3
Ready for the Season
Moderate retail sales gains in October “set the table” for an improved holiday shopping season. Page 3
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Innovative, Young Jeweler
Find out why Instore Magazine named “Veloce, jewelry by Medawar” in Portage its coolest small store in America in 2015. Page 4
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Overtime Pay
Expected changes to federal overtime laws will have a dramatic effect on how retailers compensate certain employees. Page 9
® December 2015 Vol. 40 No. 6
Retailers’ crystal ball: stronger holiday sales, best season since 2012 Michigan’s retail industry went into the holiday shopping season displaying its most positive forecast since 2012. Two of every three Michigan retailers expect to increase sales over last year’s holiday season, and the average projected gain is 2.0 percent, according to the Michigan Retail Index, a joint project of Michigan Retailers Association (MRA) and the Federal Reserve Bank of Chicago. The Chicago region includes the Federal Reserve’s Detroit branch. “Improved economic conditions point to improved holiday sales,” said James P. Hallan, MRA president and CEO. “Unemployment is down, gasoline prices are down and consumer confidence is up.” Michigan’s unemployment rate in September was 5.0 percent, down from 6.7 percent a year ago. Gasoline prices on October 1 were down 26 percent from a year ago, according to the AAA Fuel Report, dropping from $3.36 to $2.48 a gallon. The University of Michigan’s recent survey of consumer sentiment showed confidence was up 6 percent from a year ago. Main Street Fairness Hallan said Michigan’s new Main Street Fairness law also is expected to help boost sales by removing an incentive for consumers to buy online from out-of-state companies. Hallan was the strongest advocate for the new law, which took effect October 1 and requires many outof-state online retailers, including Amazon, to now collect sales tax on their Michigan sales. “This is the first holiday season for Main Street Fairness, and we expect it to help cut down on ‘showrooming.’ Continued on page 6
The official publication of the Michigan Retailers Association
www.retailers.com
MRA fighting ‘assessor overreach’ Allowing local property assessors to use a different standard when determining the value of large retail stores would be unconstitutional and threaten to drive up property taxes on other retailers and other types of
businesses, Michigan Retailers Association is warning state lawmakers. “On the surface, this might seem to be a very simple issue. But in reality it is an extremely complex legal issue fraught with severe constitutional im-
plications,” MRA President and CEO James P. Hallan said in testimony to the Michigan House Tax Policy Committee on November 4. “Make no mistake,” Hallan continued, “the idea put forth by assessors is a tax increase, and by singling out retailers it violates the uniformity provision of the Michigan Constitution. … It sets a slippery slope for establishing valuation that could quickly migrate to other retail businesses and entire industries, such as manufacturing.” MRA was the only business group to testify during the first hearing on the issue. Local assessors and other local government officials took up most of the 90-minute hearing, which Committee Chair Jeff Farrington (R-Utica) Continued on page 6
Governor signs road legislation
bib overalls. Flash forward 126 years and Carhartt, a household name now headquartered in Dearborn, has set up its flagship Detroit retail location, in trendy Midtown. The 4,000-square-foot shop on Cass Avenue that opened August 27 is part of the clothing maker’s strategy to expand its own store network to make it a larger part of its retailing mix. “We always have wanted to have a presence in our hometown of Detroit,” said Jamie Millar, vice president of retail for Carhartt. “Our desire is to open stores where our customers live, work and play.”
They took an extremely long and bumpy route getting there, but the Michigan Legislature and Governor Rick Snyder finally arrived at a $1.2 billion package to fix Michigan roads and bridges. Signed into law on November 10, the legislation is intended to provide $600 million in new revenue to pay for road and bridge improvements and add $600 million from future growth in the state’s general fund. The full $1.2 billion per year isn’t expected to be available until the state’s 2020-21 fiscal year. Importantly for retailers, the package steered clear of increasing the sales tax, as some earlier versions would have done. “While the package isn’t perfect, we’re pleased with the main results: better roads and no sales tax boost,” said Bill Hallan, MRA executive vice president, COO and general counsel. “We achieved our original goal, and we applaud the governor and legislative leaders for continuing to work on this problem until they found a solution.” Voters’ overwhelming rejection last May of a ballot proposal that included
Continued on page 7
Continued on page 6
Jamie Millar, Carhartt vice president of retail, participates in the Buy Nearby news conference held Sept. 30 in the recently opened Midtown Detroit store.
New Detroit store points to Carhartt’s past, future by Doug Henze
When New York transplant Hamilton Carhartt arrived on the Detroit scene in 1889 – before the auto industry called Michigan home – foundries were humming away making metal parts for steamships, boilers, carriages and railroads. Using two sewing machines and five employees, he launched the company that bears his name to outfit industrial workers with
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Michigan Retailer
Thank You!
www.retailers.com
Board of Directors: Dan Marshall
Chair Marshall Music Company, Lansing
James P. Hallan
by James P. Hallan, MRA President and Chief Executive Officer For those of you on our merchant processing program, a great big “Thank You” for your patience. October 1 marked a sea change in the credit card processing arena. That was the day certain chargeback liability shifted from issuing banks to retailers. Or more accurately, the liability shifted to, or remained with the party that is not EMV compliant. EMV readiness is an important issue, as the new chip cards and terminals protect us better from fraud and put us in step with international processing protocols. While that might sound simple, it is not by any stretch of the imagination. Backroom network gurus thought the switch from a magnetic swipe world to a chip-and-signature network would be effortless, and that somehow everyone would magically become EMV compliant. However, as in most cases when a major technological shift occurs, the world is never quite ready and things never go quite as expected. Issuing banks, terminal manufacturers and software developers all fumbled the rollout. As your frontline provider, we took your calls and did our best to handle inquiries, send new equipment and assist in downloads to make you EMV compliant. This occurred while we were impatiently waiting for new software releases from equipment manufacturers and new EMV-ready terminal equipment. Like you, we were frustrated. Due to these cascading events, our level of service was not up to our standards. If you called to talk to our customer service team members – Penny, Tamara, Christain or Mari – you may have experienced an unusual wait. We track hold times regularly to keep them as short as possible. But those times increased with EMV, and our team members were logging long hours. We apologize for the inconvenience these delays caused you. Unfortunately, in this situation involving key transactional networks, we could only be as good as the national equipment providers and software developers involved. On a positive note, however, the immediate crisis appears to have passed for all of us. On a larger scale, my opinion is that it will take several years for everyone to be fully integrated to chip cards.
It’s worth noting that while chip and signature offers a higher level of security than magnetic stripes, we have advocated for chip and pin, which is the international standard and is the most secure method for processing credit cards. This is the last issue of this publication for 2015. All of us at Michigan Retailers wish you the very best for the holiday season. Thank you for your membership and be assured that
Michigan Retailer will be back in your mailbox early next February. Happy selling!
