Finance

Overview  

Central to our finance offerings, RILA is focused on engendering retail-like competition across the ecosystem, taking proactive steps to limit risks to brands, and removing barriers to financial success for our members. That includes advocating for policies that level the playing field for all businesses and serving as a resource as retailers navigate today's economic landscape and evolving regulatory requirements.
 
We foster collaborative communities of retail leaders that share in those goals and who help inform our efforts in reaching them. In addition, we work closely with relevant government agencies including the Federal Reserve and Federal Trade Commission to ensure the retail perspective is considered in their decision-making processes.
 

Why Finance Matters to Retail 

The retail industry remains one of the most competitive industries operating in the marketplace today, driven by highly empowered consumers with more choices at their fingertips than ever before. That level of competition means retailers must be highly strategic with their customer-facing decisions, but perhaps even more thoughtful with their internal decision-making. How retailers approach things like regulatory requirements, internal audit, tax policy, and more can be the difference when it comes to long term success of the business.

Our Priorities  

RILA believes that strong competition in industries connected to retail will benefit consumers and allow retailers to thrive. Nonetheless, the 21^st century economy now includes powerful players in far less competitive industries including telecommunications, technology platforms, and global card networks that are negatively impacting the retail sector. RILA is encouraging policymakers to scrutinize these areas closely and take strategic action in multiple branches of government to maintain a healthy market.
 
Merchants in the United States pay some of the highest interchange rates or “swipe fees” in the world. These fees are a significant cost for merchants – often the second or third largest expense after labor. The global card companies, along with major issuers, establish these rates in an anticompetitive manner. The retail community is seeking reforms to promote competition and transparency in the payments ecosystem.
 
Following the passage of a historic tax reform package in 2017, RILA is focused on helping its members navigate implementation and identify the wide range of guidance and technical corrections to the legislation that will need to be issued to ensure Congressional intent is followed and to shape the compliance obligations for all businesses in the coming years.
 
On June 21, 2018, the U.S. Supreme Court ruled in South Dakota v. Wayfair and expressly overturned its 1967 Bellas Hess and 1992 Quill decisions that had prevented states from requiring online-only retailers to collect and remit sales/use tax. RILA is helping states utilize the Court’s decision through legislation and/or regulation to level the sales tax collection playing field. RILA is also working with Congress to ensure that any federal legislation does not impede progress in the states.