e-musicbusinessgame.com

e-musicbusinessgame.com – When L. & J.G. Stickley Inc. learned in August that its New Jersey furniture dealer, Bograd’s Fine Furniture, in Riverdale, would be going out of business, President and CEO Aminy Audi knew she either had to quickly locate another high-end dealer, or open the company’s first showroom in the state.

“We don’t like having a void in the marketplace … and we didn’t find any high-end dealers for us in that market,” Audi said. “We already have a showroom in Manhattan and one in White Plains, so it made sense for us to open a showroom in Paramus. Now we can pool our advertising and delivery and other operational functions with the proximity.”

Although Stickley’s new 22,364-square-foot showroom, at the intersection of Route 17 and Route 4, is nearly 20 miles away from Bograd’s facility, Audi said the Paramus location “has a lot more traffic and is a more high-end market.”

Stickley’s broker, the Hackensack office of commercial real estate firm NAI James E. Hanson, announced the sale of the retail property on Wednesday. Terms of the sale were not disclosed.

“This is the perfect space for the company’s expansion into the vital Bergen County retail market,” said Joan Cenicola, vice president of NAI Hanson, in a statement.

With its Paramus location, the Manlius, N.Y.-based company now has 15 showrooms throughout the United States and Canada.

According to Audi, Stickley has just begun the interview process to fill 20 positions at the

Paramus showroom. She hopes to open the showroom by Labor Day.

e-musicbusinessgame.com – While bar and restaurant owners in New Jersey may think business is picking up, they could still lose thousands of dollars in sales each week from unnecessary inventory and inaccurate beer pouring, according to Sabino Rodano, a co-owner of the Hoboken branch of beverage inventory management company BevIntel LLC.

To help restaurant owners recover and reinvest those losses into their business, BevIntel has developed technology that measures and records draught beer usage in real time and matches it to sales data.

According to Rodano, the service runs between $300 and $400 a month, depending on how many beer lines the device is hooked up to, but on average, BevIntel’s 75 New Jersey clients have noticed a 16 percent increase in profits.

By using BevIntel’s monitoring system for the past four years, sales at Texas Arizona, in Hoboken, have increased by 42.5 percent, and draft beer shortage has decreased from 27.5 percent to 2.5 percent, Rodano said.

“Maybe a bar’s shortage margins were 4 percent before, and now they’re 1 percent with BevIntel, but even a few points in shortage makes a big difference, especially when you’re running 50,000 or 60,000 ounces of craft beer a week,” Rodano said. “Where there’s smoke, there’s fire, so a shortage on draft beer probably means there’s a shortage on other products, and we can monitor everything through a traditional audit service.”

Rodano said the traditional Liquor Inventory Control System service — where BevIntel employees physically weigh kegs, liquor bottles and other beverage inventory on a weekly basis — costs $275 a week, but can return between $2,000 to $5,000 a week on the investment in increased profits and decreased costs.

However, Rodano said it’s more beneficial for bars and restaurants that offer craft beers — where six barrels usually cost $150 to $200 — to use the InteliTap technology, since “you don’t want a week to go by before you know if you’re running a shortage.”

“A lot of my clients — mostly mom-and-pop establishments — go by the national average on core costs. But those are misleading figures to use … because some bars sell high-end wine, so their costs will be higher,” Rodano said. “If you’re bringing in $10,000 a week, but are in a shortage range of 20 percent, you should be doing more like $12,500 a week. You may think you’re doing well, but that loss of $2,500 a week could make or break a business.”

Rodano said his clients have reinvested their savings from the InteliTap technology and auditing service into renovations and better quality taps, which he said allows them to “make even more returns.”

“Some bars would have 18 bottle of Midori on the shelf, and no one uses that many,” Rodano said. “With this technology, we can see what products are moving and what aren’t, and decreasing purchases they don’t need to put money into things they do.”

e-musicbusinessgame.com – The state’s growing data center market is tapping into the retail industry, as more retailers recognize the risk involved in offering mobile technology, but face increasing costs to secure it.