Orin Mazzoni, Jr.
Vice Chair Orin Jewelers, Garden City
Peter R. Sobelton Treasurer Birmingham
William J. Hallan
Secretary Michigan Retailers Association
Thomas Ungrodt
Past Chair Ideation, Ann Arbor
Brian Ducharme AT&T
Becky Beauchine Kulka
Becky Beauchine Kulka Diamonds and Fine Jewelry, Okemos
Joseph McCurry
Credit Card Group
Experts forecast 126,000 new jobs in Michigan during next two years Michigan will continue to see solid job growth the next two years, but at a slower pace than this year, according to University of Michigan economists making their annual forecasts. They foresee 61,100 new jobs in 2016 and 64,800 more in 2017, pushing down the unemployment rate from its current 5 percent level to 4.8 percent next year and 4.5 percent by the end of 2017. They estimate that 84,600 new jobs will have been created this year by Dec. 31. “The Michigan economy has been on a bit of a roll for the past five or six years…and the state appears to be poised to continue the ride for a while longer, although perhaps not at the same pace,” said economist George Fulton during UM’s 63rd Annual Economic Outlook Conference in Ann Arbor. Even with the healthy job gains through 2017, Michigan will still not have replaced all of the jobs lost during the Great Recession and the years leading up to it, the economists pointed out. They said by the end of 2017, Michigan will have gained back 586,000 of the more than 858,000 jobs lost between 2000 and 2009. That would put the state back at spring 2003 employment levels. Where will the new jobs be concentrated? They predict the most jobs, 32,000, will be in the professional and busi-
President and CEO Michigan Retailers Association
ness services sector. It includes professional, scientific and technical services, management of companies and administrative support services. Some 22,000 jobs will be in the trade, transportation and utilities sector. They foresee 60 percent of those coming in retail. Another 22,000 will be in construction, 20,000 in leisure and hospitality and 10,000 in manufacturing. That’s a slowdown in manufacturing, which has gained roughly 20,000 jobs each of the last four years. And despite the overall job gains, Michigan will continue to lag the nation in per capita income and per capita gross domestic product, overall employment and educational attainment. “What this tells us is that although we’ve made a fair amount of progress recently, we have a way yet to go,” Fulton said. Looking at the entire U.S. economy, the experts expect it to grow in 2016 by 2.6 percent, the largest gain since 2006. They see 2017 growing by 2.9 percent. As the economic recovery matures, the unemployment rate will continue its decline, they said, falling to 4.9 percent in 2016 and 4.6 percent in 2017. They expect inflation to remain under 2 percent in 2016 and rise slightly above that level in 2017. Michigan’s annual forecast was written by Fulton, Joan Crary, Gabriel Ehrlich and Donald Grimes.
Larry Mullins
Brandon Tire & Auto Service Center, Ortonville
R.D. (Dan) Musser III
Grand Hotel, Mackinac Island
Barb Stein
Great Northern Trading Co., Rockford
Joe Swanson Target Corp.
James Walsh
Meijer, Inc., Grand Rapids
D. Larry Sherman
Board Member Emeritus
Michigan Retailers Services, Inc. Board of Directors: Bo Brines Little Forks Outfitters, Midland
Bill Golden
Golden Shoes, Traverse City
Emily Matthews
Potent Potables Project, Lansing
James P. Hallan Thomas B. Scott Publisher
Editor
Pat Kerwin
Design Manager
Publication Office: 603 South Washington Avenue Lansing, MI 48933 517.372.5656 or 800.366.3699 Fax: 517.372.1303 www.Retailers.com www.RetailersInsurance.com www.BuyNearbyMI.com
Subscriptions:
Michigan Retailer (USPS 345-780, ISSN 0889-0439) is published in February, April, June, August, October and December for $20 per year by Michigan Retailers Association, 603 South Washington Ave., Lansing, MI 48933. Subscription fees are automatically included in the Michigan Retailers Asociation membership dues. Periodical postage paid at Lansing, Michigan. POSTMASTER: Send address changes to 603 South Washington Ave., Lansing, MI 48933. The Michigan Retailer may be recycled with other white office paper.
December 2015
3
MICHIGAN RETAIL INDEX
Small October gains ‘set table’ for holiday sales mance index stood at 50.3. The 100-point index gauges the performance of the state’s overall retail industry, based on monthly surveys conducted by MRA and the Federal Reserve Bank of Chicago’s Detroit branch. Index values above 50 generally indicate positive activity; the higher the number, the stronger the activity. Looking forward, 48 percent of
Current
retailers expect sales during November–January to increase over the same period last year, while 20 percent project a decrease and 32 percent project no change. That puts the seasonally adjusted outlook index at 66.6, down from 75.4 in September. A year ago October the outlook index stood at 67.5. State sales tax receipts totaled $616.5 million in October, down 6.7
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percent from a year ago. Sales tax collections have been below the year-ago level in eight of the last nine months. Complete results of this month’s Michigan Retail Index—including data on sales, inventory, prices, promotions and hiring—are available at www. retailers.com/mra/news/michiganretail-index.html. The website includes figures dating back to July 1994.
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Michigan retailers rang up slightly better sales in October, according to the latest Michigan Retail Index survey, a joint project of Michigan Retailers Association (MRA) and the Federal Reserve Bank of Chicago. The monthly retail industry performance gauge rose three points from September, to 54.1 on the 100-point Index. “October’s moderate gains help set the table for the upcoming holiday shopping season,” said MRA President and CEO James P. Hallan. “Retailers are looking forward to a solid season, the best since 2012.” MRA released its annual holiday sales forecast last month. Two of every three survey respondents expect to increase sales over last year’s holiday season. The average projected change from last year was a gain of 2 percent. The October survey of MRA members showed 41 percent of retailers increased sales over the same month last year, while 34 percent recorded declines and 25 percent reported no change. The results create a seasonally adjusted performance index of 54.1, up from 51.1 in September. A year ago October the perfor-
Seasonally adjusted diffusion index, calculated by adding the percent of respondents indicating increased sales and half the percent indicating no change, and then seasonally adjusting the result using the U.S. Census Bureau’s X-11 Seasonal Adjustment procedure. Index values above 50 generally indicate an increase in activity, while values below 50 indicate a decrease.
200 (millions)
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Be sure to complete your online survey each month!
