Issuu

Upbeat About Holiday Shopping

Michigan retailers went into the holiday shopping season expecting better sales, with forecasts blending optimism and caution. Page 3

MRA Scholarship Competition to Begin Applications will be accepted from January 5 through April 1 for the approximately 35 college scholarships available for 2015-16. Page 5

Lottery Unveils Online Game Cards

To enable retailers to benefit from online games, the Lottery has launched an Online Game Card sold only at Lottery retailers. Page 10

® December 2014 Vol. 39 No. 6

Main St. Fairness bills top retail’s Christmas list of legislative issues MRA is urging retailers across the state to tell their individual lawmakers what’s at the top of retail’s Christmas list: passage of Main Street Fairness legislation. “ M i c h i g a n re t a i l b u s i n e s s e s cannot afford to suffer through another Christmas season of unfair treatment,” said Amy Drumm, MRA’s manager of government affairs. “There is no excuse for Michigan to continue giving an unfair advantage to out-of-state retailers that do not hire Michigan workers, do not pay Michigan taxes and do not invest in Michigan communities.” The legislature is meeting in its socalled lame-duck session, the period between the November elections and the end of the year. It’s the last chance in the current two-year legislative session for passage of bills that would go a long way toward fixing the 6 percent price advantage Michigan currently gives out-of-state businesses. The 6 percent advantage comes from the fact that “remote sellers” – out-of-state merchants with no physical presence in Michigan – are not required to collect state sales tax on items purchased by Michigan consumers. Instead, residents are required to pay the tax when they file their income tax, but very few pay it. Less than 2 percent of the tax liability was collected in 2012, according to the Michigan Department of Treasury. The fairness legislation, House Bills 4202-03 and Senate Bills 658-59, would update the definition of physical presence to include certain practices that out-of-state companies are using to generate sales in Michigan either online or through phone or catalog sales. Continued on page 9

The official publication of the Michigan Retailers Association

www.retailers.com

Economists predict growth for 2015 Steady growth in the state’s economy will produce more jobs, higher incomes and greater retail sales in 2015, according to the latest forecast from

University of Michigan economists. The university’s annual Economic Outlook Conference, held November 20-21 in Ann Arbor, provided a gener-

Buy Nearby Guy with Santa at the Silver Bells in the City light parade in downtown Lansing.

Retail feeds creative soul of Hastings entrepreneur by Doug Henze

Running her own retail store wasn’t a lifelong dream of Kristina Jacobs. But once she got the chance to do it, she knew she’d found her calling. Jacobs, who owns The Hanger and Jilly’s – two stores under one roof in Hastings – was working as a restaurant manager in Grand Rapids when a tiny consignment shop in Lowell became available. “That’s something I might like,” she recalls thinking at the time.

So she created The Hanger by buying the business and switching the format from consignment to the sale of brand-new women’s clothing. Eight years later – nearly six of them in Hastings after she was recruited by the town’s DDA – Jacobs knows she chose the right course. “I’m here for a reason – I have a great connection with all of my customers,” said Jacobs, who closed the Lowell store in 2010. “Every day, I’m thankful I get to do something I love. The creativity feeds my soul. Not every day is easy, but I’m thankful I don’t work in a cubicle.”

ally upbeat picture of the Michigan economy over the next two years, including forecasts of: • 59,400 new jobs in Michigan in 2015 and 73,200 more in 2016, raising the number of new Michigan jobs to 462,200 since the end of the Great Recession. 2014 should end up producing 37,000 new jobs. • A drop in the state’s unemployment rate from the current 7.1 percent to 6.7 percent by the end of next year and 6.3 percent by the end of 2016. • 3.7 percent growth in state sales and use tax revenue in 2015, a reflection of increased personal income growth and retail spending. • 4.6 percent growth in personal income next year and 4.7 percent in 2016, with real disposable income rising 3 percent next year and 2.8 percent the year after. In 2014, personal income should end up rising 4.3 percent and disposable income growing 2.5 percent. • Inflation remaining low by growing 1.1 percent in 2015 and 1.4 percent the following year. 2014 is projected to finish with a 1.4 percent gain in prices. • 20 percent of the new jobs during 2015 and 2016 will come in the areas of trade, transportation and utilities, with almost three-quarters of those gains in retail. Continued on page 8

Retail wages top other industries’

Made in U.S. When Jacobs moved into the

Careers in the retail industry are financially rewarding, and employees who decide on full-time careers in retail can rise rapidly from entry-level positions into well-paying management and executive positions. That’s according to a new study done by University of Georgia economist Jeffrey H. Dorfman for the National Retail Federation (NRF) Foundation as part of an initiative aimed at Washington lawmakers. The campaign is designed to “push back against long-held misperceptions about working in the retail industry,” NRF said. Dorfman’s study also found that

Continued on page 4

Continued on page 6

Michigan Retailer

In a stronger state by James P. Hallan, MRA President and Chief Executive Officer Another year is rapidly coming to a close, and we wish all of you a healthy and prosperous selling season. We understand that many long hours are on tap before the final sale of the season is made and you can finally take a welldeserved break from the wonderful, yet hectic, holiday pace. It has been a good year for Michigan, and a good year for your Association and its affiliated entities. We thank you for making both possible. Looking back, it’s clear Michigan is a much stronger state than it was a year ago. More people are working and, judging by our monthly sales

surveys, more people are buying than they were a year ago. At MRA, we’ve had fun promoting Michigan by introducing Buy Nearby Guy and traveling with him throughout the state to reinforce his message: It’s important to buy from retailers that have invested in Michigan! Everyone Buy Nearby Guy meets and greets is warm and enthusiastic. When people see the mascot and hear the message, they react positively. Many tell us they already make it a practice to Buy Nearby. Those who are hearing the message for the first time “get it” immediately.

