February 14 Michigan Retailer

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Sales Forecasts Improve

Michigan retailers expect better sales in 1st Quarter 2014 after damaging winter weather freezes holiday season sales. Page 3

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100 Years of Results

Lynch Sales Co. celebrates 100 years in business by offering gifts to prospects and a trip to Ireland for one lucky customer. Page 4

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Flat-Rate Processing

MRA introduces a simple, flat-rate credit card processing option in addition to the regular lineup of expert processing solutions. Page 5

® February 2014 Vol. 39 No. 1

Merchant complaints could be trouble spot as Square weighs IPO by Jessica Quynn Copyright © 2014. Los Angeles Times. Reprinted with Permission. SAN FRANCISCO – Square came in handy for Camilla Barry in accepting payments at her bed-and-breakfast in the Northern California town of Rumsey – until a guest disputed a room charge in May. That’s when Barry discovered that Square Inc., which enables merchants to accept credit cards using a smartphone or a tablet, doesn’t take phone calls from its customers. Callers are greeted with an automated message, directing them to an online help center or to email their questions, and then they are disconnected. Barry said she grew so frustrated exchanging emails with customer service representatives that she drove two hours to the company’s San Francisco headquarters to get some help in person. Instead, she cooled her heels in the lobby for a couple of hours. No one would speak to her, she said, and the security guards threatened to call the police. Then Square deactivated her account, saying “high-risk activity was detected.” “I got a laugh out of that,” Barry said. “They meant I was a high-risk person because I showed up demanding service.” Square isn’t the only tech company that is more self-service than customer service. But growing complaints from merchants come at an inopportune time for one of the tech industry’s hottest companies. Customer Complaints The San Francisco start-up, led by Twitter Inc. co-founder Jack Dorsey, Continued on page 5

The official publication of the Michigan Retailers Association

SM

www.retailers.com

Senate panel takes up ‘Fairness’ issue (Also see Page 2) The Senate Economic Development Committee has taken up MRA’s Main Street Fairness legislation, but not indi-

cated how long it will consider the bills. The panel held its first hearing on Senate Bills 658 and 659 on January 29. Committee Chairman Mike Kow-

all (R-White Lake) said he expects the committee will hold future discussions on the competition-leveling measures. Similar legislation, House Bills 4202 and 4203, cleared the House Tax Policy Committee last fall but so far has not been scheduled for a vote by the entire House. The bills would begin to level the

Main Street Fairness Now! Download and Mail Back the Form.

Wyandotte retailer Peter Rose (left) speaks with Senator Mike Kowall, chairman of the Senate Economic Development Committee, after testifying on the need for Main Street Fairness legislation.

Third-generation retailer faces challenges head-on by Doug Henze

Buying almost anything these days can be as simple and easy as a few clicks of a computer mouse, tablet or smartphone. Trouble is, the effect of Internet shopping on many Main Street retail businesses – and their communities – is anything but simple and easy. For Peter Rose, a partner with The Chelsea Group LLC, a Wyandotte-based operator of clothing stores, unfair online competition

is one more challenge in the quest to remain profitable and survive as a community retailer. That’s a big reason why Rose, the 59-year-old operator of Chelsea Menswear & Tuxedos and women’s clothing store The Willow Tree, is an outspoken advocate for shopping locally and a big supporter of MRA’s efforts to win approval for Main Street Fairness legislation (see story above). The legislation would help level the retail playing field by requiring certain out-of-state online only retailers such as Amazon and Overstock to collect the same 6 percent sales tax that Michigan businesses must collect. “The Internet takes dollars away Continued on page 6

retail playing field by requiring certain out-of-state online retailers, including Amazon, to start collecting sales tax on goods sold to Michigan residents. The current collection loophole for out-of-state companies gives them a 6 percent price advantage over Michigan retail businesses. Under current law, it’s the responsibility of residents to keep track of their purchases and pay the equivalent 6 percent use tax when they file their income tax. Only about 5 percent pay the tax, according to state tax officials. Economic Harm MRA will continue to solidify legislative support for the bills and push for a committee vote as soon as is Continued on page 8

Spring webinars focus on hiring Free member webinars in March and April will focus on hot-button issues involved in hiring employees for your business. The online sessions are no cost to MRA members and are put on by the national Council of State Retail Associations’ Retail University. On March 26, legal expert Christopher Hoyme will discuss the use of background checks, including arrest and conviction records, in making employment decisions. Continued on page 2


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