Stronger business in Rogers helped to boost regional sale tax revenue for March by 2.7% among the four largest cities reporting.

The revenue growth slowed for the region as a whole after a robust gain in January and slight dip in February collections when compared to their prior-year periods.

Cumulative collections in Rogers, Bentonville, Springdale and Fayetteville totaled $3.968 million in March. The revenue reflects taxes collected by businesses in February and remitted to the state in March, creating a lag in the reporting.

Each of the cities collect 2% sales tax which is split evenly with half going to city budget and half going to the county. This report follows the 1% portion retained by the cities.

Monthly Revenue (March)
Rogers $1,089,713, up 12.35%
Fayetteville  $1,371,829, up 0.09%
Springdale $834,571, up 0.70%
Bentonville $671,902, down 3.24%

“The new normal is for us to fluctuate and we are not sure why.  We are ahead of budget and are ahead when you look at the threes months in total,” said Denise Land, finance director for the city of Bentonville.

For the first three months of this year, Bentonville has socked away $2.686 million, up 3.42% from the prior year. The city is roughly $500,000 ahead of budget this year with the collections already reported.

Rogers continues to lead the area with the largest year-over-year growth as more retail stores have opened. City officials expect May collections will also be up, as the openings of Marshall’s and Home Goods will be reflected in next month’s report. Revenue reported so far in 2013 totals $3.625 million for the city of Rogers, its best start ever. Collections are up 13.25% over a year ago.

Fayetteville reported $4.553 million in sales tax revenue collections this year, which is an increase of $216,641, or 5% above the year-ago period. Finance director Paul Becker says the budget impact for collections this year is up $195,702, or 2.69% ahead of schedule.

Springdale bucked the upward trend for the three months, but held steady with collections of $2.534 million, basically flat against a year ago. Springdale’s collections are also ahead of budget this year.

Local economists say the first quarter was hit and miss as consumers were getting adjusted to higher payroll taxes and waited up to three weeks longer to get tax refunds than in previous years.

Consumer confidence has been mixed over the past month, helped by a recovering real estate market and rising home prices but hindered by unpredictable fuel prices.

Arvest Bank of Benton County has promoted four employees at branch locations in Bentonville and Rogers.

Tim Griffith was promoted to vice president and branch manager at the Arvest Bank on New Hope Road in Rogers, and Charlene McNelly was promoted to assistant vice president at the Arvest Financial Center in Bentonville.

Caleb Smith was promoted to client advisor at Arvest Bank in downtown Rogers, and Randy Durbin was promoted to assistant vice president and treasury management advisor for Arvest, Benton County.

“These associates are dedicated to customer service and have each made significant contributions in their own unique way,” Dennis Smiley, president and CEO at Arvest Bank of Benton County, said in a statement. “They share a common commitment to excellence and exemplify Arvest’s approach to customer-focused banking.”

Griffith has been with Arvest for seven years, starting as a financial services representative at the Highway 71 location in Bentonville.  He spent time at the College location in Bentonville and the Financial Center branch in Bentonville before returning to the U.S. 71 location – this time as branch manager. He is a graduate of the Arvest Bank EDGE program, which focuses on team work, leadership development, banking knowledge and community relations. 

McNelly has been with Arvest Bank for 17 years. Most recently, she served as a consumer loan officer at the Bentonville Financial Center branch, leading the management of one of the company’s largest customer portfolios.

Smith started his career with Arvest in 2009 as a customer service representative. He was promoted to insurance specialist at Arvest Asset Management later that year, and became a client advisor assistant at the downtown Bentonville branch in 2011. He holds insurance licenses with the Financial Industry Regulatory Authority and the North American Securities Administrators Association. He is a 2007 graduate of the University of Central Arkansas.

Durbin has been with Arvest for nearly three years. Before his promotion to the Treasury Management division, he was assistant branch manager at the Arvest Bank inside the Rogers Wal-Mart Supercenter on Walnut Avenue.

Walmart employees in Fort Smith, Ark., and Denver are participating in a pilot program that could significantly change the way work schedules are managed for the more than 1.3 million employees in the company’s more than 4,000 U.S. stores.

Bentonville-based Wal-Mart Stores has been criticized by employees and labor groups for work schedules that are inconsistent and unreliable – like changing schedules with little notice. Such schedules, for example, make it difficult for part-time Walmart employees to work a second job.

In early 2012, the Organization United for Respect at Wal-Mart (OUR Walmart) formed to lobby the company for more reliable work schedules. According to a USA Today report, the organization had about 5,000 members in mid-2012.

“Even after five years at the company, I’m not getting the hours that I need and want,” according to a statement from Maria Elena Jefferson, a Walmart employee from Paramount, Calif. “Even if I wanted to get a second job or go back to school, I couldn’t because Walmart constantly changes my schedule. I’m dedicated to my job and I have years of experience – I want to work full time so that the work gets done well.”

The Jefferson statement was provided to The City Wire by OUR Walmart.

FORT SMITH EXPERIENCE
The new scheduling program allows hourly store employees the opportunity to pick up extra shifts. The program pilot began in February for Kelly Clark, store manager of Walmart Supercenter No. 125, located on Zero Street in Fort Smith.

The Fort Smith location and two stores in Denver are testing it, with plans to expand to more stores by July and hopefully be accessible in all 4,000 U.S. stores by October, according to Wal-Mart spokesman Kory Lundberg.

Clark said it’s been an easy program to begin, and is helping department managers fill vacant time slots that routinely occur with sometimes little warning.

“The managers make out their schedules and post the open slots on the back bulletin board and online via WalmartOne (company intranet) which can be accessed from a smartphone or any terminal in the store,” Clark said.

This gives hourly workers a clear view of what open shifts are available and helps managers find the staff they need to ensure their departments can run smoothly, he added. The workers make a request to fill the open slot and are notified within 24 hours of that request.

Wal-Mart supercenters typically employ about 300 workers, the majority are full-time, Lundberg said.

CROSS-TRAINING HELP
Clark said the hourly associates have been receptive to the program, which is voluntary.

“One aspect I hadn’t thought of was the cross-training that can occur with a program like this. We do make sure the associate filling in can pass a litmus test if there are specific quality control issues at stake,” Clark said.

Thai-hoc Nguyen, a recent college graduate, works part-time at Wal-Mart and is learning more about the overall store operations. He recently transferred from a cashier position in the Tire, Lube Express division to the grocery meat department, which involves a new set of duties.

Nguyen said working part-time and picking-up other shifts is giving him a much broader education in Walmart store operation, which he is hoping will one day lead to a management position. He recently learned to mix paint so he could fill in for a vacant shift in the hardware department.

“I want to learn as much as I can so I will definitely be taking on more shifts,” Nguyen said.

RETAIL JOB SUPPORT
Bill Simon, CEO of Walmart U.S., promised in January during a keynote speech at the National Retail Federation Conference that the retailer would be giving its working part-time first opportunity to move to full-time positions as they become available. The National Retail Federation reports one in four jobs is supported by the retail industry, and Simon has said the industry should be proud of the jobs it creates.

