August/September 2024 Michigan Retailer

Michigan

Retailer

C&O Sportswear expands from garage business to nationwide sensation PLUS Rogers City Home Furnishings Celebrates 50 Years $3,500 Scholarship Winners Announced Buy Nearby Weekend, October 4-6

AUG 2024/SEPT 2024

VOL. 49 NO. 4

The official publication of Michigan Retailers Association Michigan Retailer – 1

BOARD OF DIRECTORS FROM THE CEO

Organized Retail Crime Up Close William J. Hallan

President & CEO of Michigan Retailers Association

I’ve talked a lot about organized retail crime over the years, but a couple of weeks ago it hit close to home. My younger sister, currently 31 weeks pregnant, was finishing up a return at the Eastwood Towne Center Lululemon in Lansing, when three individuals wearing surgical masks entered the store. Both she and the store employee helping her immediately sensed something was off as the masked individuals started rifling through racks. As they grabbed armfuls of clothing, everyone in the store froze, but with some quick thinking she made the smart decision to beeline for the exit.

In her car, she waited for her blood pressure to return to baseline. Moments later, the thieves fled the store with what my sister estimated to be several thousand dollars of merchandise.

She tried to snap a picture of the license plate but her angle was blocked by another car, thus, she drove home thinking about her close call. Were they armed? Would they have been violent if confronted? How could this happen at 2 p.m. on a Tuesday?

Unfortunately, this scenario is not particularly unique. Organized retail crime happens in every state and every day. Retailers are often put in an impossible predicament: Take action to stop the criminal and risk serious injury, or do nothing and watch your products go right out the front door. Talk about a choice between two evils.

At a time when inflation is cutting into the disposable income for all consumers, retailers are already feeling the pinch. Retail theft makes success in an already difficult industry nearly impossible. This issue remains the highest priority for Michigan Retailers Association.

We will continue to work to ensure that the Attorney General’s office and law enforcement have the resources they need to protect the faithful employees of our industry.

Bill Golden Chair Golden Shoes, Traverse City William J. Hallan President & CEO Michigan Retailers Association

Thomas P. Clement Chief Operating Officer and General Counsel

Peter R. Sobelton Treasurer Mondial Properties, Birmingham

John Leppink Leppink’s Food Centers, Belding

Bo Brines Past Chair Little Forks Outfitters, Midland Kim Edsenga Meijer, Inc., Grand Rapids Becky Beauchine Kulka Becky Beauchine Kulka Diamonds and Fine Jewelry, Okemos Dan Marshall Marshall Music Company, Lansing Orin Mazzoni, Jr. Orin Jewelers, Northville Joseph McCurry Credit Card Group Raeann Rouse Bridge Street Baby, Rockford Thomas Ungrodt TDU Consulting, LLC, Ann Arbor

Kendra Patterson Michigan Barn Wood & Salvage, Mason Joe Swanson Target, Retired

MICHIGAN RETAILER William J. Hallan Publisher Rachel Schrauben Copy Editor and Content Manager Josh Delany Design, Layout, and Photographer Shandra Martinez Contributor

Larry Meyer Board Member Emeritus D. Larry Sherman Board Member Emeritus

603 South Washington Avenue Lansing, Michigan 48933 Periodical postage paid at Lansing, Michigan Postmaster: Send address changes to 603 South Washington Ave., Lansing MI 48933.

This publication may be recycled with white office paper.

2 – Michigan Retailer

William J. Hallan President & CEO

Bryan Neiman Vice Chair Neiman’s Family Market, St. Clair

Michigan Retailer (USPS 345-780, ISSN 08890439) is published six times annually: February, April, June, August, October, & December by Michigan Retailers Association. Average circulation: 4183.

William J. Hallan MRA President and Chief Executive Officer

MICHIGAN RETAILERS SERVICES, INC. BOARD OF DIRECTORS

With every issue, we reach retail owners, managers, and executives who make spending decisions for 15,000 stores and websites across the state.

To request a media kit, email Rachel Schrauben at rschrauben@retailers.com

“I enjoy what I’m doing. I created this thing, and I deal with very good people who are friends. I appreciate good people, hard work, and a good smile. It’s hard for me to walk away from that.”

– Tim Macgregor, C&O Sportswear, Mount Pleasant

CONTENTS Features

6 Rogers City Home Furnishings: A Steady Presence for 50 Years Larry Bruski is leading the way for a Rogers City comeback story

8 Annual Scholarship Program Winners Announced Thirteen students receive $3,500 Michigan Retailers Foundation scholarships

12 C&O Sportswear: A Mount Pleasant Icon Dedication and innovative promotions help grow what began as a garage business

14 Get Ready for Buy Nearby Weekend Save the date: Oct. 4-6, 2024

16 Michigan Retail Index 6-Month Snapshot

Departments

From the CEO Organized Retail Crime Up Close

Legally Speaking SCOTUS Extends Relief to Merchants and Consumers, At Least For Now

6

Under the Dome Election Outcomes Will Impact Your Business

Regulatory Rundown Consumers Habits Shift as they Maintain a Positive Outlook on Grocery Shopping

8

MRA Member News Milestone Members New Members

How have Michigan sales compared year-over-year?

18 Numerator: Private Label Trends A look at private label performance across product sectors and channels

RETAILERS.COM RETAILERSINSURANCE.COM BUYNEARBYMI.COM Visit us online to see what’s new in the industry and what services we provide members to strengthen your business.

12 ON THE COVER C&O Sportswear owner Tim Macgregor stands proudly in the store he built from the gound up.

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LEGALLY SPEAKING

SCOTUS Extends Relief to Merchants and Consumers, At Least For Now Thomas Clement

MRA Chief Operating Officer and General Counsel

On July 1, the United States Supreme Court (SCOTUS) properly ruled against the Federal Reserve Board (Federal Reserve), which was seeking dismissal of a retail merchant lawsuit. The underlying claim is that payment networks have been permitted to charge excessive interchange fees in violation of the Durbin Amendment to the Dodd-Frank Wall Street reform and Consumer Protection Act of 2010. The dismissal was sought under a theory that the plaintiff’s had filed the lawsuit after the expiration of the statute of limitations.