New rep named for Southeast MI, Gates promoted in processing field Miranda Piersol, an Oakland County resident with solid experience in sales and retail, has joined MRA as business development representative in Southeast Michigan. Piersol She becomes the key local contact for members and prospective members in the counties of Oakland, Wayne, Macomb, Washtenaw, Monroe, Huron, Lapeer, Lenawee, Monroe, Sanilac, St. Clair and Tuscola. Piersol was a nearly lifelong Florida resident when she moved last year to Michigan with her husband, an insurance executive who was transferred to Detroit. Most recently she was director of Hulfelt Management, a family company that procures, refurbishes and leases investment properties. She previously was sales representative for Virco Manufacturing in Jacksonville, Florida, managing furniture sales, delivery and the installation process for institutional clients. Her career also includes positions at a medical equipment firm and at Cintas, Stein Mart and Abercrombie & Fitch. “I can relate to what retailers and other companies are doing on a daily basis and I understand their struggles,” she said. “Building relationships is key in this position, and I’ve always been good at problem solving and getting things taken care of for clients.” Piersol is a graduate of the University of Florida, with a degree in

journalism and a major in advertising. She and her husband reside in Bloomfield Hills. She admits moving north was an adjustment, but says she’s enjoying all the new opportunities in Michigan. “I thought I would miss Florida a lot, but we love it here,” she said. “We survived the Polar Vortex, so we can face anything.” Darcy Gates CPP, one of MRA’s expert staff members in the increasingly comp l e x m e rc h a n t processing arena, has been promoted to manager, Gates sales support. Her responsibilities include analyzing merchant processing data and preparing proposals, determining pricing, understanding interchange and providing support to MRA’s state association partners. Gates is one of three MRA staff members who have earned the national designation of Certified Payments Professional for their expertise in credit card processing. The certification from the Electronic Transactions Association, headquartered in Washington, D.C., recognizes professionalism and expertise in credit card processing and other commercial electronic payments systems. A Grand Ledge resident, she joined MRA in 2001 and was promoted to inside sales and support specialist in 2008.

From an organizational standpoint, Michigan Retailers continues to be in a very strong state itself. We remain, thanks to your continued trust and support, a very strong organization. Merchant processing activity now exceeds $1 billion annually. Our strength in numbers allows us to keep our processing costs down while maintaining our own customer service department based in Lansing. And Retailers Mutual has reorganized as Retailers Insurance Company, giving us a legal structure to enhance our technology and product offerings in the future. Looking forward, 2015 will mark the 75th year of the Association. Formed in 1940, MRA is honored to be the largest state retail association in country. Speaking of history, several more of our members have the distinct honor of receiving MRA Centennial Plaques recognizing their 100 years in business. An amazing accomplishment! Max and Tom Lokers, Lokers Shoes in Holland, and Jud Lynch, Lynch Sales Company in Grand Rapids, are mentioned in this paper. Only 25 years to go and, with hard work and a little luck, MRA will be able to present a plaque to itself. So, Merry Christmas, Happy Hanukkah and Happy Holidays to our terrific members and partners. From our talented Board of Directors to our wonderfully committed management team and staff, we send you our very best holiday greetings from Lansing.

Recover your share of $5B settlement If your business accepted Visa or MasterCard payments between January 1, 2004, and November 28, 2012, you may be eligible to recover funds from the more than $5 billion settlement in a class-action lawsuit. The lawsuit claims that merchants paid more fees than they should have for accepting Visa and MasterCard as payment from consumers. To assist you in recovering your share of the settlement, Michigan Retailers Association has partnered with MCAG, a settlement expert. To enroll in this service or for more information, please visit https:// mcagvmc.com/portal and enter code MRA100.

www.retailers.com

Board of Directors: Dan Marshall

Chair Marshall Music Company, Lansing

James P. Hallan

President and CEO Michigan Retailers Association

Orin Mazzoni, Jr.

Vice Chair Orin Jewelers, Garden City

Peter R. Sobelton Treasurer Birmingham

William J. Hallan

Secretary Michigan Retailers Association

Thomas Ungrodt

Past Chair Ideation, Ann Arbor

Brian Ducharme AT&T

Becky Beauchine Kulka

Becky Beauchine Kulka Diamonds and Fine Jewelry, Okemos

Joseph McCurry

Credit Card Group

Larry Mullins

Brandon Tire & Battery, Ortonville

R.D. (Dan) Musser III

Grand Hotel, Mackinac Island

Barb Stein

Great Northern Trading Co., Rockford

Joe Swanson Target Corp.

James Walsh

Meijer, Inc., Grand Rapids

D. Larry Sherman

Board Member Emeritus

Michigan Retailers Services, Inc. Board of Directors: Bo Brines Little Forks Outfitters, Midland

Bill Golden

Golden Shoes, Traverse City

Lisa McCalpine-Wittenmyer Walgreens

James P. Hallan Thomas B. Scott Publisher

Editor

Pat Kerwin

Design Manager

Publication Office: 603 South Washington Avenue Lansing, MI 48933 517.372.5656 or 800.366.3699 Fax: 517.372.1303 www.retailers.com www.retailersmutual.com

Subscriptions:

Michigan Retailer (USPS 345-780, ISSN 0889-0439) is published in February, April, June, August, October and December for $20 per year by Michigan Retailers Association, 603 South Washington Ave., Lansing, MI 48933. Subscription fees are automatically included in the Michigan Retailers Asociation membership dues. Periodical postage paid at Lansing, Michigan. POSTMASTER: Send address changes to 603 South Washington Ave., Lansing, MI 48933. The Michigan Retailer may be recycled with other white office paper.

December 2014

MICHIGAN RETAIL INDEX

Conditions in place for better holiday season sales progress with a bumpy ride along the way,” said MRA President and CEO James P. Hallan. “It’s no surprise to see retailers projecting better holiday sales, but showing restraint in their projections.” The latest Michigan Retail Index found continued positive sales activity during October (50.3 on the 100-point index), although lower than September’s level (62.1). The Index

Current

Performance Index

continued its up-and-down pattern since the summer. The October monthly survey of MRA members showed 41 percent of retailers increased sales over the same month last year, while 39 percent recorded declines and 20 percent reported no change. The results create a seasonally adjusted performance index of 50.3, down from 62.1 in September. A year ago October the

3-Month

13 -14 12-13

Index stood at 54.8. The 100-point Index gauges the performance of the state’s overall retail industry, based on monthly surveys conducted by MRA and the Federal Reserve. Index values above 50 generally indicate positive activity; the higher the number, the stronger the activity. Looking for ward, 51 percent of retailers expect sales during Continued on page 5

13-14

Outlook Index

12-13

2013

2014

700 600

602

629

661

658 647 597

500 400 300

OCT

SEP

AUG

JUL

JUN

MAY

APR

MAR

FEB

JAN

DEC

NOV

OCT

SEP

AUG

JUL

JUN MAY

APR

MAR

FEB

JAN

DEC

NOV

Conditions were good for the official start of the holiday shopping season in Michigan: brisk late November weather, significantly lower gasoline prices, reduced unemployment and plenty of optimistic retailers offering compelling reasons to shop. Nearly two-thirds of Michigan retailers entered the season forecasting better holiday sales over last year, and almost a third expected their sales would climb more than 5 percent, according to the Michigan Retail Index, a joint project of Michigan Retailers Association (MRA) and the Federal Reserve Bank of Chicago. Their forecasts were a blend of optimism and caution. While 63 percent projected better holiday sales over last year, the average of all retailers’ projections came to only +1.6 percent. Nearly a third (28 percent) expected their sales to increase more than 5 percent and 35 percent anticipated their sales would rise 5 percent or less. Nationally, economists were forecasting holiday spending to increase about 4 percent. “Taken as a whole, these forecasts reflect the type of year Michigan’s retail industry has experienced: overall

Seasonally adjusted diffusion index, calculated by adding the percent of respondents indicating increased sales and half the percent indicating no change, and then seasonally adjusting the result using the U.S. Census Bureau’s X-11 Seasonal Adjustment procedure. Index values above 50 generally indicate an increase in activity, while values below 50 indicate a decrease.

