader shift in enforcement posture by a new regime at SLA, arising from recent admonishments from the Attorney General and Comptroller that the SLA was too cozy with the liquor industry and had been lax in enforcing many laws and rules governing the wholesale and retail sale of alcoholic beverages. Sales tax on motor fuel – The Legislature placed convenience stores in an awkward position when it switched the state sales tax on motor fuel from a percentage to a cents-per-gallon rate effective June 1 and failed to communicate to consumers the realities of how pump prices would be affected. Counties were given the option of doing the same; some did, and it resulted in even greater confusion. Other Legislative Issues These were the outcomes on other top priority issues on NYACS' 2006 Legislative Agenda. Cigarette tax hike/State – Success. When Governor Pataki proposed in January to increase the cigarette tax from $1.50 a pack to $2.50, NYACS mobilized its members and allies, and led a successful battle to defeat it. The Legislature rejected the idea because it would be self-defeating. Cigarette tax hike/County – Still fighting. In the fall, downstate counties began exploring the idea of a county-level cigarette tax of $1 to $2 per pack beyond the state-level tax of $1.50. NYACS and its allies are mounting an all-out effort to persuade the state Legislature not to authorize it. Bottle bill – Success. Working with our beverage industry allies, we again blocked expansion of the bottle bill to non-carbonated beverages. For the second year, it passed the Assembly but died in the Senate. With a new Governor who openly supports expansion, the battle will rage on in 2007. Lottery commission increase – No progress. Gas price gouging law reform – No change. NYACS sought to clarify the law so motor fuel retailers know precisely what the boundaries are. Instead, most of the legislation introduced focused solely on higher penalties, which NYACS helped defeat. Cigarette minimum markup increase. Not done. On the final day of the legislative session, NYACS reached agreement with downstate wholesalers on mutually acceptable wholesale and retail markup increases, but it was too late for the Legislature to pass it into law. Tobacco Purchase Age – Mixed results. NYACS helped block a bill to elevate the tobacco purchase age to 19 statewide, as well as a proposed Tobacco 19 law in Onondaga County. However, despite our opposition, Nassau County adopted a 19 purchase age. NYACS continued its participation in the New York Main Street Small Business Coalition to advance the broad interests of small businesses among state policymakers. The Coalition won an increase in the sales tax vendor credit and raised the profile of small business in Albany. Convenience PAC, the political action committee through which NYACS supports candidates for state office who demonstrate an understanding of convenience store issues, contributed $18,700 to a total of 49 state candidates and political committees. NYACS published 15 issues of NYACS Eye on Albany, the periodic legislative e-bulletin. We also published three issues of a new sister e-bulletin, NYACS Eye on Local Issues.
Great summer weather made for a strong selling season, but just before Labor Day, chaos gripped the motor fuel marketplace in the wake of Hurricane Katrina's devastation of Gulf Coast refinery and distribution facilities. Gas supplies and prices stabilized in the fall, but a sustained drop in volume, excessive credit card processing fees, and increasing drive-offs continued to erode the profitability of the retail fuel operations. On the legislative front, NYACS managed to block the expansion of the bottle bill to non-carbonated beverages and won enactment of a landmark statute requiring collection of taxes on cigarettes and gas sold by Indian tribes to non-Indian New Yorkers starting March 1, 2006. While New York's attorney general helped the C-store industry by cracking down on unlicensed, unregulated, untaxed Internet tobacco outlets, he also smeared the trade with an investigation of alleged gas price "gouging" that served to feed the myth that greedy retailers are the root cause of spikes in prices at the pump. Membership For the second year, our annual Issues Survey included several questions about member satisfaction, and the results remained very positive. Fully 98% of those responding said NYACS is moving in the right direction legislatively and as an organization. 89% said NYACS is important to their business, and 91% said they get a good return on their investment. NYACS held Retail Member dues at $125 per store per year to a maximum per company to $3,000, while increasing the Associate Member dues rates from $375 per year to $500. Nevertheless, industry consolidation and increased ROI pressures continued to diminish NYACS' membership count and dues revenue. We finished 2005 with 193 Retail Member companies, down from 200 at year-end 2004, and 160 Associate Member companies, down from 179. We continued to upgrade our web site, www.nyacs.org, to make it more useful to members and visitors. We published 10 issues of STOREfronts, the monthly NYACS newsletter, keeping members abreast of industry news, issues and events. In the annual survey, 91% of members said they always read the newsletter thoroughly. In between newsletter issues, we issued timely Member Advisories to the membership on topics such as the post-Katrina gas supply/price crisis, the new design of NYS driver's licenses, and an unpublicized increase in the minimum weekly salary for exempt employees. We also continued to keep members and non-members informed of NYACS issues, events and announcements through the monthly trade paper, Northeast C-$tore Journal. Through an alliance with NACS, NYACS for the second year offered its retail members a discount on registration for the NACS Show in Las Vegas in November. Leadership The Retail Board elected Mickey Jamal of Chestnut Petroleum Distributors, New Paltz, as its Chairman, succeeding Andrea Baker of Taylor’s Mini Marts, who was commended for her two years as Chair. Elected as a new Retail Board Members during 2005 were Richard Reilly, President of Reilly’s Dairy in Sauquoit; Peter Conley, Vice President of Retail Marketing, United Refining Company; and Kenneth Fish, Director of Retail Sales for Upstate New York, Amerada Hess Corp. The Associate Board of Directors elected Dan Finkle of Finkle Distributors Inc. as its Chairman, and Maura O'Toole of Bailey Haskell & LaLonde as Vice Chair. Elected as new Associate Board Members during 2005 were Ed Kennedy, Vice President of Sales for Mountain/Service Distributors; Kevin