“Many retail organizations are seeing different security breaches in point-of-sale applications, but they don’t have all of the expertise to focus on how to secure their critical application,” said Rick Crutchley, a senior vice president at IO Data Centers, which has a data center hub in Edison. “If we deploy that technology in our building, and you, as a retail customer, subscribe to that as a service … because you can’t afford to secure it properly, that can help manage costs.”

According to a report by BDO USA LLP, among the nation’s top 100 retailers by revenue, consumer data protection jumped 31 percent from last year’s survey as the 12th most-cited risk for retailers, and maintenance of IT systems leapt to the 6th spot from last year’s 12th.

Sean Brady, who leads Cushman & Wakefield’s data center advisory team, said that spike in concern over data protection stems from the fact that every major firm in the country has dealt with some type of security breach in the past three or four years.

“Wikileaks has been saying they have information on big corporations that can hurt them, and there are some retailers in there, because they’re going after corporations that deal with consumers and customer information,” Brady said.

According to Al Ferrara, national director of retail and consumer product practice for BDO, retailers are “always going to increase investments in IT,” noting the industry’s largest investment right now is in mobile applications.

“A security breach is the exception, not the norm, and breaches that have occurred in retail aren’t a cause and effect, where a customer is saying they’re not shopping there anymore,” Ferrara said. “But the data that goes along with a breach is a real concern … and the security to support these wireless investments is starting to match in dollars.”

Crutchley said New Jersey’s growing outsourced data center market can give retailers a competitive advantage.

“It’s a very pricey endeavor to have all of the critical structure to manage a data center,” Crutchley said. “If you can help customers deploy the technology quickly and for their discreet needs, just in time, that can help lower costs for the security.”

e-musicbusinessgame.com – State tax collections in April fell short of budget expectations and declined versus April 2011, leaving New Jersey’s revenues $230.3 million behind February’s revised forecasts for the first 10 months of the fiscal year.

The state took in $3.26 billion last month, down from $3.32 billion last year and 5 percent lower than the $3.44 billion forecast listed in the governor’s revised fiscal 2012 budget.

For the first 10 months of the fiscal year, revenue was $19.3 billion, a half-billion-dollar increase over the $18.8 billion brought in by this point last year.

In a press release, Treasury’s chief economist, Charles Steindel, emphasized the positive numbers, saying “reliable indicators” suggest the state’s economy continues to grow.

“Economic growth has brought in more revenue for the state in fiscal year 2012 than in 2011,” he said, “which is a good sign for the future.”

Corporate business taxes fell to $463 million in April 2012, down from $547.1 million last year. Income taxes also fell year-over-year in April, totaling $1.73 million in 2012 versus $1.75 million in April 2011. Sales taxes, however, rose to $732.8 million last month, up from $705.8 million last year.

The slumping revenue figures come at a time when Gov. Chris Christie wants to phase in a 10 percent income tax cut, and legislative Democrats are offering a counter-proposal that would emphasize property tax cuts. The governor was reportedly set to announce a tax cut deal with Senate President Stephen Sweeney (D-West Deptford) on Monday, but a joint press conference was canceled at the last minute.

Michael Egenton, senior vice president at the New Jersey Chamber of Commerce, said despite the lackluster revenue numbers, he’s optimistic about the prospects of a tax cut.

“I don’t think we should lose the focus and strategic vision of what the benefit of the income tax will mean, particularly to growth in the small, middle-market (sector),” he said.

Egenton said an income tax cut would help chamber members large and small hire more employees and reinforce the idea that New Jersey is a good place to grow and maintain a business.

And regardless of what comes out of the tax cut negotiations currently taking place, Egenton said he’s happy to both parties working together now instead of waiting until the last minute next month.

“We commend the fact that those discussions are going on,” he said.

But Assembly Majority Leader Lou Greenwald was quick to tout the revenue numbers as evidence the governor “built his plan on a shaky foundation.”

