October 17 Michigan Retailer by Michigan Retailers Association

Gov. Rick Snyder writes MRA

The Governor says his administration still has its foot on the gas to spur more economic activity and create jobs. Page 2

The Equifax breach

Credit card processing expert John Mayleben is back, talking about precautions retailers should take. Page 3

Drug policies

With marijuana laws loosening, you may want to create and communicate a drug policy to employees, says legal counsel Bill Hallan. Pages 5

® October 2017 Vol. 42 No. 5

www.Retailers.com

The official publication of Michigan Retailers Association

Michigan Grocers to become MRA division on Jan. 1 LANSING - Michigan Grocers Association and Michigan Retailers Association announced Sept. 19 that they will combine operations, effective January 1, 2018. Michigan Grocers will become a division of Michigan Retailers Association. Both organizations are considered advocacy leaders at the Capitol. By joining together, they provide an even stronger voice for members concerned about sales taxes, recycling policy, food safety and more. “The interests of the two organizations align on many issues, so this is a wonderfully logical pairing,” said James P. Hallan, President and CEO of Michigan Retailers Association (MRA). In recent years they successfully worked together to eliminate item pricing requirements and ensure a level playing field between remote sellers and Michigan businesses. Linda Gobler, President and CEO of Michigan Grocers Association (MGA) who has been a dedicated champion for the retail food industry for 32 years, will retire at year’s end. She

will remain as a consultant. “This move allows me to step back and yet feel confident that our members will not only be well-served, but also have access to increased benefits.” Gobler said she expects the move to MRA to be seamless, especially since MGA staff will stay on and the popular monthly Michigan Food News publication and annual conference will continue. “Our strength has been legislative and regulatory representation and that won’t change,” said Gobler, whom the national Food Marketing Institute honored for government relations excellence in 2013. The now formal MGA/MRA alliance means an even stronger voice in the Legislature, Hallan said. He assured MGA members in a letter that their membership counts. “MRA is no stranger to joining forces with other associations. Previously, we have successfully joined operations with the Michigan Retail Hardware Association, Michigan Shoe Continued on page 10

BUY NEARBY WEEKEND: The emphasis this year was on big events - the UM-MSU football game and ArtPrize in Grand Rapids. Check out photos, p. 6-7.

When disaster strikes, how do downtowns recover? By Rick Haglund

Fire damaged the Corner Bar on Aug. 14 - a beloved icon in downtown Rockford.

The Corner Bar’s imprint on downtown Rockford is far wider than its name implies. “When you told people from outside the area that you were from Rockford, the first thing they said was, ‘I’ve been to the Corner Bar,’ ” said Barb Stein, owner of the Great Northern Trading Co. and a Michigan Retailers Association board member. And when this thriving bar and family restaurant was mostly destroyed by fire in August, much of the rest of downtown felt its loss. Several other

nearby businesses suffered water and smoke damage. Traffic in the business district is still being disrupted by the rebuilding effort. It’s a disaster officials in downtown Charlevoix know all too well as they continue to recover from two major fires there last winter. How businesses owners and downtowns are coping with losses from the fires in Rockford, north of Grand Rapids, and Charlevoix in northern Michigan, offers important rebuilding Continued on page 5

Increasing holiday store traffic Page 3

Michigan Retailer

Fall Musings

www.retailers.com

Board of Directors: Orin Mazzoni, Jr.

Chair Orin Jewelers, Garden City

by James P. Hallan, MRA President and Chief Executive Officer Michigan Grocers Please note our announcement that the Michigan Grocers Association will become a division of Michigan Retailers on January 1, 2018. This is very exciting news, as our collective retail voice becomes stronger. Last year, we welcomed the Michigan Retail Hardware Association into our membership and we are now delighted to welcome the grocers. Michigan Retailers and Michigan Grocers have worked extremely well together over the years on a number of key issues. Our long-time good friend, Linda Gobler, current President of Michigan Grocers for 32 years, has decided to retire at the end of the year and that, along with a changing landscape, prompted the conversation to join forces. However, we are not going to let Linda go silently into the night: She has agreed to be a consultant for the next year. Two grocers will also be added to the Michigan Retailers board of directors and MGA employees will migrate to MRA for a seamless transition. Early in my career, I served as general counsel to the Michigan Food Dealers Association, which eventually became the Michigan Grocers, and I have a strong affinity to the industry.