Malloy, Account Sales Manager with Nestle USA; Tom Purcell, Area Sales Manager with McLane Northeast; and David Geary, Central New York District Manager, Philip Morris USA. For the first time, NYACS conducted an orientation session for new and newer directors from both boards during our Fall Conference in Corning. Events "It's a Jungle Out There" was the theme of our 19th annual Trade Show and Convention, held May 14-15 in Syracuse, and we had fun with it. It kicked off with a Welcome Party at Syracuse's Rosamond-Gifford Zoo. Convention Chairman Kevin Noon strode the trade show floor in pith helmet and safari vest. We awarded a grand prize of a trip to Busch Gardens in Tampa FL. Exhibitors used jungle décor in their booths. We also held a ceremony to recognize 30 retail and exhibiting supplier companies that were marking a 5th, 10th, 25th or other milestone anniversary during 2005. Retail attendance was up from 2004, and the event was a programmatic success as well. Our Fall Conference September 20-21 in Corning NY featured an enchanting Vendor Appreciation Dinner at the Corning Museum of Glass, including a glass making demonstration. In addition, we held three concurrent NYACS committee meetings (Legislative, Membership, Convention), each with its own guest speaker. It was decided to piggyback our annual Chairmen's Open golf tournament, which had been held during the summer, with our Fall Conference. The event was held at Corning Country Club, with 75 golfers participating, raising nearly $13,000 for Convenience PAC. Hall of Fame During the annual Chairman’s Banquet May 15 in Syracuse, Case Marshall of Pit Stop Convenience and the late Carl Tripi of Tripifoods Inc. were inducted into the New York Convenience Store Hall of Fame. In addition, the Selection Committee voted to create a new category of recognition starting in 2006 for unsung heroes in our industry who have kept a low profile individually, but through their companies made a strong, positive impact on NYACS and the C-store trade, and that this should be named the Carl Tripi Award. Education and Training “Responsible Retailers of New York” – the educational partnership among NYACS, the Food Industry Alliance of New York State and the National Coalition for Responsible Tobacco Retailing (We Card) – conducted 15 tobacco and alcohol sales training seminars in eight cities, training 236 individuals from 50 retail companies. The NYACS Scholarship Foundation awarded $3,000 in college scholarships to undergraduate students whose families are involved in the convenience store business. The $1,000 Emmy Seng Scholarship was awarded to Jacqueline Denson of Fulton, a Managerial Accounting major at Empire State College whose husband for McLane Northeast. Awarded $500 each were Kelly Powers of Baldwinsville, an Environmental Biology major at SUNY College of Environmental Science and Forestry in Syracuse; Amanda Holzer of Wilmington, a Political Science major at SUNY Albany; Jessica Sidebottom of Buffalo, an Economics major at New York University; and Mallary Griepsma of Newark, a Social Work major at SUNY Brockport. At the Trade Show and Convention, NYACS presented workshops titled "How to Get Employees to Perform" and "Managing the Different Generations" featuring Linda McKenna, "Achieving Food Service Excellence" with Bill Reilly of Sheetz Inc., and a ServSafe food safety certification class with Patco Food Safety Consultants. Keynote speaker Scott Deming was well received at the opening ceremony. Administration NYACS bid a fond farewell to its Vice President of Membership, Glenna Thurston, who relocated to North Carolina. But the staff didn't miss a beat, as Amy Baldovin was promoted from Information and Events Coordinator to Director of Programs and Events, and Vicki Morrell was hired as Membership Coordinator. NYACS remained strong financially, finishing the year on budget and with a healthy reserve fund that is tapped periodically for extraordinary one-time expenses that the Board of Directors believes will benefit the entire membership, such as a $10,000 contribution to the Bottle Bill Coalition in 2005. Legislative and Regulatory Issues The 2005 session of the state Legislature will be remembered most for passage of an on-time budget, the first in 20 years. On top priority issues on NYACS' Legislative Agenda, these were the outcomes. Halt unlicensed, unregulated, untaxed sales of retail products. Success. Legislature passed, Governor signed law requiring collection of taxes on Indian sales to non-Indians effective March 1, 2006. In addition, NYACS exposed the weaknesses of the taxation side of the Governor Pataki's proposed five-tribe land claim/casino/tax settlement bill, which the Governor ultimately withdrew. His resubmitted Mohawk land claim settlement – which included an unacceptable "tax parity" settlement staunchly opposed by NYACS – passed the Assembly but not the Senate. Prevent expansion of the bottle bill to non-carbonated beverages. Success. Expanding the deposit container law to juice, water, iced tea, sports drinks and other non-carbs passed the Assembly but a coalition of beverage industry allies, including NYACS, helped kill it in the Senate. This set the stage for a huge battle in 2006, an election year for all members of the Legislature. Reject higher taxes and fees impacting convenience stores and their customers. Success. Despite calls from anti-smoking groups for 50¢/pack cigarette tax hike, and tax increases in neighboring states, the Governor and Legislature heeded our arguments against any increase. Six different bills were introduced to require licensing fees for non-bank-owned ATMs, but strong NYACS opposition prevented any from passing. Increased fines for food service violations were removed from Governor's budget. The state sales tax rate dropped .25%. Enact workers compensation reforms to reduce employer costs No progress. Political stalemate between organized labor, which wants higher benefits, and business, which wants lower premiums, continues. Give retailers opportunities to earn higher commission rates on lottery sales. Progress. Bill introduced in Senate and Assembly to raise commission rate from current 6% to 8%. Neither passed, but we now have stronger platform for arguing for inclusion in next year's state budget. Increase the state minimum retail mark-up on cigarettes. Not done. NYACS soft-pedaled for much of session to avoid playing into hands of cigarette tax hike proponents. Days before end of session, bill introduced on behalf of downstate wholesalers to dramatically increase minimum wholesale and stamping agent markups without corresponding increase in retail