200 (millions)

Aug

Sep

Oct

Be sure to complete your online survey each month!

Michigan Retailer

www.retailers.com

Retail feeds creative soul of Hastings entrepreneur Continued from page 1

leased building in Hastings, she was a one-woman show and The Hanger occupied about one-third of the structure’s main floor. Her businesses now encompass two-thirds of that floor, as well as the entire basement, with plans to expand at some point in the future. The Hanger and Jilly’s, which sells home décor and gift items, fill 3,500 square feet and employ four part-time employees. Jacobs’ sons, Keegan, 13, and Cristian, 16, and her niece, Abby Jacobs Larabee, 13, help around the store when they can. The Hanger sells ever ything from hats, scarves and leggings to maxi skirts, sweaters and plain, white T-shirts. “I’ve got probably 1,500 things on hangers,” she said. “I’ve got everything from big, national brands down to local items.” Lines include Silver Jeans Co. and Miss Me; clothing ranges from smaller sizes up to plus size. Jacobs prides herself on finding as many U.S.-produced items as possible to stock in her store. A shifting of the textile industry back to U.S. shores is making the task easier, she said. “I would like to someday say 80 percent of my store is American-made,”

she said. Jilly’s – separated from The Hanger by a large archway – also embraces the idea of items being produced closer to home. Jacobs added the

Painting Class Jacobs uses the stores’ basement as an overflow area for furniture. Customers often select end tables, for example, from that space to decorate

Jilly’s features home decor and gift items. Photos by Kim Zahnow.

store in 2012. “I have a lot of local art,” Jacobs said. A pewter line that includes Christmas ornaments, key chains and figurines is poured right here in Hastings, she said. Local artists typically sell their goods on a consignment basis, she said. “I never know what they’re going to show up with, honestly,” she said with a laugh.

during a painting class she teaches. Offering a line of 44 chalk paints, Jacobs instructs as many as 20 students a week – especially during the post-holiday doldrums. “Painting is very therapeutic,” she said. “People come in and they tell me, ‘I don’t have a creative bone in my body,’ and they leave here feeling good about what they did.” The classes also help build the sense of community that small-town

“There is a reason why we have been helping retailers succeed for 100 years!” Judson Lynch, Co-CEO, Lynch Sales Company Since 1914, the family-owned Lynch Sales Company has delivered on our promise to help our retail clients succeed through Lynch promotional sales. I am particularly proud that many of those storeowners reward us with their repeat business, time and again. Contact us for details and receive a special, limited edition 100th anniversary commemorative as our gift. Plus, retailers who hold a Lynch ‘Sale of the Century’ during 2014 automatically become eligible for our Grand Prize of a trip for two to Ireland!

merchants rely on. “We keep adding things that will keep people in the community,” Jacobs said. “When I hear people say, ‘I don’t have to go to Grand Rapids,’ that’s music to my ears.” On a first-name basis with many of her customers, Jacobs said she’s able to approach them in a frank way chain stores can’t. “I will tell people, ‘You should probably go back in the fitting room before somebody sees you, because that doesn’t flatter you. We’ll find something else,’” she said. “They know I’m not going to mislead them.” Personal Touches Customer service is the way to fend off Internet warehouses that trade on price, she said. “Once in a while, somebody will say Amazon had something on a daily deal and it makes me want to cringe,” said Jacobs, a supporter of MRA’s Buy Nearby campaign. “But they always come back. I haven’t lost any business permanently. A lot of people in this community do understand the importance of buying local.” Providing customers with better service often comes down to small, added touches. This time of year, it’s complimentary gift wrapping. “People can come in – especially men – and they know it’s going to be all wrapped and pretty and ready to go,” Jacobs said. More of those wrapped packages seem to be heading out the door this year, Jacobs said, pointing to a major increase in early holiday sales. “I think people are not as afraid to spend this year,” she said. “People aren’t worried we’re in such a crisis. Gas is staying at lower levels. I think holiday sales are going to be phenomenal.” Doug Henze is a freelance writer and former business reporter for the Oakland Press in Pontiac.

Looking for the best way to reach retailers in Michigan? Advertise in the Michigan Retailer. Rates as low as $35 per issue.

Call 800.366.3699 for more information.

December 2014

2015 scholarship competition starts January 5 Michigan Retailers Association’s annual competition for college and training scholarships begins January 5. Applications will be accepted through April 1 for the estimated 35

Approximately 35

1,000 Scholarships

are available from the Michigan Retailers Association Scholarship Program, established to benefit members and their employees.

Who’s Eligible? • Dependent children of owners or employees of MRA-member businesses. OR • Part-time employees at MRA-member businesses who are also full-time students. Scholarships are not based on financial need. Current high school seniors and college freshmen, sophomores and juniors may apply.

See your employer for details or contact the Michigan Retailers Association at . . .

800.366.3699 ext. 209

www.retailers.com

Application deadline is April 1, 2015 Apply online: www.retailers.com (access code is MIRA)

one-year scholarships for the 2015-16 academic year. A total of $34,000 is available for the $1,000 and $500 awards, the same as this year. Students attending fouryear colleges and universities receive $1,000; those attending community colleges or approved education and training institutes receive $500. 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. Online Applications Applications must be submitted by April 1, 2015, to International Scholarship and Tuition Services, Inc., of Nashville, Tennessee, which coordinates the application and selection process for MRA and many other associations and companies. Students are encouraged to complete the application process online at MRA’s website, www.retailers.com. Students

may contact MRA’s Laura Schilling at 800.366.3699 or lschilling@retailers. com by March 15 to request an application by mail or to check eligibility. Recipients are selected for their average to above-average academic performance and extracurricular activities, which can include parttime employment. Financial need is not a consideration. Those eligible to apply are high school seniors and college freshmen, sophomores and juniors who are dependent sons and daughters of owners or full-time employees of MRA’s nearly 5,000 member businesses. Part-time employees who are fulltime students also may apply.