They had not.

In simple terms, the Durbin Amendment requires the Federal Reserve to adopt interchange fees (or “swipe fees”) which are “reasonable” and “proportional” to banks’ costs [1]. Interchange fees are the fees paid to card issuing banks to cover various costs associated with credit card transactions, including fraud and bad debt. The original cap, intended to be 7-12 cents, ballooned to 22 cents, plus .05 percent for fraud loss recovery after legislative pressure from banks to add in additional fraud losses, transaction monitoring, and network processing fees. The cap has been reviewed by the Federal Reserve every two years, as required, but they failed to make adjustments in line with falling costs. The Federal Reserve’s failure to make appropriate adjustments, and the resulting unreasonable and disproportionate interchange fees, has resulted in monetary losses for both merchants and consumers.

If, as is quite possible, the Federal Reserve chooses to move forward with a corrected downward adjustment of interchange rates, both consumers and merchants stand to benefit from lower cost debit and credit transactions. An interchange increase seems like an unlikely scenario with the current trend in bank costs.

We will continue to keep an eye on this litigation in the months (and maybe years) ahead. If you are interested in reading more, the name of the case is Corner Post, Inc. v. Board of Governors of the Federal Reserve System[2], which has been remanded to the Eighth Circuit Court of Appeals. The SCOTUS docket number is 22-1008.

[1]

Limited to financial institutions with more than $10 billion in assets.

[2]

Thank you to the National Retail Federation which, while not a party to the lawsuit, has served as co-counsel through their General Counsel and provided information on the matter through its publications.

4 – Michigan Retailer

UNDER THE DOME

Election Outcomes Will Impact Your Business Amy Drumm

MRA Senior Vice President, Government Affairs

It’s election season. Yes, again. Most people are sick of campaign ads and campaign promises, which makes it tempting to ignore the noise or focus on just one or two issues. As retailers and business owners, elections at every level can have a major impact on your livelihood.

Decisions are made at every level from city council and county commission to the Michigan House of Representatives to members of Congress. This is why MRA takes the step of evaluating statelevel legislative voting records and asking new candidates tough questions on important retail topics.

Campaign season sometimes brings out the worst in people, so we focus on using an objective screening process to determine our Friends of Retail. Candidate questions and voting records focus on how legislative candidates will react to or have voted on legislative issues from regulations, to taxes, to employment policies. This review and MRA’s recommendations are then approved by the Association’s board of directors, made up of Association members.

Our Friends span the political spectrum and every candidate is invited to participate in the process. MRA members should have received emails with the list of candidates who earned the Association’s “Friend of Retail” designation broken down by region ahead of the Aug. 6 primary election. The full list of those state house candidates who will move on to the general election will be shared in our October/November issue and again via email.

The goal of our Friends of Retail list is to give MRA members more information as the election draws near. This information is unique to the retail perspective and cannot be found elsewhere.

We only evaluate candidates and incumbent legislators on issues that impact retail.

It should go without saying that MRA members are welcome to make their own decisions and the Association’s recommendations may never fully align with any one individual member’s choices on who to cast their vote for in any race. The Association is a large tent, with room for everyone and many different political perspectives.

We hope our Friends of Retail information is helpful as you head to the polls in November. Because like it or not, the election is coming.

Ignoring it only means giving up your say in who makes decisions for your business.

MEMBER NEWS

Photo from Pinnacle Construction Group

Ann Arbor’s Washtenaw Dairy featured on Good Morning America A Good Morning America crew visited Ann Arbor on July 3 to help celebrate the city’s 200th anniversary during their Main Street USA segment. Among other Main Street retailers highlighted during the visit, MRA member Washtenaw Dairy was featured in a live call-out gifting the hosts back in New York City a special treat – a blueberry donut with lemon zest glaze.

Nation’s oldest grocery store celebrates 140 years Established in 1884 by James and Patrick Doud, Doud’s Market & Deli holds the title of the nation’s oldest family-owned grocery store. Situated on Main Street on Mackinac Island, the market offers everyday groceries, grab ‘n’ go items, local products, and a beer and wine selection to both tourists and local residents. The market is now under the guidance of fourth-generation owner Andrew Doud.

New Image Hair Salon, Cadillac celebrates half-century Bill Panasiewicz, wife Karen, and their three children moved from Lansing to Cadillac and opened the New Image Hair Salon in July 1974. With a priority in supplying education, utilizing only the best products, and giving back to the community, the salon thrived. The salon was sold to Carol Brewster in November 2013 and Bill stayed on as a stylist and a consultant.

DeVries Jewelers to move to new two-story store Founded in 1901, DeVries Jewelers, a fifth-generation familyowned business, will soon relocate to a new home at 433 Leonard St. NW in Grand Rapids. Construction for the new twostory store began in February, undertaken by Grand Rapidsbased Pinnacle Construction Group. The new location will be significantly larger, expanding from the current 1,600-squarefoot, one-story store with a 1,000-square-foot showroom to a 6,000-square-foot, two-story store with a 2,150-square-foot showroom. It will also feature a dedicated bridal department for engagement and wedding rings, an on-site repair shop/service area, and a 2,440-square-foot second floor with flexible space for events. Construction is expected to be completed by midOctober.