markups. Bill passed Senate, but NYACS blocked it in Assembly. Allow licensed convenience stores and supermarkets to sell wine. No progress. Opposition from liquor stores continued to thwart this initiative. Enact civil penalties for minors who possess or attempt to buy tobacco products, rather than raising the legal purchase age. Mixed results. A bill to make tobacco possession by minors illegal did not pass, but NYACS did stop passage of a bill to increase the tobacco purchase age to 19 statewide. On the local level, NYACS helped block a proposal to increase Rockland County’s tobacco purchase age from 18 to 19. The county Legislature passed it but the County Executive vetoed it. Oppose unwarranted marketing restrictions on retailers and wholesalers. Success. A bill opposed by NYACS that would have restricted the display and sale of Sudafed and other "met amphetamine precursors" passed the Senate but not the Assembly. Congress is expected to pass federal legislation addressing this issue. Other issues impacting convenience stores that arose along the way: Mandatory Food Safety Training:Over NYACS' objections, this bill passed both houses and is likely to be signed into law. It requires stores licensed by Ag & Markets to have one employee certified as having completed eight hours of food safety training over a two-year period. NYACS supported the concept but not the details. Stores with under $3 million a year in inside sales would be exempt, unless they're part of a chain or franchise. We argued that any exemption should be based on the risk of food-borne illness, not store ownership or size. And chains of 10 stores or more could apply for Ag & Markets approval to do their own in-house training, placing smaller retailers at a disadvantage of needing to rely on a third party at a cost and schedule out of their control. We said that privilege should be offered to either all retailers or none. Our objections were largely ignored. The bill provides for a one-year implementation period. Pricing Accuracy Standard:With NYACS fighting it, the proposed statewide 98% accuracy standard for stores that use optical scanning or manual pricing did not pass either house. Alcohol and Tobacco Affirmative Defense: With NYACS' support, the affirmative defense against license suspension for retailers who properly used an electronic age verification device in a failed compliance check was extended through January 1, 2008. Outdoor Lighting: The Assembly passed but the Senate rejected a bill that would have placed unreasonable restrictions on parking-lot lighting and encouraged neighbors to sue businesses for "light trespass." Small Business: NYACS joined the New York Main Street Small Business Coalition to advance the broad interests of small businesses among policymakers in Albany. The coalition scored several minor successes legislatively and set the stage for more significant progress in 2006. Sale of Blunts: When Rochester and Buffalo police threatened to arrest retailers for selling blunt cigars and wrappers on the grounds that they constituted "drug paraphernalia," NYACS intervened and backed them down, pointing out that they are legal tobacco products the stores are licensed to sell. Convenience PAC, the political action committee through which NYACS supports candidates for state office who demonstrate an understanding of convenience store issues, contributed $20,450 to a total of 50 state candidates and political committees. NYACS published 15 issues of NYACS Eye on Albany, the periodic bulletin on legislation, regulations and agency actions impacting the convenience store industry. It is available free via e-mail or fax to any member requesting it. NYACS also introduced a sister e-bulletin, NYACS Eye on Local Issues.
Membership As part of our year-long "We Are Family" theme, NYACS honored 70 family-operated retail and supplier members by designating them as "New York's Foremost Convenience Store Families" in conjunction with our annual Trade Show and Convention May 12-13 in Rochester. During a ceremony at the trade show, each was presented with a plaque. The recognition program saluted the moms, pops, sisters, brothers, sons and daughters behind the success of hundreds of neighborhood mini-marts and convenience stores across New York State. For the first time, we expanded our annual Issues Survey to include several questions about member satisfaction, and the results were encouraging. Fully 95% of those responding said NYACS is moving in the right direction legislatively and as an organization. 85% said NYACS is important to their business, and that they get a good return on their investment, but 1 in 7 were not satisfied with ROI. NYACS held Retail Member dues at $125 per store per year to a maximum per company to $3,000, while increasing the Associate Member dues rates from $375 per year to $500. For the first time, as new benefits of membership, Associate Members now have a free link to their web site on the NYACS web site and can extend a one-year NYACS Retail Membership to a single-store operator of their choice. We continued to upgrade our web site, www.nyacs.org , to make it more useful to members and visitors. We expanded the "Tool Box" section of resources and introduced a "Supplier of the Day" box on the home page spotlighting a different associate member company each day. Industry consolidation and increased ROI pressures continued to diminish NYACS' membership count and dues revenue. We finished 2004 with 200 Retail Member companies and 179 Associate Member companies. We published 10 issues of STOREfronts , the monthly NYACS newsletter, keeping members abreast of industry news, issues and events. In between, we issued timely Member Advisories to the membership on topics such as implementation of the new fire-safe cigarette law. Opening a new channel for communicating with the industry, NYACS forged an alliance with Griffin Publishing Company, which agreed to dedicate two pages in each issue of its new monthly trade paper, Northeast C-$tore Journal , to news, photos, and advertising from NYACS. Through a special alliance with NACS, NYACS was able for the first time to offer its retail members a discount on registration for the big NACS Show in Las Vegas in November.
NYACS persuaded the state Office of Fire Prevention and Control to permit a "sell-through" of existing cigarette inventories as of the June 28, 2004 effective date of the state's new fire-safe cigarette law, sparing retailers the logistical headaches and cash-flow difficulties of having to send the old product back up the supply chain and hopes for refunds on the product and the pre-paid taxes.