Outlook good for holiday sales

Continued from page 3

November–Januar y to increase over the same period last year, while 20 percent project a decrease and 29 percent no change. That puts the seasonally adjusted outlook index at 67.5, down from 73.6 in September. A year ago October the Index stood at 64.3. Sales tax receipts totaled $661.2 million in October, up 10.7 percent

Delta Dental delivers big on smiles and even bigger on savings When an employer group chooses Delta Dental, its employees gain access to the largest selection of individually contracted dentists nationwide. This results in more people getting the dental care they need from the dentists they prefer. You can count on a larger network to drive more value overall. Our dual networks deliver higher network utilization rates, greater balance billing protection for members and industry-leading effective discounts. And that’s sure to make everyone smile.

www.deltadentalmi.com

Legacy Awards Through this year, a total of 428 students have received a total of $398,500 in scholarships from MRA since 1999. Details of the competition will be sent to Association members, schools, colleges and other business groups in mid January. The awards include a total of 18 legacy scholarships, 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. Additional information about funding a legacy scholarship is available at www.retailers.com, under the Education & Events pull-down menu.

from the year-ago level. Complete results of this month’s Michigan Retail Index—including data on sales, inventory, prices, promotions and hiring—are available at www. retailers.com/mra/news/michiganretail-index.html. The website includes figures dating back to July 1994.

Michigan Retailer

Retail wages top other industries’ Continued from page 1

government data on pay for retail workers are “skewed significantly downward” because they include a disproportionate share of part-time, temporary and young, inexperienced workers who are not as common in other industries. “When those workers are excluded from the data, to create an ‘apples-toapples’ comparison, retail wages are clearly competitive with other indus-

2015 notable dates for retail calendars JAN 1....... New Year’s Day JAN 3....... The Prophet’s Birthday JAN 19..... Martin Luther King Day FEB 2....... Groundhog Day FEB 12..... Lincoln’s Birthday FEB 14..... Valentine’s Day FEB 16..... Presidents Day and Washington’s Birthday FEB 17..... Mardi Gras Carnival FEB 19..... Chinese New Year MAR 5..... Purim MAR 8..... Daylight Saving begins MAR 17... St. Patrick’s Day MAR 20... First Day of Spring APR 1...... April Fool’s Day APR 3...... Good Friday APR 4...... Passover begins APR 5...... Easter Sunday APR 6...... Easter Monday APR 15.... Tax Day APR 22.... Earth Day MAY 1...... Law Day MAY 5...... Cinco de Mayo MAY 10.... Mother’s Day MAY 16.... Armed Forces Day MAY 25.... Memorial Day JUN 14..... Flag Day JUN 18..... Ramadan begins JUN 21..... Father’s Day First Day of Summer JUL 4....... Independence Day JUL 26..... Parents’ Day SEP 7....... Labor Day SEP 11..... Patriot Day SEP 13..... Grandparents’ Day SEP 14..... Rosh Hashana SEP 17..... Citizenship Day SEP 23..... First Day of Autumn Yom Kippur SEP 25...... Native Americans Day OCT 3...... Buy Nearby Get Caught Blue-Handed Day OCT 12.... Columbus Day OCT 16.... Boss’s Day OCT 17.... Sweetest Day OCT 31.... Halloween NOV 1..... Daylight Saving ends NOV 11... Veterans Day NOV 26... Thanksgiving NOV 27... National Shopping Day NOV 28.... Small Business Saturday NOV 30... Cyber Monday DEC 7...... Pearl Harbor Day DEC 22.... First Day of Winter DEC 25.... Christmas Day DEC 26.... Kwanza begins DEC 31.... New Year’s Eve

tries and, in some cases, significantly higher,” the study said. Retail is the largest private sector employer in the U.S., with total employment of more than 15 million people. “Stubborn misperceptions have existed about retail and the jobs our industry provides,” said Matthew Shay, NRF president and CEO. He pointed to lingering false stereotypes about retail wages and skills that undermine the value of retail employment in the minds of lawmakers in Washington. “Retail jobs are good jobs and they deserve bipartisan support,” he said. “There is a perception gap in Washington by those who choose to ignore proof to the contrary, and we want to close it.” Among the report’s conclusions: • Retail jobs pay wages highly competitive with other sectors. Retail workers with similar levels of job skills and experience earn wages comparable to employees in other sectors, including manufacturing, transportation, health care, and accommodations and food service. Retail employees working all three months in a calendar quarter at a company earn an average of $2,582 per month, compared to $2,667 for workers in selected non-retail industries. Excluding part-time, seasonal and younger workers in order to make a fairer comparison, retail would fare better against other industries. • Experienced retail workers earn more than their peers in other industries. Full-time retail workers between 25 and 54 make an average of $3,198 per month, slightly higher than the $3,164 earned by non-retail workers. Compared to other industries, retail has a higher percentage of workers age 35-54 who make between $4,000 and $6,000 per month. • Retail provides long-term earning potential. Case studies go beyond the numbers to demonstrate that retail careers can offer a pathway to a middle-class life for millions of Americans. Examples include an employee who started as a loader at $10,000 a year in the late 1970s and is now earning nearly $175,000 as a market director, or a former customer service associate making $15,000 a year in 1989 now earning $350,000 as a senior vice president. • Retail offers millions of Americans the chance to earn income while pursuing a degree or acquiring valuable job skills. Fully 32 percent of retail workers are temporary, 31 percent are parttime and 23 percent are under the age of 25. That’s a far higher mix of young, temporary, part-time workers than found in other industries.

www.retailers.com

MRA honors two ‘new’ MI Centennial Retailers Two more retail businesses have joined MRA’s honor roll of Michigan Centennial Retailers. MRA recently presented special Centennial plaques and certificates to Lokers Shoes in Holland and Lynch Sales Company in Grand Rapids. The Association began recognizing 100-year-old retail businesses in 2000. It has honored 88 centennials so far. If you are associated with or aware of an eligible retail business that hasn’t been recognized, you can notify MRA by filling out the online Centennial Retailer Nomination form or by emailing mra@retailers.com. The form is located at the retailers.com website under the Education and Events dropdown menu (proceed to Member Recognition). Retailers whose names are submitted will be contacted and asked to provide a brief history and other information about their business. Lokers Shoes, Holland Brothers Max and Tom Lokers are the fourth generation of Lokers taking care of the family business started by their great grandfather, Jake Loker, in 1913. As one local newspaper wrote, they are “unapologetic old-school small businessmen” who are committed to

the “fit, finish and highly personalized customer service” behind the sale of every pair of footwear. Jake bought a failing business and moved it from Borculo to downtown Zeeland, where he sold clothing and shoes, cut men’s hair and repaired shoes and harnesses for horses. The business grew and evolved over the decades and relocated to Holland in the late 1960s. Anna Loker, Max’s daughter, is now the fifth generation working in the family shoe store. Lynch Sales Company, Grand Rapids The company founded by Joseph P. Lynch in 1914 is credited with inventing the furniture sales promotion business as it’s known today. Brothers Judson and Christopher Lynch, grandsons of the founder and sons of Daniel L. Lynch, serve as co-CEOS of the company, which specializes in liquidation, relocation, remodeling, remerchandising, inventory reduction and cash-raising sales. With its strong emphasis on integrity and results, the company has grown from its Grand Rapids roots to include four U.S. offices as well as operations in Canada and the United Kingdom.