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Michigan Retailer
www.retailers.com
Jewelry store for new age: ‘High tech and in motion’ by Doug Henze
When Christina Medawar launched her fashion jewelry store in Portage two years ago, she wanted it to capture the spirit of the age: high-tech and in constant motion. So why not set the stage with a name that means velocity? Borrowing from the Italian language and paying homage to the jewelry business family she grew up in, Medawar chose “Veloce, jewelry by Medawar” to strike the right tone. “I wanted it to include the Medawar name, but I wanted to do something different,” said the 28-year-old entrepreneur, who opened the 1,500-square-foot store in the Crossroads Mall in November 2013. “It’s technology. It’s fast. It’s for my generation, which is on the go.” And, she confessed with a chuckle, “‘Veloce’ sounds super cool. It sounds like a high-end line.” Equally important, Medawar decided to back up the store name with unique technology. That comes in the form of video screens, “floating” display cases, hydraulic cases and jewelry pieces available to be handled without assistance from sales associates. Floating Tables “Nearly all of our showcases are floating tables,” said Medawar. “Every person who comes in goes, ‘Oh, my God. That is so cool.’” Of course, they only appear to be floating. Mounted on a sheet of glass that extends to the ceiling, the tables rest on triangular glass supports attached to the floor. They were designed by Medawar’s partner and father, Pierre Medawar. “If he wouldn’t have been a jeweler, he would have been an engineer,” his daughter said. Displayed on the open-topped tables are bracelets, watches and rings. All are connected by retracting wires to the displays. “Every girl wants to try that special ring, bracelet or watch on her hand before she buys it,” Medawar said, “and Veloce allows you to do that because each piece is out and attached to a wire for you to try on without having to wait for a sales person. Whether you want to take your time or are in a hurry, when you try on a piece of jewelry, the video screen in front of you will tell you all you need to know about that piece.” Medawar says she and her father have patented the video screens that provide customers with information about price, size and designer of a particular item. A different information screen pops up for each piece of jewelry a prospective buyer selects. The system was designed for Veloce by a group
of recent Michigan State University graduates, she said. The wires also serve as an antitheft device. “If you try to pull off the jewelry, an alarm goes off.” Still another innovation is the hydraulic showcases. “With a turn of the key, the top of the showcase opens up hydraulically, allowing the salesperson to show the product inside. And when done, you can turn back the key to lock position and the showcase will hydraulically close the lid and lock it in place.”
like an Apple store?’” she said. Getting there took about two years of design and buildout. The buildout cost was about $300,000, she said. On a per-squarefoot basis, it cost about the same as a typical Medawar store, which ranges from 3,000 square feet to 4,000 square feet, she said. Instore Magazine, a jewelry industry trade publication, named Veloce its coolest small store in America in 2015. For all Veloce’s design sizzle, it’s the steak that customers show up to buy. They can find product lines from designers that include Tacori, Pandora and Swarovski, ranging from $25 to $2,000. The store recently began selling its own line of one-carat engagement rings, designed by Pierre Medawar, for $700 to $3,000. “Our main price point is between $50 and $300,” she said. That’s another way Christina Medawar wanted to open her own jewelry Veloce stands out from store since she was a little girl. the family’s fine jewelry business. Coolest Award “I don’t have 14-carat gold rings. The new-age look of the store – usI have silver rings,” Medawar said. ing white surfaces, glass walls and “If you’re looking for a $6,000 gift for lots of light – is a nod to the Apple your wife, go to a Medawar store. If Store, which impressed Medawar’s you want a $300 gift, come to Veloce.” 27-year-old brother, Jon-Pierre, when he was visiting New York. ‘Veloce Girl’ “He thought, ‘Wouldn’t it be so cool The store’s target audience – to have a jewelry store that looked Medawar calls that customer her
“Veloce girl” – is between 18 and 50. “This is for a woman who has some money, who has her own career,” she said. The seeds for the Veloce store were sewn years ago, when Medawar was growing up in her parents’ jewelry business. “I always wanted to open up a fashion jewelry store,” she said. “It was my dream since I was a little girl.” Pierre Medawar, the son of a watchmaker/jeweler in Lebanon, opened his first American store in California in 1976 after immigrating to the United States, and his first Michigan store in Lansing in 1979. He and his wife, Catrine, grew the chain to its present day five locations – in Lansing, Okemos, Jackson, Kalamazoo and Brighton – plus Veloce. Beginning around age 12, Christina and Jon-Pierre Medawar cut their teeth in the business, doing everything from wrapping presents to cleaning the restrooms. “My dad taught us, if you want to work in this business, you have to learn everything,” Medawar said. “Now, I know why.” She said she plans to apply the lessons learned at the Portage store to other locations she hopes to open in the next couple of years. “I want Veloce to be the fashion jewelry store of Michigan – and beyond,” she said. Doug Henze is a freelance writer and former business reporter for the Oakland Press in Pontiac.
“Veloce, jewelry by Medawar,” Christina’s high-tech, new-age store in the Crossroads Mall in Portage, opened in November 2013. Instore Magazine named it the coolest small store in America this year.
December 2015
5
Several firsts mark third year of Buy Nearby The Buy Nearby campaign extended its reach and message to tens of thousands more Michiganders this year through more community visits, greater use of social media and new activities.
who participated in Get Caught BlueHanded Day reported sales as good or better than the previous year. The results from more than three dozen retailers were unscientific but provided important insights, Scott said.
Buy Nearby Guy finds friendly employees – and an escape from the rain – at Paper Source in downtown Birmingham on Get Caught Blue-Handed Day. Photos by David Trumpie.
“Buy Nearby grew in dramatic fashion this year, with the help of greater sponsor support and a variety of new communications efforts,” said MRA President and CEO James P. Hallan. “There were more community visits by Buy Nearby Guy, a new streamlined and mobile-friendly website, new materials for retailers, new videos, expanded social media engagement, a new #ibuynearby photo campaign, a series of regional news conferences, increased legislator participation and new involvement with leading Michigan fashion bloggers. “All in all, it has been a year of great progress.” Get Caught Blue-Handed Day Unseasonably cold temperatures and rain showers worked against Buy Nearby’s annual celebration – Get Caught Blue-Handed Day – on the first Saturday in October. But a follow-up survey suggests the promotion had a positive effect. “October 3 wasn’t the type of day for shoppers to stroll casually through town exploring all the great stores and merchandise nearby. It was cold and wet and the sun never came out in a lot of places,” said MRA’s Tom Scott, senior vice president communications and marketing. “But our follow-up survey of retailers suggests Buy Nearby made a positive difference for retailers who participated in the special promotion.” An analysis of MRA credit card processing data for October 3 showed mixed sales results across Michigan. Sales were up in about half of Michigan’s 83 counties and down in the other half. The follow-up email survey, however, showed that most of the retailers
He continued, “Second, of the 82 percent who participated, 63 percent reported sales as good or better than the previous year – better than the state as a whole.”
The mascot enjoys the warmly dressed shoppers at the Royal Oak Farmers Market in downtown Royal Oak to begin Get Caught Blue-Handed Day.