In January, NYACS held its second annual Legislative Conference in Albany to discuss priority issues face-to-face with state lawmakers. Approximately 30% of the Legislature was represented at our reception, and our teams met individually the next day with 34 legislators. The proposal to al low C-stores and supermarkets to begin selling wine did not pass, but NYACS members helped the Food Industry Alliance move the ball downfield by having thousands of customers sign response forms asking their state legislators to approve this change in law. NYACS helped stop an initiative by the Rockland County Executive to win state approval to levy a county-level excise tax on cigarettes, which would only exacerbate the tax evasion problem and create a logistical nightmare for wholesale distributors. We rallied our members to oppose federal legislation that would have granted the FDA authority to regulate tobacco retailing, which would create onerous and duplicative restrictions on already over-regulated convenience stores. Through the leadership of NACS, the bill was defeated. The Legislature passed and the Governor signed a NYACS-backed bill extending through 2005 the affirmative defense for retailers facing possible license suspension for an underage sale of beer or tobacco in which the clerk used an electronic age verification device to check the customer's ID but made the sale anyway. Although NYACS and allied business groups had successfully blocked a minimum wage increase in each of the past five years, the legislation finally passed, as political considerations overtook the merits of the issue. Our coalition succeeded in convincing Governor Pataki to veto the bill, but the Legislature overrode the veto. The bill increases the state minimum wage from $5.15 per hour to $6 on 1/1/05, then to $6.75 on 1/1/06, and $7.15 on 1/1/07. Legislation opposed by NYACS to expand the deposit container law to include most non-carbonated beverages including juice, water, iced tea and sports drinks did not pass either house. NYACS stopped a bill that would have required smaller retailers who own their own ATM to register it with the state Banking Department, get fingerprinted, pay a $300 licensing fee, and carry $10 million in insurance. We stood up for the industry when the City of Troy proposed a curfew requiring smaller convenience stores to close during early-morning hours because the mayor claimed they were magnets for crime. NYACS prevented passage of statutory payment periods for milk deliveries, arguing that payment terms should be negotiated between retailer and supplier, not mandated by government. NYACS defeated a proposal to increase New York's tobacco purchase age from 18 to 19, although Suffolk County, over our objections, did pass a local law making 19 the purchase age in that county. Convenience PAC, the political action committee through which NYACS supports candidates for state office who demonstrate an understanding of convenience store issues, contributed $25,375 to a total of 68 candidates and political committees. NYACS published 22 issues of NYACS Eye on Albany, the periodic bulletin on legislation, regulations and agency actions impacting the convenience store industry. It is available free via e-mail or fax to any retail or associate member requesting it.
Elected as a new Retail Board Member during 2004 was Michael Newman, Executive Vice President of NOCO Express Shops, Tonawanda. The Associate Board of Directors elected Joe Callahan of C-Chex, the Compliance Company, as 2004-05 Chairman. Lori Miller of Brown & Williamson Corp. began the year as Vice Chair but resigned and was succeeded by Dan Finkle of Finkle Distributors. Maura O'Toole of Bailey Haskell & LaLonde was elected Secretary.
Events Our "We Are Family" Trade Show and Convention, held May 12-13 in Rochester, was a programmatic success, although retail attendance was disappointing. John MacDougalll, President & CEO of Nice N Easy Grocery Shoppes, delivered the perfect "family theme" keynote address, and representatives of "New York's Foremost Convenience Stores" were honored. During the annual Chairman's Banquet, Albert Smith of Shortstop Deli and Don Case of Paul deLima Co. were proudly inducted into the NYACS Hall of Fame. Our Fall Conference September 17-18 at the Hotel Thayer in West Point featured an appearance by 7-Eleven Inc. Vice President of Operations Joseph DePinto, a tour of the U.S. Military Academy, a roundtable discussion facilitated by CSP Publisher Paul Reuter, working meetings of the Convention and Legislative committees; and a barbecue saluting Associate Members hosted by Mickey Jamal at his majestic home overlooking the Hudson River. Forty-four golfers took part in the NYACS Chairmen's Open tournament at Radisson Greens in Baldwinsville on July 22. Through their support and the leadership of event Chairman Case Marshall, the event raised over $10,000 for Convenience PAC. Education and Training "Responsible Retailers of New York" - the educational partnership among NYACS, the Food Industry Alliance of New York State and the National Coalition for Responsible Tobacco Retailing (We Card) - conducted 24 tobacco and alcohol sales training seminars in 18 cities, training 368 personnel from 64 retail companies. NYACS nominally co-sponsored a November 18 retailer-supplier forum presented by the Petroleum Convenience Alliance for Technology Standards (PCATS) and to outline how the new PCATS technology standards can be used to exchange price book and invoice information electronically between retailers and suppliers. Through the NYACS Emmy Seng Scholarship Foundation, we awarded $1,000 college scholarships to two undergraduate students whose parents are involved in the convenience store business - Jessica Coons of Montgomery NY, a junior at the University of Hartford (CT), majoring in Elementary Education, and Melissa Lauser of Warren PA, a Culinary Arts and Service Management major at Paul Smith's College in Franklin County NY. At the "We Are Family" Trade Show and Convention, NYACS presented workshops titled "It's About Time" and "How to Make Your Customers Feel Like Family" featuring Harold Lloyd and a roundtable titled "My Country Store: The Ultimate Family Enterprise." Administration Financially, NYACS had a successful 2004, finishing with net operating income of approximately $37,000 or about 12% of total revenue. To provide a foundation for renewed focus on membership development, Glenna Thurston was promoted from Information and Events Coordinator to Vice President Membership and part-time Administrative Assistant Amy Baldovin was promoted to full-time Office and Events Manager.
