NRF Urges Washington to Fix Fiscal Cliff Before Black Friday

Rather than setting New Year’s Eve as its deadline, Washington needs to act quickly to set in place a framework for resolving this situation, preferably before Thanksgiving, said the NRF

By ·

The National Retail Federation today urged President Obama and Congress to come up with a plan to avoid the “fiscal cliff” by Thanksgiving, saying uncertainty over the pending combination of tax hikes and spending cuts threatens consumer confidence during the holiday shopping season that begins on Black Friday.

“Although most economists have focused on the impact to the economy in 2013, more immediate economic consequences could occur over the next few weeks if consumers lose confidence in the ability of policymakers to work together to solve tough problems,” NRF President and CEO Matthew Shay said. “Any disruption to consumer confidence and spending during this season could prompt a crisis for retailers and the millions of U.S. jobs the industry supports.”

“Rather than setting New Year’s Eve as its deadline, Washington needs to act quickly to set in place a framework for resolving this situation, preferably before Thanksgiving,” Shay said. “Demonstrating the ability to work in a bipartisan manner will ease consumers’ worries and avoid severe economic consequences during the single most crucial spending season of the entire year.”

Shay’s comments came in a letter sent today to the president and all members of the House and Senate.

Shay explained in the letter that many retailers make a quarter or more of their annual sales during the November-December holiday season. NRF is forecasting that holiday sales will increase 4.1 percent to $586.1 billion this year. In a recent NRF survey, about two-thirds of shoppers said the fiscal cliff and other economic concerns would affect their holiday spending.

“It is particularly important during this debate that lawmakers listen to small businesses, including the independent Main Street retail stores that are some of our nation’s most important job creators,” Shay said. “Many small business owners report their business income on their personal income tax returns and will be critically impacted by the outcome of this debate.”

Despite the prominence of large chains, 96 percent of U.S. retailers are small businesses with only a single location, and 26 percent of NRF members have less than $1 million in annual sales.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Management · Procurement · Supply Chain · All Topics
Latest Whitepaper
Six Ways Cloud ERP Supports Rapid Innovation
Kenandy is a new approach to ERP that lets you and your team focus on driving innovation, creating new product lines, and expanding your customer base even as you improve your business operations.
Download Today!
From the November 2016 Issue
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL) provider that could successfully combine transportation services and technology capabilities under one roof.
Warehouse & DC Operations Survey: Ready to confront complexity
2016 Quest for Quality Awards Dinner
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Best Practices: How to Efficiently Leverage APIs to Increase Your Net Income
Both legacy and modern technology leaders agree that leveraging API connectivity is critical in keeping up with the pace of a world that demands not only speed and agility, but also a deep level of visibility. During this session a panel of technology and industry experts discuss impact APIs can have on annual net income and market capitalization.
Register Today!
EDITORS' PICKS
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...

Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...