Over the last five years, he said, Starbucks has seen double-digit increases in healthcare costs for its employees, and company executives expect those expenses to jump another 14% this year. The reason costs keep shooting up is to offset the price of medical attention for the 45 million Americans who are without coverage, Schultz said.
Healthcare costs are one of the most vital issues facing retailers today, he said, stressing the importance of the industry providing benefits for employees. Such benefits will retain valuable employees, Schultz said. "It's good business," he said. "It produces a loyal workplace."
But healthcare reform is not on Congress' agenda this year, Schultz said. "Let's get away from the politics and do what's right," he urged. As a response, Starbucks will hold its own forums in Washington DC this year promoting the issue.
Meanwhile, a panel at the conference discussed, among other things, the need for retailers to provide living wages in order to retain good talent. That is especially true for luxury retailers, said Michael Silverstein, SVP of Boston Consulting Group. A sales associate that is less knowledgeable about the store's products than the consumer will lead to a "less enjoyable shopping experience," he said.
Michael Gould, chairman of Bloomingdale's, also stressed the importance of catering to the customer. "We're listening to what the customer wants and not what the manufacturer wants us to buy," he said.
The NRF's convention ends today.
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