Legislative and Regulatory Issues For the first time in over five years, NYACS held a Legislative Action Day in Albany to discuss priority issues face-to-face with state lawmakers. The January 28 event proved highly successful. Our members felt they enlightened the individual legislators they visited about our industry and how key issues impact us. In addition, of the 212 members of the state Senate and Assembly, 51 attended our reception, and another 13 sent staff, so 30% of the Legislature was represented. As it turned out, the 2003 legislative session was the most positive in many years for New York's convenience store industry, mostly because of the passage of an historic mandate that the Governor begin collecting applicable state taxes on sales of tobacco and motor fuel by Native American tribal stores to non-Native Americans, a long-standing NYACS top priority. On May 15, the day the Legislature enacted the mandate by overriding Governor Pataki's veto, NYACS was holding a Legislative Forum at our Trade Show in Syracuse, and the guest speaker, state Senator Nancy Larraine Hoffmann, rushed directly from Albany to deliver the good news. However, from that point on, the issue dragged. The Tax Department issued proposed implementing regulations in September, setting a December 1 effective date. But as the deadline approached, in the midst of a million-dollar media misinformation campaign by the Seneca tribe, they announced postponement until at least March 1, 2004. To counter the tribal propaganda, NYACS continued to financially support and actively participate in the Fair Application of Cigarette Tax (FACT) Alliance, a coalition dedicated to raising public awareness of the adverse impacts of cigarette tax evasion in New York State. Outcomes on other top-priority NYACS priorities were as follows: FIRE-SAFE CIGARETTES: NYACS succeeded in getting the scheduled July 1, 2003 effective date pushed back into 2004. In December, the state adopted the final regulation, setting June 28, 2004 as the effective date. However, finally, in a major victory, the state acceded to NYACS' wishes on the "sell-through" issue, permitting wholesalers and retailers to phase out the inventory of old product while phasing in the new. PREDATORY PRICING: A NYACS-backed bill passed by the Legislature banning the retail sale of motor fuels at below cost was vetoed by the Governor in January. A revised bill permitting pricing at no less than 98 percent of cost passed both houses and was sent to Governor Pataki, who refused to sign it without further changes. The final, amended bill he signed permits selling at no less than 95 percent of cost, delays implementation for six months, and gives the Consumer Protection Board discretion to decide which complaints to investigate rather than requiring it to investigate all complaints. MINIMUM WAGE: Teaming with other business groups, NYACS helped thwart legislation that would have increased the state minimum wage from $5.15 per hour to $7.65. TANK REGISTRATION FEES: Although NYACS had helped block higher tank registration fees for five years in a row, the Legislature in September approved a doubling of tank fees as part of a bill refinancing the Superfund. EXPANDED BOTTLE BILL: Legislation opposed by NYACS to expand the deposit container law to include most non-carbonated beverages did not pass either house. Convenience PAC, the political action committee through which NYACS supports candidates for state office who demonstrate an understanding of convenience store issues, contributed $16,500 to a total of 39 candidates and political committees. NYACS published 14 issues of NYACS Eye on Albany, the periodic bulletin on legislation, regulations and agency actions impacting the convenience store industry. It is available free via e-mail or fax to any retail or associate member requesting it. Leadership The Retail Board of Directors elected Andrea Baker of Taylor's Mini Mart as its 2003-2004 Chair. She is the second woman to lead the NYACS Board. Mickey Jamal of Chestnut Petroleum was chosen as Chair-Elect, and Steve Kuno of Kunoco Food Marts entered the leadership loop when appointed Education Committee Chair. Elected as new Retail Board Members during 2003 were Kevin Kenyon, Co-Owner of Kenyon's Variety, Lockport; Mike Murray, Syracuse-based Division Operations Manager for Sunoco Inc.; Rick Klyczek, General Manager of NOCO Express Shops; and Bill Herbert, Syracuse-based Upstate New York Division Manager for Amerada Hess Corp. The Associate Board of Directors elected David Keeney of RJ Reynolds as Chairman for 2003-2004. Joe Callahan of C-Chex, the Compliance Company was chosen as Vice Chairman and Lori Miller of Brown & Williamson Corp. as Secretary. Elected as new Associate Board Members during 2003 were William Freeman, General Manager of Mountain Service Distributors, and Jennifer Hubbard, Philip Morris USA's new District Manager for Western New York. Membership NYACS increased Retail Member dues from $115 per store per year to $125, increasing the maximum per company to $3,000, and increased Associate Member dues rates from $350 per year to $375 for renewing members and $400 for new members. For the first time, the annual NYACS Membership Directory included descriptions of up to 25 words of each Associate Member, conveying to the retail reader a synopsis of how that company could help their business. Publication of the Directory was made possible by advertising from 36 member companies. We continued to upgrade our web site, www.nyacs.org, to make it more useful to members and visitors. During 2003, NYACS purchased software enabling the staff to update the site as frequently as needed, added a "Toolkit" section of reference materials, from the office, and made other enhancements. We conducted Regional Membership Forums in Western New York and the Hudson Valley, attended by about 25 members each. The Buffalo event, sponsored by Brown & Williamson Tobacco Corp., featured a People Systems NEC mini-workshop on wage-and-hour issues. The Fishkill session, sponsored by Ginsberg's Inc., focused on the impact of future Sullivan County casinos on Hudson Valley convenience stores. We introduced a member-benefit program of member discounts on credit card processing services. The provider, Payment Processing Services, offers competitive rates and attractive terms on processing and equipment. We dropped our coupon redemption program provider, Couponics, due to member complaints about customer service. We published 10 issues of Storefronts, the monthly NYACS newsletter, keeping members abreast of industry news, issues and events. In between, we issued timely Member Advisories to the membership on topics such as the new keg registration law, the short-notice June 1 increase in state sales tax, information for employers on the no-smoking law, and the MTBE ban. Events Our “Red White & Blues” Trade Show and Convention, held May 14-15 in Syracuse, was a sensational success. Exhibitors and retail