MRA’s James P. Hallan presents a Centennial plaque to Judson Lynch and Christine Nicollette of Lynch Sales Company in Grand Rapids.

Brothers Max and Tom Lokers of Lokers Shoes in Holland proudly display their Centennial plaque and certificate.

December 2014

RETAIL TECHNOLOGY NEWS

Buy Nearby Guy presents ApplePay: the rising tide check to winning shopper to float all payment boats John Mayleben CPP, is MRA senior vice president technology and new product development and a national expert on electronic payment processing. He is the first person in Michigan and among the first in the nation to receive the Certified Payments Professional designation from the national Electronic Transactions Association. Early signs point to ApplePay indeed being the predicted “rising tide” that floats all payment boats, at least the contactless ones. With the recent rollout of Apple’s new iPhone 6 and 6 Plus, along with the announcement that the iWatch will be here early in 2015, the payments processing landscape is clearly changing. News stories report that retailers are already seeing thousands of ApplePay transactions via “tap and go” (a.k.a Near Field Communication, a.k.a. “contactless”). They also are seeing consumer interest in other contactless transaction vehicles, such as Google Wallet. According to published accounts, 50 percent of the tap-and-go transactions at a major chain of fast food restaurants are now iPhone transactions. Similarly, a nationwide organic food grocer has already seen more than 150,000 iPhone transactions. And the new phones have only been available for a couple months. Imagine those numbers six months or a year from now. Be Ready Are you ready to accept this next way to pay? Truly ready? As a merchant who accepts payment for goods and services, you should be listening to your consumers as they attempt to use different forms of payment in your business. Whether or not you are a fan of Apple, a significant number of your customers carry some type of Apple iOS device with them every day. They will eventually ask to use it in your business, and if you don’t have that payment option available they may elect to go elsewhere to purchase. Even if a customer uses another type of card to complete the current purchase, will that customer come back the next time? Of particular interest to retailers who sell to the millennial generation (formerly known as Gen Y), a study by Nielsen Co. shows that more than 85 percent of consumers between the age of 18 and 34 own smart phones. Other published reports show that,

nationally, more than 26 percent of these smart phones are iPhones. I would venture a guess that the iPhone population is curved toward the younger generation and, therefore, even more than 26 percent of the millennials are carrying iOS devices. If you are selling in the 18-34 space, you will see (if you are not already seeing) consumers asking to use their iPhones as the payment device. Two Parts A lot of retailers are asking how contactless payments work. It’s a two-part answer. The first is hardware related. You (as the merchant) must have a credit card device able to read the contactless chip that is built into the iPhone (and any other NFC device). This hardware is currently available and is being deployed by us today. In most cases, your current terminal cannot do the job unless you have recently upgraded your equipment. The second part of the process is to have software downloaded into your terminal so you can handle a transaction when a consumer elects to use contactless as a payment option. While we have software that will work in the new terminal for traditional card transactions, the software for contactless is in the final stages of development by the various credit card processors and will be available to download into your NFC-ready device shortly. Once you have these two parts, you can process any NFC transaction just like a swipe transaction. These transactions will be treated just like any other swipe transaction. The same rates will apply. These new terminals also will be able to handle the new EMV chip cards that some card issuers are sending to their cardholders. These EMV chip cards are harder to counterfeit and offer some other protections to the merchant by making it harder for the bad guys to use stolen data for fraudulent transactions. If you have not already considered upgrading your POS equipment, please take a minute and contact Michigan Retailers or one of our processing partners to discuss the options available to you. The tide of iPhones may become a tsunami, and you need to be ready for it.

The winner of Michigan Retailers cent off all items in her store that are Association’s Buy Nearby shopping made in Michigan. She also encourspree says she makes it a regular aged Millard and other customers to practice to shop at the stores in her post photos and qualify for the shopcommunity.    ping spree.    “I love the small-town atmosphere MRA President and CEO James P. of downtown PlymHallan praised Milouth,” said Linda lard, Gigi’s Mode and Millard of Plymouth. the Plymouth Com“I’m a firm believer munity Chamber of in buying nearby. It’s Commerce for helpimportant to our coming make the special munity and our state.”   day a success.    Buy Nearby Guy, “We’re delighted the Buy Nearby our shopping spree campaign mascot, winner is someone presented her with who supports the a $500 check on Buy Nearby campaign October 17. The preand practices ‘getting sentation took place (from left) Gigi’s Mode owners caught’ shopping at outside Gigi’s Mode, Amanda Britcher and Beverly nearby retailers,” Hala women’s boutique Whitby, Buy Nearby Guy, Linda lan said. located in downtown Millard. “We all win when we Plymouth that specializes in unique Buy Nearby.”   clothing, shoes, jewelry and gifts.    Millard was selected in a random Improved Sales drawing from among the shoppers MRA’s analysis of credit and debit who entered the contest by posting card transactions on October 4 found photos of themselves buying nearby retail sales volume across Michigan on Get Caught Blue-Handed Day – Satclimbed 4.5 percent over the first Saturday, October 4. urday in October last year.

(From left) Bob Jacquart, Buy Nearby Guy, Bev and Phil Anderson at Diversions in Traverse City.

Buy Nearby Guy continues to make appearances across the state following October’s Get Caught Blue-Handed Day. The mascot accepted the invitation of Phil and Bev Anderson of Diversions in downtown Traverse City to participate in their Hat Signing Party on October 10. The party included Bob Jacquart, owner of Stormy Kromer Mercantile company in Ironwood, manufacturer of the warm and fashionable line of Stormy Kromer hats and other outdoor gear. Jacquart signed dozens of the unique hats for customers, who also had the opportunity to pose for photos with Buy Nearby Guy.

Millard, with help from her daughter, Lauren, posted a photo of herself making purchases at Gigi’s Mode on the Buy Nearby Facebook page.    Gigi’s Mode is owned by Beverly Whitby and her daughter, Amanda Britcher. They opened their boutique – with the tagline “It’s a girl thing” – in May 2004. Know the Story   “I love the [Buy Nearby] campaign,” Whitby said. “I think it’s important to promote the retail industry and it’s important to know the story behind what you buy.”   Whitby participated in Get Caught Blue-Handed Day by offering 10 per-

MRA launched the year-round Buy Nearby campaign in 2013 to encourage Michigan residents to have fun shopping and support their communities by buying from retail businesses in Michigan. The campaign designates the first Saturday in October every year as Get Caught Blue-Handed Day to focus greater retailer, shopper and news media attention on the campaign.   Economic research conducted for MRA shows that Michigan’s economy would increase by  $9 billion and add nearly 75,000 jobs if all shoppers who make buys from “remote sellers” – mostly online-only merchants outside the state – switched their purchases to Michigan businesses.