“First, it underscored again this year that the message of the yearround Buy Nearby campaign is very well received,” he said. “Once people hear it, most of them understand and agree with the importance of encouraging shoppers to support retailers and communities in Michigan. Eighty-two percent of survey respondents who were aware of the campaign thought it was important and participated in it. They also said they plan to continue to participate and promote it.”
2015 Results Other results of the 2015 campaign included: • Through October, the Buy Nearby Guy mascot visited more communities – 52 – and racked up more miles – 7,277 – than last year’s 31 visits and 3,770 miles. His expanded travels included his first U.P. tour. • For the first time, all Buy Nearby Guy visits were free because of additional sponsor support. Sponsors this year were DTE Energy (lead sponsor) and supporting sponsors Pure
Michigan/Michigan Economic Development Corporation, Discover, AT&T, Michigan State Housing Development Authority and Retailers Insurance Company. • The campaign printed and distributed, free of charge, more than 21,000 special merchandise tags and bag-stuffer “Thank-You for Buying Nearby” cards to retailers who requested them for Oct. 3. Both were new this year. • Facebook fans increased more than 100 percent to nearly 32,000 and total Facebook “reach” extended to nearly 1.5 million users. Plans for 2016 MRA will promote Buy Nearby just as hard in 2016 and continue building on the progress of the first three years of the campaign, Scott said. The MRA Board of Directors and its Buy Nearby committee will examine the past year and consider new approaches for the future before adopting a plan for the new year. “We’re happy with the progress we’ve made since creating the campaign and are constantly looking for ways to improve it,” Scott said. “It’s an exciting and important campaign for all of us, and we look forward to continuing to find new and better ways to communicate the importance of buying nearby to retailers and shoppers.”
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Governor signs road legislation Fighting ‘assessor overreach’ Continued from page 1
a one-cent sales tax hike put to rest any more serious attempts to boost the current 6 percent tax rate, Hallan said. The package also includes some income tax and property tax relief. Pieces of the Package The nine-bill package, approved mainly by the Republican majorities in the House and Senate, includes: • A 7.3-cent increase in the 19-centsa-gallon gasoline tax and an 11.3-cent hike in the 15-cent diesel tax in 2017 – raising $400 million – with automatic
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Continued from page 1
yearly inflationary increases to both taxes in 2022 and beyond; • A 20 percent hike in license plate fees in 2017 – bringing in $200 million – averaging $20 more per passenger vehicle, along with special additional fees for hybrid and electric vehicles; • A dedicated annual shift to roads from the $9.9 billion general fund starting at $150 million in the 201819 fiscal year, $325 million in 2019-20 and $600 million in 2020-21 and after; • A yearly reduction in the 4.25 percent personal income tax, starting in 2023, if general fund revenue growth outpaces the rate of inflation times 1.425; • An expanded income tax credit for homeowners and renters, enabling those earning up to $60,000 to be eligible (the current limit is $50,000). The maximum credit rises from $1,200 to $1,500. Gov. Snyder called the package “the largest investment in transportation over the last 50 years in the state of Michigan. …This will lead to safer and better roads in our state and do it in a fiscally responsible way.” It was four years ago that the governor began calling for a comprehensive road-improvement plan that would provide an additional $1.2 billion a year for the work.
described as an education session on the issue rather than a discussion of specific legislation. Successful Appeals The issue is before state lawmakers because local government officials, upset over a recent series of successful property assessment appeals by large retailers, are pushing for legislation to allow them to assess large retail stores differently than other types of property. The successful appeals to the Michigan Tax Tribunal have reduced the retailers’ tax bills and local governments’ tax revenues. Local officials blame the loss of revenue on the retailers and the Tax Tribunal, instead of themselves for over-assessing the businesses in the first place. The Tribunal’s decisions have been upheld repeatedly by the courts, said attorney Michael B. Shapiro, an expert on property tax law and whose law firm, Honigman, has been retained by MRA in the fight against “assessor overreach.” Testifying before the committee with Hallan, Shapiro explained that in Michigan, “the property tax valuation standard is true cash value, statutorily defined as ‘usual selling price.’ There are no exceptions,” Shapiro said. “The valuation standard applies to all taxable property, including, for example, apartment complexes, office buildings, industrial buildings, single-family homes and, of course, all retail property.” Appellate courts have upheld the Tax Tribunal’s decisions to reduce large retailers’ assessments because the municipalities were not using usual selling price, he pointed out. “Obviously, if retail properties are to be uniformly valued based on usual selling price, then special leg-
islation for some retail property but not all real property is not only unnecessary, but on its face destroys the constitutional uniformity mandate,” Shapiro said. Key Reasons Hallan cited several key reasons why MRA “strongly opposes any attempt to change current law and abandon longstanding appraisal principles.” He said: “1. This would be a clear tax increase in the assessments on one segment of the business community – retail. Proposed legislation based on the size of a retail property is discriminatory. “2. It sets a slippery slope for establishing valuation that could quickly migrate to other industries, such as manufacturing. “3. It would be unconstitutional, because it violates the uniformity provision in the Michigan Constitution, Article IX, Section 3. “4. To have the legislation declared unconstitutional would require litigation, which would be costly and time consuming for taxpayers and government. “5. Businesses like certainty. Any proposed change in law designed to increase assessments on one property type sends a chilling message to potential investors that Michigan is not open for business. It is a step backwards from the strong progress Michigan has made. “6. Local municipalities should concentrate on attracting investment, not discouraging new investment and penalizing those who have invested in their communities.” Another committee hearing is planned for December, Rep. Farrington said. In the meantime, the committee also plans to set up a work group, which is expected to include MRA, to explore the situation.
Crystal ball: best season since 2012
Continued from page 1
Michigan retailers now have a more level playing field on which to compete,” he said. “Showrooming” is the term applied to shoppers who look at and handle merchandise in a store and then order it online from an out-of-state merchant that doesn’t collect sales tax. This year’s survey found that 67 percent expect to increase holiday sales, 24 percent anticipate sales the same as last year and 9 percent expect sales to decline. The largest group, 39 percent, expects sales to increase by 5 percent or less. Last year, 63 percent of retailers expected to increase holiday sales, with gains averaging 1.6 percent. In a post-holiday survey, 52 percent of retailers reported increases, with gains
averaging 1.1 percent. Great Recession In 2012, Michigan was shaking off The Great Recession in a big way. That year, 75 percent of retailers forecast gains, and the average projected increase was 13.4 percent – the biggest jump since the Michigan Retail Index was established in 1994. Michigan retailers’ collective forecast is more cautious than predictions by economists at two national retail organizations. The National Retail Federation predicts holiday spending across the nation will rise 3.7 percent to $630.5 billion this year. The International Council of Shopping Centers forecasts a 3.3 percent increase.