They will blend in well with the culture at Michigan Retailers. Thoughts and prayers Hurricanes, earthquakes, terrorism attacks and the Mandalay Bay tragedy have created a summer unlike any that I can recall. Our hearts go out to those that have, and are continuing to endure, unbelievable suffering. Delta Dental You’ve probably heard the radio ads or seen the TV ads and billboards recognizing 60 years of smiles provided by Delta Dental of Michigan. They are a terrific organization and Michigan Retailers has had the pleasure of working with them for many years. We are smiling with them and congratulate them on 60 years of tremendous growth and for providing countless individuals the opportunity to enjoy better dental health. Buy Nearby Thanks to all of you who participated in our fifth Buy Nearby weekend. Everybody loves the Buy Nearby Guy and the campaign to keep dollars in the Mitten. The program was the brainchild of Barb Stein. Barb is past chair of the MRA board and the

owner of the Great Northern Trading Company in Rockford. Her idea has blossomed into a program that is not only well-liked in Michigan but is now receiving national recognition by other state retail associations. Governor Snyder The Wall Street Journal just ran a story highlighting the “Michigan Comeback Story” and the economic leadership of Gov. Rick Snyder. I couldn’t agree more. He was the right person at the right time. The article is worth the read, and provides many examples of how Michigan has made a comeback. I’ll note a couple of items. When Governor Snyder took office in 2011 the unemployment rate was 10.9 percent. Today it is 3.9 percent and Michigan leads the Great Lakes region in economic activity. And let’s not forget, he signed some very important legislation for the retail community including pricing modernization, Main Street Fairness and an organized retail crime statute along with a number of pre-emption bills that prohibit local jurisdictions from passing a patchwork of different labor and regulatory standards. Be sure to read his column in this issue of the Retailer.

A personal message from Gov. Rick Snyder On behalf of the State of Michigan, I am honored to have served as your Governor over these past six and a half years. I strongly believe that businesses play a vital role in a healthy economy, employing hundreds of thousands of residents and contributing to local communities every day. I was proud that one of the early accomplishments of my administration was eliminating the burdensome item pricing law that added millions of dollars in costs to running retail operations every year. I was also happy to help the Michigan Retailers Association with successfully getting the Main Street Fairness laws on the books to level the playing field for our brick and mortar stores, solutions to fight Organized Retail Crime and support for

laws that provide more consistency among local government regulations. As Governor of Michigan I’ve made the reinvention of our state a top priority. Along with Lieutenant Governor Brian Calley and our whole team, we have made fiscal responsibility, timely budgeting, and reasonable and fair tax systems a focus for getting our state’s fiscal integrity back on track. Caring for the health of our residents, educational achievement for our young people, and strong communities also have been key in making sure our residents are cared for, successful, and safe. Michigan’s comeback is reflected in a growing economy, urban centers on the comeback, and an unemployment rate that is near its lowest level in 17 years. But we are not done yet and we have our foot on the gas! We continue to work on reforms that will spur more economic activity and create more and better jobs for Michigan

residents, as well as ensuring they have the education they need to put their talent to work in the careers of the future. Our current priorities include focusing on a 21st Century Education system, a 21st Century Infrastructure, and reforms to improve the fiscal health of our local governments. I also established the Building the 21st Century Economy Commission to develop a strategy for growth that will help new and existing industries thrive in our state. I am excited about the opportunities for continued success. Thank you for the commitment the members of the Michigan Retailers Association have made to Michigan and Michiganders. We remain committed to creating and maintaining an environment that allows you to continue your success now and well into the future. Sincerely, Governor Rick Snyder

James P. Hallan

President and CEO Michigan Retailers Association

Becky Beauchine Kulka

Vice Chair Becky Beauchine Kulka Diamonds and Fine Jewelry, Okemos

Peter R. Sobelton

Treasurer Mondial Properties, Birmingham

William J. Hallan

Executive Vice President Michigan Retailers Association

Dan Marshall

Past Chair Marshall Music Company, Lansing

Brian Ducharme AT&T Mobility

Ken Hayward

Grand Hotel, Mackinac Island

Joseph McCurry

Credit Card Group

Larry Mullins

Brandon Tire & Auto Service Center, Ortonville

Barb Stein

Great Northern Trading Co., Rockford

Joe Swanson Target Corp.

Thomas Ungrodt

TDU Consulting, LLC, Ann Arbor

James Walsh

Meijer, Inc., Grand Rapids

D. Larry Sherman

Board Member Emeritus

Michigan Retailers Services, Inc. Board of Directors: Chad Ayers Allendale True Value, Allendale

Bo Brines

Little Forks Outfitters, Midland

Bill Golden

Golden Shoes, Traverse City

Emily Matthews

Potent Potables Project, Lansing

James P. Hallan Meegan Holland 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.RetailersInsurance.com www.BuyNearbyMI.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 Association 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.