He spoke passionately about retail jobs saying at any given time there are between 15,000 and 50,000 job postings at Wal-Mart. And the retailer promotes about 160,000 employees each year. One statistic Wal-Mart is happy to share is that 75% of store management started as hourly workers.

Clark said he began his career at Wal-Mart in June 1979 as a cart pusher. This summer he will celebrate his 34th year, the last 10 as the store manager on Zero Street.

Clark said the program has been a win-win for his store, and did not see a problem from potentially higher operational costs that could arise from added benefits should a part-time worker tip the scale to full-time.

Alan Ellstrand, a corporate governance expert and professor at the University of Arkansas, applauds Wal-Mart for this initiative to give part-time workers more hours and opportunities to attain full-time status.

"It is relatively low cost for Wal-Mart and it gives management a chance to better assess the talent pool they already have onboard, looking for ambitious individuals who want the opportunity to learn. Wal-Mart will save on recruiting efforts if these part-time workers eventually move to full-time and there is also payoff that comes from being able to retain a workforce in a high-turnover business," he said.

STEPPING STONE
In the two and a half months the program has been tested, Clark said he’s become a fan. He said the more skills and broader knowledge base a worker has the better chance they have to move to full-time. Getting back to Simon’s pledge, Clark said part-time workers would have first dibs on full-time jobs at Wal-Mart and this program is a stepping stone.

Derek Sanders, a seven-year Walmart employee from Fremont, Calif., is likely an employee who would be happy to have a stepping stone.

“You can see the problems when you walk into the store – the shelves are empty. And in the back room, it’s even worse,” Sanders said in a statement provided by OUR Walmart. “We’re two seasons behind on getting things out to the floor. Yet with all the work that needs to be done, I am still only able to get 24 hours of work most weeks. It’s impossible to get all the work done in the time allotted.”

Fort Smith-based ABF Freight System has earned the 2013 National LTL Carrier of the Year Award from the National Shippers Strategic Transportation Council (NASSTRAC).

“This prestigious award recognizes all ABF employees whose dedication to safety, cargo handling and customer service inspires confidence among customers throughout North America and around the globe,” ABF President and CEO Roy Slagle, said in a statement. “ABF people have earned a reputation as the safest, most conscientious, highly innovative members of our industry, and it is gratifying to have their efforts once again recognized as the industry leader by NASSTRAC.”

NASSTRAC recognizes transportation providers on a quantitative scale in five key areas:
• customer service
• operational excellence
• pricing
• business relationship
• leadership and technology.

“Because this is a shipper-driven award, ABF is to be commended for this recognition,” said Brian Everett, NASSTRAC executive director. The NASSTRAC Carrier of the Year program is co-sponsored by Logistics Management, a leading trade magazine for buyers of logistics services.

“Because NASSTRAC bases the award on demonstrated excellence in both performance and results, everyone at ABF is particularly proud to have earned this recognition,” said Jim Keenan, ABF senior vice president of sales and marketing. “We are also grateful to this council for promoting the transportation industry through advocacy and education for both carriers and shippers.”

P.A.M. Transportation Services Inc. extended its southbound trek in the first quarter of 2013, with a net loss of $456,267. The loss equaled 5 cents per share for the three months ending March 31.

These results compare to net income of $674,193, or 8 cents per share earned in the year-ago period.

Management said expenses relating to a $600,000 increase in workers compensation reserve for a single accident took a toll on overall profitability in the quarter.

Total revenues were $99.981 million in the quarter, up 4% from the same period in 2012.

Tontitown-based P.A.M. Transportation reported earnings well after the market closed on Wednesday (April 24). Company shares last traded at $10.87, down 36 cents earlier in the day on Wednesday. The company is closely held and thinly traded with an average of just 3,000 shares changing hands each day, according to Yahoo! Finance.

Daniel Cushman, president of the company, said the quarter was a tough comparison as the winter of 2012 was mild with very few weather challenges and one less day of business this year, with Good Friday and Easter occurring in the first quarter of 2013. That said, Cushman attributed the revenue growth to a fleet increase of 57 trucks and better efficiencies with a 10% reduction in empty miles, which made for slightly better operating margins over the prior-year period.

"While we have been successful in keeping our trucks manned, costs associated with attracting, training and qualifying enough drivers to outpace turnover are increasing. As the economy recovers, we not only see increasing competition from other transportation providers, but also heightened demand from construction, manufacturing and agriculture, among others,” he said.

P.A.M. ended the quarter with 208 more drivers and 162 additional owner operators than in first quarter 2012.

The Department of Energy says diesel fuel prices ran about 6 cents higher in the first quarter, over the 2012 period. Harsher weather conditions lead to more idling time which increased the number of gallons used, the company noted in the release. Cushman said this negated any potential gains in fuel savings from equipment specifications or driver performance.

"The average age of our tractor fleet reached 1.5 years at the end of the first quarter of 2013, which represents one of the newest fleets in our peer group.” he noted.

Through this year the company plans to maintain this tractor age while also adding approximately 100 trucks. In addition to tractor purchases, management said it will purchase 60 new trailers per month for the remainder of 2013 while retiring 60 old trailers to further reduce maintenance expense, increase fuel efficiency and increase customer and driver satisfaction.

Across the industry, truck tonnage rose 3.8% in March from the same month last year, according to the American Trucking Association. The increase follows February’s 3.1% year-over-year gain and contributed to the 3.9% tonnage increase in the first quarter, over the same period last year.

“Expect freight tonnage will slow in the months ahead as the federal government sequester continues and households finish spending their tax returns,” ATA Chief Economist Bob Costello said. “The good news for tonnage is housing starts are growing and energy production is good – both of which generates heavy freight. However, these two sectors alone won’t be enough to keep the overall index growing at a 3.9% clip in the second quarter."

When someone retires from Wal-Mart Stores Inc. after many years of serving the retail giant, they are leaving with a head and heart full of information, expertise and wisdom. A growing number of executives who leave Wal-Mart and the supplier community find a second career as a speaker, writer and consultant.

Ron Loveless had the ability to retire at age 42, in 1987. He was the first CEO of Sam’s Club and he grew that company for four years before retiring. He began working for Wal-Mart as a stock boy and rose through the ranks to be one of the top executives. He got his first job with Wal-Mart through the help of his mother, who was Sam Walton’s housekeeper.

In his book, "Walmart Inside Out: From Stockboy to Stockholder," Loveless talks about how he started out in Wal-Mart stores and about its culture. He was determined to keep his own voice in the book, although he was imparting valuable wisdom on how to succeed in the world’s largest retailer.

“I am just an old Arkansas boy and I wanted to keep that,” he said.

PRESERVING CULTURE
The book, published in April 2012, was born after Loveless saw how some in the rapidly growing Walmart organization struggled to maintain the original culture. He said many times when executives retire and write books about their experience, it’s CEOs writing for other CEOs. He wanted his book to be different.

“The culture is how that company became what it did,” he said. “That company was built on a lot of ordinary people working very hard. I wanted to help the average Walmart associate who would like to get ahead.”

Since retiring, Loveless has been busy in several ventures including becoming active in the film and music industry. He has also been an active consultant in Canada, the Middle East and other regions to help companies establish and grow retail stores.