December 2015
7
RETAIL TECHNOLOGY NEWS
Life goes on after 10/1, but it pays to be cautious John Mayleben CPP, is MRA senior vice president technology and new product development and a national expert on electronic payment processing. He is the first person in Michigan and among the first in the nation to receive the Certified Payments Professional designation from the national Electronic Transactions Association. Well, it looks like we’ve all survived another end-of-the-world event (hyperbole intended). First it was Y2K and then it was the Mayan calendar. Now it’s
“chip cards.” October 1, as you probably already know, was the date that a liability shift occurred. After 10/1, if a merchant accepts a counterfeit card and has not upgraded the store’s terminal to a new chip-reading terminal, the merchant is responsible for the loss. Prior to 10/1, the bank that issued the card held that liability. As a merchant who accepts cards for payment, you are faced with a decision on whether the risk of a counterfeit card is greater than the cost of upgrading your equipment. If you are low risk – you sell goods or services that aren’t in big demand by the bad guys – or have a low average ticket, you may decide you don’t want to upgrade at this time. On the other hand, if you sell expensive items that are sought-after by lawbreakers, you may want to upgrade immediately. Retraining If you don’t upgrade your terminal, it’s a good idea to retrain your staff on what to look for when handling a transaction. For example, we recently had a conversation with a merchant who had a chargeback for a counterfeit card (the store had not upgraded its terminal yet) and, when performing a post mortem on the transaction, discovered the following. During the sale, the person at the counter swiped the card (it had a chip on it, but the older terminal was not able to read a chip) and asked for ID. When the receipt printed, it had the customer’s name under the signature line. The signature, name on the front
of the card and the name on the ID all matched, but the problem was that the name printed on the receipt (from the information in the mag stripe on the back) was a completely different name. While we will never know the exact details of this fraudulent transaction, it is likely that the “customer” (who really should be called “thief”) had a legitimate card and he recoded the mag stripe with someone’s stolen data. That way, the card, ID and signature always matched and the sale looked legitimate. If the terminal in this case had been a new, chip reader, the bad guy would have charged his own card (the data on the chip was correct and can’t be changed) instead of the stolen card
data that he put on the mag stripe. Obviously, if the clerk had caught the name irregularity when the customer signed the slip (by comparing all of the details on the sales slip to the card and ID provided), the clerk could have avoided a business loss from credit card fraud. Hold the Card It’s a good idea to train your staff to hold the card and/or ID until after the consumer signs and returns the slip. The clerk can then look at the info on all of the “pieces of the puzzle” to make sure they all match, before handing the consumer his copy of the sales draft. One of the unintended consequences to the 10/1 liability shift may well be an uptick in fraud at locations that have not made the conversion yet. Only time will tell. As always, if you have questions about this or any other merchant processing issue, our customer service team members are ready to help.
Store points to Carhartt’s past, future
Continued from page 1
Showcase the Brand Carhartt once relied on a network of hardware stores and sporting goods shops to sell the brand’s more than 550 styles of men’s, women’s and children’s clothing and footwear it offers. While also offering hunting lines, the company’s bread and butter remains work wear for laborers ranging from carpenters to ranchers. “Around the country, we have 5,500 retail roofs that sell our products,”
decades. Real estate moguls, including Dan Gilbert and Mike Ilitch, are snapping up buildings and land, while a commuter rail line is under construction along Woodward Avenue. “Light rail will pretty much be within a quarter-mile of our door,” Millar said. “There’s just a lot happening in Detroit and we wanted to be part of it.” Historic Site Carhartt started searching aggressively for a location in 2013
Carhartt’s new Midtown Detroit store features a custom-designed and painted mural spanning the width of the building.
Millar said. The company added a dotcom presence in 2007, offering its goods through its own ecommerce site. In 2010, Carhartt opened its first company-owned retail store in Portland, Oregon. Setting up its own stores allows Carhartt to target underserved markets where Carhartt is hard to find, Millar said. It’s a way “to be able to give the customer more access to the brand but also to showcase the brand in its entirety,” he said. While merchandisers have seen online retailing grow dramatically in the past decade, retail stores still are an important part of the mix, Millar said. “The brick and mortar side of the world is in no way a thing of the past.” First in Michigan For Carhartt, the flagship Detroit store is its 20th retail location nationwide and its first in Michigan. Now employing about 12 full-time workers, including the onsite management team and workers who both sell and stock the location, the store will grow to employ 15 to 17 people, Millar forecasts. “We were steadfast in saying we wanted to be a city retailer, not a suburban retailer,” Millar said. T h e b e g i n n i n g o f D e t r o i t ’s long-awaited comeback has had everything to do with that decision. “If you look at downtown, if you look at Midtown – there’s been an incredible rejuvenation of Detroit,” Millar said. “We felt we needed to be part of that.” The business community is investing in the city to a degree not seen in
and signed a lease with landlord Cass Avenue LLC last year for the 51,000-square-foot building. The only tenant in the three-story structure, Carhartt occupies part of the ground floor, which also includes secure garage parking. Built in 1928 to house an auto showroom for the now-defunct Marmon Motor Car Co., the building later served as home to Cass Motor Sales, Millar said. Listed on the National Register of Historic Places, it sat dormant for about 40 years, until Carhartt worked with the landlord to rehabilitate it. “The building had never been heated or cooled,” Millar said. “We revitalized the building from top to bottom with the goal in mind to keep it as original as possible.” The market response to the finished product has been better than expected, Millar said. Daily traffic during the week ranges from 250 people to 350 people, he estimates. “We’re getting a lot of students from Wayne State,” Millar said, adding that they’re seeking outdoor gear. “We’re getting a lot of people working downtown and we’re getting suburbanites.” One couple drove from Toronto just to see the store, he said. “I had some hunches going in as to what we would see, and it’s fair to say we have exceeded those expectations,” Millar said. “We’ve been incredibly happy with what has happened so far.” Doug Henze is a freelance writer and former business reporter for the Oakland Press in Pontiac.
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Michigan Retailer
2015 PAC contributors MRA Political Action Committee benefits the retail community by providing financial support to the campaigns of retail-friendly candidates for state office. Retailing plays a major role in the state’s economy and directly affects the quality of life in Michigan. The actions of state government in areas such as employee benefits, minimum wage, taxes and environmental regulation have a significant impact on the health of your business. That’s why it’s crucial for the interests of the retail industry to Thomas Baker Donald Baron Becky Beauchine Kulka Teresa Breed Bo Brines Kurt Dettmer Amy Drumm Brian Ducharme David Elkus Bill Golden Jim Hallan Bill Hallan Jeff Joyce
be represented as public policy is developed. One of the best ways to make your views heard is to contribute to MRA PAC. Your financial support helps ensure the election of public officials who understand the concerns of retail. To contribute or find out more, please contact MRA’s Amy Drumm, director of government affairs, at adrumm@retailers.com. Thanks go to the following individual members who have contributed this year, through November 17.