Ed Rehmanns hosts 105-year celebration Co-owners Ric Rehmann, his brother Rob, and sister-inlaw Nancy have much to celebrate. Their Chesaning-based business, Ed Rehmanns, hosted an anniversary bash on June 8 to mark 105 years in business with special giveaways, live music, food trucks, and face painting. Earlier in the summer, the store kicked off its birthday celebration by unveiling a mural painted by Chesaning public school student Kaydence Haney, made possible through a partnership with Carhartt, Inc. Founded in 1919 by Ed and Eva Rehmann, Ed Rehmanns is one of Michigan’s oldest family-owned clothing stores and one of the nation’s largest independent retailers of Carhartt, Stormy Kromer, and Red Wing boots.

Meijer Celebrates 90 years Hendrik Meijer, along with wife Gezina and children Johanna and Fred, opened the first Meijer store in Greenville in 1934.

Even now, with over 500 Meijer stores and facilities, located across six states, and employing more than 70,000 individuals, the focus has not shifted from serving their customers and actively participating in their communities by giving back. Meijer has been a member of MRA since 1993.

Michigan Retailer – 5

Member Highlight

Rogers City Home Furnishings A Steady Presence For 50 Years By: Jim Karshner

T

he freshly painted mural on the north side of his Rogers City furniture store is a testament to the city’s past – a large king salmon jumping out of the water in the foreground, a limestone carrier in the background.

Salmon fishing reached its zenith 20 years ago – and while one can still catch them in nearby Lake Huron – their sizes and numbers have diminished.

While ships sail in and out of the city’s Port Calcite to load up on limestone, none are domiciled in Rogers City. For years, as many as six of the self-unloaders called Rogers City home. Each ship employed 35 sailors, mostly local residents. It was a nice way to make a middle-class living.

One constant in Rogers City during the past 50 years is Rogers City Home Furnishings and its 72-year-old owner, Larry Bruski.

In the summer of 1974, Larry was helping his father, Edward, open a furniture store on Third Street, the main business artery in town. Larry planned to head back to Lansing in the fall; he was enrolled in a hospitality work-study program at Michigan State University.

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Just as Rogers City Home Furnishings opened its doors, the A&P Grocery Store down the street announced that it was closing theirs. Ed Bruski owned the soon-to-be-vacant building. He decided to open his own grocery store, leaving Larry to run the furniture store.

It took Larry about five years to find his niche in a competitive market (there was another furniture store in Rogers City and one in Onaway, 22 miles to the west). He focused on high-end merchandise. “There was no future in selling cheap recliners,” he said. “We try to educate our customers on the importance of quality.”

By attending various trade shows in Chicago, Dallas, Las Vegas, and High Point, North Carolina, Bruski has been able to keep up with the trends in the industry. He joined the Michigan Retailers 40 years ago to take advantage of the credit card, medical insurance, and workers’ compensation programs.

While Rogers City’s population has dropped from 4,275 in 1970 to 2,850 in 2020, many of his customers come from

surrounding counties, especially owners of second homes and cottages. “We’ve always offered free delivery.”

He expanded several times along Third Street despite the trend towards online shopping. In 1983, he bought a vacant clothing store next door, knocked down a wall and added a flooring department. Several years later he purchased a store on the other side of his building to add a patio center.

The Revival Talk to any long-time resident and you’ll hear about the failed attempt at urban renewal in the 1960s. The failure to stimulate commercial redevelopment left several holes in the business district. Current Mayor Scott McLennan had a front row seat to the debacle – his father was a Rogers City councilman who opposed the federally funded program. He was on the short end of the council’s 3-2 vote. (Businessmen such as Ed Bruski were also opposed to the government handout.)

Filling those holes and finding new businesses for vacant store fronts has kept the retired registered nurse busy. When he lived in Boyne City, he saw first-hand the benefits of Michigan’s Main

Street program. He was able to spearhead a similar effort in Rogers City. Three years ago the Michigan Economic Development Corp. named it a Michigan Main Street community. The city recently hired Kaelie Fessler as the Main Street executive director.

She’s helping raise local funds to keep the momentum going on Murals on Main Street. “We hope to keep it going for another five years.” Tentative plans call for a business incubator, establishing some new events, and developing an app to identify vacant buildings.

Mayor McLennan has taken a personal interest in one historic building; he purchased the 96-year-old, two-story Brooks Hotel which has sat empty for decades. His initial plans were to turn it into a brewpub with food and live entertainment. With the pandemic and building costs doubling, he’s working on Plan B. His business partner? It’s Larry Bruski. “Larry has always been supportive of this community,” said the Mayor. “We both want to see this city make a comeback and prosper. And we want to make this project viable. The city needs it.”

Larry Bruski Michigan Retailer – 7

Thirteen students

receive 2024-25 Michigan Retailers Foundation

scholarships Michigan Retailers Association is awarding 13 college students with scholarships totaling $45,500 for the 2024-25 academic year. The awards are funded by the Michigan Retailers Foundation, the mission of which has always been to support the educational advancement of retail employees.

The following $3,500 scholarships were awarded: • (6) MRA Legacy Scholarship • Paul M. Felice and Al Kessel Platinum Legacy Scholarship • Helen McCurry Platinum Legacy Scholarship • Jean L. Sarasin Platinum Legacy Scholarship • Larry Sherman Platinum Legacy Scholarship • Raymond A. and Mildred C. Sobelton Platinum Legacy Scholarship • Joseph Swanson Platinum Legacy Scholarship • Walsh Family Platinum Legacy Scholarship

To be eligible, recipients must be an employee of a MRA member business or the dependent of an owner or employee of a member business. Students apply between January 1 and April 1 each year for the scholarships.

The program’s totals have now reached 638 scholarships, totaling $744,750 since 1999, when the current program format began. Scholarship recipients were chosen by a third-party administrator – Kaleidoscope.

Contributions to the Michigan Retailers Foundation come from MRA members,

Lily Deja, Mount Pleasant Scotland Oil, Alma

Western Michigan University, Supply Chain Management, Freshman

directors and employees, and other donors.

Stay tuned...