Loveless said Wal-Mart is a great background to have, adding that he is always amazed at how well some of the early lessons are documented yet some do not follow what he and others learned in the early years.

“I’m talking about the how and what caused the success,” Loveless said. “We all learned lessons there that can be applied.”

Retail expertise is not necessarily what makes someone a success and it’s not all about what a person learns in business school either, he said.

“I’m not sure company leadership skills can be taught unless they are in your heart,” he said. “Sam (Walton) inspired people to work harder.”

TEN LESSONS
When Coleman Peterson retired from his position as executive vice president of the People Division at Wal-Mart in 2004, he already had a plan in place. Now living in Hilton Head, S.C., Peterson stayed in Northwest Arkansas for several years to serve on various boards including Northwest Arkansas Community College and to create his consulting company, Hollis Enterprises.

He is involved in three areas of activity. He serves on three corporate boards (J.B. Hunt, Cracker Barrel and Build-A-Bear), is heavily involved in speaking engagements across the country to share his management and human resources expertise, and conducts one-on-one coaching work with individuals. A lot of his work, especially the speaking engagements are tied around his book, “How to Get There from Here ...  The Ten Lessons that have Served Me Well.”

Peterson said his work in human resources played very well into his ability to take this next career step. He maintains his friendships in the area and the industry.

“Just because you retire doesn’t mean you retire from your relationships and your friends,” he said.

Peterson said something he sees make many people afraid to retire is that they can’t envision what is next in their life.

“They come to believe that their job is what identifies them,” he said. “That’s what I talk about in Chapter 8 of my book, which is to get a life. Your job is not you. People work in a job then they begin to identify their whole identity around their business card. To them, the idea of retirement is, ‘if I (retire), who am I?”

Peterson said it’s important for people to remember that a large reason they became successful in their career is because who they are as people, not because of their business card.

“When I retired, I knew there were other things I wanted to do in life,” he said. “If you think about those while you work, you can start to have a vision for other things that can be presented to you after you retire.”

POST-RETIREMENT PLANNING
Carrie Perrien Smith owns Soar With Eagles, a company that offers publishing, coaching, a speaker’s bureau and training. One of her niche markets is working with executives as they consider retirement and want to start a second career as an author and speaker.

Smith often sees executives come out of the work place and want to take a long break before starting the next chapter in their lives.

“You can understand but if they are taking time off, the market is cooling for them and they are becoming less relevant,” she said. “They are not worth as much or booked as often.”

As executives consider retirement, they need to start planning what they will do after retirement while they are still employed, she said. Many organizations hire speakers at least six months prior to the event and a speaker needs a website, information sheet and often many other materials. All that takes time to prepare, she said.

“If I can get them to start preparing before they leave their company, I can get them into coaching and develop their keynote and their platform,” she said.

Learning to run a business is another skill that many executives also have to learn, ironically.

“Running a corporation is different than running a speaking career,” she said. “You have to know everything and be everything from the speaker to the marketing.”

Northwest Arkansas hotels and restaurants were busier in the first quarter of the year, reporting total hospitality revenue of roughly $1.148 million, up 4.45% from the same period of 2012.

This upward swing comes on the heels of double-digit growth in 2012.

Economists say this sector growth is important as the region continues to expand its economic diversity to compliment the strong business foundations it has enjoyed for several decades.


The cities of Bentonville, Rogers, Springdale and Fayetteville collect a 2% room tax on hotel and meeting space, Bentonville and Fayetteville also collect a 1% tax on prepared food.

HOTEL RECOVERY
After a solid 2012, the local hotel market is continuing to show better profits at a rate that economists say is sustainable.

Roger Davis, the general manager of the Holiday Inn in Springdale, and other hospitality professionals say 2013 is poised to outpace last year given the solid start in the first quarter and future bookings already scheduled for the balance of the year.

The hotel industry STR report provided by Smith’s Travel Research indicates 99 hotels in the two-county area posted cumulative sales revenue of $26.492 million in the first quarter of 2013, a 12.4% increase from 2012, and the best start since 2007.

The region’s 8,299 rooms were occupied 45.5% of the time, improving from 44.3% in the prior year. Room rates averaged $78.31 per night, up 5.8% from a year ago.

Davis said there is still some slight discounting for large groups, but overall revenue is growing as the rooms are filling up for longer periods of time.

The U.S. hotel industry reported increases in key performance metrics during the first quarter of 2013, according to data from STR.

Brad Garner, chief operating officer at STR said: “We continue to be bullish on industrywide performance in 2013. However, we will continue to monitor the potency of the sequester and air traffic controller furloughs and their impact on industry results.”

The local region is tracking below the industry occupancy rate of 57.7% in the first quarter. The average daily rates nationwide at $108 were 38% more expensive than those in Northwest Arkansas. Davis said the local region still has a surplus of rooms based on a seven day week as the business traveler tends to stay Monday through Thursday.  

Springdale reported a 6.64% increase in first quarter hospitality tax revenue, which Davis attributed to stronger corporate group travel. He said the improvements in the overall national economy and recovery of stock prices have boosted confidence enough that various groups are traveling again.

“We are on target to beat 2012, which was a record year for us,” Davis said.

Springdale and the other cities each aggressively recruit other groups to the region to help fill up the rooms Friday to Sunday.

Allyson Dyer Twiggs, executive director for the Rogers Convention and Visitors Bureau, said the mild winter of 2012 made for a tough quarterly comparison but hotel tax collections rose 5.5% in the first quarter over the same time last year. Twiggs said 2008 had been the record year for Rogers in terms of total hospitality collections, but 2012 beat that and it looks like 2013 might take the top spot based on solid bookings for the balance of the year.

March collections were up about 10% from a year ago and Twiggs said the second quarter will also be strong. A national antique group (Questers) is convening in Rogers next month as well as the Master Gardeners’ state convention. The LPGA Tournament  is coming to Rogers in June as is the national BB gun shooting competition for Daisy.

As of March 31, hospitality collections in Fayetteville were up 3.77%, or $398,000 ahead of the same period last year, according to Marilyn Hefner, the executive director of the Advertising and Promotion Commission for Fayetteville.

Alex Jerde, general manager for the Chancellor Hotel in downtown Fayetteville, said traffic has been slowly picking up and the hotel is busy with weddings and hosting other local events.

“We are aggressively seeking convention business for later this year and next spring as most organizations plan a year in advance. We had five different wedding groups in and out of here last weekend and continue to see some University of Arkansas traffic,” Jerde said.

The region’s newest hotel 21c in downtown Bentonville opened in early February with 104 rooms that cater to art enthusiasts and visitors to the nearby Crystal Bridges Museum of American Art. The rates at the 21c in Bentonville start at $159.

Bentonville officials say hotel tax collections were tracking close to budget in the first quarter up roughly 4% from a year ago.

FOOD/JOB SECTOR
The majority of jobs in the local hospitality sector are related to restaurants and food service, according to Kathy Deck, director for the Center for Business and Economic Research at the University of Arkansas.

Deck said the restaurant sector has been heating up as the overall economy shows modest improvements.

Fayetteville reported total hospitality tax collections of $580,924 in the first quarter, 92% of that number are food taxes, which rose by roughly 2.5% from a year ago.

