In Phoenix, AZ, 650 magazine and book publishing executives, along with senior-level national distributors, wholesalers and a record number of retailers, came together for the Ninth Annual Retail Conference, sponsored by Magazine Publishers of America (MPA) and International Periodical Distributors Association (IPDA). Retail Conference 2005 featured an all-star roster of speakers and insightful panels, groundbreaking research, and creative networking opportunities. Themed “Making Connections,” the conference took place February 27-March 1 at the Arizona Biltmore Resort and Spa, and was chaired by David Algire, VP, Pegasus Sales, The Reader’s Digest Association, Inc.

As in years past, highlights from the Retail Conference speaker’s presentations can be found in the Retail Conference section of the MPA website. If you attended the Retail Conference, but missed a particular session, go to www.magazine.org/RetailConference to download a copy of the presentation in Microsoft PowerPoint format.

Also: Government Affairs News

Progress on Postal Reform Slow but Steady

MPA has learned that Senate Homeland Security and Governmental Affairs Committee Chair Susan Collins (R-ME) is planning to introduce a new postal reform bill soon and hold a hearing on April 6. At the same time, House Government Reform Committee Chair Tom Davis (R-VA) has signaled his intention to schedule a committee vote on the House reform bill (H.R. 22) this month—although some Washington insiders believe that the schedule is optimistic, in view of the upcoming two-week Congressional recess for Easter.

Negotiations over several key, unresolved issues are continuing among all interested parties—including the Bush Administration, the Postal Service and representatives of the mailing community (including MPA). Slow but steady progress is being made on most issues. At the moment, however, the Administration is continuing to oppose proposals to provide relief to the Postal Service (and postal ratepayers) on key pension-related issues, including the obligation to begin funding a Civil Service Retirement System (CSRS) escrow account in 2006.

MPA and the rest of the mailing community are working to convince the Administration that the escrow account obligation must be eliminated, or at least reduced. As we have previously reported, USPS is preparing to file a new rate case with the Postal Rate Commission within the next few weeks to cover the $3.1 billion it must pay into the escrow account by September 30, 2006. Most analysts are predicting that the Postal Service will request a range of 5 to 6 percent “across-the-board” rate increase which will go into effect early in 2006. Periodicals rates would also increase by 5 to 6 percent, provided certain technical issues concerning periodicals costing for ratemaking purposes are resolved. Another average increase of 5 to 6 percent could follow in 2007.

MPA will continue to keep members apprised of developments over the next few weeks.