1. Minimum Wage Increase: Effect on the Retail Market Alexandra Chotin | Jody Finch | Donald Eaton | Gene Engholm | Aaron Goldblatt

2. Federal Minimum Wage ❖ Introduced October 1938 ❖ Created to protect those producing goods for interstate commerce ❖ 1961 - Expanded to non-exempt employee

3. Retail Industry: Origins Retailer - Sale of Goods for personal consumption from a fixed location 1846 - First U.S Department store established Marble Palace. Retail began in large cities - expanded to urban population quickly via catalog mail order.

4. Retail Industry: Inside View Up FlowDown Flow Production Finished Product Raw Material Assembly Warehouse/Distribution Retail Channel Consumer

5. Federal Minimum Wage ❖ 60% of Minimum Wage workers are between 16 and 30 years old ❖ Typically low-skill high-labor jobs including retail and service which require little or no training.

6. Growth in Teen Unemployment ❖ Washington D.C began indexing minimum wage in 1999. ❖ Since implementation D.C has experienced a 10% growth in teenage unemployment verses a 4% growth nationally.

7. State Minimum Wage Laws Match Federal Greater than Federal No Law Less than Federal

8. Minimum Wage: Effects on Retail - Frontline Employee Increase in Minimum Wage Means: - Fewer Employees Maintaining Inventory - Fewer Employees assisting customers - Worsened buying experience

9. Minimum Wage: Effects on Retail - Logistics Increase in Minimum Wage means: - Shift in shipping practices Slower shipping = cheaper shipping - Longer product lead time - Increased planning and inventory labor

10. Minimum Wage: Effects on Retail - Wholesale Increase in Minimum Wage means: - Increased Secondary Trading - Decreased employment - Increased Automation - Increased Direct-to-Customer Sales

11. Minimum Wage: Effects on Retail - Analysis Increase in minimum wage adversely affects all business but for retail the adversely affects entire process. Increased minimum wage causes: Higher Production Cost Higher Transportation Cost Higher Front-line employee Cost Increased pressure for direct market wholesale

12. Minimum Wage Increase: Effect on the Retail Market Questions or Comments? Alexandra Chotin | Jody Finch | Donald Eaton | Gene Engholm | Aaron Goldblatt