Bentonville food tax collections are tracking near budget. Food tax collections in Bentonville, are an estimated $255,000 for the quarter and comprise 70% of the city’s total hospitality tax revenue. Total collections in Bentonville rose about 5.5% to roughly $358,600 as of March 31.

Deck said the NWA hospitality sector is growing at a sustainable clip based on first quarter reporting. Employment in the sector grew 4.6% year over year, and is helping to push economic growth forward. Estimates for regional GDP growth are about 2 to 3%, Deck says.

First Quarter Hospitality Revenue
Bentonville
2013: $358,619
2012: $339,987
5.5%

Rogers
2013: $151,400
2012: $143,383
5.5%

Springdale
2013: $57,905
2012: $53,297
6.64%

Fayetteville
2013: $580,924
2012: $562,198
3.3%

Source: Respective cities

The redevelopment of the West End continues to take shape with Thursday’s (April 25) announcement of Garrison Pointe West, a planned $3 million mixed use development to be completed by Griffin Properties, the same company that developed a the original Garrison Pointe.

That development included a market, cafe, gas station and liquor store at the corner of North Fifth Street and Garrison Avenue.

According to developer Rick Griffin, the project will take place in six buildings along Garrison Avenue. In a document distributed to the Central Business Improvement District, he listed the the locations included in the development.

"The (project will be a) complete historic renovation, both interior and exterior, of the six buildings located at 401, 403, 405, 407, 409 and 411 Garrison Avenue," Griffin said, adding that once complete, the buildings "will have essentially been rebuild, and their decor will be restored to the beautiful, historical flavor of downtown Fort Smith."

Being a mixed use facility, the project will include both commercial and residential space, he told the CBID.

The retail space will be broken up into five different store fronts, with 401 Garrison containing 1,300-square-feet of leasable space. The other locations, with the exception of 407 Garrison, will each be about 1,000-square-feet, according to the project's description.

While the majority of the storefronts will be used for commercial and retail purposes, 407 Garrison will actually be converted to an open-air breezeway.

"To enhance use of this space, we will construct a large pavilion at the north end of The Breezeway, which will contain a wood burning fireplace, gas grill for cooking, and a counter area with a sink," Griffin said in the prepared document. "We shall accent light The Breezeway so that it provides a unique and aesthetic nighttime appearance."

The area, which will be gated, is intended for use by Garrison Pointe West occupants and will also be available for rent as an event and entertainment area, he said.

The final piece of the development includes the addition of 12 apartments to the building. Griffin said the units would be upscale one- and two-bedroom apartments, with the first floor containing four units and the upstairs containing eight. Rents, he said, would likely be in the $800 per month range, "give or take a little."

Excluding the price of the land and buildings, Griffin said he expects the entire project to cost in the $3 million range.

Following the meeting, he said tax credits on the state and federal levels for restoration of the historic buildings made this project worth viable.

"Economically, we've got to have it for the project," he said.

With the CBID's approval of the initial building design today, Griffin said he would now take the project into an intensive design phase that could be presented to the city for a building permit.

He said from now until construction begins would likely be between three and four months, with construction lasting an additional nine months.

Fort Smith Mayor Sandy Sanders praised the development idea.

"It sounds like it would be a very good project. It's part of the revitalization of downtown and with the Garrison Pointe convenience store now providing grocery service to people in the downtown area, I think we're going to see more and more people looking to move to a loft apartment type of complex or apartments downtown," he said. "There's more and more going on downtown all the time and that's exciting to see a downtown revitalize itself."

Dozens of active bloggers will make their way to Bentonville on May 3 to take part in the Collective Bias SoFabCon – a three–day conference designed to bring bloggers and brands together under one roof.

Collective Bias is a pioneer in the social shopping media content area. The firm just barely four years old has signed iconic brands such as Nestle, Tyson and K-Mart/Sears. Their proprietary Social Fabric – a network of 1,400 active bloggers – actively influences brands with their web content.

The conference “SoFabCon”  is set for May 3-5 at the John Q. Hammons Center in Rogers. It’s the company’s first conference organized on behalf of its growing blogger community consisting of more than 1,400 active members which comprise the firm’s Social Fabric.

“One of the benefits to hosting a conference in Bentonville is being in close proximity with many big brands,” said John Andrews, CEO of Collective Bias. “This is a great opportunity for brands to build relationships with their shoppers in a unique, fun and valuable way.”

Mailena Urso, spokeswoman for Collective Bias, said registration is going well with some 220 participants already signed up.

The event will consist of two tracks, one specifically designed for brands and the other organized for bloggers. On May 3, the one-day Social Immersion track will take place for brands with feature sessions led by industry leading professionals who will share stories and case studies on how they have successfully and effectively leveraged the social space.

Brands who wish to take part in the “Social Immersion Day” will need to register online.

“SoFabCon is truly going to be a unique educational experience for brands and bloggers taking place right here in Northwest Arkansas, what we like to call the ‘Silicon Valley’ of retail,” said Courtney Velasquez, vice president of community relations.

Though organized for Collective Bias bloggers, the conference is also open to the blogging community at large. The cost for bloggers is $149 which includes access to all the SoFabCon sessions. Registration is available online. 

Some of the featured speakers slated for the business track segments of the conference include:
• Umang Shah, the director of social strategy for Wal-Mart, who speak about his analytical and data driven approach to social strategies.

• Mark Fidelman, CEO of Evolve! and Forbes columnist, will cover how retailers are profiting from social campaigns, influencers and company advocates.

• Tami Cannizzaro, executive director of marketing for IBM, will discuss three guiding principles for the next generation chief marketing officer.

• Calvin Peters, social media director for Duane Reade, will broach the subject of “Omni-channel shoppers” and discuss ways for retailers to drive sales and grow shopper loyalty.

Speakers addressing the social track segments include:
• Melissa Garcia, owner of ConsumerQueen.com, will cover the basics of how to monetize a blog.

• Tiffany Romero, co-owner of Launch Productions LLC, will discuss how to power down and find some life balance which is often a challenge for at-home bloggers.

Numerous other executives from Collective Bias and elsewhere will be speaking during the conference and the full agenda can be accessed online.

The March revenue report for the city of Fort Smith brought some welcome news and an end to four consecutive months of tax revenue declines.

Each of the city’s 1% sales taxes (1% for streets and 1% for water and sewer projects) collected $1.614 million in the March report, up 8.92% from the same period in 2012.

The collections in the March report were 5.47% above budget estimates. (Because the state of Arkansas has a two-month delay in reporting collections back to the cities, the city of Fort Smith — for budgeting purposes — has historically reflected the collections on a one-month delay. Which is to say, the tax collections remitted to cities in April are from taxes collected in February and transferred by merchants to the state in March.)

But the city’s budget is still behind estimates. For the first three reporting months of 2013, each of the 1% sales taxes generated $5.04 million, down 1.49% compared to the 2012 period and 4.2% below the budget estimate.

Collections in 2012 of the two 1% taxes totaled $39.21 million, slightly ahead of the $38.683 million during 2011. The 2011 collections were 3.9% above 2010 collections.

