A Message from the President
Council growth and diversity continues

(The Annual Report of Retail Council President and CEO James Sherin prepared for the Council's Executive Committee)

I am pleased to report that the Retail Council of New York State (RCNYS) has ended its 2008 -2009 Fiscal Year in solid financial condition. The Council and its for-profit subsidiary, Retail Council Services Corp. (RCSC), remain fiscally sound and once again experienced overall revenue growth from dues, insurance programs and other member services programs despite obvious and plentiful economic challenges and pressures.   

 

The Retail Council also achieved significant legislative victories on behalf of its diverse membership and, in fact, the entire retail industry. Both the number of laws which the Council lobbied and supported, as well as the large volume of bills blocked or vetoed which we opposed underscore the effectiveness of the Council’s government relations advocacy. I want to give special mention and recognition to the Council’s Government Relations team, under the able direction of Ted Potrikus, Executive Vice President and Director of Government Relations, for the diligent and effective management of the government affairs agenda throughout what was one of the most unconventional and tumultuous legislative sessions in memory. 

 

The entire management team and support staff of the Retail Council once again performed admirably in serving the needs and interests of our members. Rob Leonard, Vice President of Operations, Rebecca Flach, Vice President of Membership and Communication, and Mark Navin, Director of Sales and Development and their respective teams worked diligently and cooperatively with the single intent of creating, delivering and administering the very best member services and benefits possible. 

 

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FINANCES

RCNYS and RCSC underwent a complete independent financial audit by the accounting firm of Stulmaker, Kohn and Richardson at the conclusion of the 2008-2009 fiscal year. Although gross “sales” of Retail Council products and services decreased from the prior year, gross operating revenue for RCNYS/RCSC increased, resulting in another profitable year for the organization. Our fund balance remains strong and secure and total income for both companies surpassed budgeted projections while total expenses came in under budget for the year.

MEMBERSHIP DUES

Recruiting and maintaining members is a perpetual challenge in today’s unstable economy, but the staff of the Retail Council is working harder than ever to stay ahead of the curve. Our strong blend of practical money-saving benefits and value-added services has great appeal to any retailer, regardless of size and format.

 

Annual dues paid by members of the Retail Council who join to take advantage of our attractive benefits continue to be the main source of revenue for the association. 

 

In addition to the dues-paying membership, the Council, through Retail Council Services Corp. (RCSC) works on behalf of nearly 700 other businesses in New York and across the country. Through benefit partnerships with chambers of commerce, state retail associations, multiple state veterinary associations, insurance brokers, and other industry associations, the reach of RCNYS and RCSC has never been greater. The planned expansion of these partnership agreements with other industry associations promises additional revenue to the Council and increased membership opportunities.

 

MERCHANT SERVICES

 

While the Council’s credit card processing program offered to members through our long-standing partner Global Payments Direct, Inc. continues to be a very strong benefit program, it has suffered some losses over the past few years from outside competitive sources, resulting in diminished program volume. 

 

Revenue generated for RCNYS and RCSC operations, however, was up nearly 15% from the prior year. This revenue increase resulted largely from the addition of the Discover card processing to our current processing contract with Global.

 

As mentioned above, in addition to its core retail merchant membership base, the Retail Council, through the auspices of RCSC, administers and provides payment processing and other merchant services to 22 industry and professional organizations from coast to coast. We hope to expand these extended affiliations by offering a proven turn-key solution to the credit card processing needs of other membership organizations.

 

INSURANCE SERVICES

 

Worker’s Compensation Safety Group 493, managed by the Retail Council and underwritten by the New York State Insurance Fund, is once again the leading member service program offered by the Retail Council. 

 

The Safety Group continued its long tradition of declaring a sizeable year end dividend to qualified participants with a 37.5% dividend issued in November 2008 (for the 2007 policy year). Checks totaling more than $4.5 million were delivered to eligible Council members, continuing an outstanding 30 year history of consecutive dividends averaging 39%.

 

The Council’s Safety Group withstood another round of statutorily lowered premiums on top of economically depressed payrolls. The Council successfully counteracted these factors and ended the year on an upward trend. I would like to acknowledge and thank the Safety Group’s Executive Committee members Clint Hegeman, Sharon Fenno, Bob Kayne and Danny Kilbert for their guidance and support throughout the year.

 

The Statutory Disability Insurance (DBL) product offered to Council members and other businesses continues to be an attractive offering, producing notable premium savings to the policy holders and a reasonable commission back to RCSC. Business owners insurance and health and dental insurance options, each providing modest insurance commission revenue to RCSC, round out the menu of insurance products offered by the Retail Council.

 

OTHER MEMBER BENEFITS

 

The Retail Council continues to explore and develop other programs and services to benefit the retail constituency we serve. Over the past year, new benefit programs providing savings on electricity usage in member stores and homes (Energy Plus); discounts on FedEx shipping for both business inventory and outbound shipments (PartnerShip); and discounted payroll processing (E-chx) have generated significant member interest. We will continue to aggressively promote these new programs to our membership base and affiliates, and work on discovering other practical group programs and services that will save retailers both money and time.

 

RETAIL COUNCIL SERVICES CORP.

 

Retail Council Services Corp. (RCSC), the for-profit wholly owned subsidiary of the Retail Council of New York State, continues its successful operation. The RCSC Board of Directors meets three times annually, and is advised by outside counsel when necessary. Current RCSC Directors in addition to myself are John D’Aleo, Michael Keegan, Ted Potrikus, James Quaremba, Grace Sterrett, Leonard Tucker and Estelle Yarinsky. My thanks and appreciation to the Board for their valued service and important contributions.

ACKNOWLEDGMENTS

 

The sustained success of any organization is clearly dependent upon the collective and collaborative efforts of its entire staff, and the long-term success of the Retail Council is most certainly testament to that fact. My very talented management team of Executive Vice President and Director of Government Relations Ted Potrikus, and assisted by Vice President of Membership and Communication Rebecca Flach, Vice President of Finance and Operations Rob Leonard and Director of Sales and Development Mark Navin.

 

Special recognition to Rebecca and Rob was extended this year with the Board approving my recommendation that both employees be promoted to Vice Presidents of the Council. I am confident that Rebecca and Rob will continue their excellent service and dedication on behalf of the organization.

 

Ably assisting and supporting the management team in delivering the high-quality member service and attention to detail that our organization is known for are Virginia Hitchcock, Michele Coons, Laura Barry, Nicholl Bautochka, Dennis Eck, Ken Rutsky, Melissa Googas, Michelle Bruck and Nilsa Quandt. The energy, enthusiasm and expertise each and every one of them displays day in and day out is impressive and greatly appreciated.

 

In conclusion, I want to acknowledge with gratitude the support and contributions of the Board of Directors and Officers of the Retail Council during the past year. The Council’s bylaws were amended recently to create a revised Board of Directors to more efficiently oversee the operations of the Retail Council, and this past year was the first time the new Board officially convened.

 

My personal thanks and appreciation go to Chairman Michael Shaffer, Vice Chair Sharon Fenno, Secretary Tom Zapf, Treasurer Clint Hegeman and fellow Directors Michael Altier, Darcy Davidson, Mike Hiltner, Robert Kayne, Martha Miller, Ted Potrikus and Lisa Whitney for their time and talent to help oversee the business of the Retail Council. The organization continues to deliver and perform on behalf of the retail community in New York and I am privileged to lead the association to even greater heights going forward.

 

 

Respectfully submitted,

 

James R. Sherin

President and Chief Executive Officer

November 5, 2009