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Squeezed Margins
Michigan retailers say they are unable to pass along the majority of cost increases on the goods they purchase. Page 3
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Criminal Targets
Small businesses increasingly are becoming the targets of cyber thugs out to steal credit card and other data. Page 5
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Sharing and Caring
Retailing is about sharing life experiences, so there was no excuse for not observing the 10-year anniversary of 9-11. Page 7
® October 2011 Vol. 36 No. 5
‘Retail Means Jobs’ campaign to boost industry’s advocacy Retailing supports nearly one in four American jobs, according to new research that will serve as the focus of a multi-year, national campaign to strengthen retail’s influence on federal and state policymaking. In Michigan, that means retail supports more than 1.25 million jobs directly or indirectly, according to researchers at PricewaterhouseCoopers LLP, a Big Four international accountancy and professional services firm. The National Retail Federation commissioned the study and is leading the campaign and all its pieces: lobbying, grassroots involvement, advertising, social media and public relations. The new effort is designed “to make sure lawmakers know precisely how vital our industry is to the economic recovery and to ensure they support a pro-retail, pro-jobs agenda,” said NRF President and CEO Matthew Shay. The campaign’s overall success depends on state associations, such as Michigan Retailers Association, and individual retailers to communicate the message to elected officials. Other figures generated by the research: • Retailers paid 17 percent — $1.49 trillion — of the nation’s total wages, salaries and benefits in 2009. • Retail’s impact on the nation’s Gross Domestic Product was $2.48 trillion — nearly one-fifth of total GDP for 2009. • Retailers account for 11.9 percent — 3.6 million — of all business establishments in the nation. • 95 percent of all retailers are small business owners, with more than half of all retail firms employing fewer than five workers. • Retail employs at least 50,000 workers in 85 percent of all congressional districts.
The official publication of the Michigan Retailers Association
www.retailers.com
Lawmakers take up sales tax issue Landmark legislation to level the playing field between Michigan businesses and out-of-state online mer-
chants has begun working its way through the Michigan Legislature. Standing alongside members of
MRA’s James P. Hallan urges lawmakers to level the playing field for Michigan businesses, as board chair Barb Stein looks on. Photo by David Olds
Fond memories will last after former HQ is gone by Jean B. Eggemeyer
A sprawling Victorian-era building in downtown Lansing holds memories of one of the Michigan Retailers Association’s most exciting periods of growth. Built in the 1890s by a successful plumber, the house at 221 North Pine Street would become, nearly a century later, the first headquarters owned by MRA. Formed in 1940, the Association and its professional staff worked out of a series of leased locations for its first 40-plus years. By the early 1980s, MRA had reached the point where it made sense from a financial and branding sense to
add an important real estate asset to the books. “It was a significant step for the Association,” said MRA President and Chief Executive Officer James P. Hallan, who had not yet joined MRA’ s staff. Larry Meyer, who was president and CEO at the time, began looking for suitable locations close to Lansing’s downtown retail district and the Capitol that could hold the Association’s growing staff. The employees were housed in two separate rented office spaces: one in downtown Lansing and the other, housing the insurance department, in northwest Lansing. “Strategically, we wanted to bring the two operations together,” explained Meyer. The large but somewhat dilapidated house on Pine, just two blocks northwest of the Capitol, came on Continued on page 4
the Michigan Retailers Association, State Representatives Eileen Kowall and Jim Ananich announced the introduction of the Michigan Main Street Fairness Act, a bipartisan legislative package that protects job makers across the state by closing a sales tax collection loophole that puts Michigan businesses at risk. “I introduced the Main Street Fairness Act to level the playing field between local businesses and out-of-state Internet retailers,” said Rep. Kowall (RWhite Lake Township) at a September 20 news conference in the state Capitol. “Closing this loophole will eliminate the competitive disadvantage that is holding back local businesses.” “Michigan has the best workers and businesses in the world, but they won’t be able to succeed unless they can compete on a level playing field,” said Rep. Ananich (D-Flint). “Democrats and Republicans should be able to agree that closing this loophole will protect Michigan jobs and help get people back to work.” MRA President and CEO James P. Hallan, board chair Barb Stein and board member Dan Marshall participated in the news conference to emphasize the importance of the issue to Michigan retailers and Continued on page 8
Youth work hours bill passes House The Michigan House has approved legislation creating a simpler process for businesses to determine how many hours a minor in school can be employed. House Bill 4732, which won unanimous approval on September 7, would allow businesses to employ 16- and 17-year-olds up to 24 hours per week during any week that school is in session, and up to an average of 8 hours per day in one week. Michigan’s current law creates a cap of 48 hours combined for both school and work in a week while school is in session. The formula is confusing and unwieldy for employers. The measure then moved to the Senate.