October 2017

RETAIL TECHNOLOGY NEWS

Equifax: The mother of all data breaches and how it affects retailers By John Mayleben

Increasing holiday store traffic Retailers earn 40 percent or more of their revenue during the holidays. Now is the time to plan on how to maximize customer traffic.

DAILY DEAL

Offering a big discount a day is especially successful if you have well-known brand merchandise or particular items that people are looking for.

2 3

FREE ITEMS

Pick a popular item (socks, measuring tools, chocolate – depending on your business) and offer it for free to anyone spending $25 in your store.

DEEP DISCOUNTS

Puny discounts of 5 or 10 percent no longer fly with shoppers, who inevitably will compare prices. Go a minimum 20 percent storewide, or a higher discount for individual items.

4 5

EMAIL SPECIALS

Social media is hot, but email is effective. Send one or two emails during the holiday season to promote your specials.

JANUARY REVIEW

In early January, debrief your sales team on what did and didn’t work, and put it in your tickler file for next fall!

20 18

January

Equifax’s announcement that a p p ro x i m a t e l y 140-plus million data records were stolen from its master database of U.S. individuals will likely impact you, and as a business owner, you need to know how. This is one of the three primary databases that people who grant credit use to make business decisions. It has all of your personal information in it: name, address, social security number, mother’s maiden name, etc. Equifax has announced a remediation process for impacted consumers. This data breach is more significant than others, because the information stolen is information that can’t be changed. No one will get a new social security number, our mother isn’t going to change her maiden name, etc. The stolen information goes to the core of the system that has been created to track credit worthiness. Equifax is one of three primary organizations who maintain most, or all, of the data points used by businesses to grant credit to individuals - whether it is a credit card, car loan, home loan or any other personal line of credit. While you are a business person, you are also an individual, whose data may have been exposed. You should go to the Equifax security site (www.equifaxsecurity2017.com), to validate whether your data has been exposed. If you haven’t already signed up for credit monitoring services, you might want to use Equifax’s offer to enroll in credit monitoring services. In addition, if your information has been exposed, you might want to freeze your credit record. If you decide to pursue freezing your credit record, it is best to do it at all three credit reporting agencies: Equifax, TransUnion, and Experian. There may be a small cost to freeze your credit. A credit freeze prevents anyone from using the credit databases to grant credit in your name. There is a mechanism to temporarily unfreeze your credit records, if need be. If you are one of the individuals impacted by the data breach, your personal data being exposed is not insignificant. But there is potentially a bigger issue to you as a business owner. Some businesses, in certain industries, continue to grant personal lines of credit to certain individuals and they may be using these databases to determine credit worthiness. If you grant credit to individuals, you will need to review, update and strengthen your policies and proce-

dures around granting credit. If you don’t already have procedures in place to identify attempted identity theft situations, you need to develop and implement them immediately. With this information being exposed on the dark web, people will be able to impersonate legitimate purchasers and exploit opportunities when businesses do not have strong policies and procedures in place. While we can’t attribute the following to the Equifax breach, we are anecdotally seeing an increase in corporate identity theft, where someone pretends to be the owner or buyer for a legitimate business and convinces a supplier to issue credit to them based on the legitimate business’s track record. In today’s world of interconnected data points it is very easy to discover the principle owner’s name of a company and if you have joined the personal data from the Equifax data breach with ownership records collected from public data, it is very easy to impersonate the owner and establish corporate lines of credit. If you operate in the business-to-business sales space, make sure that you have mechanisms to validate corporate requests for lines of credit. One trend is where someone contacts your organization to purchase goods or services remotely in a company’s name and that person is actually a bad guy, who is not connected with the company at all. At minimum, you should have a policy of contacting the company requesting goods or services on credit using publicly available contact information - not information provided by the “customer.” A quick internet search should turn up primary contact information, and a phone call to the organization may prevent a costly mistake. The other thing to consider in any non face-to-face transaction is what you are selling and why this customer is purchasing it from you. If you sell “purple widgets” and you are the only one selling this item, then it may be reasonable for someone from a distant location to contact you for the purchase. If on the other hand, you sell “blue widgets”, and there are hundreds or even thousands of others who sell “blue widgets,” you should stop and ask yourself “Why is this customer contacting me instead of the many vendors of the same product that are closer to their location?” If you have questions, please feel to contact MRA at 800-366-3699. John Mayleben, one of the nation’s first Certified Payments Professionals designated by the Electronic Transaction Association, is an MRA consultant and naitonal expert on payment processing.