The 2025-2026 scholarship competition will begin Jan. 1, 2025 and run until April 1, 2025. Materials will be mailed to MRA members in the first week of 2025, following New Year’s Day. For more information regarding our scholarship competition, follow our MRA Facebook page at Facebook.com/ MichiganRetailers.

D. Larry Sherman Platinum Legacy Scholarship (Also won in 2023)

Established by D. Larry Sherman

Paige Gerlach, Baroda Meijer, Stevensville

Saginaw Valley State University, Nursing, Freshman

Walsh Family Platinum Legacy Scholarship

Established by Jim and Kathy Walsh

Benjamin Hunter, Kalamazoo Consumers Credit Union, Kalamazoo

University of Michigan, Neuroscience, Sophomore

Michigan Retailers Association Legacy Scholarship

Made possible by Jeff and Doreen Joyce, Dan Marshall, in honor of his parents Willis W. and Mary Jane Marshall, and John Mayleben, in honor of his late wife, Linda

Emmanuella Hyzer, Rockford Gild the Lily, Rockford

Palm Beach Atlantic University, Engineering, Freshman

Helen McCurry Platinum Legacy Scholarship

Established by Joseph McCurry, in honor of his late wife

8 – Michigan Retailer

Josiah Kantola, Ravenna

Anderson University, Interior Design, Freshman

Ravenna Lumber Company, Ravenna

Michigan Retailers Association Legacy Scholarship

Made possible by Andrew Gemmen, Mark Schrag and friends, and Barb Stein

Marirose LeFevre, Saginaw

Grand Valley State University, Exercise Science, Senior

Crooked Creek Investment Company, Saginaw

Michigan Retailers Association Legacy Scholarship

Made possible by Becky Beauchine Kulka, Orin and Tina Mazzoni and family, and Larry and Gail Meyer

Donovan Payne, Traverse City

Grand Valley State University, Hospitality, Freshman

Meijer, Williamsburg

Jean L. Sarasin Platinum Legacy Scholarship

Established by Jean L. Sarasin

Gabrielle Robinson, Novi

Oakland University, Business/General Management, Freshman

Gardner White Furniture, Auburn Hills

Joseph Swanson Platinum Legacy Scholarship

Established by Joseph Swanson

Grace Robinson, Cedar Grand Traverse Area Catholic Schools, Traverse City

Michigan Technological University, Nursing, Freshman

Michigan Retailers Association Legacy Scholarship

Made possible by Bill Golden, W. Bruce and Joyce M. Rogers, and Thomas Ungrodt

Michigan State University, Psychology, Freshman

Savannah Shonibin, Brooklyn Polly’s Country Market, Jackson

Michigan Retailers Association Legacy Scholarship

Made possible by James Hallan, Rodney and Judy Phillips, and in honor of Kenneth A. and Margaret Schwark, made possible by their sons James, Tom, and Michael

Reese Southern, Bay City Better Made Snack Foods, Bay City

Alma College, Integrative Physiology and Health Science, Freshman

Michigan Retailers Association Legacy Scholarship

Made possible by Nathan Rosenfeld and Bo Brines and family

Renee St. Pierre, Plymouth

Wayne State University, Social Work, Freshman

English Gardens, Plymouth

Raymond A. and Mildred C. Sobelton Platinum Legacy Scholarship

Established by Peter Sobelton and his family, Barbara and Douglas Stranahan, in honor of his parents

Elizabeth Sterling, Farmington Hills Busch’s Fresh Food Market,

West Bloomfield University of Notre Dame, Psychology, Freshman

Paul M. Felice and Al Kessel Platinum Legacy Scholarship

Established in honor of Paul M. Felice and Albert “Al” Kessel, Jr.

Michigan Retailer – 9

REGULATORY RUNDOWN

News & Trends

Consumers Habits Shift as they Maintain a Positive Outlook on Grocery Shopping Federal Department of Labor Overtime Rule Jennifer Hatcher

Chief Public Policy Officer and SVP, Government and Member Relations, Food Industry Association (FMI)

FMI’s newest edition of our annual survey, U.S. Grocery Shopper Trends 2024: Finding Value, provides a crucial snapshot of consumer behavior and sentiment amid ongoing concerns about the impact of inflation on the cost of groceries.

FMI learned in this research that in order to manage higher prices in certain areas, today’s grocery shoppers navigate purchasing decisions through a more expansive understanding of value. Even channels strongly positioned around offering low prices are often evaluated in terms of other value criteria, such as the quality or healthfulness of their product selection or their shopping experience.

This is not to say that price is irrelevant to the value equation – 91% of shoppers concerned with rising prices have made some changes to their shopping habits. While half of shoppers say they are looking for more deals, 32% are buying fewer items and a smaller number are cutting back on categories such as organic (15%) or fresh items (14%).

Consumers are also recalibrating where and how they shop.

Despite a decade-long trend toward mass retailers, 40% of shoppers now choose supermarkets as their main store, compared to 32% opting for mass stores for their primary shopping trip.

Additionally, Americans continue to prioritize eating meals with family and cooking at home. Eighty-eight percent say they believe eating together is at least somewhat important; and within that number, 31% say it is very important and 32% say it’s extremely important. Furthermore, 43% of adults say they “like” or “love” cooking, which is similar to the levels reported for the past five years.

Ultimately, food shopping remains a labor of like – if not always a labor of love. Understanding why can illuminate opportunities to better serve value-seeking grocery shoppers. While offering savings and deals continues to be important to shoppers, additional opportunities can be found by recognizing the role of food engagement and experiences for American consumers as they navigate today’s food shopping challenges.

To download the U.S. Grocery Shopper Trends 2024: Finding Value report, visit www.fmi.org/grocerytrends. In addition to this report, FMI released reports on Online Shopping and Eating & Cooking as part of the U.S. Grocery Shopper Trends series.