Greenwald (D-Voorhees) argued Christie’s income tax cut disproportionately benefits millionaires while giving “crumbs” to the middle class. He said the Democrats’ plan would ask the wealthy to give up tax breaks.

“As a result, our plan delivers real property tax relief to 95 percent of homeowners, not just a town hall slogan built on a house of cards,” Greenwald said.

e-musicbusinessgame.com – With failed legislation in Minnesota to collect sales tax from companies affiliated with online retailers like Amazon.com, retail groups in New Jersey are putting more pressure on legislators to pass similar bills at the state and federal level.

“It’s been devastating to small businesses and brick-and-mortar retailers. The appliance area has had to create discounts to be able to match their online competition’s lack of sales tax,” said Robert Prunetti, president and CEO of the Mercer Regional Chamber of Commerce. “Even if the (nexus) bill doesn’t go through in New Jersey, I hope the state sees the importance of this legislation. It should be moved forward first, and then let it be challenged.”

According to a spokesman for the Retail Industry Leaders Association, it is important for states to take matters into their own hands, with federal legislation on the issue stalled in Washington.

Nearly a dozen Republican governors have thrown their support behind the federal legislation, which would grant states the authority to enforce sales tax and use laws on all retailers doing business in their state, including online retailer affiliates. Gov. Chris Christie has not yet made a public statement on the federal legislation introduced in Congress, or New Jersey’s nexus bill, introduced by Sen. Raymond J. Lesniak (D-Union).

According to Rebecca Madigan, executive director of the Performance Marketing Association, which represents companies that earn income from advertisements placed on their websites, Minnesota’s nexus tax law “would only harm small online businesses. It wouldn’t compel any online retailers to collect sales tax (or) ‘level the playing field,’ as touted.”

But Mike Grotz, owner of Cyclesport, in Park Ridge, said if New Jersey passes similar legislation, it will remove the disadvantage his company faces from online retailers.

“With the way the economy has gone, the reality of it is that most small businesses and midsized businesses have to work harder than we used to just to get to the same point as online stores,” Grotz said. “When you sell higher-ticket items … like $20,000 bikes, like I do, there’s a substantial disadvantage with an even small percent sales tax, when someone can buy it online for much less money. States are in a situation where they need more tax revenue, not less, especially in New Jersey. I don’t know why they would support these online affiliates.”

According to Jason Brewer, vice president of communications and advocacy for the Retail Industry Leaders Association, unlike the nexus bill that was defeated in Minnesota on Thursday — which would have counted online companies affiliated with online retailers like Amazon.com as a physical presence in the state — New Jersey’s bill would only force subsidiaries of Amazon — like Diapers.com owner Quidsi Inc., in Jersey City — to collect sales tax.

“Amazon is going to expand into New Jersey. At the end of the day, taxpayers will look at Amazon and say, ‘You’re using our infrastructure, so why aren’t you collecting sales tax like everybody else?’ ” Brewer said. “It’s important for governors to support this legislation to remind lawmakers in Washington that this isn’t a new tax. We would love to have Governor Christie’s support.”

But Matthew Cheng, president of West New York-based online coupon site eCoupons.com, said the language of the state Senate bill — and a similar bill that passed the state Assembly — does not specify what online businesses would be subject to the law.

“Businesses of mine don’t have a presence in New Jersey, so I’m concerned if they would consider us a retailer in state,” Cheng said. “The way both bills are worded is that the Division of Taxation will have to sit down and figure out if they’re going to include independent contractors under the law and go after us. It’s all up to the director’s discretion.”

Though Cheng previously said he would relocate out of the state if the current legislation was signed into law, he said even if the nexus tax goes into effect immediately, the division’s uncertainty in defining online affiliates may give him “a little bit of time to figure out what’s going on.”

e-musicbusinessgame.com – Union-based Bed Bath & Beyond Inc. today agreed to acquire Cost Plus Inc., in Oakland, Calif., for $495 million in cash, adding an additional 259 stores nationwide and a new e-commerce platform to the home furnishings company.