The four-month decline (November-February reports) has already caused a need for the city to consider budget cuts. City Finance Director Kara Bushkuhl has said that department heads have been asked to submit cuts of up to 4% for any budgets funded by the general fund.

Budget cutting ideas have already been submitted to the Fort Smith Board of Directors. The Board reviewed the cuts, which included a reduction of almost $600,000 to the police budget, during an April 9 study session.

Budget decisions are more directly impacted by the city’s general fund, which derives revenue from the city’s share of the countywide 1% sales tax. The countywide tax collection is critical because the revenue is a little more than 40% of the city’s general budget of roughly $42 million. A majority of the general fund budget general supports fire, police and other critical city functions.

Fort Smith’s share of the county 1% sales tax in the March report is $1.259 million, up 8.39% compared to March 2012. The collection was up 5.59% compared to the revenue estimate.

For the first three months of 2012, the countywide tax has generated $3.91 million for Fort Smith, down 1.32% compared to 2012 and down 3.7% compared to budget forecasts.

PREVIOUS ANNUAL COLLECTION INFO
2% sales tax collection (1% for streets; 1% for water/sewer bonds)
2012: $39.210 million
2011: $38.683 million
2010: $37.229 million
2009: $37.554 million
2008: $41.226 million
2007: $37.858 million
2006: $36.840 million

Fort Smith portion of 1% countywide sales tax
2012: $15.279 million
2011: $15.15 million
2010: $14.89 million
2009: $15.04 million
2008: $16.61 million
2007: $15.15 million
2006: $14.71 million

The Fort Smith Convention & Visitors Bureau announced on Thursday (April 25) the GRIT Award recipients.

The GRIT Awards were presented at the MovieLounge, dinner-cinema-event space in Fort Smith, and more than 100 people attended the awards ceremony.

“This gathering of friends was to showcase the accomplishments of the finalists and winners who have distinguished themselves in their profession, time, energy, expertise and celebrate a job well done in the local hospitality industry,” the Fort Smith CVB noted in a statement.

The GRIT Award winners, by category, were:
• Restaurant Partner of the Year: MovieLounge

• Lodging Partner of the Year: Courtyard by Marriott

• Attraction Partner of the Year: Fort Smith Museum of History

• Business Partner of the Year: Richard and Rick Griffin

• Polly Crews Hospitality Person of the Year:  (a tie) Baridi and Tonya Nkokheli & Dr. Art Martin

At the awards ceremony, the Fort Smith Convention & Visitors Bureau showcased the past year’s Hometown Hospitality Heroes, who have been highlighted each quarter in the City of Fort Smith’s Fast Focus e-newsletter, as having brought or hosted tourism events in 2012.

The recipients are:
• Mackey Yocum and Becky Neighbors for their work and assistance with the United Methodist Church State Convention;
• Susan Fiori for her work on the River Valley Feis, Irish Dance competition for youth;
• Robbie Bryant, for his work on the Slamily Reunion, Arkansas’ largest custom car, truck and bike show; and,
• Mike McKeown, for his work on bringing the “Southeast Global Shootout”, a youth baseball tournament to Fort Smith.

The company that is a target of a $750 million lawsuit filed by Fort Smith-based Arkansas Best Corp. recently made an attempt to buy Arkansas Best’s largest subsidiary, ABF Freight System.

According to this report from trade publication DC Velocity, YRC Worldwide CEO James Welch met March 22 in Fort Smith with Arkansas Best President and CEO Judy McReynolds to discuss the idea.

According to the DC Velocity report, Arkansas Best officials declined a detailed discussion on the YRC offer, and have said no further talks have been held on the matter.

Neither company has made a filing with the U.S. Securities and Exchange about the meeting. A 10-Q filed Wednesday (May 8) with the SEC by Arkansas Best did not include mention of the meeting between McReynolds and Welch.

ABF generates about 78% of Arkansas Best revenue.

McReynolds sent the following letter to employees late Wednesday.
Dear Fellow Employee:
I wanted to let you know that the story pasted at the bottom of this email ran tonight online in the DC Velocity publication, involving an unsolicited approach by YRC’s CEO to me in March regarding a potential acquisition of ABF by YRC. We filed the following statement with the Securities and Exchange Commission tonight.

“Arkansas Best Corporation (“ABC”) acknowledged today, in response to a third-party inquiry, that in late March, YRC Worldwide Inc. (“YRC”) approached ABC and expressed YRC’s interest in exploring an acquisition of ABF Freight System, Inc. (“ABF”). ABF is ABC’s largest subsidiary.  In early April, ABC advised YRC that ABF was highly focused on its ongoing labor negotiations as well as other strategic and operational initiatives and that considering a transaction with YRC was not appropriate at that time. ABC has not engaged in any subsequent discussions with YRC.”

The reason that we filed this update with regulators is because we’re a publicly-held company owned by our shareholders. As the statement says, there have been no further discussions between YRC and Arkansas Best.

I thought it best that you hear this from me directly and I thank you for your time and attention.

MUTUAL FINANCIAL STRUGGLES
Overland Park, Kan.-based YRC is a direct competitor with ABF Freight in the less-than-truckload carrier sector. Both companies have struggled to cobble together a trend of positive financial performance following a freight recession that began in 2006. A special Teamsters agreement helped pull YRC from the brink of bankruptcy.

Arkansas Best has been unable to post two consecutive years of income gains since 2008. The company posted a loss of $7.7 million loss in 2012. Net income for 2011 reached $6.159 million, a huge swing from the $32.693 million loss during 2010. The company posted a net income loss of $127.522 million loss in 2009, with $64 million representing an accounting charge.

YRC reported on May 3 its first quarterly positive operating income in six years. Some of the Teamster help is the source of the lawsuit.

PENDING LAWSUIT
Arkansas Best has alleged that wage deals between the Teamsters and YRC, a competitor of ABF Freight, violated a National Master Freight Agreement (NMFA). The NMFA, implemented April 1, 2008, was designed to create equal labor costs and other benefit payments among trucking companies with drivers represented by the Teamsters.

That lawsuit, first filed in November 2010, was recently dismissed a second time by U.S. District Court Judge Susan Webber Wright (Eastern District of Arkansas). Arkansas Best officials say they will again appeal the dismissal to the U.S. Eighth Circuit Court of Appeals (St. Louis).

Oral arguments were heard in St. Louis on April 10, and Arkansas Best officials noted in the 10-Q released May 8 that they expect a court decision “within 60 to 90 days.”

PENDING LABOR CONTRACT
There could also be more news about a vote on a new labor contract between Arkansas Best and the Teamsters.

ABF Freight System and the Teamsters announced May 3 they had reached a tentative agreement on a five-year labor contract. Neither side would release details on the agreement.

The next step will include the Teamsters and company officials educating union members about the terms of the contract. The contract will eventually face a vote of qualified union members.

The existing labor contract between ABF and the International Brotherhood of Teamsters was initially set to expire March 31 for the about 7,500 Arkansas Best employees represented by the Teamsters.

Although details of the agreement are unknown, Stephens Analyst Brad Delco believes the new contract most likely provides some level of cost relief for ABF. Delco, in his note released Monday (May 6), moved the share price (NASDAQ: ABFS) from a $12 target to $18.