attendees gave it high marks for quality and content. The new focus on new products, buying specials and profit-boosting programs re-energized the trade show. The Welcome Party featuring Syracuse blues legend Roosevelt Dean drew a record crowd, keynote speaker Capt. Scott O'Grady's address was a hit, and the golf tournament, seminars, Chairman's Banquet and other activities were well received. Overall retail attendance was still not as strong as hoped, but improved from the 2002 show in Buffalo. At the Chairman’s Banquet, Joseph C. Tripi II of Tripifoods Inc. and Rene Patterson of Quickway Food Stores were proudly inducted into the NYACS Hall of Fame. The Fall Conference September 17-18 at Alexandria Bay featured appearances by state Senators James Wright and Michael Balboni; a dialogue on the rapidly changing tobacco category; working meetings of the Convention, Membership and Legislative committees; a NYACS salute to Associate Members; and the traditional clambake. The selection of West Point as the 2004 Fall Conference generated a great deal of buzz. Seventy-five golfers took part in the NYACS Chairmen's Open tournament at Eagle Vale Resort in Fairport on July 15. Through their support and the leadership of Co-Chairs Case Marshall and Jay Jones, the event raised over $10,000 for Convenience PAC. Education and Training Partnering with the Food Industry Alliance of New York State and the National Coalition for Responsible Tobacco Retailing (We Card), NYACS developed a tobacco and alcohol sales training curriculum for an education program we named “Responsible Retailers of New York.” Our program earned approval from the NYS Department of Health to provide certified tobacco training, and we applied for similar approval from the State Liquor Authority to certify trainees in alcohol sales. During 2003 RRNY conducted 48 seminars in 29 cities – three of which were delivered via live, interactive television – training 2,536 personnel from 161 retail companies. Through the NYACS Emmy Seng Scholarship Foundation, we awarded $1,000 college scholarships to two undergraduate students whose parents are involved in the convenience store business – Mallorie Garlock of Springville, a sophomore at Grove City (PA) College majoring in history while pursuing secondary teaching certification; and Bryan Voorhis of Panama, a sophomore majoring in education at Fitchburg (MA) State College. At the "Red White & Blue” Trade Show and Convention, NYACS presented a seminar titled "40 Minutes of Red Hot Ideas" featuring Harold Lloyd; a roundtable discussion for owners and operators of collegetown stores; a store managers workshop titled "Managing Retention and Loss Prevention" with Michael Reilly of Pathways Education Programs; a panel discussion titled "Food Service: To Be a Star You Have to Earn Your Stripes" with Albert Smith of Shortstop Deli, Jack Cushman of Nice N Easy, and Tim Kenyon of Kenyon's Variety. NYACS sponsored two Interviewing Skills Workshops featuring Linda McKenna of Employee Performance Strategies, attracting 23 attendees in Buffalo and 56 in Syracuse. A third session in Albany was canceled due to low numbers. We plan to invite Linda back in 2004 to do workshops on another relevant topic. For the first time, we offered a "DIAL-Log" mini-workshop via conference call for members seeking guidance on wage-and-hour compliance issues, featuring experts from People Systems/NEC. We took part in a day-long seminar on petroleum storage tank regulations and enforcement December 3 in Fishkill, sponsored by the NYACS-member law firm Drake Sommers and featuring experts from state DEC and the private sector. Administration We were notified in the spring that we would need to vacate the second-floor office at 231 Delaware Avenue in Delmar that had served as NYACS headquarters for nearly seven years. A 5-month search for a new home ended in the fall with relocation to the third floor of 130 Washington Avenue in downtown Albany, two blocks from the State Capitol, sharing space with the Food Industry Alliance of NYS. Cost for rent and utilities remained about the same. There is added expense for parking, but it will be offset by savings achieved through sharing certain expenses with FIANYS. We have a new address and phone numbers, but the same identity and the same commitment to serving members we have always had. Financially, following two down years, NYACS had a successful 2003, due in part to stronger trade show performance, rising member services revenue, and better return on investments. Net operating income for years 2001 through 2003 combined averaged out to around 1%. June
2003 marked the fifth anniversary of Jim Calvin's arrival as Executive
Director/President of the association. Jim, Information and Events Coordinator
Glenna Thurston, and Administrative Assistant Amy Baldovin continued to
strive to provide the membership with timely information, dependable guidance,
and good service. Strategic Planning For the first time since 1998, NYACS undertook a strategic assessment of the organization today and charted a direction for the future. Chairman Case Marshall appointed a Strategic Planning Team to develop goals for the future. The Strategic Planning Team proposed, and the Board of Directors adopted, the following Statement of Purpose: "NYACS is a progressive, member-driven organization that leads, safeguards, and forges a favorable environment for New York State's diverse, dynamic community of neighborhood convenience stores. NYACS provides return on membership investment by continuously delivering vital knowledge, a unified voice on legislative and regulatory issues, access to business solutions, and ways for members to share ideas, address common challenges, and build relationships. Also on recommendation of the Strategic Planning Team, the Board of Directors adopted a three-year strategic plan calling for the following major goals to be achieved by 2005: -
Increase membership dues income by 10%. Legislative and Regulatory Issues We were successful in our efforts to enact an amendment to the Public Health Law granting license protection for responsible retailers of tobacco. The Legislature unanimously passed, and Governor signed, a bill converting the 2-strikes-and-you're-out penalty structure to a "point system" that provides a greater degree of tobacco and lottery license protection by rewarding stores for properly training their employees. Working with other small business groups, NYACS again helped defeat inflation-causing, job-killing legislation that would have hiked the state's minimum wage from $5.15 per hour to $6.75 and required an automatic increase every year indexed to inflation in the New York Metro area. NYACS again blocked a proposal to broaden New York's bottle bill to require a deposit on containers of iced tea, juice, sport drinks, bottled water, and other non-carbonated beverages, which would make redemption a logistical nightmare for our members. OUTCOMES ON OUR TOP 5 POLICY GOALS FOR 2002 2.
