Casey Chroust Executive Vice President Retail Industry Leaders Association (RILA )

1. SUPPORTING A NETWORK OF SAFETY AND HEALTH RETAIL LEADERS: America’s Retail Industry Casey Chroust Executive Vice President Retail Industry Leaders Association (RILA)

2. RILA HERITAGE

3. OUR MEMBERS ARE INDUSTRY LEADERS

4. RILA HISTORY Mass Retailing Institute Incorporated Changed name to National Mass Retailing Institute (NMRI) NMRI merged with Association of General Merchandise Chains (AGMC) Changed name to International Mass Retail Assn. (IMRA) Changed name to Retail Industry Leaders Association (RILA) 1969 1976 1986 1988 2004 Founding Members:

5. RILA EXECUTIVE COMMITTEE CHAIRMAN VICE CHAIRMAN SECRETARY Gregg Steinhafel Chairman, President & CEO Eduardo Castro-Wright Vice Chairman William Rhodes Chairman, President & CEO TREASURER IMMEDIATE PAST CHAIRMAN AT-LARGE Richard DreilingChairman & CEO Gregory Wasson CEO & President Robert Niblock Chairman & CEO

6. THE RETAIL INDUSTRY TODAY

7. CHANGES IN THE RETAIL INDUSTRY Many regional discount chains became RILA’s first members, but their market share wasn’t near the department store channel, which at the time included JCPenney, Sears and other regional and national chains 1960’s General merchandise discounters started to decline, but these decades saw the birth and growth of the “category killer” or specialty big box stores (e.g. Home Depot, Best Buy) 1970-80’s By the end of this decade, only 3 national ‘discounters’ remain – Target, Wal-Mart, Kmart – but specialty big box and dollar store channel booming. This decade also saw the death of the channel specific shopper – now everyone shops everywhere. 1990’s Segments effectively irrelevant as mass retailers sell food, food retailers sell general merchandise, drug stores become convenience stores and convenience stores become food shopping destinations.  Growth in online shopping with management of shoppers across channels key. 2000’s

8. COMPLETE SHIFT TO GLOBAL SOURCING

9. RETAIL AS A LEADING EMPLOYER The retail industry is the second largest industry in the U.S. It is responsible for approximately 12% of all US employment with over $3.8 trillion in sales annually.

10. CHANGES IN THE RETAIL INDUSTRYRANKING BASED ON ANNUAL SALES Source: STORES Magazine *RILA Member

11. THE ECONOMIC LANDSCAPE

12. THE ECONOMY

13. THE HIGHLIGHTS • Bright spots in certain segments and brands • Adjusted merchandising strategies

14. THE HIGHLIGHTS • Adjusted marketing and advertising • Incredibly heavy sales and promotions

15. THE HIGHLIGHTS • Holidays blurred and earlier than ever!

16. A TURNING POINT ? Fed Chairman Ben Bernanke “From a technical perspective, the recession is very likely over at this point.” Brookings Institute, 09/15/09 Improvement in Some Fundamentals Existing home sales up, consumer spending up, personal income up, savings rate fell. Holiday 2009 Shopping Flat Subdued retail sales in last quarter of 2009, first quarter of 2010 set for expansion in alignment of economic recovery

17. SIGN OF THE TIMES 1996 Toy of the Year Tickle Me Elmo 2009 Toy of the Year Zhu Zhu Pets Hamster $30  $1500 $8  $60

18. RETAILERS’ COMMITMENT TO WORKPLACE HEALTH & SAFETY

19. OPEN DOOR POLICY • Employees are able to raise any safety issues or concerns with their supervisors • Supervisors take those comments seriously to investigate and respond quickly

20. NEW HIRE ORIENTATION • Providing all newly hired employees with safety orientation to assure compliance and minimize potential risk of injury • Using video training, tailored web tools and team seminars

21. ABOVE AND BEYOND • Hazard communication and training for all associates • Electrical and powered equipment training for team members in warehouses or distribution centers • Ladder and merchandise storing procedures • Proper housekeeping to avoid slips, trips, and falls • Food safety service training to prevent food preparation injuries and food-borne illnesses

22. DEDICATED SAFETY TEAMS AND LEADERSHIP Maintenance Staff Operations Store Manager Store Associate Team Leader Corporate Safety Leadership Shipping & Receiving Loss Prevention Personnel

23. INTERNAL SAFETY AUDITS • Conduct routine internal safety audits to proactively prevent or address health and safety issues • Thoroughly document self-assessments and use to develop best practices to help employees more safely perform any essential task within the workplace • Proactively perform building safety inspections to prevent or address physical safety issues

24. INCIDENCE RATES OF NON-FATAL OCCUPATIONAL INJURIES AND ILLNESSES Retail Trade Total Recordable Cases The incidence rates represent the number of injuries and illnesses per 100 full-time workers and were calculated as: (N/EH) X 20,000 where N=number of injuries and illnesses; EH=total hours worked by all employees during the calendar year; and 200,000-base for 100 equivalent full-time workers (working 40 hours per week, 50 weeks per year) *Source: Bureau of Labor Statistics, Workplace Injuries and illnesses in 1999-2008, http://www.bls.gov/iif/oshsum.htm

25. NUMBERS OF NON-FATAL OCCUPATIONAL INJURIES AND ILLNESSES (thousands) Retail Trade Total Recordable Cases *Source: Bureau of Labor Statistics, Workplace Injuries and illnesses in 1999-2008, http://www.bls.gov/iif/oshsum.htm

26. RETAILERS WORKING TOGETHER

27. RILA SAFETY APPROACH & COMMITTEES Government Affairs Retail Operations Departments OSHA Policy Working Group Workplace Safety Committee Workforce Labor Committee Committees

28. RILA CORE COMPETENCIES

29. RILA FACILITATES LIFE-LONG LEARNING • Forum for over 800 loss prevention, safety and auditing executives to network • Educational and topic-specific sessions to focus on the ever-changing retail landscape and needs • Open forums and open table for executives to share best practices and benchmark

30. THANK YOU! Casey Chroust Executive Vice President, RILA casey.chroust@rila.org • 703-600-2014