PRICE INCREASE
The reasons behind the new price target and the share price rise with ABFS in recent days would make the acquisition price steeper for YRC.

YRC shares (NASDAQ: YRCW) closed Wednesday at $13.93, down 36 cents. During the past 52 weeks, the share price has ranged from a $16.45 high to a $5.01 low.

Arkansas Best shares closed Wednesday at $15.35, up 36 cents. During the past 52 weeks, the share price has ranged from a $15.58 high to a $6.43 low.

Although YRC typically generates more than double the annual revenue of Arkansas Best, YRC is leveraged to the teeth. It’s Standard & Poor's credit rating as of March 31, 2013, was a dismal “CCC.” YRC carries about $1.36 billion in debt.

“We have a considerable amount of indebtedness, a substantial portion of which will mature in late 2014 or early 2015,” the company noted in its recent 10-Q filing. “The refinancing of these debt obligations is outside of our control and there can be no assurance that such transaction will occur, or if it does occur, on what terms.”

The long-term debt for Arkansas Best is $105.169 million.

Windstream continued to see solid growth in its data and broadband services, but the Little Rock-based telecom still saw quarterly revenues slip and net income decline.

Windstream posted 2013 first quarter net income of $52.3 million on revenue of $1.5 billion. One year ago, the company posted net income of $60.4 million on revenue of $1.54 billion.

Still, Windstream officials were upbeat as they noted an improving portfolio of services that tilted away from traditional landline services to a mix of fiber, broadband and data center offerings.

“The business channel now represents 63 percent of revenue and will be an essential driver of our growth in the future,” Windstream CEO Jeff Gardner said. “As a result, we began increasing our business sales force at the end of the quarter and plan to open four new data centers this year to capitalize on further revenue growth opportunities in areas where we are experiencing strong demand.”

Windstream’s business service revenues grew two percent from a year ago. Data and integrated service sales rose eight percent, while carrier service revenues climbed three percent higher. Broadband services saw a five percent gain in revenue, but it was wholesale revenues that provided the biggest hit, falling 17 percent from the previous year.

Officials blamed the slide on “lower switched access revenues from declining consumer voice lines and lower intrastate access rates as part of intercarrier compensation reform implemented in July 2012.”

Windstream has maintained its $1 annual dividend strategy, despite questions from analysts. On Wednesday, Windstream said it would pay its latest 25-cents per share quarterly dividend on July 15, 2013 to shareholders of record as of June 28, 2013.

Earlier this week, Windstream joined Fortune magazine’s prestigious list of the Fortune 500 biggest companies based on revenue.

Windstream shares (NASDAQ: WIN) closed Wednesday at $8.52, up 15 cents from the previous close. During the past 52 weeks the share price has ranged from a $11.05 high to a $7.86 low.

Springdale-based Tyson Foods will pay a cash dividend of 5 cents per share for the recent quarter to its Class A investors. Class B common stock, held by the Tyson family will receive a 4.5-cent cash dividend payable on Sept. 13.

To receive the cash payment shareholders must own the stock by the close of business on Aug. 30.

Tyson shares broke through the $25 range on Wednesday, May 8 to set a new 52-week high of $25.22. The shares traded at $25.13, up 11 cents during this morning’s (May 9) session.

Wal-Mart’s Acres for America program, a conservation partnership with the National Fish and Wildlife Foundation (NFWF), is protecting priority lands across the country to provide wildlife habitats and recreational opportunities for local residents.

From its own backyard in the Ozarks stretching all four directions, Wal-Mart has committed to help preserve seven wildlife and recreational habitats.

Newly-announced projects in Arkansas, New Mexico, Nebraska, Wisconsin, New Hampshire, Maine and Oregon are part of an ongoing program to conserve the nation’s most precious lands and natural resources to benefit people, wildlife and local economies, according to the release.

Since 2005, Wal-Mart has worked with NFWF to establish Acres for America, a 10-year, $35 million commitment to purchase and preserve one acre of wildlife habitat in the U.S. for every acre of land developed by the company.

The program has protected critical habitats for birds, fish, plants and wildlife and far surpassed its original goals, becoming one of the country’s most effective conservation partnerships.

The new sites bring the total acres protected through the program to more than 800,000.

“These new Acres for America projects build on the conservation successes of our continued partnership with Wal-Mart,” said Jeff Trandahl, executive director and CEO of NFWF. “From the Ozarks to Oregon, they protect the open spaces that wildlife need and provide abundant economic and recreational resources for residents.” 

Wal-Mart said in the release it remains committed to causes that help reflect strong values while also helping its customers live better.

This new projects include:
• Devil’s Eyebrow Preserve: Benton County, Arkansas
• Valle de Oro National Wildlife Refuge: Albuquerque, N.M.
• Audubon’s Rowe Sanctuary: Platte River, Neb.
• Brule–St. Croix Legacy Forest: Northwestern Wisconsin
• White Mountains to Moosehead Lake Initiative: Maine and New Hampshire
• Headwaters of the John Day: Central Oregon

A new pilot program from Oklahoma Gas and Electric (OG&E) could make the drive along Phoenix Avenue near the airport a little brighter, even in the dead of night.

Crews from the Oklahoma City-based utility spent Tuesday replacing 28 lighting fixtures along Phoenix with LED lighting at no cost to the city.

According to Rob Ratley, a Fort Smith-based community affairs manager for OG&E, the company approached the city of Fort Smith about doing the pilot.

"We approached them and we're also making (an) application with the Arkansas Public Service Commission to expand this type of lighting throughout the system," he said.

Currently, OG&E services 40 different communities out of its Fort Smith office in four Arkansas counties as well as LeFlore and Sequoyah Counties in Oklahoma.

By replacing older, aging lighting fixtures along Phoenix, Ratley said taxpayers should see savings on the city's utility bill.

“We do expect the cost savings to be significant. And the other savings are in the area of maintenance. These fixtures require a lot less maintenance and have better lighting."

On the standard lighting fixtures, Ratley said maintenance was being done every one to two years.

By replacing the lights with new LED technology, he said the maintenance costs would decrease significantly while the lifespan of the lights would increase significantly.

"On conventional fixtures, you currently have photocells, you have lamps and ballasts. These new fixtures are a self-contained unit, so when one of those go out, we replace the entire unit," he said. "The expected life is quite a bit longer, we're hoping for five to 10 years from each fixture."

The amount of light given off by a single LED light should improve greatly, according to Ratley.

"We feel like it's a better lighting spectrum and that's one reason why we're doing this project is to allow the public to see the difference between the two and that's another reason why we chose this corridor, so they will b able to drive along this roadway, experience the LED lighting and then go a little further and compare it to the high pressure sodium lighting that exists on down the road."

Glenn Gottschalk, lighting project manager for OG&E, said energy savings would be significant, as well. He said existing lights run on about 400 watts of electricity.

"These particular lights, the new LEDs, are only 206 watts, so we're going to be using about half, almost half, of the electricity to turn these lights on as what we've (been using with the) existing (lights)."

The cost of the new lights run about $600 per light, Gottschalk said, while conventional lights run anywhere from $240 to $260.

By using less wattage, he said the cost savings should start to mount fairly quickly for the city.