Level the playing field for all retail enterprises on excise and sales
taxation. 4.
Prevent expansion of tax-free enterprises around new and existing casinos. GOAL:
Oppose Further Tobacco Retailing Restrictions GOAL:
Extend Affirmative Defense for Using Age Verification Devices GOAL:
Toughen Penalties for Drive-offs GOAL: Outlaw Predatory Pricing OUTCOME: Success. Legislature passed bill prohibiting below-cost retail pricing of motor fuels where the effect is to injure retail competitors. Currently awaiting Governor's signature. GOAL:
Block Higher Fees and Spin-Ups The new law requiring stores statewide to remove self-serve displays of cigarettes, even though many had already done so voluntarily, took effect in March. NYACS became a founding member of, and contributed $10,000 to, the Fair Application of Cigarette Tax (FACT) Alliance, a coalition of businesses, citizens and organizations uniting to raise public awareness of the adverse impacts of rampant cigarette tax evasion in New York State. Convenience PAC, the political action committee through which NYACS supports candidates for state office who demonstrate an understanding of convenience store issues, contributed $19,000 to a total of 53 candidates, 48 of whom were elected or re-elected. NYACS introduced a periodic bulletin called NYACS Eye on Albany to keep members informed of legislation, regulations and agency actions impacting the convenience store industry. Available free via e-mail or fax to any retail or associate member requesting it, the bulletin published 20 issues during 2002. Leadership The Retail Board of Directors elected Andrea Baker as Chair-Elect, positioning her to become, in May 2003, the second woman elected to Chair the NYACS Board. The Associate Board of Directors elected Jay Jones of High Falls Brewing Co. as its 2002-2003 Chairman and David Keeney of RJ Reynolds as Vice Chairman. Membership On recommendation of the Membership Committee, NYACS held the line on dues levels. For the first time, we offered Associate members the opportunity to have a link to their web site included in their listing on the NYACS web site. By year-end, about 25 Associate members were taking advantage of this added service. To further enhance the value of Associate membership, we invited all Associate members to provide a 25-word description of their business to be included in the 2003 Membership Directory, conveying to the retail reader a synopsis of how that company could help their business. The Retailers of New York Workers Compensation Trust, a key member-benefit program initiated by NYACS, marked its fifth anniversary in September with over $3 million in written premium and over 300 member companies. For the second straight year, NYACS offered a reception for New York retailers and suppliers attending the NACS Show in October. It was done jointly with the Pennsylvania Food Merchants Association, promoting networking and idea sharing among retailers and suppliers from the two states. Redesigned the NYACS web site, www.nyacs.org, to make it more useful to members and visitors. From April, when the upgraded site was posted on the web through December, total visits to www.nyacs.org exceeded 3,000. For the first time, conducted a pilot Regional Membership Forum Events Held in Cooperstown, our Fall Conference for the first time included several joint functions with the Empire State Petroleum Association. The atmosphere was positive although interaction between individual members of the two associations was limited. Education and Training We co-sponsored a series of "We Card" tobacco training seminars with a total attendance of 228. In addition, on a contractual basis, NYACS conducted a tobacco sales training workshop for the Oswego County Department of Health attended by 58 retailers. Through the NYACS Emmy Seng Scholarship Foundation, we awarded $1,000 college scholarships to three undergraduate students whose parents are involved in the convenience store business. Attendees at the Fall Conference heard a presentation at the Fall Conference by Tom Kloza, Publisher of the Oil Price Information Service, on the oil industry outlook for 2003 and beyond. At
the "Racing to Win" trade show and convention, NYACS presented
a ServSafe food safety seminar that enabled 33 store operators, managers
and employees to become certified. In addition, we offered a category
management seminar spotlighting the new "C-SCAPE" supply chain
model. Industry Environment and Trends During 2001, New York convenience stores: Were enveloped by the dark cloud of an excessively punitive state law prohibiting underage sales of cigarettes that suspends the tobacco and lottery licenses of responsible retailers in spite of their voluntary, pro-active efforts to prevent sales to minors. Continued
to strain to find enough qualified full-time and part-time workers to
dependably staff their stores. Were dismayed by news in the 2000 NYACS State of the Industry report that, for the first time since 1975, industry-wide in-store margins slipped below 30 percent. Were bombarded with new product introductions, especially in beverage categories, creating opportunity, confusion, and intense competition for shelf and cooler space. Witnessed the continued march of consolidation among major oil companies and major suppliers of food, beverage and other in-store products. With the rest of America, were stunned by the September 11 terrorist attacks on the World Trade Center and the Pentagon. Together with their employees and customers, they opened their hearts and wallets to charities assisting the families affected. Exercised restraint in fuel pricing in the days following, even as some operators in parts of Midwest, over-reacting to erroneous reports of supply interruptions, briefly triggered a consumer panic by posting prices as high as $5.00 per gallon. Denounced threats and violence against Middle Eastern immigrant store operators and employees unjustly targeted as scapegoats for the terrorist attacks. Hosted an endless parade of state inspectors examining everything from tax stamps on cigarette packs to motor fuel inventory reports to sales tax on diapers to preventing underage beer sales to the number of kitchen sinks. Received faster, easier-to-use Lottery terminals that for the first time include an ID scanning device, dealt with a number of changes in Lottery games designed to boost sales (return to two Lotto plays for $1, introduction of $10 instant ticket), and made plans to join multi-state (i.e. Powerball) lotteries in 2002. Began to see supermarkets and big-box stores entering the motor fuel arena with below-cost pricing that is bound to disrupt the marketplace and threaten the survival of independent retailers. Legislative and Regulatory Issues To help protect the licenses and livelihoods of member retailers, NYACS furnished them with a "survival kit" on tobacco law compliance, including