Michigan Retailer

www.retailers.com

Membership Services Corner

Michigan’s choice for

by Penny Sierakowski, MRA Customer Service Department Manager

workers’ compensation and group dental insurance. Workers’ Compensation Insurance

Quality care for injured employees. Claims review by business owners like you to reduce fraudulent claims and keep rates down.

Quick notes on key services. Call 800.563.5981 for credit card processing assistance or 800.366.3699 for other matters. We v a l u e your membership and trust. Let us know whenever we can help you with your question or problem, no matter how large or small. Credit Card Processing • This is the third year for an IRS tax-reporting mandate on all merchant processing organizations. Therefore, if we don’t have valid IRS information on file for you or your business, we mailed you a W-9 form. Please complete the form and return it at your earliest convenience to avoid an IRS 28 percent withholding. • Keep your customers happy and don’t lose potential sales. Contact us if you would like to accept American Express. • The card associations (Visa, MasterCard) require merchants to imprint all credit cards that will not swipe. It protects your business against customer disputes. Contact us if you need an imprinter or imprinter slips. • You must settle your credit card terminal before unplugging it,

Dental Insurance

Quality dental insurance plans through Delta Dental. Coverage for groups as small as two. Affordable, quality coverage for every Michigan business.

Retailers Insurance Company is your Michigan company ... Large enough to protect you. Small enough to care. Close enough to Buy Nearby.

especially if you use the terminal infrequently. • Credit card fraud is on the rise. If you receive a request to ship merchandise out of the country, or to wire money, please call to verify before processing the transaction. A good rule is to never wire money as part of a sale. • Don’t forget to notify Customer Service of any changes with the authorized signer on file (especially for non-profit organizations and government entities). • Please review your credit card receipt to verify the business information is printed correctly. • On occasion, you may receive a phone call or email from one of our merchant processing partners – Control Scan (PCI Compliance) or TransFirst (processing). Both partners will be able to provide your Merchant ID number to validate who they are; therefore, please ask them to confirm your merchant account information. • These terminals are no longer PCI Compliant and need to be upgraded: Zon, Tranz, Omni, Hypercom T7P, Nurit. Please contact Customer Service to obtain upgrade options. • Data security compliance is mandatory. You must complete an annual PCI Self-Assessment Questionnaire to verify if your business is PCI compliant. Visit www. compliance101.com to begin the questionnaire.

Economists predict growth for 2015 Continued from page 1

To learn more, ask your Independent Agent, call 800.366.3699 or visit www.RetailersInsurance.com. 1214

Good News “More jobs, higher incomes and low inflation are good news for retailers as well as businesses throughout the economy,” said James P. Hallan, president and CEO of Michigan Retailers Association. “Consumers have shown a greater willingness to spend money during the past few years as our economy recovers, but they also have been cautious and requiring compelling reasons to make purchases. If these forecasts are accurate, consumers should feel more comfortable spending as well as relying on short-term borrowing to finance larger purchases.” Despite the positive jobs forecasts, Michigan still has a long, bumpy road to get back to the job levels at the start of the new century. The predicted growth over the next two years would mean the state is still little more than halfway back. “If our forecast proves correct, Michigan will have added 462,600 jobs from the bottom of the downturn in the summer of 2009 through the end of 2016.

That would recoup over half (54 percent) of the jobs lost from the spring of 2000 to the summer of 2009, returning the job count to its level posted at the end of 2006,” the economists said. U-M economists George Fulton, Joan Crary and Donald Grimes presented the Michigan outlook. U.S. Growth Looking at the U.S. economy, the experts said it should grow in 2015 at its fastest pace since 1999 and create more than five million jobs over the next two years. The nation’s unemployment rate will continue declining, from its current 5.8 percent to 5.4 percent next year and 5 percent in 2016. They predict motor vehicle sales will reach 16.3 million vehicles this year, up from 15.5 million in 2013, and keep climbing to 16.6 million in 2015 and more than 17 million in 2016. 2015 “will be the year when U.S. economic growth will finally accelerate meaningfully,” said U-M economist Daniil Manaenkov.

December 2014

Main St. Fairness bills top legi issues Continued from page 1

Lame Duck “You never know what’s going to happen in lame duck, because there’s usually a frenzy of legislative action as the session comes to an end,” said William J. Hallan, MRA’s chief operating officer and general counsel. “That’s why we must all do everything we can to make sure legislators know how important Main Street Fairness is to the local retailers in their district, the retail industry as a whole and Michigan’s economy.” Bills not passed by the end of the year are considered dead and must be abandoned or reintroduced at the start of the new session in January. New bills must begin the legislative process all over again. MRA’s Main Street Fairness bills have made it through committee in both the House and Senate and are on the floor awaiting action. As Michigan Retailer went to press, the fate of the bills was still uncertain. However, the Senate committee action on December 3 was a positive sign that lawmakers in both houses might put the issue up for a vote. Governor Rick Snyder supports Main Street Fairness legislation but has said his top priority for the lame-duck session is winning passage of a funding package to fix Michigan’s roads. Other Issues MRA’s other priorities for lame duck include: • Fix the roads without raising the sales tax Legislators have been grappling with possible solutions to increase funding by $1.2 billion a year for infrastructure improvements. MRA agrees the roads need fixed, but not by increasing the sales tax. “A one-cent or two-cent sales tax increase would only backfire on our economy and undo a lot of the good work that legislators and the governor have done the past two years,” said Drumm. “We should not burden the state’s recovering economy by reducing retail sales and driving more purchases to out-of-state, online businesses that don’t collect sales tax.” She pointed out that if the sales tax were increased to 8%, Michigan would have the highest state-based sales tax in the nation. An increase would push even more Michigan residents to the Internet to buy from out-of-state merchants, depressing sales at Michigan businesses and eliminating jobs. • Keep burdensome, big-brother devices out of stores The Senate recently approved legislation that would create a pi-

