3
5
Those Are the Breaks
Spring Sales to Rise
A strong majority of Michigan retailers expect to increase their spring sales over last year. Page 3
Do you know what the law says about employee rest and lunch breaks? You might be surprised. Page 5
7
Taking the Long View
Although local retail remains under siege, Michigan Retailer’s retiring editor sees progress and hope for the future. Page 7
® April 2017 Vol. 42 No. 2
Bill allowing school year to start before Labor Day wins Senate panel okay A bill allowing all school districts to start their school year before Labor Day is moving through the Michigan Legislature over the concerns of retailers and other tourism-related businesses. The Senate Education Committee on March 28 approved legislation, Senate Bill 271, that would remove the current requirement that public and charter schools start the school year after Labor Day. The bill now goes to the full Senate for consideration. The bill is opposed by Michigan Retailers Association and other tourism-related business groups that were successful in winning approval of the 2006 law pushing the start of school until after Labor Day. “Current law enables families to take summer vacations that last through Labor Day weekend, and that means more jobs for Michigan workers and more sales tax revenues to pay for public schools,” said MRA’s James P. Hallan, president and CEO. “We see no need to change the law.” Top months Tourism industry officials say July and August are their two top revenueproducing months. Repealing the current post-Labor Day requirement would reduce August revenues and cause industrywide layoffs, higher unemployment and reduced taxes paid to the state. “As this state’s third largest industry, we find the loss of two to three weeks of peak season revenues an appalling legislative proposal,” said Deanna Richeson, president and CEO of the Michigan Lodging and Tourism Association (MLTA), in testimony before the Senate committee. Continued on page 6
The official publication of Michigan Retailers Association
www.Retailers.com
Retailers call border tax dangerous The Border Adjustment Tax (BAT) on imported goods would harm retail businesses and their customers and pose a danger to Michigan’s economy, according to the Michigan Retailers Association and a new coalition set up to fight the proposed federal tax.
“Retailers would be hit very hard, putting 1.2 million Michigan jobs at risk,” said MRA’s Amy Drumm, vice president of government affairs, during a March 23 news conference at MRA Headquarters in Lansing. MRA helped announce a new Michi-
gan chapter of the national coalition, Americans for Affordable Products, which is strongly opposed to the tax. “To help protect our state from the illconceived Border Adjustment Tax, MRA and other active trade associations have come together in an effort to make sure each and every state resident knows what this tax would do,” said Drumm. Federal tax reform plans put forward by U.S. House Republicans include the BAT, which would impose a 20 percent tax on imported goods, increasing the costs of everyday products such as food, medicine, clothing and gasoline by an estimated $1,700 per family. The BAT would be felt immediately in the pocketbooks of middle-class Americans, effectively amounting to a $1 trillion tax that would punContinued on page 4
(From left) Service Manager Austin White and owners Gary and Mark Childs make South Lyon Cycle a popular Oakland County spot. Photo by David Trumpie
“Prior to the extreme popularity of cellphones, tablets and electronic games, we used to sell a lot more kids bikes for Christmas presents,” recalls Mark Childs, South Lyon Cycle co-owner with brother Gary and the self-described “spokes-man.” “That has had an effect, for sure.” One change the brothers have made is to tie the purchase of new children’s bikes to a different time of year. “I’ve been promoting Easter bikes – when the weather changes,” said Mark. And to stretch the buying season, “We also promote free layaway year round. They get the bike when they want it at the price they want it.”
The fate of an antitrust lawsuit retailers filed against Visa and MasterCard for the way they set credit card processing fees remains uncertain following the U.S. Supreme Court’s refusal to reinstate a $7.25 billion settlement in the case. The nation’s top court on March 27 refused to take up a controversial settlement reached in the 2005 lawsuit. The court’s refusal left in place last year’s ruling by the 2nd U.S. Circuit Court of Appeals striking down the settlement. Although the settlement reportedly would have paid billions of dollars to retailers large and small, the National Retail Federation (NRF) and others opposed it because they said it didn’t fix the original problem of excessive fees set by the giant card associations. “If this settlement had been approved, the structure of fees that drive up the prices of everything consumers buy would have been cemented into place forever,” NRF
Continued on page 6
Continued on page 8
Brothers love peddlin’ pedals as bike shop retailing evolves by Doug Henze W h e n t h e C h i l d s b ro t h e r s opened their South Lyon bicycle shop in 1994, riding still topped the fun list for the middle-school and younger set. For many families, a new bike was the big splurge – the Christmas present every kid wanted. Today, bicycling has taken a back seat to electronic devices and video games on youngsters’ Christmas wish lists.
U.S. Supreme Court refuses to reinstate $7 billion settlement