Patrick Kerwin Dan Marshall John Mayleben Orin Mazzoni Joe McCurry Larry Meyer Mark Miller Larry Mullins Dan Musser Ally Nemetz Rod Phillips Don Rapson Burke Sage Jean Sarasin
Tom Scott Larry Sherman Peter Sobelton William Spreder Barb Stein Joe Swanson Tom Tuggle Tom Ungrodt Willard Van Harn Jim Walsh Bonita Wiegard Kathy Wilson
Foundation donations Michigan Retailers Foundation, established by MRA in 1968, provides college scholarships annually to benefit retailers and their employees and families. The foundation is a nonprofit educational organization, and donations are tax deductible. The Foundation’s ongoing “Links to a Legacy” fundraising campaign provides MRA members with the opportunity to establish a living legacy for themselves through regular contributions to Becky Beauchine Kulka Becky Thatcher Designs BJW Custom Jewelers Bo Brines Comar & Comar PC Brian Ducharme Bill Golden Goldstein Bershad & Fried PC Jim Hallan Home Heating & Air Conditioning
the scholarship program. Contributors who donate at least $10,000 over their lifetime can have a permanent scholarship established in their name or in honor of a parent, company or other designee. To contribute or find out more, please contact Rachel Schafer at rschafer@retailers.com or 800.366.3699 ext. 346. Thanks go to the following individual members who have contributed this year, through November 17.
Jeff Joyce Little Forks Outfitters Chris Lynch Dan Marshall Emily Matthews John Mayleben M Mazzoni Jewelers Orin Mazzoni Lisa McCalpine Wittenmyer Joe McCurry Larry Meyer Mieras Family Shoes Inc.
Mark Miller Larry Mullins Dan Musser Rod Phillips Jean Sarasin Tom Schwark Jim Schwark Michael Schwark Peter Sobelton Barb Stein Joe Swanson Tom Ungrodt Votruba Bootery Inc. Jim Walsh
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Railing for Retailing
More to Google than ‘free lunch’ Editor’s note: Retailer, retailing instructor, consultant and columnist Steve Flaster embarked recently on a 30-day, train trip looking for good retail ideas and stories. This is the third installment on what he found. by Steve Flaster dining plan nor many other things M O U N TA I N Google does. However, if we try to V I E W, C A L I follow the Google spirit, we can still FORNIA – After achieve the same goal: to minimize visiting Google the horrendous cost of employee headquarters, turnover and, instead, build a loyal I now underworkforce. stand why it is Here are three Google-influenced often credited steps we can take as retailers: with being the 1. We should always hire people who best company to already like our store, really want to work for in America. work for us and can tell us why. Yes, there is “free lunch” at Google. 2. We must do the best we can to In fact, there are also free breakfasts tailor benefit packages to the needs and dinners at about 20 self-service of individual employees. restaurants around the “campus.” 3. We should provide the nicest The menus are all different and are employee lounge we can so that asposted daily online. sociates don’t have to waste time Staff members are welcome to bring and money braving the malls or family and friends. In case anyone gets downtowns for breaks and meals. hungry between meals, there are reThe lounge should help build a freshment outposts in most work areas, sense of community, with a billwith cold drinks and healthy snacks… board of stories, announcements no charge, of course. and pictures. While Google deserves to be called There should always be free generous, its actions are based on a coffee (cold drinks, too). Special rethoughtful approach to human refreshments should be provided on sources management that is relevant birthdays, individuals’ company anto retailers of all sizes. It’s based on niversary dates and at the end of these core principles: successful store events. 1. Start by hiring the right people, I dare to suggest that such exand don’t make it easy for people to pense will prove justified and, if get hired. necessary, should be reallocated 2. Once you have hired the right from other areas. people, do everything you can to While Google may provide the ultimake them happy. mate staff experience, as retailers we 3. If you make workplace life attracshould all provide the best staff expetive, employees will enjoy coming to rience we can so that our employees work and be less likely to waste time want to do – and can do – their best leaving for breaks and meals. for us. Most retailers cannot offer a Google
150 years of Gumps’ discoveries SAN FRANCISCO – Gumps is one of America’s iconic stores, and it has something to say to all of us as retailers and shoppers. At the center of Gumps’ first floor is a massive, gilded statue of Buddha. At its base is a bronze plaque telling the story of Gumps. The title: “Gumps: 150 Years of Discoveries.” The words tell us about one-of-akind objects at Gumps, how the store is part of the city’s history, that good taste costs no more, and how the store looks towards the future. It is quite a story. Shouldn’t all retailers tell a story their customers will enjoy reading and that will make them excited to shop there? Our personal story as a retailer is something no competitor can take away from us. It’s also something that should make our staff proud to be part of our organization.
In today’s competitive market, longevity is a badge of distinction for retailers much younger than Gumps. And longevity gives us bragging rights! I would rather eat in a restaurant with a window sign saying “proudly serving happy diners for 30 years” than in a trendy place that might not be around next year. And then there is the matter of discoveries. All retailers should ask themselves what wonderful new discoveries they are making for their customers each and every year, make sure their customers know about them, and feature them in their stores. There are good reasons why Gumps has been around for 150 years. May it continue to inspire customers and fellow retailers for many more.
December 2015
9
IT’S THE LAW
Major changes coming to employee overtime by William J. Hallan, MRA Executive Vice President, COO and General Counsel You may have heard that the U.S. Department of Labor has made extensive changes to federal overtime laws. The proposed rules are expected to take effect in late 2016 and dramatically change how retailers compensate certain employees. Current Rules Under the current system, certain workers are eligible for overtime if they work more than 40 hours in a single workweek. Not all employees are eligible for overtime. Many workers are classified as exempt and are paid a salary. Executive, administrative, professional and outside sales employees are deemed exempt. In retail, some store managers may be classified as exempt, depending on their specific duties. Workers earning less than $23,660 automatically qualify for overtime pay. Salaried employees who earn more than $23,660 and are classified as exempt do not qualify for overtime. Proposed Rules The new rules would increase the income threshold to allow more employees to claim overtime. The changes mandate that all salaried workers, regardless of title or duties, are eligible for overtime if they earn $50,440 or less. The argument for increasing the threshold is to help boost employee pay. Proponents claim that many employees are wrongly classified as “exempt,” allowing employers to pay employees a salary and require employees to work more than 40 hours per week without paying overtime. The proposed change could bring many store managers or assistant managers under the overtime rules and will affect businesses of all sizes, since there is no small business exemption. Bad for Retail? The National Retail Federation projects the rule change will reclassify 2.2 million employees in the retail and restaurant sectors. Retailers have many concerns. One fear is that the rules will impose new costs on business: an Oxford Economics study estimates the cost at $9.5 billion per year. Retailers unable to pass on the higher labor costs to their customers are expected to adjust compensation
schemes by cutting hourly pay, cutting bonuses and pay to increase salaries above the new threshold, and reducing workers’ hours. Other outcomes might not have such a clear economic effect, but are equally problematic. For instance, affected workers are likely to suffer from reduced employee morale, since changing from salary to hourly will carry a negative stigma. Not only are the rules controversial because of the drastic change to the salary threshold, but opponents also claim that President Obama has overstepped his executive authority. When a federal agency like the Department of Labor implements a rule, it does not have to go through Congress. President Obama has used many executive orders during his second term to sidestep Congress, because the Republican-led House and Senate would have blocked many of his policies. Be Ready Retailers should prepare for the 2016 rule change and evaluate which employees will be affected. Retailers should start tracking hours and wages of their sales force to determine whether any changes need to be made.