Michigan Retailer

www.retailers.com

Holiday Shopping by the Numbers Three of four

holiday shoppers have checked return policies before making a purchase

22%

backed out of a holiday purchase due to an inconvenient return policy

47%

of holiday shoppers say they visit stores to gather gift ideas

63%

noted they’d like to use online wish lists to assist with gift purchasing

93%

said their loyalty would be affected if they didn’t receive a response to negative comments

Source: National Retail Federation

GOVERNMENT AFFAIRS NEWS

Legislature quickly takes up bills to prevent local taxes on food By Amy Drumm, MRA Vice President, Government Affairs In the first week of October, the House and Senate quickly moved legislation that MRA has been working on to keep food and beverages tax-free at the local level. The bills, HB 4999 and SB 583, would preempt local units of government from implementing an excise tax or fee on food or beverages. Local taxes on sugar sweetened beverages have most recently popped up in places like Cook County (Chicago) and Philadelphia. These taxes look and act like local sales taxes but are called an excise tax or fee. In Michigan, local sales taxes are prohibited but an excise tax or fee could still be implemented. The Michigan legislation seeks to clarify that all food and beverages for both immediate and nonimmediate consumption could not be subject to any kind of local tax or fee. The state would remain the only entity that is allowed to levy a tax or fee on food and beverages. MRA has been quick to act to prevent local rules or taxes that would create a complicated patchwork of regulations for retailers to navigate. In Cook County and Philadelphia, overall sales dropped and customers fled after local excise taxes and fees were adopted. These taxes have been incredibly confusing for retailers to implement and were adopted with limited guidance on how to administer them and with minimal time to train staff and make the necessary

adjustments to point-of-sale systems. This confusion and poor implementation even jeopardized food assistance programs for lowincome individuals in Illinois, where the county suggested retailers incorrectly charge and refund customers paying with federal SNAP (Supplemental Nutrition Assistance Program) benefits. Sadly, the customers most harmed by these local, regressive taxes on food are often those who can least afford it. They are the same customers who are also less likely to be able to travel to another store in a jurisdiction where there is not an added tax on food or beverages. Thanks to the numerous reasons to avoid local taxes on food and beverages outlined above, the legislation has broad, bipartisan support and a large coalition of supporters, including business organizations, labor organizations, agriculture and commodity organizations and labor groups. The definition of “food” in the bills mirrors the federal definition used in the Food, Drug, and Cosmetics Act (“Food” means articles used for food or drink for humans or other animals, chewing gum, and articles used for components of any such article) and includes pet food, animal feed and alcohol. Legislative leaders understand that it’s imperative these bills move quickly through the legislative process to prevent local governments from seriously considering any new taxes or fees on food or beverages. MRA expects the legislation will reach the governor’s desk by the end of October.

Why our PAC? You’ll soon be asked to donate to Michigan Retailers Association political action committee. With an election year looming, you’ll likely get lots of requests for donations. Why our PAC? • Because like you, we believe in open markets, fewer regulations and simple policies. • Because we’ve worked hard to block legislation that would create a patchwork of complicated local regulation, confusing to retailers and consumers alike. • Because we’re a proven force in Lansing, with big legislative wins, including stopping product bans, repealing item pricing and passign Main Street Fairness. • Because in the 2018 election cycle, Michigan Retailers Association will be the only PAC dedicated to supporting candidates who understand retail issues. • Because we will become an even stronger force on Jan. 1, when the Michigan Grocers Association, a respected advocate in Lansing, becomes a division of MRA.

Together we can grow opportunities for retailers and beat back government overreach into your business. Together we are stronger.

MRA: Your champion on retail issues

October 2017

IT’S THE LAW

Be prepared to deal with employees with marijuana in their systems By William J. Hallan, MRA Executive Vice President, COO and General Counsel You may be surprised to learn that 29 states and the District of Columbia have legalized marijuana in some form. Most have authorized medical marijuana use while seven states have legalized marijuana for recreational use, including Alaska, California, Colorado, Maine, Nevada, Oregon, Rhode Island, and Washington. In Michigan, since 2008, marijuana can be obtained by prescription, though in 2018, we are likely to see a ballot initiative that would legalize marijuana for recreational use. Even with state legalization sweeping the country, conflict still exists with federal law. Marijuana remains a Schedule 1 substance and is illegal for any purpose under federal law.