Bed Bath & Beyond, which operates 1,173 locations nationwide, has agreed to make a cash offer for all outstanding shares of Cost Plus at $22 per share — a 22 percent increase from the company’s $17.99 closing price on Tuesday.

Since 2010, Bed Bath & Beyond has opened four in-store Cost Plus specialty-foods shops leading up to today’s transaction, the company said in a statement.

Both companies’ boards have approved the deal, and Bed Bath & Beyond expects it to close before August to slightly increase its earnings in the current year. Red Mountain Capital Partners LLC and Stephens Holdings LLC — the two largest Cost Plus shareholders — have agreed to enter into the deal, the company said in a statement.

In 2011, Cost Plus’ revenues totaled $963.8 million, while Bed Bath & Beyond’s were $9.5 billion.

Following the release of the companies’ statement, three law firms separately announced they are investigating potential claims against Cost Plus’ board of directors for failing to disclose information about the transaction to shareholders.

e-musicbusinessgame.com – To drive a face-to-face relationship between health insurers and consumers, Horizon Blue Cross Blue Shield of New Jersey will open the state’s first health insurance retail store this summer in Moorestown.

According to Joseph Albano, vice president of consumer and senior markets, Horizon’s strategy for expanding into the retail market stems from a nationwide shift in philosophy of health insurance as a retail product, which he said “would have happened without health care reform” in 2014.

“Employers are driving more of a cost share and decision making (for health insurance) down to their employees, and they look to companies like us to help them make more informed decisions,” Albano said. “Using this retail setting and putting customers and prospective customers face to face with our associates can be a way that we can help folks make those decisions.”

Horizon has hired 10 new employees to staff the 4,500-square-foot retail center, located in the East Gate Square Shopping Center on Route 38. The facility will include private meeting rooms, interactive work stations for benefits and claims information, and a children’s entertainment center.

Though Horizon’s highest volume of consumer membership is in North Jersey, Albano said the retail store — which is in proximity to the company’s headquarters in Mount Laurel — will give Horizon the opportunity to grow and advance its membership and become more visible in the southern part of state.

In November, Horizon launched an ongoing mobile outreach campaign throughout Ocean County to offer customers guided research on health and wellness information and provide answers about plans and claims. While the Blue to You van initiative was targeted at senior communities and Medicare recipients, Albano said the retail store is not specific to any market or customer base.

“The primary reason for the retail setting is about enhancing the experience for our customers and anybody who comes into the center … with good old-fashioned interactions,” Albano said. “We want to help people understand their benefits more, and become better-informed customers.”

e-musicbusinessgame.com – With improving cash flows and revenues, small-business owners are now finding it less difficult to obtain credit, according to a Wells Fargo and Gallup quarterly survey that polled 603 small-business owners in various industries nationwide, and New Jersey appears to be closely tracking the trend.

“The loan volume and loan pipeline in New Jersey are very supportive of the trend nationally, in terms of increased optimism,” said John Cole, Wells Fargo’s New Jersey, New York and Connecticut business banking manager. “Demand for credit is improving as small-business owners are more willing to invest.”

According to the survey, conducted between April 2 and 6, 39 percent of respondents said they were able to obtain all the credit they needed in the past year, and the number of small-business owners who found it difficult to secure financing in the last 12 months fell from 33 percent in January 2012 to 30 percent. Small-business owners who expect to face difficulty in obtaining credit over the next year also declined, from 38 percent to 32 percent, and 14 percent of respondents said they planned to apply for new credit within 12 months.

Cole said banks have not changed how they underwrite credit from the previous quarter, so small businesses’ increased access to financing stems from improved cash flows and revenues, since the ability to get credit improves as a business gains more cash flow.

“As sustained cash flow improvement occurs, businesses need to grow and compete, and one way to accelerate is to use a loan to make an investment quicker,” Cole said. “If they have to do it from their own equity, it might take twice as long. That becomes the case for borrowing.”

Though small-business owners are finding it easier to gain access to financing, a majority of respondents indicated they use credit to fulfill short-term needs — like keeping their business open, increasing profits and improving day-to-day operations — while only 21 percent said having credit has allowed them to hire more employees.