10 – Michigan Retailer

threshold increased July 1 On July 1, 2024, the salary threshold required to exempt a salaried professional from overtime pay increased from $35,568 to $43,888 ($844/week). Another increase is set to take effect on Jan. 1, 2025 to $58,656. The Highly Compensated Employee (HCE) threshold also increased from $107,432 to $132,964 on July 1, 2024, and is set to increase to $151,164 on Jan. 1, 2025.

Applicability of overtime for employees at or below the HCE threshold is determined by the duties test as defined by the DOL. Employers should review their salaries and evaluate their classification policies to ensure they are compliant with the new overtime rule that’s currently in effect.

DOL New Rule Details

The final rule affects nearly 4 million workers and has several pending legal challenges. It’s suspected that pending legal challenges may succeed in proving the rule exceeds the DOL’s authority under the Administrative Procedure Act because the FLSA’s executive, administrative, or professional exemption is based on employees’ salary and not their job duties. A judge for the U.S. District Court for the Eastern District of Texas found the change exceeds the authority delegated by Congress to define and delimit the relevant terms… and therefore, these changes to the minimum salary level are likely “in excess of statutory jurisdiction.”

The case out of Texas continues and the U.S. Supreme Court’s decision issued in late June in Loper Bright Enterprises v. Raimondo, (which overruled the 40-year-old Chevron deference framework) gives further credibility to the likelihood the rule may be overturned by the courts. The outcome of the November election could also impact the rule. A similar overtime rule threshold increase and legal challenge in 2016 was not appealed by the incoming new administration.

New We Card in-store campaign targets “social sourcing” The national non-profit We Card Program, Inc. recently launched a nationwide in-store campaign to raise awareness

Deadlines and of adults’ role in “social sourcing”. To learn more about social sourcing and order materails, visit Wecard.org/free-kit.

Rise of consumer escapism and the joy economy Consumers fed up with economic challenges, climate change, security, and the 2024 election are seeking temporary escapes to create joy in their personal environments. Consumer behavior analyst Circana found in its The Great Escape: Exploring the Rise of the Joy Economy report that three main categories make up the joy economy trend: nostalgia, inspiration/aspiration, and self-care. Sixty-one percent of shoppers want brands to help them escape by providing intense emotions with their marketing and products.

Nostalgia: Licensed product categories saw sales increases in 2023 across toys, video games, and backpacks with the top U.S. growth licenses steeped in core nostalgia brands and millennial childhood classics like Spider-Man and Teenage Mutant Ninja Turtles. Beverages also got in on the return to essential memories that resonate with childhood by rebranding classic flavors like SunnyD for an adult audience as a vodka seltzer.

Inspiration/aspiration: Products that help consumers engage with content, influencers, and activities to elevate moods and achieve goals make up the inspiration/aspiration category.

Think of new travel/adventure ideas, hobbies, and creative pursuits like pickleball.

Aspirational shopping is about achieving a desired feeling and made up of little luxuries as evidenced in an increase in value-focused fragrance options as well as luxury fragrance brands.

Self-care: Shoppers want more proactive self-care activities that encompass mental and social health, weight management, lifestyle and habits, and energy for themselves, their families, and their pets.

Post-pandemic, there’s a focus on relaxation and reducing anxiety while improving health. Again the focus is on the small achievable steps like taking more vitamins and supplements vs. celebrations and vacations.

Vitamins and supplements have seen growth year-over-year since 2019 with growth by 4% and 6% respectively in 2023 over 2022. Pet health and wellness sales increased 10%. High-protein food items are one of the current most important food preferences for younger

Reminders Aug.–Sept. 2024 Monthly reminders: • Sales & Use Tax – Monthly & EFT – On or before the 20th day of the following month.

• Withholding Tax – Monthly & EFT – On or before the 20th day of the following month.

• Retailer’s Prepaid Wireless 911 Surcharge – Within 30 days of the close of each month. Receipt of a complete Form 5012 is required regardless of payment method.

Quarterly reminders: • Corporate Income Tax (CIT) Estimated Returns and Payments (Jan. 15, April 15, July 15, Oct. 15).

• Sales & Use Tax – Quarterly & EFT – On or before the 20th day of the month following the quarter (Jan. 20, April 20, July 20, Oct. 20).

• Withholding Tax – Quarterly – On or before the 20th day of the month following the quarter (Jan. 20, April 20, July 20, Oct. 20).

Updated labor law posters available MRA has updated federal and state labor law posters available to members. Updates bring all postings up to spring 2024 versions and now feature a state poster and federal poster instead of one extra large poster. As a MRA member benefit, you get one free set of posters (sold elsewhere for $30-$40). Members who previously requested older versions of the labor law poster should have either received the free updated posters and an email to order new sets if multiple posters are needed.

To get your free state and federal posters, use coupon code LABOR1 during check out. Additional poster sets cost $30 each plus tax.

Shop.Retailers.com

consumers looking to add more protein rather than how older consumers focus on avoiding fat and sugar.

Michigan Retailer – 11

Member Feature

C&O SPORTSWEAR How a Garage Business Morphed into a Mount Pleasant Icon By: Shandra Martinez

When C&O Sportswear began in 1976, it was Tim Macgregor and a childhood friend selling T-shirts out of his garage. They would sell orders during the day and print the shirts at night.

“One of the things that really gets me going is seeing alumni who shopped here 30 or 40 years ago,” Macgregor said. “They’re amazed I’m still here. I could talk to these people all day long.”

“We were winging it,” Macgregor said. “I had just graduated college and was preparing for the CPA exam. The business caught on, and it was fun.

About eight months later, I had an opportunity to join the state government, but I turned it down.

I’ve been doing this for 48 years now.”

Evolving business

Today, Macgregor’s customers include the children and grandchildren of his original patrons, reflecting how the store has become a cornerstone of the Mount Pleasant community.