Membership Services Corner by Penny Sierakowski, MRA Customer Service Department Manager Quick notes on key services. Call 800.563.5981 for credit card processing assistance or 800.366.3699 for other matters. We v a l u e your membership and trust. Let us know whenever we can help you with your question or problem, no matter how large or small. Credit Card Processing • We are excited to provide merchant assistance via email, in addition to over the phone. You can email any general questions to customerservice@retailers.com. The response time for email inquiries is within 48 hours. • If you have a terminal that does not accept chip cards or ApplePay, please contact customer service to discuss upgrade options. If your terminal is a Vx520 you may need to complete an update to accept chip cards. Contact us to verify your terminal. • To keep your processing costs low, answer all prompts on the terminal, including AVS (street number and zip code), CVV (3-digit security code on the back of card), Sales Tax (sales tax amount only),
PO Number (if you don’t use a purchase order number, the default would be the last four digits of the card number). • Pin-Based debit transactions CANNOT be voided. • Keep your customers happy and don’t lose potential sales. Contact us if you would like to accept American Express. • To protect your business against customer disputes, be sure to imprint and obtain a signature on all credit card transactions. • Minimum/maximum transaction limits: You cannot impose a minimum transaction amount on debit cards or prepaid cards. However, you can impose a minimum transaction amount – not to exceed $10 – on credit cards. If you do, you must display this policy at the entrance of your business as well as at the cash register/checkout station. • Data security compliance is mandatory. You must complete an annual PCI Self-Assessment Questionnaire to verify if your business is PCI compliant. Visit www. compliance101.com to begin the questionnaire. • Notify customer service of any tax id, bank account, or business changes. • You must settle the credit card terminal before unplugging it.
RE: RETAILERS
National magazine honors English Gardens English Gardens, a family-owned business with six locations in Southeast Michigan, was named 2015 IGC Retailer of the Year by Independent Garden Center Magazine. The award was given during the IGC Show at Navy Pier in Chicago in August. Company co-founders John and Phyllis Darin accepted the award, along with the company’s other shareholders. The award is presented annually to a garden center demonstrating notable leadership and innovation. English Gardens was founded in 1954. Naturalizer by Zombo, a women’s shoe store owned by Mike and Tony Zombo, celebrated its 40th Anniversary during November 1-7 inside Breton Village Mall in Grand Rapids. The store offered special deals, free gifts with purchase, and opportunities to win free shoes during the anniversary week. As the only family/locally owned Naturalizer shoe store in Michigan, the Zombos have been serving the greater
Grand Rapids community since 1975. They specialize in hard-to-find sizes, widths and styles, and provide customers with unprecedented knowledge and personal service. Doug Raab, co-owner of Washtenaw Dairy, Ann Arbor, celebrated his 90th birthday on November 20. Friend and fellow retailer Dale R. Leslie reports that especially remarkable is the fact Raab has worked at the dairy for more than 75 years. The National Association of Jewelry Appraisers (NAJA) will hold its 45th Annual Winter ACE It Education Conference January 31 and February 1, 2016, in Tucson, Arizona. The organization dedicated exclusively to gems and jewelry is offering a program to assist the professional appraiser’s continuing education and networking experience. More information is available from Executive Director Gail Brett Levine, GG, at 718.896.1536.
Traverse City area winery Chateau Chantal has opened a remote wine tasting room in partnership with the Olive Vinegar store in downtown Rochester. The partnership will provide downstate consumers an opportunity to taste and purchase bottles of Chateau Chantal wine while shopping in a family-owned store that provides samples of its own specialty items. Kositchek’s, a premier menswear store in downtown Lansing, celebrated its 150th anniversary in October. Owner David Kositchek’s great-grandfather started what became Kositchek’s in 1865 in Eaton Rapids. David started working in the family store at age 12, in the Scout Department. Over the decades, the store has blossomed into a small department store for men, noted for its quality apparel and superior customer service. Continued on page 11
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Michigan Retailer
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December 2015
11
LOTTERY
Retailer commissions grow 8% to record $204 million by M. Scott Bowen, Commissioner The preliminary results are in for the Lottery’s 2015 fiscal year, and the news is very good for retailers, the Lottery, and most importantly, Michigan’s School Aid Fund. Preliminary numbers show that for the 11th consecutive year, Lottery sales eclipsed $2 billion. This is impressive and the result of teamwork between the Lottery and its 11,000 retailers across the state. Preliminary 2015 figures show a record $2.8 billion in Lottery sales, topping the previous record set in 2014 by about $176 million. Retailers also enjoyed a record year in 2015, with commissions hitting a record of nearly $204 million, up about 8 percent from the previous record of $188.6 million set last year.
$50,000 Commission A Michigan Lottery retailer recently collected a $50,000 bonus commission for selling a jackpot-winning Powerball ticket. Julie Leach, of Three Rivers, won a $310.5 million Powerball jackpot with a ticket bought at the Three Rivers West Shell gas station, located at 1223 West Michigan Avenue in Three Rivers. Leach matched all of the winning numbers drawn in the Sept. 30 Powerball drawing: 21-39-40-55-59 and the Powerball, 17, to win her big prize. The Three Rivers West Shell gas station is owned and operated by Walters-Dimmick Petroleum Inc., located in Marshall. The Lottery recently presented Mike LaBerteaux, merchandising manager for Walters-Dimmick Petroleum, with an oversized check for $50,000, which represents the bonus commission the company received for selling the jackpot-winning ticket.