lot program requiring up to 1,000 merchants to install an anti-sales suppression device, or anti-zapper device, between the POS system and the receipt printer on every register. The device would store all of the transaction data for each register and could be reviewed by the treasury department to ensure the reported sales match the actual sales recorded. Drumm said the bill, SB 1100, raises a lot of questions, including: POS system compatibility with the device, cost, data security, whether there will be limitations that interfere with POS updates, placing additional regulations on brick-and-mortar sales vs. online or catalog sales, and whether there is a need for an extensive oversight system. If approved, Michigan would be the only state to implement the untested pilot program and participating merchants would be selected at random. “Michigan retailers do not need to be the guinea pig for a pilot program allowing the state unprecedented access to personal and possibly proprietary data. The pilot program leaves us with more questions than answers,” Drumm said. MRA is working on making sure the bill faces a rough road in the House. New Leadership The new year will bring new leadership to the Michigan Legislature, although the balance of power will remain the same. Republicans will continue their solid hold on control of both houses, moving up to a 27-11 majority in the Senate and a 63-47 majority in the House. The House and the Senate will gain new leaders after four years of leadership from House Speaker Jase Bolger (R-Marshall) and Senate Majority Leader Randy Richardville (R-Monroe). Both leaders were term-limited and unable to seek re-election. Rep. Kevin Cotter (R-Mt. Pleasant), elected to a third term in the House in November, will serve as speaker. MRA named Rep. Cotter a Friend of Retail for both the 2012 and 2014 elections. Sen. Arlan Meekhof (R-West Olive), elected to a second term in the Senate in November, will serve as majority leader. MRA named Sen. Meekhof a Friend of Retail for the 2014 election (the designation was started in 2012 when Sen. Meekhof was not up for election). Legislators convene on the second Wednesday in January, when the new leaders officially take over and all 148 legislators take the oath of office. Committee assignments are typically announced within the first few weeks of January.

IT’S THE LAW

Stay sharp to avoid piercing of corp veil by William J. Hallan, MRA Chief Operating Officer and General Counsel Is your business organized as a corporation? Are you a shareholder? If so, can a creditor seize your personal assets to satisfy debts of the corporation? The answer is yes if a court determines it is appropriate to pierce the corporate veil. “Piercing the corporate veil” is one of the sexier legal doctrines. How’s that for trying to grab your interest! The law can be dry, but a pierced corporate veil will peak any lawyers’ interest. It’s also an exception to the rule, which pretty much sums up the entire practice of law. There are very few absolutes when it comes to legal principles, and corporate liability is no exception. Limited Liability Corporations are one of the most common types of business associations. The most important element of corporations is that they limit liability. The general rule is that while shareholders have the ability to receive profits and dividends, they are not personally liable for the corporation’s debts. However, courts will pierce the corporate veil when: (1) there is a unity of interest and ownership; and (2) it is necessary to prevent the corporation from being used to promote fraud or injustice. I’m afraid I’ve just made this interesting topic boring with that legal jargon, so let me explain in layman’s terms. A corporate structure will not protect shareholders from liability when there fails to be a sufficient distinc-

tion between the corporation and the shareholders. In other words, a shareholder could be liable for a corporation’s debts if the corporate structure and practices are not respected. Protection To ensure that your corporation does not risk having its corporate veil pierced, consider the following tips: • Avoid commingling of assets. Commingling of corporate assets and the shareholders’ personal assets occurs when the shareholders deal with the assets of the corporation as if they were their own. In other words, don’t use the company checkbook to buy groceries or other personal items. Don’t have the company buy a giant screen television for your home or an exotic vacation for your family. • Ensure that corporate formalities are followed. Was stock issued? Were corporate records maintained, directors elected, regular meetings of directors and shareholders held? • The corporation should be properly capitalized. Ensure the corporation is organized with sufficient resources to meet the obligations that reasonably could be expected to arise in its business. Shoring up the corporation by paying its expenses with personal funds is crossing the line. • Avoid domination and control by the shareholder. When an individual or another corporation owns most or all of the corporation’s stock so completely that it dominates the corporation’s policy and business practices, the corporation can be said to have no separate mind. In sum, ensuring proper distinction between the shareholder and corporation can prevent the piercing of the corporate veil.

Offer Gift Cards, Increase Sales. Upscale Image Simple Setup Greater Security Return Visits

Automatic Balance Easy Processing Low Costs Reusable

800.366.3699 www.retailers.com

Michigan Retailer

www.retailers.com

LOTTERY

Online Game Cards offer retailers new opportunity by M. Scott Bowen, Commissioner

A proactive approach to attract and retain players has been a key part of the Michigan Lotter y’s success since it began. For more than four decades, the Lottery has appealed to players by offering new games, different ticket price points and larger prizes, among other things. Recently, the next generation of Lottery players indicated a preference for an online entertainment option, and that led to the creation of the recently launched “buy online” feature for certain Lottery games. The online feature allows players to create a virtual wallet and play some Lottery games from their computer, tablet or mobile phone. The current selection of online games features 11 games ranging in price from 50 cents to $20. Research has shown that when a lottery offers an online option, lottery sales in traditional retail locations in-

crease, because of increased player awareness and interest. To provide our retail partners with opportunities to benefit from the online games, we are launching an Online Game Card for players that can be purchased only at Lottery retailers. Online Game Card Beginning December 2, players were able to purchase the new Online Game Card at Lottery retailers for $20, and receive $25 in online game play credit when they enter their code at MichgianLottery.com. Players will receive that $5 bonus for up to five Online Game Cards per week. This pre-pay option is expected to be very popular, based on research that found 50 percent of players indicating they would be likely to buy an Online Game Card. The Online Game Card offers numerous benefits for our retail partners: • Retailers will earn a $1.20 commission for each Online Game Card sold. • The Online Game Card is ex-

pected to produce repeat foot traffic in stores because the $5 bonus play is only available on the cards that can be purchased only at retail locations. • Sales of the Online Game Card will be counted as instant ticket sales, and the sales totals included in retailer incentive programs. Marketing Campaign The Lottery has developed an extensive “click-to-brick” marketing campaign that will encourage players to visit their favorite retailers to purchase the card. Emails going out to players will feature a “Retailer Finder” feature that will allow players to find nearby retailers that carry the Online Game Card. Advertisements also will be running on MichgianLotter y.com as well as on the Lottery’s mobile site and mobile app. The campaign will also be supported by text messages to players and posts on the Lottery’s Facebook, Twitter and YouTube accounts. Since the first ticket was sold in 1972, retailers have been the backbone of the Lottery’s success. We

look forward to moving into the next generation of gaming side-by-side with our retail partners and providing them opportunities to share in the success we expect from this new player option. New Instants These tickets went on sale Dec. 2: IG #710 Cash Flurries $5 IG #721 $100 Grand Cashword $3 IG #722 Mega Money Multiplier $20 Retailers are reminded to activate all game tickets before putting them on sale to ensure winning tickets may be redeemed by players. About 95 cents of ever y dollar spent on Lotter y tickets is returned to the state in the form of contributions to the state School Aid Fund, prizes to players and commissions to retailers. In fiscal year 2013, the contribution to schools totaled $734.3 million. Since its inception in 1972, the Lottery has contributed over $18 billion to Michigan’s public education. For additional information, please visit the Lottery’s website at www.michiganlottery.com.