“I wish it was a bigger number, but at least you are seeing some of that hiring,” Cole said. “We’re seeing a lag effect … but the picture is getting better.”

e-musicbusinessgame.com – A California company is planning to open what it’s billing as six medical marijuana “superstores” in New Jersey, with the first opening sometime this summer.

Sanjeev and Parita Patel, a Union couple, have purchased the exclusive franchise rights for New Jersey from WeGrow, which sells hydroponic supplies.

The company, which bills itself as “The First Honest Hydro Store,” has headquarters in Oakland, Calif., and stores in Sacramento, Phoenix and Washington, D.C.

New Jersey has placed tight controls on the growth and distribution of the substance, with only six nonprofit organizations able to participate. However, Sanjeev Patel expects to have enough customers, with much of the business coming from those who are growing plants other than marijuana hydroponically.

“Aside from just medical marijuana, there’s urban agriculture that has really piqued our interest,” he said.

Patel said he is not necessarily concerned about the restrictions the state has placed on medical marijuana. He said the stores will not be able to talk to customers other than the licensed dispensaries about marijuana.

“This was an entrepreneurial venture that my wife and I entered into, but we’re interested in the future of the hydroponic industry as a whole,” he said, adding that he believes medical marijuana will help those with terminal illnesses.

The state program has identified the six nonprofit alternative treatment centers, which are in various stages of identifying locations and applying for permits, according to state Department of Health and Senior Services officials.

On April 16, the department issued a permit to Greenleaf Compassion Center to begin growing the marijuana, but the organization still must receive a permit to dispense the substance. Home growing is not authorized under the program, state officials said.

Sanjeev Patel said they had a long-term interest in medical marijuana and became interested in being a WeGrow franchisee after seeing a segment on the TV channel HDNet about the company.

While the Patels are planning six stores in the near term, they purchased the rights for as many as 18, he said.

They haven’t determined the locations for the stores, although they do plan to locate them near dispensaries, Patel said. He expects the first store to be centrally located, with good transportation access. The planned opening will occur this summer, according to the company’s announcement.

The Patel family has experience as hotel franchise operators, including two Crown Plazas, two Clarions, a Days Inn and a Holiday Inn, as well as independent hotels in Ohio and India. Their only New Jersey hotel is the Crown Plaza in Cherry Hill. Parita Patel is a real estate attorney.

Sanjeev Patel said he was excited about the state’s medical marijuana program, but that the growth in hydroponic farming has opened more opportunities. He noted that a 100,000-square-foot greenhouse has been planned in Brooklyn, N.Y.

The products sold at the stores include hydroponic lighting, filtration systems, trays and pots, as well as books. It also hosts classes.

e-musicbusinessgame.com – Prudential’s first freestanding insurance agency outside Newark marks its 135th anniversary this week, according to the current head of the office.

Opened at 114 Ellison St., in Paterson, on April 28, 1877, the office — still known by its internal company code name of “Pat One” — has moved several times, settling in East Hanover in 2001.

“With Paterson being the next-biggest city closest to Newark at the time, it was a very industrialized city. All the silk mills were there, so it seemed the likely place” to open a satellite office, said Bob Formato, managing director, who heads up what is now Prudential Insurance Co. of America’s West Essex agency, in East Hanover.

When the office first opened, workers could buy life insurance or “last expense” policies. The agency moved several times, with stops along the way — including Fair Lawn, Saddle Brook and Bloomfield — before moving to East Hanover.

The business has evolved since the 1870s. The agency now offers the company’s line of financial services, and its territory covers Paterson, Woodland Park, and the lower parts of Bergen, Essex, Hudson, and Passaic counties.

Formato said he did not know the number of employees at the agency in its first year, but that 70 agents now work in the Eagle Rock Avenue office.

“One of the things that has not changed since back in the 1870s — clients still come in to what we refer to as our public window, and they can pay their premiums here,” Formato said.