steps for preventing underage sales, intelligence on sting operations and hearings, sample signage, a We Card training CD, and other useful information and materials. We were unsuccessful in securing passage of an amendment to the Public Health Law granting license protection for responsible retailers of tobacco, nor did the Legislature agree to enact a statute of limitations on the accumulation of such offenses. Due to the increasing number and complexity of legislative issues facing our industry, NYACS retained a year-round contract lobbyist, Patrick McHugh of Coppola Ryan & McHugh, Albany. Working with other small business groups, NYACS helped defeat inflation-causing, job-killing legislation that would have hiked the state's minimum wage from $5.15 per hour to $6.75 and required an automatic increase every year indexed to inflation in the New York Metro area. NYACS again blocked a proposal to broaden New York's bottle bill to require a deposit on containers of iced tea, juice, sport drinks, bottled water, and other non-carbonated beverages, which would make bottle and can redemption a logistical nightmare for our members. The Legislature authorized the Governor to negotiate agreements to open six new Indian-run casinos - three in Western New York, three in the Catskills - without addressing the related issue of tax evasion on Indian lands. NYACS renewed its insistence that any new casino deal require the Indian tribe to confine its business activities to the casino itself and not operate ancillary enterprises such as tax-free convenience stores on surrounding property which would unfairly compete with existing community businesses. During May, as motor fuel prices were peaking, NYACS member stores collected nearly 10,000 signatures from customers on petitions calling for the summertime suspension of the state's 4% sales tax on gasoline. The drive, which generated more than 100,000 signatures statewide, was nevertheless unsuccessful. The state Legislature passed a law requiring stores statewide to remove self-serve displays of cigarettes, even though most have already done so voluntarily. The law supercedes local laws already in effect in a number of New York cities and counties. Having exhausted our legal options in the New York civil courts, NYACS, NACS and MWS Enterprises asked the U.S. Supreme Court to hear our lawsuit challenging the state Tax Department's selective enforcement policy. The Court on December 3, 2001 rejected our petition. A federal judge struck down New York State's law banning Internet sales of cigarettes, permitting on-line, mail-order and telephone sales of tobacco to continue unabated with no controls to ensure that the sellers collect applicable taxes or verify the purchaser's age. NYACS adopted a position in favor of state legislation that would prohibit below-cost pricing of gasoline where the intent is to injure competition. The bill passed the Assembly but stalled in the Senate. Our Legislative Committee met with the leadership of the New York Lottery Division to explore solutions to the widening problem of instant ticket inventory control and loss prevention. We joined the national Coalition Against Sales and Excise Tax Evasion (CASETE), an alliance created by NACS, PMAA, SIGMA, and NATSO to re-energize and renew the industry's commitment to fighting the tax evasion issue in Congress and in the states. Leadership The Retail Board of Directors elected Case Marshall of Pit Stop Convenience Stores as its 2001-2002 Chairman, at age 30 the youngest retailer ever to hold the position. The Associate Board of Directors elected Donald Castronovo of Frito Lay Inc. as its 2001-2002 Chairman. NYACS inducted Mark Sidebottom of MWS Enterprises (Yellow Goose Markets) and Dick Chase of Northern Eagle Beverage into the NYACS Hall of Fame. Membership Events and Activities In response to feedback from participants, we condensed the annual trade show and convention from three days to two, making more efficient use of exhibitors' and members' time. The response was extremely positive. Retailers flocked to the Trade Show and Convention, "Mission Survival," in Saratoga Springs, highlighted by an inspiring keynote address by Air Force Captain Scott O'Grady describing his six days in hostile territory after being shot down over Bosnia. Just eight days after the September 11 terrorist attacks on New York and Washington, our Fall Conference in Canandaigua attracted the largest turnout ever, over 125 individuals. NYACS strengthened its commitment to membership development with the hiring of a part-time Member Services Coordinator. We expanded our communications outreach through a new monthly NYACS column in Griffin's Modern Grocer and increased our presence in New York newspapers, radio, and the trade press as an authoritative source of information and opinion about convenience store retailing issues. For the first time, NYACS offered a reception for New York convenience store retailers and suppliers attending the NACS Show in October. It was done jointly with the Pennsylvania Food Merchants Association, promoting networking among retailers and suppliers from the two states. Striving to upgrade and expand our member benefits offerings, NYACS flirted unsuccessfully with an electric energy aggregation program, Education and Training In the spring, we concluded the two-year, state-funded Tobacco Merchant Training Program we jointly administered with the Food Industry Alliance of New York State. It consisted of 54 workshops in 33 communities across the state, attended by 2,665 retail personnel over a two-year period. During the fourth quarter, NYACS co-sponsored seven "We Card" tobacco training seminars across the state, with a total attendance of 475. For the first time, NYACS held a two-day Advanced Training Conference for Convenience Store Managers at Cornell University, an offshoot of the C-Store Management 1-2-3 program which was placed on indefinite hold when Cornell announced it was dissolving its Distance Education Program office. Through the new NYACS Emmy Seng Scholarship Foundation, we awarded $1,000 college scholarships to three students whose parents have been involved in the convenience store business for many years. An audience of nearly 100 heard former Buffalo Bills All Pro special teams player Steve Tasker speak on teamwork at the kick-off dinner for the NYACS Emmy Seng Scholarship Foundation. Attendees at the Fall Conference heard a presentation at the Fall Conference by Brett Hoffmaster of Shipley Stores on the pros and cons of their new "robotic store" in Pennsylvania. At the trade show, NYACS conducted a "Survival Skills" panel discussion for retail owners and operators and a "Surviving and Thriving" workshop for store managers. Home - About NYACS - Trade Show - The Industry - Membership - Contact Us - Issues - Tools
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