December 2014

NEW MEMBERS & NEW MEMBER SPOTLIGHT Potluck Pickup Inc., Allendale Marlex LLC dba Once Upon a Child, Ann Arbor Salame Trucking, Auburn Hills Kramer Trucking, Auburn Hills Umans Trucking, Auburn Hills Herman Hiss & Company, Bay City Cook Construction, Belleville D & D Village Bar, Bellevue Water Street Glassworks, Benton Harbor Welcome Ruby Creek Tavern, Branch Brighton Post 4357 VFW, Brighton West End Wine & Spirits LLC, Cadillac Club Canton Inc., Canton Westwood Nursing Center, Canton 214 S Cochran LLC, Charlotte Village Pub, Chatham Signature Construction Services LLC, Comstock Park Lance’s Hometown Market, Detroit The Booknook, East Tawas Plato’s Closet, Flint Disc Replay, Flint Sandy’s Harley Davidson Sport Center, Fremont Hyper Active Designs / Livnfresh, Gaylord AB Spring Service Inc., Grand Rapids St. Ann’s Home Inc., Grand Rapids Camira Group Inc., Grand Rapids Sprinter Services Inc., Grand Rapids Refresh Body Wrap & Detox Center, Grand Rapids Reset Run 5K, Grand Rapids Miles for Miracles 5K, Grand Rapids Ugly Sweater Run, Grand Rapids Zeeland Turkey Trot 8K, Grand Rapids Total Comfort Resource LLC, Grandville Brook Retirement Communities, Grayling Thomas Richard Annis Post 411, Hesperia Nash Drugs Inc., Hillsdale Beechwood Reformed Church, Holland The Muffler Shop, Houghton Nick’s Log Cabin Inn Inc., Howell Libby’s Jazz Club, Jackson TransPharm Preclinical Solutions LLC, Jackson Woodwork Specialties Co., Kalamazoo Crunchy’s Restaurant, Lansing

Express Crane Service Inc., Livonia Aj’s Party Port of Ludington, Ludington D-Zine-R LLC dba Plato’s Closet Madison Heights, Madison Heights Marquette Automotive Inc., Marquette Inspired Green South LLC, Mason Fire Escape Bar & Grill, Metamora Dean Black School of Performing Arts Inc., Midland Wholesale Mattress and Furniture Warehouse Inc., Midland Green Spot Pub, Mount Pleasant Mo’z, Muskegon R & D’s Manufacturing LLC, New Baltimore Heliopolis Investment Group LLC, Newport Once Upon A Child, Novi Managed Care Advisory Group LLC, OH Yesterday’s Pub, OH Tapper Towing LLC, Paw Paw Simple Auto Inc., Petoskey Cygnus Inc., Petoskey Hi-Five Inc. dba Plato’s Closet, Plymouth Plato’s Closet Rochester Hills, Rochester Jade, Rockford Right at Home, Rockford Town & Country Market, Roscommon Greenfield Rehab and Nursing Center, Royal Oak Coty’s Landing, Saginaw Fanatics Playground, Saginaw Once Upon A Child Saginaw, Saginaw Rog & Judy’s Backstreet Saloon, Saginaw Saginaw Township Community Schools, Saginaw Plato’s Closet, Saint Clair Shores Mark Woodman Plumbing & Heating Inc., Sunfield Grape Harbor Inc., Traverse City Plato’s Closet Traverse City, Traverse City Up North Automotive LLC, Traverse City Noor Enterprises Inc., Troy Hoover Detroit Donut Inc., Warren Mobile Pallet Service Inc., Wayland Michillinda Beach Resort, Whitehall JMH Management Inc., Williamston Crown Granite Inc., Wixom For the Kids LLC, Wyoming Peerbolt’s Inc., Zeeland Ski’s Spinners LLC, Zeeland

Brighton shop owners making Mackinac fudge by Jean B. Eggemeyer A love for the old-fashioned ambiance of Mackinac Island led entrepreneurs Jason and Suzanne Klonowski to bring a little slice of the Island to Southeast Michigan. The couple opened Mar tha’s Original Mackinac Island Fudge in Brighton, where they sell slices of

developed a softer, creamier fudge that has proven popular, particularly their chocolate, chocolate peanut butter and chocolate caramel sea salt varieties. “We offer old-fashioned candies, like ‘grandma used to make,’” said Jason. “The best thing about this business is seeing how much people enjoy our products and how it takes them back to a better time.” The shop expects to sell more than 500 pounds of fudge a day during the holidays. T h e c o u p l e re c e n t l y redesigned the store’s website, formulated new flavors and put together some well-priced gift boxes that can be shipped across the U.S. The Klonowskis are excited about their firstyear successes and are planning expansion. In addition to the BrighMartha’s employee Mary Michaels shows off a tray of ton shop, the couple is fresh fudge. considering a second location in Nor thern made-in-the-shop fudge, taffy, nut Michigan. They partner with gift basbrittles and caramel corn. ket producers who stock their candy “We wanted to start a ‘winter’ busiand said they are also in negotiations ness downstate to complement our to place their products in a major grosummer business on the Island,” cery chain in 2015. explained the Klonowskis, who own They joined MRA to ensure there the Mustang Lounge restaurant on remains a positive retail environment Mackinac. in which to grow their business. “Everyone loves the Island fudge, “We appreciate all the organization so we thought there was an opportudoes for us fighting for small businity to sell it year-round downstate,” nesses,” said Jason, a former MRA said Jason. government affairs employee. Tweaking a recipe from the late 1800s that they purchased from an Jean Eggemeyer is a freelance writer Island connection, the Klonowskis and confectioner.

MICH

IGAN

CHAN

CE TO

LUC

YOU

WIN

WI UP TN O MUL

KY N UMB

R NU MBE

TIPLY

YOUR

UP T

ERY

™

ERS

O 12

Match NUMB any of YOU R E Get a RS, win pri NUMBERS “ ” z , win e shown b to any of th that p rize a elow that n e LUCKY utoma u tically mber. .

LOTT

TOTA

L PRIZ

BONU

E UP

TO 1

If you S w BONU in, scratch S th multip NUMBER an e ly you d rT winnin g prize OTAL by tha t num amount ber.

TIME

SET YOUR HOLIDAY SALES AGLOW

0 TIM

ES!

Watch your sales rise as the temperature drops this holiday season with the Michigan Lottery’s new holiday instants. Customers will light up with the chance to win up to $500,000, making it the perfect gift they’ll want for themselves too. So stock up today, because when holiday instant tickets can win BIG for a little cash, everyone’s holiday gets a little happier.