2
New Board Leader
Garden City and Northville Jeweler Orin Mazzoni, Jr., takes over as chair of MRA’s 2016-17 Board of Directors. Page 2
9
It’s the Law
12
Baby Boomers and Medicare
“Trickle-down legislation” poses potential problems for Michigan businesses, but MRA is up to the challenge. Page 9
If you’re a Baby Boomer turning 65 – and 10,000 do every day! – you can get help from MRA’s expert on all things Medicare. Page 12
® October 2016 Vol. 41 No. 5
Prohibition of local taxes on bags, other containers wins key legislative vote Legislation to prevent local governments from taxing or banning plastic bags and other carryout containers has cleared another important hurdle in the Michigan Legislature. The House Commerce Committee voted on September 21 in favor of Senate Bill 853, legislation to preempt local ordinances that ban or require a fee on plastic bags and other containers. The bill was approved earlier by the Senate and now goes to the full House. Sen. Jim Stamas (R-Midland) introduced the legislation on March 15 following news reports that at least two local governments were considering measures against plastic bags. This summer, Washtenaw County approved a 10-cent per plastic bag tax on consumers that takes effect next April. The ordinance requires local merchants to enforce and collect the tax. Amy Drumm, MRA vice president of government affairs, testified in favor of the ban on local ordinances during the House committee hearing on the legislation. She stressed the importance of ensuring there is consistent policy for businesses to follow rather than a patchwork of local regulations that increase costs for retailers and consumers through new taxes. Troubling Precedent Committee members listened as MRA and other business groups explained the harm and uncertainty that local regulations on commerce place on businesses and the importance of keeping choice in the checkout lane. “The Washtenaw County bag tax was the first of its kind in Michigan and sets a troubling precedent,” Continued on page 8
The official publication of Michigan Retailers Association
www.retailers.com
Sales rise during Buy Nearby event Retail sales across Michigan rose significantly during the first “I Buy Nearby Weekend” celebration. An analysis of more than 1,000 Michigan Retailers Association members’ credit card transactions during
October 1 and 2 found that samestore sales increased by a total of 24 percent on a year-over-year basis. Most areas of the state experienced gains. Especially strong sales were recorded in Southeast Michigan in and
around Detroit, as well as in Southwest Michigan, Flint, Bay City and the Upper Peninsula in and around Marquette. “While we can’t credit all of those gains to our Buy Nearby campaign, it obviously contributed to the positive results,” said James P. Hallan, MRA president and CEO. In a separate email sur vey of retailers, most of whom said they participated in I Buy Nearby Weekend, 39 percent of the respondents said their weekend sales were “much better” or “better” than the year before. Only 10 percent said sales were “worse” or “much worse.” Special Promotions Weekend promotions by retailers and communities ranged from special Continued on page 6
Andrew Gemmen, grandson of the founder of Gemmen’s Home & Hardware, always knew he wanted to work in the family business. Photo by David Trumpie
over the business from his father, Larry. It’s keeping a laser focus on the hardware store’s formula for success. “It can be summed up with our store motto, which is: ‘Serving others as we would like to be served,” Andrew said. “We provide both a product and a service. The business we’re really in is solving other people’s problems.” The Gemmens began doing that when Al gave up his IGA store to buy a small hardware and plumbing supply business. Within three years, he transitioned the shop to a conventional hardware store and moved it a mile away to a 4,000-square-foot space he built at the store’s current location. Semi-active in the business until
Fifty-six candidates for the Michigan House of Representatives in the November 8 election received the “Friend of Retail” designation from Michigan Retailers Association. The designation means the candidates generally understand the challenges facing the retail industry in Michigan and support retail’s positions on major legislative issues. The list was approved by the Association’s Legislative Committee and is based on an analysis of voting records and candidate questionnaires. The six highest scoring candidates also received MRA’s outright endorsement. “The Friends of Retail have demonstrated through their votes on key issues and their answers to critical policy questions that they understand the importance of the retail industry to Michigan’s economy,” said James P. Hallan, MRA president and CEO. “We look forward to working with them to continue to make job-creating improvements in Michigan’s retail business climate.”
Continued on page 8
Continued on page 8
Hardware’s success formula unchanged over generations by Doug Henze Much has changed at Gemmen’s Home & Hardware in Hudsonville since Andrew Gemmen’s grandfather, Al Gemmen, started the business in 1955. The store’s size, range of products and buying practices are light years away from what they were in the middle of the past century. But one thing remains exactly the same, said Andrew, the 40-year-old co-owner and president who took
56 House candidates earn ‘Friend of Retail’