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Aggressive Growth
Retailers Mutual Insurance Company adds two highly accomplished marketing professionals to accelerate its solid growth. Page 2
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Setting the Stage
The Michigan Retail Index shows increased October sales setting the stage for an improved holiday shopping season. Page 3
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Reducing Legal Fees
MRA legal counsel Bill Hallan provides inside tips on how to lower your legal fees and get the most for your money. Page 4
® December 2013 Vol. 38 No. 6
More than $30,000 available for 2014 scholarship awards Michigan Retailers Association’s annual competition for college and training scholarships begins January 2. Applications will be accepted through April 1 for the estimated 34 one-year scholarships for the 2014-15 academic year. A total of $34,000 is available for the $1,000 and $500 awards, the same as this year. Through this year, a total of 393 students have received a total of $365,000 in scholarships from MRA since 1999. The scholarship program benefits the employees and families of MRA member businesses. It is funded by the Michigan Retailers Foundation, which pays for the awards out of the earnings on foundation assets. Details of the competition will be sent to Association members, schools, colleges and other business groups by mid January. New for 2014 is the Helen McCurry Legacy Scholarship, established by MRA Board of Directors member and past chair Joe McCurry in honor of his late wife. That brings Joe McCurry the total number of legacy scholarships to 18. Legacy scholarships are named for Foundation contributors of $10,000 or more. They provide a way for retailers to give back to their industry and establish their legacy within MRA. Again this year, the program is trying to increase awareness that scholarships are available to students of the Gemological Institute of America (GIA) and other approved Continued on page 5
The official publication of the Michigan Retailers Association
SM
www.retailers.com
Main Street Fairness gets ‘green light’ The legislative battle for Main Street Fairness was gaining important ground as Michigan lawmakers prepared to adjourn and resume work
in the new year. The biggest gain came on December 2 – ironically, Cyber Monday – when the U.S. Supreme Court refused to
get involved in state efforts to force online retailers such as Amazon and Overstock.com to collect sales tax in states where they don’t have stores or some other traditional physical presence. “The Supreme Court’s action gives a green light to our bipartisan legislative efforts in Michigan,” said MRA President and CEO James P. Hallan. Meanwhile in the Michigan Legislature, Main Street Fairness legislation was introduced in the Senate in late October as similar bills awaited action by the entire House. House Bills 4202 and 4203, which would help level the playing field between Michigan-based retailers and non-Michigan, online retailers such as Amazon, were approved by the House Tax Policy Committee on September 11. They are sponsored by Rep. Eileen Kowall (R-White Lake) and Rob VerContinued on page 5
MRA’s and Retailers Mutual’s holiday card reminds everyone to “Buy Nearby.”
Foodies’ holiday mall cart grows to 2 gourmet stores by Doug Henze
It began as a simple vendor cart at a shopping mall – a specialty business aimed at catching consumers’ eyes during the holiday shopping season. Even then, owners David Drees and Jeff McDonald knew there were bigger things in store for their Olive Cart operation, which sells oils and balsamics used in cooking. Four years later, the partners offer more than 90 flavors at stores in South Haven and St. Joseph. “Our product is more geared to-
ward a boutique-style store,” said Drees, explaining the decision not to return to the Grand Rapids-area mall once the holiday season ended. “Long range, we thought South Haven would be a great place to end up, because South Haven didn’t have any gourmet stores.” A few months after leaving the RiverTown Crossings Mall in Grandville, Drees and McDonald opened their first brick-and-mortar location, in South Haven, sharing a 2,000-square-foot space with another retailer. The store enabled the partners to increase their product line from about 17 balsamics and oils to around 30. They soon realized they would need even more room. When they found their current location in South Haven, a 2,500-square-foot space, it Continued on page 6
Solid job growth forecast for 2014 The state economy will add nearly 131,000 jobs in the next two years, according to University of Michigan economists. In their annual November forecast, the researchers said Michigan will add 65,000 jobs in 2014 and 65,800 the next year. They project Michigan will end 2013 with 79,600 new jobs. “These yearly gains would exceed the average change of 57,000 jobs per year recorded from 1971 to 2000, prior to the extended downturn of the 2000s,” the Research Seminar in Quantitative Economics at U-M said in a statement. The forecast noted that by the end of 2015, the state will have replenished nearly half (48 percent) of the payroll jobs lost in the 10-year downturn that ended in early 2010. The economists, led by Director George A. Fulton, predict inflation will remain low: 1.2 percent in 2014 and 1.5 percent in 2015 after finishing 2013 at 1.7 percent. They also see personal income growth and real disposable income rising in 2014 and 2015.