NRF, RILA cease merger talks

WASHINGTON—Roughly three months after the National Retail Federation (NRF) and the Retail Industry Leaders Association (RILA) announced their executive committees had agreed in principle to merge and create a single association, the organizations said this week they have ended merger discussions.

 

“Following a deliberative process, RILA and NRF have ended discussions aimed at merging the two organizations,” said the NRF and RILA boards of directors in a joint statement. “NRF and RILA will devote all resources to continuing the work they are each doing to address the serious issues that America’s consumers and retailers are facing in today’s economic environment.”

 

When the organizations announced plans to merge in April, their stated objective was to better represent retail interests in Washington. And NRF and RILA officials said at the time that the completion of the merger is contingent on a thorough due diligence process. The merger process—had it gone through— was expected to be completed this summer.

 

In an April interview with LM, Brian Dodge, RILA SVP, Communications and State Affairs, said that this merger made sense on a few different levels.

 

“To this point we have had two trade associations operating in Washington and serving the same industry,” said Dodge. “And the rumors of a merger or a consolidation of some sort have…ebbed and flowed for a long time. It is based on the fact that two trade associations representing slightly different member bases—but in the same industry—and work together often on the same issues.”

 

In terms of differences in membership between the two organizations, RILA represents the 65 largest retailers operating in the U.S. across all segments with annual sales totaling around $1.5 trillion, as well as six million of the nation’s 15 million retail employees. RILA membership also includes service suppliers and product manufacturers, bringing its total membership to about 200 members. Dodge said that seven of the ten largest U.S. retailers are RILA members.

 

And NRF membership ranges from the largest retailers to single store operators, including specialty, department, discount, catalog, Internet, independent stores, chain restaurants, drug stores, and grocery stores, as well as key trading partners of retail goods and services. According to its Website, the NRF represents more than 1.6 million U.S. retail establishments, more than 24 million employees—about one in five American workers—and 2008 sales of $4.6 trillion and more than 100 state, national and international retail associations.

 

 

(Source: Logistics Management)