Although federal law preempts state law in this matter, the Drug Enforcement Administration (DEA) has taken a hands-off approach to enforcement. The conflict between state and federal law is one of the reasons why there is a vast grey area on employer compliance. For example, in Michigan, must an employer permit the use of marijuana on its premises by an employee who has a valid prescription? What about an employee that used marijuana outside the workplace but is under the influence while at work? Michigan law addresses both questions and does not require employers to accommodate the ingestion of marijuana in the workplace or any employee working while under the influence of marijuana. MCL 333.26427(c)(2). As such, some employers require that their workplaces be drug free and have adopted zero tolerance policies for marijuana and other drugs.

Interestingly, Michigan is one of the few states that does not regulate workplace drug testing. Thus, Michigan employers may conduct different types of drug testing such as pre-employment, random, post-accident and reasonable suspicion drug tests. And after a positive drug test of a banned substance, Michigan employers maintain the right to fire the employee. However, while Michigan law provides some cover to employers seeking to enforce their drug policies, employers should be mindful of various legal implications. For example, an employee may allege that they have a disability protected by the ADA requiring reasonable accommodations, that the testing occurred in a manner that invaded their privacy, or that a false accusation caused defamation. Diving into the specifics of each is beyond the scope of this article, but when adopting a drug-free workplace

or adopting a zero-tolerance policy, employers should be mindful of the following considerations. • Develop a written policy. • Provide notice of the policy to employees and applicants. • Implement the policy in a fair, consistent, and non-discriminatory manner. • Ensure that you protect your employees’ confidentiality. The Substance Abuse and Mental Health Services Administration (www.samhsa.gov/workplace) provides an excellent online toolkit on drug-free workplace programs that is worth consideration. However, while several model policies are available online, Michigan Retailers Association encourages you to consult with your legal counsel to ensure that you adopt a policy that complies with Michigan and federal law and that also meets the needs of your business and your employees.

When disaster strikes, how do downtowns recover? Continued from page 1

in the early morning hours of August the insurance settlement, Wolfe said. store’s reopening timetable through lessons for retail businesses. 14, but knew almost immediately that The community has pitched in social media, and with stories and adThe two Charlevoix fires, on Nov. 13 he would rebuild. with a fundraising campaign being vertisements in the local newspaper. and Christmas Eve, damaged nearly “I can’t even get my head around managed by the Rockford Chamber “We just hit it hard with being 20 retail businesses and offices. why anyone wouldn’t,” Wolfe said. of Commerce. in their face constantly,” she said. Some, including the busy Cherry ReOnly the front façade and part of Being a good neighbor and a com“There are ways to do that inexpenpublic store, have yet to reopen. another exterior wall remained. Wolfe munity supporter can pay off when a sively. We used Facebook Live a lot.” At the same time, the city was dealsaid he could have torn it down and business experiences a fire or other Smith said she placed large banners ing a bridge repair project on the north built a cheaper building, but decided major setback, he said. on the front and back of her store anend of downtown that caused long trafnouncing its reopening and fic delays on U.S. 31. decorated the storefront in “It was pretty devastata fall theme of pumpkins, ing,” said Charlevoix DDA mums, cornstalks and Director Lindsey Dotson. straw bales. “People thought you A summer clearance couldn’t drive here.” sale that was interrupted Fearing that residents by the fire resumed when and tourists thought the the store reopened Sept downtown was shuttered, 8. And shoppers received the DDA launched “Charlea token gift for every $100 voix is Open for Business,” they spent. a television and social me“You definitely have to dia campaign. be super aggressive right It also created a $30,000 out of the gate,” Smith said. building façade improveRockford’s downtown is ment in which businesses Store manager Michelle Marcoux reuses other stores’ discarded bubble wrap for outbound shipments. likely to feel the affects of are reimbursed for half the fire, ranging from street their costs, up to $10,000. the front of the 144-year-old building “My advice is to be gracious with closures to reduced traffic generated And members have undertaken was a touchstone that needed to be neighbors and the community. Be by the popular Corner Bar, for months. new initiatives, such as a study that’s saved. humble,” Wolfe said. “We’re an inte“It’s a huge impact,” Stein said. “I’ve underway to identify ways of recruit“It was important to save that gral part of the community and it’s been expecting Christmas shipments, ing new businesses and expanding because it was recognizable to the coming back to us with people offerbut they can’t get to me. It’s all the existing ones. community and the generations of ing prayers, words of encouragement little things that nobody sees.” “Things had been the same in people that have gone there,” he said. and financial assistance.” Wolfe said he’s aiming reopen the downtown for some time,” Dotson The building has been home to the Kimberly’s Boutique, located next Corner Bar on June 1, which can’t said. “I think the fires have people Corner Bar since the 1935. to the Corner Bar, was forced to close come soon enough for neighboring waking up and rethinking downtown. But saving the façade and trying to for three weeks because of water Rockford businesses. There’s a renewed energy.” restore the ambience of the original damage from extinguishing the blaze. “That’s going to be rough,” Smith In Rockford, Corner Bar owner Jeff interior will likely cost several hunOwner Kimberly Smith said she said. “But we’re going to keep on keeWolfe said he felt “shock and disbedred thousand of dollars more than kept customers informed about the pin’ on. That’s our theme.” lief” as his business went up in flames