His family has deep ties with Central Michigan University. Macgregor, a Mount Pleasant native, studied at CMU for a year and a half before earning an accounting degree from the University of Arizona in Tucson. His wife, Kristin, and son, Joe, also attended CMU, and his father-in-law was a professor there for 34 years.

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C&O Sportswear has been a member of the Michigan Retailers Association since 2021. Over the decades, the business has evolved from selling T-shirts to offering a variety of apparel, embroidery, and digital printing services, serving wholesale clients such as Cops & Doughnuts and the Wheatland Festival.

“I remember when a guy came in and bought 100 shirts. He was so nervous about selling them. Today, we supply an unbelievable amount of merchandise to the festival,” Macgregor recalled.

Macgregor credits the store’s longevity to its dedicated staff, including employees who have been with him for decades, as well as thousands of students who have worked shorter stints.

“I’ve had former employees reach out later in life to thank me for the training they got here,” Macgregor said. “It wasn’t easy. I demanded things. I expect you to say hi to someone coming in the door and to say thank you. Everything else will follow. I think it gave them the confidence to do better.”

Joe suggested opening the store on the Sunday before the game, and it drew a large crowd. “It was fun like the old days, coming up with stuff. I loved it,” Macgregor said.

The store’s name, C&O Sportswear, combines the first letters of the nicknames of Macgregor and his original partner. The partner was nicknamed “Clown,” and Macgregor was called “O” by his older brother.

While his original partner moved on, Macgregor credits his wife, Kristin, son Joe, daughters Alisha and Jennifer, and longtime manager Jordan Hall, who has been with C&O Sportswear for 20 years since being a CMU student, for being integral to building the family business.

The store launched its website nearly 15 years ago. It grew significantly during the pandemic when physical retail was limited by government restrictions.

Imaginative promotions Over the years, Macgregor has employed various advertising methods, from roadside electronic message boards to radio and TV commercials. His favorite was airplane advertising before increased security measures after 9/11.

“I kind of pioneered it here,” Macgregor said.

“We’d run banners around the stadium. In the third quarter, the banner would fly across the stadium in the bowl, reaching 30,000 people. That was fantastic advertising.”

Family has been key

“Some of our first dates were counting inventory in our basement,” he said of Kristin. “We’ve been married 46 years, and she’s the love of my life. No doubt about it.”

Macgregor is not ready to hand over the keys to his son just yet, especially with the store’s milestone 50th anniversary on the horizon.

“If I could get through the COVID year, I figure I can keep going for a few more years,” Macgregor said. “I enjoy what I’m doing. I created this thing, and I deal with very good people who are friends.

I appreciate good people, hard work, and a good smile. It’s hard for me to walk away from that.”

Today, the focus has shifted to social media. In 2022, Joe Macgregor scored a viral hit with a “Detroit Rams” T-shirt following former Detroit Lions quarterback Matthew Stafford’s Super Bowl win with the Los Angeles Rams.

“When Matthew Stafford’s wife shared it on social media, it spread nationwide,” Macgregor said.

“I couldn’t believe how busy we were. We had people calling from all over, willing to pay for nextday delivery.”

Tim Macgregor

13

Buy Nearby Weekend October 4-6, 2024 Join in on the Fun Buy Nearby Weekend is fast approaching! This year we’ll celebrate our annual shop-local celebration from Oct. 4-6.

Business owners are once again encouraged to help spread the word and utilize our free downloadable materials to help get shoppers into their stores.

Buy Nearby Weekend Survival Kit We want to reward and give back to the store owners choosing to promote Buy Nearby Weekend in their stores by providing Buy Nearby Weekend Survival Kits. These are free of charge to any business owner in Michigan.

Survival Kits include: • Sticker sheets • Notepads • Infographics • Decals • Magnets • And more!

Digital Media Kit Over the next few weeks, we’ll be busy adding downloadable materials for retailers to use on their social accounts and websites, in their stores, and in their e-newsletters. Download everything you need to help spread the importance of retail and bring customers inside your doors.

Help Buy Nearby’s Legacy Continue

If you’re a member of the Michigan Retailers Association, you’ll be automatically added to our Participating Members map, which we use to promote local stores to visit during the weekend and throughout the upcoming holiday season.

We wouldn’t be able to celebrate without you! Please consider donating to the campaign and help the Buy Nearby program celebrate for many more years. Your generous contribution will help future retailers have access to free materials and information to encourage their shoppers to #buynearbymi.

Visit the Media Kit: buynearbymi.com/media-kit

Donate online: bit.ly/donatetoBuyNearby

Order your complimentary kit before September 15: bit.ly/OrderBuyNearbyKit If you prefer to make a donation by mail, please mail a check to:

NEW: Will You Receive the Golden Ticket?

As part of the celebration, MRA will host a Willy Wonka-themed Golden Ticket contest. One lucky MRA member will receive a Golden Ticket in the mail, redeemable for a $750 gift card.

Additionally, a non-member will also receive a Golden Ticket, redeemable for a one-year free MRA membership. Businesses must order a free Survival Kit in order to participate in the contest.

14 – Michigan Retailer

Attn. Buy Nearby Campaign 603 S. Washington Ave. Lansing, MI 48933

6-Month Snapshot The 100-point Index provides a snapshot of the state’s overall retail industry. Index values above 50 generally indicate positive activity, the higher the number, the stronger the activity. The

2023

seasonally adjusted performance Index is conducted by Michigan Retailers Association (MRA) in cooperation with the Federal Reserve Bank of Chicago’s Detroit branch.

2024

Positive Growth

Negative Growth

How Sales Performed January-June 2024 vs. 2023

60 55 50 45 40

January

February

March

April

May

June

January

February

March

April

May

June

We asked: “How did your sales perform?”

3-Month Prediction January-June 2024 vs. 2023

75 70 65 60 55

We asked: “How do you expect your sales to perform in the next three months?”