Instants Success The Lottery’s instant game portfolio was a major part of our 2015 success. Instant games remain a favorite for the most loyal Lottery players, as well as casual players. The Lottery’s team puts a great deal of focus and effort into developing instant games that will attract players to retailers and boost sales. That work paid off in a big way in 2015, with total sales of instant games surpassing $1 billion for the first time in the Lottery’s 43-year history, an 11 percent increase compared to 2014. At 11 percent, the year-over-year growth in instant game sales is one of the highest growth rates in the nation. The hard work of retailers and the Lottery also led to a record contribution to the state’s School Aid Fund. Preliminary figures indicate the Lottery’s contribution to the School Aid Fund will be about $795.5 million, marking nine straight years of $700 million-plus contributions to support public education. The Lottery’s contribution provides about $495 for each pupil in the state’s K-12 public school system. Since it began in 1972, the Lottery has provided about $19.6 billion to support public education. Posting record numbers in 2015 wouldn’t have happened without each retailer’s hard work and commitment to the Lottery’s mission. We’re excited about the opportunities 2016 presents.
Holiday Gifts Giving a friend or family member the chance to win a huge cash prize makes Michigan Lottery tickets a popular holiday gift item for many players across the state. To help maximize sales opportunities for retailers, the Lottery is offering four holiday-themed games this season. They are: Money Tree: $10 ticket with top prizes of $500,000; Holiday Ice: $5 ticket with top prizes of $300,000; Holiday Wishes: $2 ticket with top prizes of $30,000; and Holly Jolly Jackpot: $1 ticket with top prizes of $5,000. Holiday-themed instant tickets are already on sale. The Lottery also has a robust advertising campaign to drive traffic and sales to retailers. Instants These new tickets went on sale Dec. 1: IG # 745 - $50,000 Money Match - $2 IG # 751 - Super Bingo - $5 IG # 777 - Ice Cold Cash - $5 These instant games expire: Dec. 7 IG # 673 - The Numbers Game - $1 IG # 674 - Match for Cash - $1 IG # 679 - Hot Millions - $20 Jan. 4 IG # 677 - Royal Riches - $10 About 97 cents of every dollar spent on Lottery tickets is returned to the state in the form of contributions to the state School Aid Fund, prizes to players and commissions to retailers.
NEW MEMBERS Washtenaw 100 Inc., Ann Arbor Play It Again Sports, Ann Arbor Klein Music Inc., Ann Arbor Akadeum Life Sciences LLC, Ann Arbor AAA Transport & Limo LLC, Bay City Hometown Feed & Seed, Beaverton Crimson Rose Antiques, Birmingham B & S Heating & Cooling, Bridgeport Plato’s Closet, Brighton Heritage Broadcast Group Inc., Cadillac Play It Again Sports, Canton Jeremy’s Automotive & Performance, Casco Meyer Hydraulics Inc., Centerville Electric Brewing Supply LLC, Chassell Excal Industries LLC, Chesterfield Aldrich Enterprises Inc., Clio Sobania Inc., Detroit Carhartt, Detroit Addie’s Acres LLC, Dewitt Compression Therapy Services Inc., East Lansing AQ Run Thru 5K, Grand Rapids Oasis of Hope 5K, Grand Rapids Bark In The Dark 5K, Grand Rapids Game Day 5K, Grand Rapids Red Flannel Festival 5K, Grand Rapids 5K Movie Run, Grand Rapids Run Thru the Rapids, Grand Rapids Grand Rapids Marathon, Grand Rapids Saranac Zombie Run, Grand Rapids Middleville March for the Cure, Grand Rapids Reset Rhythm Run, Grand Rapids Alger Heights Halloween, Grand Rapids Havit Supplies Inc., Grandville Oceana Eyecare, Hart
Roscommon County Commission on Aging, Houghton Lake South Hudsonville Self Storage, Hudsonville Kalamazoo Speech Associates LLC, Kalamazoo Black River Concrete, Kimball Capital District Library, Lansing Careconnect LLC, Lansing Play It Again Sports, Livonia Rex Performance Products Inc., Marysville Play It Again Sports of Novi, Novi Candy’s Flowers & Gifts, Onsted Brain Balance of North Oakland, Oxford Fraza/Forklifts, Plymouth Sable Engineering Inc., Port Huron Once Upon A Child, Portage Kzootoyou LLC, Portage Mastec Women’s Boutique, Portage Gold Rush Jewelers LLC, Prudenville Allen B Dunning MD, Sault Sainte Marie OJ’s Michigan Tank Wash LLC, Sawyer Bergdahl’s Inc., Skandia Larry Ross Garage Inc., Southfield Once Upon A Child, Sparta Rosetta International Foods Inc., Sterling Heights Prairie Wood Products Inc., Sturgis Mr. Bill’s Shirt Company LLC, Traverse City Addiction Treatment Services Inc., Traverse City Safe-Ed LLC, Troy Music Go Round, Troy Once Upon A Child, Troy Treats for Tailwaggers, Ubly T’s Entertainment Properties Inc., Utica Cass Lake Marine Repair Inc., Waterford China West Jewelers, WI
RE: RETAILERS Continued from page 9
James Allan Storrer, owner of the former Storrer’s Clothing in downtown Owosso with his wife, Fayenne, passed away on July 14. He was 88. The business was started by his grandfather, Frederick Storrer, in 1891 and was designated a Michigan Centennial Retailer by Michigan Retailers Association. Mr. Storrer, a U.S. Navy veteran, and Fayenne retired in 2007 after a fire in an adjacent building caused extensive damage to their store and inventory. Grand Hotel on Mackinac Island has been named the best historic resort for 2015 by the Historic Hotels of America. The Historic Hotels of America is an official program of the National Trust for Historic Preservation and accepts only member hotels at least 50 years old that have either been designated as national history landmarks or that are listed in or eligible for listing in the National Register of Historic Places. Earlier in the year the hotel was listed in Fodor’s Travel as one of the 10 best
all-inclusive resorts in the nation. The iconic hotel opened in 1887 and operates under the leadership of hotel President R.D. “Dan” Musser III. Westland Shopping Center in Westland celebrated its 50th anniversary this fall. The enclosed mall that opened in 1965 has stood the test of time thanks to a combination of strong, community-centered management and favorable demographics. Meanwhile, Nor thland Center in Southfield is scheduled to be sold to the City of Southfield for $2.4 million before the end of this year. The city plans to spend $8 million to $10 million to demolish the landmark, remediate the property and sell the 114-acre parcel for redevelopment. Northland was the largest shopping mall in the world when it opened in the Detroit suburb in March 1954, and it changed shopping patterns in Greater Detroit and Southeast Michigan. It became an enclosed mall in 1974.
SET YOUR HOLIDAY SALES AGLOW
Watch your sales rise as the temperature drops this holiday season with the Michigan Lottery’s new holiday instants. Customers will light up with the chance to win up to $500,000, making it the perfect gift they’ll want for themselves too. So stock up today, because when holiday instant tickets can win BIG for a little cash, everyone’s holiday gets a little happier.