Michigan Retailer

www.retailers.com

BUY

NEARBY WEEKEND A little football, a little ArtPrize, a lot of shopping!

Buy Nearby Guy made the rounds during Buy Nearby Weekend on Oct. 7-8. Here are some of the highlights: Clockwise, from top: 1. Buy Nearby Guy got a lot of exposure at ArtPrize. 2. Buy Nearby Guy greets throngs at the Ann Arbor Farmers Market on UM-MSU football game day. 3. MRA board member Emily Matthews was buying nearby in Lansing’s Old Town. 4. Football fans in Ann Arbor. 5. A little shopper in Lansing’s Old Town. 6. Buy Nearby Guy hits Dexter. 7. Shoppers show off their handy bags. 8. Shopping bags were a popular handout. 9. Lynn Ross, owner of Mother and Earth Baby Boutique in Lansing’s Old Town, where merchants offered a map of participating Buy Nearby stores.

Photos by David Trumpie

7. 6.

October 2017

9. 3.

5. 4.

Michigan Retailer

What to do when your credit card processor goes down We know it’s a panicky moment when your credit card processing goes down. You’re wondering: Is it an internet problem, or my processing device? We understand the confusion t h a t c a n re s u l t f ro m s u c h events. Our Internet provider experienced a rare outage in August, which interrupted credit card processing for some of our members. Our phone lines were immediately overwhelmed with calls. We quickly placed an alert of the outage on our Facebook and Twitter accounts to let our clients know that the outage was being addressed. But what if you don’t follow us on social media? We also email alerts in such instances – but first we need your email! We understand why people are reluctant to provide email but we encourage you to do so. It gives us one more tool to reach you when there’s that rare problem. You can provide your email by calling 800.563.5981 or contacting

customerservice@retailers.com with the subject: EMAIL. Please include your merchant name and ID number within the body of the email. We will quickly update our records for future notification, and we promise not to sell your information to a third party. We will use your email for informational purposes only. In the event of another outage, don’t get stuck on hold during a frustrating time. We suggest checking these three communications channels: Like our Facebook page fb.com/MichiganRetailers Follow our Twitter account MichRetail Check your email if you’ve provided it to us. We’ll get the word out to you as quickly as we can!

www.retailers.com

October 2017

Beyond your store: A world of opportunities to engage customers By Steve Flaster

In recent months, I was re m i n d e d s e v eral times of how we are all in a business of recognizing and responding to opportunities. Congratulations to all those retailers who recognized how the following one-time and recurring events created opportunities for them, responded to them, and thereby created stronger emotional connections with customers and differentiation from competitors. • The eclipse. You were really standing on your toes when you told customers you had the glasses they needed to view the eclipse, had eclipse viewing lunches in your restaurant, promoted the equipment people needed to photograph and record the eclipse, or in any way made the eclipse an event that your customers will remember sharing with you. • Grandparents Day. As grandparents (and there are many of us), my wife and I appreciated all those stores who featured cards and gift displays highlighting this day. They made us feel good, and we will remember that

