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About NYACS: 2001 Annual Report 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. NYACS Activities and Outcomes 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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