"It should (pay for itself fairly quickly), yes, definitely. With the cost of the energy being so much less, and the fact that our maintenance should go down because these lights are so dependable."

And it's not just Phoenix Avenue that is getting new light units. According to Ratley, a residential area near Mercy Hospital is also getting the upgrade.

"It's going to be on 74th Street just north of the Mercy Medical Center on Rivera," he said. "We'll be installing five residential lights."

The fixtures in the residential neighborhoods will cost considerably less than the ones on Phoenix, according to Gottschalk.

He said each of the five residential lights will run about $200, while the conventional lights they'll be replacing normally run $75 to $100.

Another pilot program that will be tied to the LED lights, Ratley said, is a smart grid system.

"We just deployed smart grid," he said. "These fixtures will have SIM cards in them that will enable us to communicate with the fixtures as far as maintenance needs and energy usage."

No timeline is available for further deployment of the LED lighting program, Ratley added. He said OG&E should have some idea of a timeline once the application from the Arkansas Public Service Commission is approved.

Ratley also confirmed last week that OG&E is exploring a pilot program to add light fixtures and LED lights to the Garrison Avenue Bridge, though he said only a single meeting has taken place about the possible project.

Tax revenue is strong for the state of Arkansas in many of the largest collection areas, including income taxes, where year-to-date revenue is up more than 9%.

But one area where revenue has noticeably fallen is the area of tobacco taxes.

According to a memo from John Shelnutt with the Arkansas Department of Finance and Administration, revenues from tobacco taxes are down more than 5%, or $10.3 million, compared to this same time last year. In the July 2012-April 2013 period, tobacco tax revenue totaled around $188.2 million, down from the $198.4 million in the same period of the previous fiscal year.

The tax is on a variety of things, but mainly comes from the initial sale of tobacco products from distributors to retailers, according to Roland Darrow, an attorney for Arkansas Tobacco Control.

"That's excise taxes. In other words, the tax placed on the first sale of a tobacco product in the state of Arkansas," he said.

OUT OF STATE SALES
There are a variety of reasons, Darrow said, that revenues from the sale of tobacco products could be declining. Locally, he said smokers and other tobacco users could be going out of state to purchase the cigarettes they smoke everyday.

"There are places, the Missouri border in particular, where their cigarette tax rate is 17 cents a pack, while the Arkansas rate is $1.15 a pack. If you buy a carton of cigarettes in Missouri, you'll save $10, $15, $20 a box over what you spend in Arkansas," he said, adding that such purchases were not practical unless a tobacco-using consumer lived within a short drive of another state.

He said it was not uncommon for Arkansans who live in border regions, such as Northwest Arkansas and the Fort Smith area, to buy up to the personal possession limit of a carton plus an individual pack of cigarettes and bring it back to the state.

Another possibility for the reduction in revenue is that any non-cigarette items are not stamped, meaning Arkansas Tobacco Control and the DFA depend on retailers to accurately report the their purchases of tobacco items from distributors.

CIGARETTE SMUGGLING
Some retailers, Darrow said, also buy their wholesale goods from out of state and pay lower rates.

"In Tennessee, I believe their rate is 6.2% or 6.6%. Arkansas is 68%," he said. "All you have to do is drive across the Mississippi River and purchase products there."

He said while it is legal to purchase the items in Tennessee, it becomes illegal once the purchaser drives back across the river.

"At that point, you're breaking the law," he said, adding that a retailer normally purchases between $2,000 and $5,000 worth of tobacco related products and smuggles it back to his or her store in Arkansas.

In order to try and salvage the revenues, Darrow said his agency has conducted anti-smuggling crackdowns and had even charged some violators criminally. But, he said, "I'm sure there's a lot we don't catch."

OTHER REVENUE DECLINE OPTIONS
Dr. Gary Wheeler, the branch chief of infectious disease at the Arkansas Department of Health and the medical director for the department's tobacco program, said other factors could be at play with the decrease in tobacco tax revenues.

"This could be due to decreased tobacco consumption, which is the goal of our programs," he said.

Wheeler also acknowledged sales of tobacco in other states, before mentioning that the sale of new nicotine products, like electronic cigarettes, as well as black market purchases and internet sales, could be to blame.

"We're not going to know which of these are true until get new tobacco consumption survey information, which won't be available” until 2014.

ADH Public Information Officer Ed Barham said while the revenues are down year to date, it was too early to tell if that would last through the end of the fiscal year.

"It's month-to-month. It will vary up and down pretty dramatically," he said.

TRAUMA SYSTEM SUPPORT
While some may genuinely want to believe that the rate of smokers has gone down, the open speculation by Wheeler and Darrow leaves open other possibilities. Seeing tax revenue flee the state of Arkansas could have a negative impact on services that rely on the tobacco tax revenue for funding.

One of those is the trauma system established across the state.

"I know that when the tax was originally passed, there were some specific things that were to be funded and the trauma system was one of them," said Debra Pate, communications director for the Arkansas Center for Health Improvement.

According to Pate, Arkansas was one of only two states in the nation to not have an established trauma system.

She said programs funded through the tobacco tax also include school health and wellness centers, as well as nearly two dozen other programs.

NO BUDGET PRESSURES YET
Back at Arkansas Tobacco Control, Darrow said the only program in his office funded through the tax was the minor smoking prevention program.

"We have basically put a 16 or 17 year old into a store to see if (merchants) will sell that individual tobacco products," he said, adding that the program has been successful and has landed Arkansas in the top 10 states in the nation for having one of the lowest sale to minor rates.

But he said the money is not just used to bust merchants who sell to minors, but also to educate merchants.

"There are seminars they can send their employees to to avoid accidentally selling to a minor," he said. "For stores having a difficult time, we will have individual training for those stores. We have worked with the retailers to make Arkansas one of the top ten (states) for the lowest sale to minor rates."

While many of these programs could be at risk should revenues continue to drop from the tobacco tax, Barham said it would not have an impact anytime soon.

"Budgets for the Health Department's programs for FY14 are already approved by the legislature and are being put in place to begin the years on July 1," he said. "We do not anticipate any changes in this year's budgets as a result of the shortfall in the tobacco tax revenue."

ABB Chief Executive Officer Joe Hogan has decided to leave ABB for private reasons, according to a company statement issued Friday (May 10).

Zurich, Switzerland-based ABB is the parent company of Baldor Electric Co., and Hogan presided in 2010-2011 over the $4.2 billion buyout of Baldor.

A date for his departure has not yet been decided. Hogan will continue to lead ABB until a successor is announced. He is committed to a smooth transition.

“Joe is a great and successful CEO and has done a remarkable job of leading the company through the deepest economic crisis in living memory. ABB today is in a much better position than it was when he joined five years ago,” Chairman Hubertus von Grünberg said in a statement. “I know this has been a tough and difficult decision for Joe and the Board sincerely regrets that Joe will be leaving the company.”

Hogan joined ABB as CEO in September 2008. During his time at the helm, ABB has invested about $20 billion to strengthen the company. Major investments have been made in acquisitions and in R&D to help secure ABB’s technological leadership in power and automation.