in deciding where we shop. will remain hot or be a collection companies are doing. Recognize those • National Cheese Pizza Day. Yes, it point for donations. Doing something who contribute creative ideas. sounds ridiculous, but if NBC’s Today for victims of a crisis is the right Create a holiday that highlights Show announced it, it “must” be so. thing to do, and it may well bring you your company. If you are a men’s reCongratulations to you heard about good publicity and strengthen your tailer and want to sell more suits, you it and quickly made yourself don’t need permission to part of the news by creating have a holiday that celea cheese pizza special and brates the first men’s suit. putting a clever sign on your Keep tabs on the window inviting customers to Chamber of Commerce celebrate with you. calendar and those of • And of course, Harvey, Irma other organizations that and Maria. We have all learned will tell you holidays and that social responsibility is part events that create logical of good marketing. Customers opportunities for you. feel better towards purchasing Be sensitive to opfrom retailers who are good portunities that address corporate citizens and help specific target markets. the community. This has Smart book stores did well certainly been the case with a by highlighting Black Hisnational tragedy that kept us tory Month and featuring Retailers can use everything from National Cheese Pizza Day glued to our televisions and to events like the solar eclise as marketing opportunities for appropriate displays and social media. It is wonderful their business. meaningful events. Such rethat Walmart contributed $25 sponse surely created more million and Albertsons Co. (Jewel, emotional ties with customers. loyal customers in the African American Safeway and more) was praised for Creating a culture of opportunities market. The same philosophy applies to raising $8 million through a point-ofEvents that bring strong opportuniso many other target markets. sale campaign at its 2,300-plus stores. ties are happening every day. Create Steve Flaster is professor of practice But big or small, there is something a company culture that nourishes rein the Department of Advertising and we can all do in times of crisis. In sponse to opportunity. Public Relations at Michigan State Unithe hurricanes’ case, stores could Encourage staff to be on the lookout versity. He has almost five decades of contribute their remaining summer for events that are opportunities for retailing and consulting experience. He inventory of clothing to places that your company and discuss what other can be reached at srflaster@gmail.com.

Michigan’s choice for workers’ compensation and group dental insurance. Work Comp rates reduced for 2017 Dental rates reduced for 2017 Also providing EFT Guard to protect our workers’ compensation insurance policyholders’ business banking from cyber criminals and other unauthorized electronic transfers.

1016

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

Michigan Retailer

www.retailers.com

Alert: You may have to meet Dec. 1 OSHA filing deadline Because of government postponements, a change in presidential administrations and a lack of publicity, there has been much confusion about when and who needs to meet OSHA’s new requirement for electronically filing worker injury and illness data by Dec. 1. As of this date, employers are being told they must take the information they already fill out regarding worker accidents and also file it electronically. Many Michigan employers will fall under this rule. OSHA says these businesses fall under the new guideline: Establishments with 250 or more employees that are subject to OSHA’s recordkeeping regulation must electronically submit to OSHA some of the information from the Log of Work-Related Injuries and Illnesses (OSHA Form 300), the Summary of Work-Related Injuries and Illnesses (OSHA Form 300A), and the Injury and Illness Incident Report (OSHA Form 301). Establishments with 20-249 employees in certain high-risk industries must electronically submit to

OSHA some of the information from the Summary of Work-Related Injuries and Illnesses (OSHA Form 300A). Establishments with fewer than 20 employees at all times during the year do not have to routinely submit information electronically to OSHA. There has also been talk of a July 1, 2018 electronic filing deadline as well, but a MIOSHA official said they are waiting for guidance. Electronic filing does NOT replace the requirement to also keep paper copies on file. Here are a couple helpful links about the electronic filing requirement; copy and paste in your browser: • See if your industry is affected: bit. ly/OSHAfaq (click on the question “Who must submit information electronically to OSHA under the final rule?” It provides the above description but also a link to the high-risk industries) • More information here: bit.ly/OSHAreg If you’re still unsure, contact OSHA at 800-321-6742, or MIOSHA at 517-2847788 for record-keeping questions.

UPS will charge holiday rate If you use UPS for your small package residential shipments, expect to see a jump in costs this holiday season. UPS announced it will add a 27cent charge on all Ground residential packages from Nov.19 to Dec. 2 and from Dec. 17 to December 23. Air packages and packages that qualify as large or over maximum limits will also see an increase. FedEx will not follow suit. Instead, the only holiday surcharge they will add is for packages that require special handling because they are big or bulky. UPS says package volume increases so significantly during the holidays

that it must add planes, trucks and thousands of employees. It points to online shopping as the reason for the extra stress on its system. On an average day, UPS processes around 19 million packages; during the holidays, that number increases to 30 million packages. PartnerShip®, the company that manages the MRA Shipping Program, has taken a closer look at these changes. MRA members receive exclusive discounts on select FedEx® services through the MRA Shipping Program. For more information and to enroll, visit PartnerShip.com/41mra.