What’s In It For You? 16 – Michigan Retailer

Policymakers rely on the survey results to understand the state of the retail sector, enabling them to formulate policies that promote economic resilience and growth.

Ultimately, the Michigan Retail Index Survey is instrumental in nurturing a robust retail landscape in Michigan, and we greatly appreciate your input each month.

For more information, recent reports, or to provide your own feedback, visit Retailers.com/news-events/michigan-retail-index.

SAFETY TIPS FROM RETAILERS INSURANCE COMPANY

Secure Your Vehicles As summer ends and fall begins, it’s an ideal time to reassess vehicle security to protect yourself, your employees, and your company vehicles. According to the National Highway Traffic Safety Administration, more than one million vehicles were stolen in the U.S. last year - a 25% increase over previous years.

The Visa/Mastercard Class Action Settlement claim filing deadline of May 31, 2024, has been extended to Aug. 30, 2024.

Always Lock Your Vehicle Ensure your vehicle is always locked, even when parked for a short period. This simple action can significantly reduce the risk of theft and unauthorized access.

Remove Valuables Visible valuables can tempt potential thieves. Remove all valuable items from your vehicle when you park. This includes electronics, personal items, and even loose change. If removal isn’t possible, store valuables out of sight, such as in the glove compartment or trunk.

Park in Well-Lit Areas

How can Michigan Retailers Association help you?

While you can file your claim directly with the Settlement Administrator, Michigan Retailers Association has selected MCAG as our strategic partner to help our clients navigate this opportunity to ensure they get the maximum return from this settlement. MCAG will build your claim submission using your historical processing data supplied by its card processing partners, and work with the Settlement Administrator to ensure that a comprehensive claim is filed on your behalf in time to meet the claims filing deadline. If you’ve already signed up, you’re all set.

Scan the QR code to sign up, or go to vmc.mcaginc. com/?code=MRA1RB

Payment Card Settlement Disclaimer: Claim forms have been mailed and have been available online since December 2023.

No-cost assistance is available from the Class Administrator and Class Counsel during the claims-filing period. No one is required to sign up with any third-party service in order to participate in any monetary relief. For additional information regarding the status of the settlement, visit the Court-approved website at www.paymentcardsettlement.com.

Parking in well-lit, busy areas can deter criminal activity.

Thieves are less likely to target vehicles in locations where they are easily seen. If you have designated parking for your business, ensure it is well-lit and, if possible, monitored by security cameras.

Use Anti-Theft Devices Investing in anti-theft devices such as steering wheel locks, alarm systems, and GPS tracking can provide an additional layer of security. These devices not only help prevent theft but can also assist in recovering a stolen vehicle.

Regularly Check Locks and Alarms Routine maintenance of your vehicle’s locks and alarm system is essential. Ensure that all locking mechanisms are in good working order and that your alarm system is functioning correctly. Regular checks can help you catch potential vulnerabilities before they are exploited.

Stay Vigilant Encourage employees to be vigilant and report any suspicious activity around vehicles. Implement a policy where employees double-check locks and security measures before leaving vehicles unattended, especially in high-risk areas.

By implementing these vehicle security tips, you can help protect your business assets and ensure the safety of your employees.

Michigan Retailer – 17

Private Label Sector and Channel Trends

O

ver the past year, private label products have constituted nearly 23% of unit sales across ten key product sectors.

The general merchandise categories – including office supplies, home and garden items, and tools and home improvement products – boasted the largest share of private label sales.

Meanwhile, store brand groceries, health and beauty items, and household products achieved the highest penetration in households.

Private Label Trends by Sector

Club stores, office supply retailers, and mass merchandisers saw the greatest proportion of their sales coming from private label items. In contrast, beauty and electronics stores had less than 10% of their unit volume attributed to store brands.

Product Sector

Private Label Share of Sector

Changes vs.

Year Ago

% Household Penetration

Office

0.4

79.4%

Home & Garden

-2.0

97.4%

38.7% 32.6%

Tools & Home Improvement

28.3%

0.2

85.8%

Household

26.3%

0.5

98.8%

Grocery

23.2%

0.4

100.0%

Baby

22.7%

0.3

56.0%

Pet

17.5%

-0.6

70.0%

Health & Beauty

17.2%

0.0

99.2%

Toys

16.4%

-1.0

60.8%

-1.8

53.3%

Electronics

10.9%

Source: Numerator TruView & Numerator Insights | 12M ending 3/31/24 vs. 12M ending 3/31/23 (select product sectors, FMCG + Specialty + eCommerce channels)

Private Label Trends by Channel Channel

Private Label Share of Channel

Changes vs.

Year Ago

% Household Penetration

Club

33.0%

1.0

70.1%

-2.1

8.7%

0.4

97.3%

Office

30.7%

Mass

27.8%

Home Improvement

26.9%

1.5

75.3%

Pet

26.0%

-1.6

26.5%

Food Online Drug

Beauty

97.5%

-1.7

81.0%

21.8%

0.7

69.4%

0.2

67.1%

13.6%

Gas & Convenience Electronics

0.1

21.9%

24.5%

Dollar

13.1% 9.1% 2.9%

0.8

61.8%

-0.6

12.0%

-0.1

13.9%

Source: Numerator TruView & Numerator Insights | 12M ending 3/31/24 vs. 12M ending 3/31/23 (select product sectors, select channels) 18 – Michigan Retailer

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Scan the QR code or email sales@retailers.com Michigan Retailer – 19

MILESTONE MEMBERS

Thank you for your continued loyalty to Michigan Retailers Association!

