Casey ChroustExecutive Vice President

Retail Industry Leaders Association (RILA)

SUPPORTING A NETWORK OF SAFETY AND HEALTH RETAIL

LEADERS:

America’s Retail Industry

RILA HERITAGE

OUR MEMBERS ARE INDUSTRY LEADERS

Founding Members:

RILA HISTORY

1969 1976 1986 1988 2004

Mass Retailing Institute Incorporated

Changed name to National Mass Retailing Institute (NMRI)

NMRI merged with Association of General Merchandise Chains (AGMC)

Changed name to International Mass Retail Assn. (IMRA)

Changed name to Retail Industry Leaders Association(RILA)

RILA EXECUTIVE COMMITTEE

CHAIRMAN VICE CHAIRMAN SECRETARY

TREASURER IMMEDIATE PAST CHAIRMAN AT-LARGE

Robert NiblockChairman & CEO

Eduardo Castro-Wright Vice Chairman

Gregg Steinhafel Chairman, President & CEO

Gregory Wasson CEO & President

William RhodesChairman, President & CEO

Richard Dreiling Chairman & CEO

THE RETAIL INDUSTRY TODAY

Many regional discount chains became RILA’s first members, but their market share wasn’t near the department store channel, which at the time included JCPenney, Sears and other regional and national chains

CHANGES IN THE RETAIL INDUSTRY

General merchandise discounters started to decline, but these decades saw the birth and growth of the “category killer” or specialty big box stores (e.g. Home Depot, Best Buy)

By the end of this decade, only 3 national ‘discounters’ remain – Target, Wal-Mart, Kmart – but specialty big box and dollar store channel booming. This decade also saw the death of the channel specific shopper – now everyone shops everywhere.

Segments effectively irrelevant as mass retailers sell food, food retailers sell general merchandise, drug stores become convenience stores and convenience stores become food shopping destinations.  Growth in online shopping with management of shoppers across channels key.

1960’s

1970-80’s

1990’s

2000’s

COMPLETE SHIFT TO GLOBAL SOURCING

RETAIL AS A LEADING EMPLOYER

The retail industry is the second largest industry in the U.S. It is responsible for approximately 12% of all US employment with over $3.8 trillion in sales annually.

CHANGES IN THE RETAIL INDUSTRYRANKING BASED ON ANNUAL SALES

Retailer 1999 2009

Wal-Mart* 1 1

Costco* 10 3

The Home Depot* 4 4

Target* 7 6

Walgreen* 14 7

Lowes* 15 9

Best Buy* 21 11

Publix* 19 15

Source: STORES Magazine*RILA Member

THE ECONOMIC LANDSCAPE

THE ECONOMY

THE HIGHLIGHTS

• Bright spots in certain segments and brands

• Adjusted merchandising strategies

THE HIGHLIGHTS

• Adjusted marketing and advertising

• Incredibly heavy sales and promotions

THE HIGHLIGHTS

• Holidays blurred and earlier than ever!

A TURNING POINT ?

Fed Chairman Ben Bernanke

“From a technical perspective, the recession is very likely over at this point.”

Brookings Institute, 09/15/09

Improvement in Some Fundamentals

Existing home sales up, consumer spending up, personal income up, savings rate fell.

Holiday 2009 Shopping Flat

Subdued retail sales in last quarter of 2009, first quarter of 2010 set for expansion in alignment of economic recovery

SIGN OF THE TIMES

2009 Toy of the YearZhu Zhu Pets Hamster

1996 Toy of the YearTickle Me Elmo

$30 $1500

$8 $60

RETAILERS’ COMMITMENT TO WORKPLACE HEALTH & SAFETY

OPEN DOOR POLICY

• Employees are able to raise any safety issues or concerns with their supervisors

• Supervisors take those comments seriously to investigate and respond quickly

NEW HIRE ORIENTATION

• Providing all newly hired employees with safety orientation to assure compliance and minimize potential risk of injury• Using video training, tailored web tools and team seminars

ABOVE AND BEYOND• Hazard communication and

training for all associates

• Electrical and powered equipment training for team members in warehouses or distribution centers

• Ladder and merchandise storing procedures

• Proper housekeeping to avoid slips, trips, and falls

• Food safety service training to prevent food preparation injuries and food-borne illnesses

DEDICATED SAFETY TEAMS AND LEADERSHIP

Store Associate

Team Leader

Shipping & Receiving

Store Manager

Loss Prevention Personnel

Maintenance StaffOperations

Corporate Safety

Leadership

INTERNAL SAFETY AUDITS

• Conduct routine internal safety audits to proactively prevent or address health and safety issues

• Thoroughly document self-assessments and use to develop best practices to help employees more safely perform any essential task within the workplace

• Proactively perform building safety inspections to prevent or address physical safety issues

INCIDENCE RATES OF NON-FATAL OCCUPATIONAL INJURIES AND

ILLNESSES

1999 2000 2001 2002 2003 2004 2005 2006 2007 20080

1

2

3

4

5

6

7

The incidence rates represent the number of injuries and illnesses per 100 full-time workers and were calculated as: (N/EH) X 20,000 where N=number of injuries and illnesses; EH=total hours worked by all employees during the calendar year; and 200,000-base for 100 equivalent full-time workers (working 40 hours per week, 50 weeks per year)

*Source: Bureau of Labor Statistics, Workplace Injuries and illnesses in 1999-2008, http://www.bls.gov/iif/oshsum.htm

Retail Trade Total Recordable Cases

NUMBERS OF NON-FATAL OCCUPATIONAL INJURIES AND

ILLNESSES

1999 2000 2001 2002 2003 2004 2005 2006 2007 20080

200

400

600

800

1000

1200

*Source: Bureau of Labor Statistics, Workplace Injuries and illnesses in 1999-2008, http://www.bls.gov/iif/oshsum.htm

Retail Trade Total Recordable Cases

(tho

usan

ds)

RETAILERS WORKING TOGETHER

RILA SAFETY APPROACH & COMMITTEES

Government

Affairs

Retail Operations

Workforce Labor

Committee

OSHA Policy

Working Group

Workplace Safety

Committee

Departments

Committees

RILA CORE COMPETENCIES

• Forum for over 800 loss prevention, safety and auditing executives to network

• Educational and topic-specific sessions to focus on the ever-changing retail landscape and needs

• Open forums and open table for executives to share best practices and benchmark

RILA FACILITATES LIFE-LONG LEARNING

THANK YOU!Casey Chroust

Executive Vice President, RILAcasey.chroust@rila.org • 703-600-2014