Legislative, Regulatory & Legal

WASHINGTON — The National Retail Federation announced that it has issued an open letter to President Obama urging him to call for action on initiatives that support a strong retail sector when he delivers his State of the Union address later this month. The letter was signed by Macy’s chairman, president and CEO Terry Lundgren, who chairs the NRF doard of directors, and NRF president and CEO Matthew Shay.

ARLINGTON, Va. — The Retail Industry Leaders Association announced that Kirt Johnson will join the association as VP tax policy. 

An expert with nearly 30 years of experience navigating tax policy on Capitol Hill and in the private sector, Johnson will lead RILA’s tax agenda, including the pursuit of comprehensive tax reform. Johnson will also provide support to RILA’s aggressive campaign to level the playing field in terms of sales tax collection between Main Street retailers and their online competitors. 

MONTVALE, N.J. — Grocer A&P has announced plans to shutter 14 stores in four states as it prepares to emerge from bankruptcy.

The company has filed a motion with the U.S. Bankruptcy Court for the Southern District of New York seeking approval to close the stores. The store closures are expected to be completed in the company's fiscal first quarter, subject to court approval.

New York City -- Managed care company Health Net Inc. announced it will sell its Medicare Part D stand-alone prescription drug business to CVS Caremark for $160 million.

The business has about 400,000 members in 49 states and Washington, D.C., with annual revenue of approximately $490 million.

The deal is scheduled to close during the second quarter, pending approval from antitrust regulators.
 

Want to see what increased government regulation and its impact on business looks like? For a review of a new supply chain law in place in California and the reporting requirement it will impose on retailers, click here. 

PLEASANTON, Calif. — Safeway on Thursday announced the sale of 16 of its Genuardi's stores in the greater Philadelphia area to Giant Food Stores, a division of Ahold USA. Safeway will continue to operate these stores until the transaction closes, and the company is working through an orderly transition for all of these stores.

In addition, Safeway plans to close three Genuardi's stores and sell the remaining eight Genuardi's stores, which it will continue to operate while it is working with potential buyers.

In October of 2007, the U.K. newspaper, the Observer, reported that child workers, some as young as 10, were discovered working in an Indian textile factory in slave-like conditions to produce clothes for Gap Kids.  

HOFFMAN ESTATES, Ill. — Sears Holdings last week announced that it will close between 100 and 120 underperforming Sears and Kmart stores, following dismal holiday sales results for the brands.

The company said it has not yet identified which stores will be shuttered, but said that the closures are part of an overall plan to shift its focus from shoring up underperformers to concentrating its efforts on stronger stores.