Schafer’s Bait & Sporting Goods, Weidman

Agape Health Care Schools, Cadillac Armand Roth Inc., Traverse City Carman-Ainsworth Senior Citizen Org., Flint Community Garage Inc., Hudsonville Clamdigger Lounge & Pizzeria, Monroe DeWitt Post 671, DeWitt 20 – Michigan Retailer

Saper Galleries, East Lansing

Donovan’s Pub Inc., Detroit

Len’s Pool & Spa Inc., St. Clair

Gastroenterology Association of West Michigan, Wyoming

McDonald Pierangeli McFarlane PLLC, Grand Rapids

George’s Boot Barn, Montgomery Grand Traverse Mobile Communications Inc., Traverse City The Green Door Blues Bar & Grill LLC, Lansing Hitch-N-Post, Lapeer Hospital Hospitality House of Saginaw Inc., Saginaw JL Roadhouse LLC, Mulliken Jolly Dutchman, Millersburg

Millington Pharmacy LLC, Millington New Life Presbyterian Church, Sterling Heights The Owl’s Perch Gift Shop, Eaton Rapids Phil’s Towing LLC, Houghton Lake Syntholl Supply, Hubbell Tino’s Bar & Pizza Inc., Negaunee Tri City Kustomz, Saginaw Val Du Lakes Bar & Grill, Mears

Take a fresh approach to shipping.

As a member of MRA, you can save big!

MRA members can receive discounted shipping rates on eligible services. Sign up for the FedEx Advantage® discounts program for free to start saving on eligible services.

With the FedEx Advantage program, you’ll get:* Up to 45% off

FedEx Express® shipping

Up to 32.5% off

FedEx Ground® shipping

Up to 42.3% off

FedEx Home Delivery®

25% off

Delivery Area Surcharges

25% off

Residential Delivery Charges

It’s free to sign up using your FedEx account number, and there are no quotas or commitments. Typically, your FedEx discounts will be available 7 to 10 business days after you join the FedEx Advantage program.

To enroll, go to PartnerShip.com/MRA-FedEx

* FedEx shipping discounts are off standard list rates and cannot be combined with other offers or discounts. Discounts are exclusive of any FedEx surcharges, premiums, minimums, accessorial charges, or special handling fees. Eligible services and discounts subject to change. For eligible FedEx® services and rates, please call 1.800.GoFedEx 1.800.463.3339. See the applicable FedEx Service Guide for terms and conditions of service offers and money-back guarantee programs.

Michigan Retailer – 21

HELLO

NEW MEMBERS

All of us at MRA look forward to serving you!

Agnus Dei AFC Home Inc., Allegan

Gilford Township, Fairgrove

Fort Freight LLC, Muskegon

Apostolic Christian Church of Alto MI, Alto

Pancake House LLC dba Golden Gate Family Rest, Flint

Mike’s Affordable Auto Repair LLC, Muskegon

Family Thyme Foods LLC, Alto

On The Move Coaches Inc., Flint

Venture 4750 Coworking dba Strive Workspaces, Ann Arbor

J & J Sports Apparel & Equip. LLC dba 4Sports, Fort Gratiot Twp.

Sparks Industrial Services Inc., Newaygo

BC Electrical JATC, Battle Creek

Chaos AP Screen Printing & Design, Freeland

Traffic Signs Inc., Battle Creek Michigan Great Lakes International Inc., Battle Creek

Galesburg Meat Company, Galesburg Roger’s IGA Inc., Hale

OTEAL2 LLC, Bay City

Hart Freeze Pack dba Michigan Freeze Pack, Hart

MPA Group NFP Ltd, Bay City

Community Teams, Holland

Old Town Store LLC, Bay City

Capaul Funeral Home Inc., Ida

Drift Beer Co. LLC, Bay City

WB Underground LLC, Indian River

Brixstone Farms, Bear Lake

RGR LLC, Jackson

Associated Physicians Group PLC, Berkley

Timothy VanSchoick dba Jackson Pediatric, Jackson

Alpine Mountain Golf, Birch Run

Open Water Group LLC, Jenison

Maple Gas Inc., Birmingham

KAP Trucking Inc., Lake Orion

Northern Tide Enterprises Inc., Boyne City

Local Moves LLC, Lapeer

Sportway of Brownstown Inc., Brownstown Twp. The Insulation Man Inc., Chesterfield

Fraternal Order of Eagles 1354, Ludington JBL of Michigan LLC, Ludington

SMFC Ent Inc. dba Tranquility Field Norway, Norway Michigan Youth Basketball, Ortonville Buck’s Port Hope Diner, Port Hope Higher Image Signs & Wraps LLC, Saginaw WCR Development LLC, Saginaw Grins of Saugatuck, Saugatuck Highland Dairy LLC, Sebewaing Apex Recycling LLC, Shelby Twp. Bunde’s Good Eats & Coffee Corp, South Haven Moone Drywall Inc., South Haven Jackson Family Cycle LLC, Three Oaks K & A Bark and Brew LLC, Traverse City Brydomitch Inc. dba Snap Printing, Traverse City Centre Street Cafe LLC, Traverse City Mike’s Corner Market, Vassar

Cellar 59 LLC, Clinton Township

Metalworks Inc. dba Great Openings, Ludington

1515 Discount LLC dba Sid Gold’s Request Room, Detroit

Alvarez Cultivation LLC, Macomb

Absolute Care LLC, West Bloomfield

Utica Cemetery Association, Macomb

Bo-Te Farms Inc., West Branch

G & E Brothers Inc., Memphis

Sportway of Westland Inc., Westland

Old Dog Paddle Sports LLC, Mount Pleasant

Magnum Lignum LLC, Williamsburg

DNA Dist. LLC dba Doghouse Supreme, Detroit Steptina Inc. dba Floods Bar & Grille, Detroit

22 – Michigan Retailer

MJM Restoration LLC, Warren

Ambrose Motel LLC, Wisconsin

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MICHIGAN RETAILER GOES WHERE YOU GO

603 South Washington Avenue Lansing, Michigan 48933 Phone: 517.372.5656 or 800.366.3699 Fax: 517.372.1303

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