Legislative, Regulatory & Legal

Seattle – Starbucks Corp. plans to move its European headquarters to London, from its current base in Amsterdam, Netherlands. The move will both concentrate some executives in the U.K., including some transferred from the Amsterdam office, and also increase the tax Starbucks pays in the U.K.

Starbucks paid an estimated $16.8 million in U.K. taxes during 2013 and has said it expects to pay the same amount in 2014. The company has received criticism in the U.K. for allegedly using complex accounting procedures to minimize the tax it pays there.

The National Retail Federation today told a congressional panel that the retail industry is committed to safeguarding and protecting consumer data and information from highly motivated and sophisticated cybercriminals and hackers.

“Retailers make significant investments every year in order to protect [consumer] data,” NRF VP for retail technologies Tom Litchford testified. “Collectively, retailers spend billions of dollars annually to safeguard data and fight fraud, as well as hundreds of millions annually on [credit card security] compliance.”

Washington, D.C. - The National Retail Federation told a congressional panel on April 16 that the retail industry is committed to safeguarding and protecting consumer data and information from cybercriminals and hackers. Tom Litchford, NRF VP for retail technologies, testified before a field hearing of the House Homeland Security Subcommittee on Cybersecurity, Infrastructure Protection, and Security Technologies, where he outlined specific steps that the nation’s retailers are pursuing and implementing to identify, prevent and combat cyber attacks.

Camp Hill, Pa. - Rite Aid pharmacy workers in 77 stores across the state of Michigan have voted to ratify a new, three-year agreement negotiated by United Food and Commercial Workers (UFCW) Local 876, and the Rite Aid Bargaining Committee. The agreement guarantees 7% wage increases for all 792 union members; provides both pension and healthcare benefits; and preserves all current holiday, vacation and personal days.

Washington, D.C. - The National Retail Federation is urging maritime management and the union representing dockworkers along the U.S. West Coast ports to expedite pending contract negotiations and reach agreement on a new deal well in advance of the expiration of the current contract this summer. NRF believes expedited negotiations would strengthen the supply chain and provide shippers and retailers the certainty they need to utilize the West Coast ports during the holiday shipping period, which begins in July.

Pleasanton, Calif. -- Safeway Inc. has received a request for additional information and documents from the Federal Trade Commission ("FTC") in connection with the FTC's review of the previously announced agreement and plan of merger among Safeway and Albertson’s.

New York -- Increasing tax burdens (76%) are the top concern of retail CEOs, according to PwC’s 17th Annual Global CEO Survey. Worries about the tax burden were followed by the government response to the fiscal deficit and debt burden (74%), over-regulation (69%), the high and volatile prices of raw materials (68%), and exchange rate volatility (64%).

It looks like the battle between eBay and investor Carl Icahn is over — for the time being. Icahn is withdrawing his proposal to separate the company’s PayPal business as well as his two nominees to the company’s board of directors.

eBay reportedly reached an agreement with Icahn, ending the proxy contest before the upcoming annual meeting of stockholders.