“I have informed the board that I have decided to leave ABB. This has been a difficult decision as I leave behind a strong and talented Executive Committee and a cohesive Board whose support I could always count on. I look forward to making a smooth transition with as little disruption as possible to the positive momentum that ABB has established,” CEO Hogan said.

ABB produces, markets and distributes power and automation technologies that enable utility and industry customers to improve their performance while reducing expenses. The ABB Group of companies operates in around 100 countries and employs about 145,000 people.

In an effort to better compete with big box retailers on large ticket items such as electronics and household appliances, Sears will offer a lease-purchase option for the credit challenged.

The Hoffman Estates, Ill.-based retailer confirmed today (May 10) that it will roll out its WhyNotLeaseIt program this next week. The retailer is following the lead of Ashley Furniture who has already partnered to use the services of New Hampshire-based WhyNotLeaseIt.

“Customers can walk into any Sears’ full-line store in the country this month and choose lease-to-own as an option,” said Jai Holtz, vice president, financial services, Sears Holdings. “The program gives a much-needed financial solution to those unable to purchase on credit, secure credit, or because of immediate need, can’t use layaway.”

Sears is the first retailer to offer national lease-to-own options for Craftsman products, electronics, furniture and mattresses.

“Every lease is backed by Sears’ quality and customers have access to the full breadth of Sears’ warranties and in-home services,” Holtz noted.

Sears tested the program  in two dozen stores last fall in Houston, Texas, and throughout Flordia. The retailer said the program resonated well with customers during the six months of testing.

The program details include a minimum monthly income of $1,000 and the merchandise must cost at least $280, according the release. Consumers can pay weekly or bi-weekly for a period of up 18 months, and must have a social security number to participate.

Sears did not disclose the fees associated with the new lease option at this time, nor did WhyNotLeaseIt.

In other news Friday, Sears Holdings announced Jeff Balagna has accepted the role of chief information offer and executive vice president.  He most recently held a similar position at Eli Lilly.
Balangna will be responsible for all technology and infrastructure initiatives for the retailer’s support centers and in-store.

"Jeff is a proven executive with an analytical approach and experience in transforming complex organizations in rapidly evolving industries," said Edward S. Lampert, Sears Holdings' CEO and chairman. "Innovation and technology are cornerstones in Sears Holdings' efforts to build lasting relationships with our Shop Your Way members, and Jeff's deep expertise in information technology infrastructure, customer loyalty programs and leveraging IT as a business-enabler make him a strong addition to our team."

Regionalism is part of the allure of Fort Smith and it will be key to the future growth of the area's economy. That is according to two speakers at the Fort Smith Regional Chamber of Commerce's Business Expo today (May 10).

Roy Williams, president and CEO of the Greater Oklahoma City Chamber, and Arkansas Democrat-Gazette columnist John Brummett spoke to chamber members and expo-goers during breakfast and lunch, respectively.

During Williams' breakfast speech, he said some of the keys to the breakneck growth taking place in central Oklahoma, which has some of the nation's lowest unemployment at a little more than 5%, has been focusing on growth of the region that makes up the greater Oklahoma City metropolitan area, not just the city itself.

His organization, Williams said, is responsible for economic development work throughout the area, which includes 10 counties within a 50 mile radius of the city's downtown.

"Companies don't look at cities, counties or even states. You have to look at regional," he said. "Until you do that, you'll be middle of the road."

ONE VOICE
He said nearly all corporate site selection begins by not looking at individual cities, such as Fort Smith, but instead looking at the region, such as the counties in Arkansas and Oklahoma that make up the greater Fort Smith area. Williams said the reason companies look at a region versus a city is about consistency.

"Companies want one voice. You must have that mechanism in place, otherwise you get X'd off the list."

For a region to be successful, he said it is important to define the region and create a methodology for success.

"Who carries the ball?" Williams asked, once again explaining that the cities and counties of a region must come together to speak collectively, or as he said earlier, with one voice.

The items companies are looking for are labor force, market access, supplier resources and infrastructure, according to Williams, and all of those will rarely be found in one city or county.

"They're regional assets, not city or county assets," he said. "If you don't have assets, companies are gone."

LABOR MOVEMENT
To prove his point of finding a regional workforce, he discussed how among the 10 county region that makes up the greater Oklahoma City area, one third do not work in the same county where they live, resulting in movement of nearly $7 billion in payroll.

According to figures provided by Williams, the result of regionalism has been a gross metro product of $57.1 billion, making the greater Oklahoma City area the 118th largest metropolitan economy in the world, eclipsing the GDP of countries like Ecuador and Guatemala.

He said what had worked in Oklahoma City could work in Fort Smith, but he said regionalism would be the primary driving force.

"The region should function like a corporation."

ECONOMIC DIVERSIFICATION
In addition to regionalism, Williams said diversification was key for the phenomenal growth experienced in Oklahoma City's economy during the last decade. While the city is largely known for its ties to the oil and natural gas industry, diversification has led to aerospace and biomedical industries employing more individuals than gas companies, he said.

In order to make Fort Smith a more recession-proof region, much like the Oklahoma City area, he said diversification must continue adding more diverse employers and breaking away from manufacturing, which has been Fort Smith's bread and butter for much of the last 50 years.

"How do you diversify that?" Williams asked rhetorically.

While Fort Smith is transitioning and trying to diversify as the city looks to add jobs and lower its high unemployment, columnist John Brummett told lunch-goers that Fort Smith was not in a bad spot. If anything, it is fairing better than other Arkansas cities.

"You're more on your own than any other city in the state," he said. "You're the second largest city in the state, you're the second largest migration of workers into your city, and just a bonafide good-sized community and you're probably the least state-subsidized community for its size in Arkansas."

BORDER SUPPORT
Brummett said in Little Rock, much of the economy was based on state government and the lobbyists that come with it; in Hot Springs, the community does well due to gambling; and Fayetteville is what it is due to the decision to place a land-grant university within the city limits.

"I like things that are on their own. I like to think of myself as on my own," he said.

While Fort Smith is on its own in regards to the rest of the state, Brummett said it is clear to the rest of the state that Fort Smith is part of a unique region that spans the Arkansas-Oklahoma border.

"I'm telling you, I can't turn on the TV in Little Rock right now without a commercial coming on saying, I think this is a direct quote, 'So you know everything there is to know about Fort Smith? Think again.' Whose commercial is that? The casino."

In explaining the uniqueness of the Fort Smith region, he explained that he found out first hand that Fort Smith is more than Arkansas when he started getting hate mail from readers of his column in 2000. Where did the letters come from? Poteau and Sallisaw.

The regionalism term was repeated time and again and Brummett said not only does the area have a good opportunity to focus on its economy and recover from the economic blows of the last few years, but the region must embrace its history as the "last semi-civilized town" before being in the wild, wild west.

He said it was also important to see the value in the city and to invest in the University of Arkansas at Fort Smith, such as creating a scholarship fund for local students, as a way to strengthen the region.

In closing, Brummett said he was a fan of the Fort Smith region and would continue to be so, with regionalism being key.

"You're a great community. I'm on your side. You're an all-American city which means if America has a problem, you've got a problem. If America has an opportunity, you've got an (opportunity)."