Michigan Grocers now MRA division Continued from page 1

Association, Michigan Jewelers Association and Michigan Tire and Vehicle Association. Collectively, we are all stronger,” he writes. “As you know, life never stands still. Author Isaac Asimov’s famous quote, “The Only Constant Is Change” has become a staple in our industry. We work hard to make change work for members. Your membership is incredibly important not only to us, but to Michigan’s retail industry. As we move into our 78th year, we look forward to serving you and helping your business thrive.” MRA is the largest state retail association in the nation, representing

more than 15,000 stores and ecommerce websites across the state. MGA represents hundreds of supermarkets, grocers, eat-at-home food businesses, gourmet and convenience stores in addition to drug and pet food retailers. Associate members range from manufacturers to wholesalers and equipment companies. Recent legislative victories include revising the food stamp distribution system, updating liquor laws, and working to improve comprehensive recycling in Michigan. The group works closely with the Department of Agriculture on food safety regulations.

October 2017

LOTTERY

Revamped Mega Millions Game to double retailer commissions on every sale By Aric Nesbitt, Commissioner The popular Mega Millions game is being revamped to offer players bigger jackpots and the new $2 price – up from $1 - will double retailers’ sales commis-

sions on each sale. The update, which takes place Oct. 28, will increase the game’s starting jackpot from $15 million to $40 million. To win the game’s jackpot, players must match five white balls from 1 to 70 and one Mega Ball number from 1 to 25. The new design of the game is expected to speed up jackpot growth and boost the likelihood of a jackpot reaching $1 billion. As seen with the Powerball games, huge jackpots create unparalleled excitement with players and boosted sales for retailers. We expect the changes to Mega Millions to produce similar excitement and sales when jackpots reach high levels. The redesigned game reflects feedback from players who want larger Mega Millions. Players may purchase tickets for up to 14 consecutive draws. The update also will make it easier for players to win the game’s second tier $1 million prize for matching five white balls. Other secondary prizes also are being increased with the updated game. Players will win $10,000 for matching four white balls and the Mega Ball, an increase of $5,000. Additional prize increases are: • Players will win $200 for matching three white balls and the Mega Ball, an increase of $150 • Players will win $10 for matching either three white balls or two white balls and the Mega Ball, an increase of $5 • Players will win $4 for matching one white ball and the Mega Ball, and increase of $2 • Players will win $2 for matching the Mega Ball, and increase of $1 The larger prizes are expected to boost redemption commissions for retailers. Michigan Lottery Announces New Rewards Program for Players The Michigan Lottery is developing a new player rewards program that will make it easier for players to participate and earn free play. The new program is expected to begin in early 2018. The exact schedule and other details are being developed. Players said they wanted more chances to earn free play, but without entering non-winning ticket codes

online. To receive updates on the coming changes, players should visit www.MichiganLottery.com/email to opt-in for email. Players will have increased opportunities to use the points they have accumulated in their Players Club accounts before the program ends in early 2018. Players may continue to earn Players Club points by entering codes from non-winning tickets. Players will be notified at a later date about when ticket codes no longer will be accepted. The Cashword, Bingo, and Wild Time second-chance games have been updated, and will no longer award reward points. Instead, they award players free play coupons, and entries into weekly drawings for free instant tickets. These games will remain the same after the new loyalty program begins. NEW INSTANT TICKETS – on sale Oct. 3: IG 223 - Platinum Wild Time - $10 IG 214 - Multi-Prize Bingo - $5 IG 200 - Did I Win - $1 INSTANT GAMES SET TO EXPIRE: Oct. 2 IG 723 - $1,000,000 Jackpot - $10 IG 739 - Wild Time Rocks - $5 IG 742 - Ultimate Millions - $20 Nov. 6 IG 746 - Holly Jolly Jackpot - $1 IG 747 - Holiday Wishes - $2 IG 748 - Holiday Ice - $5 IG 749 - Money Tree - $10 NEW PULL TABS TICKETS – on sale Oct. 3: MI 502 - $30,000 Super Slots - $5 MI 598 - Chimp Change - $1 PULL TABS GAMES SET TO EXPIRE: Oct. 17 IT 865 - $10,000 Jackpot - $2 TICKET ACTIVATION Retailers are reminded to activate all game tickets before putting them on sale to ensure winning tickets may be redeemed by players. Aric Nesbitt is Lottery Commissioner for the State of Michigan. About 97 cents of every dollar spent on Lottery tickets benefits the state in the form of contributions to the state School Aid Fund, prizes to players and commissions to retailers and vendors. For additional information, follow the Michigan Lotter y on Facebook, Instagram, Twitter and online at www. michiganlottery.com.

NEW MEMBERS Top O’ Michigan Insurance Agency Inc., Alpena Tend 2 It Inc., Ann Arbor Mudpuddles, Ann Arbor Walker Agency, Au Gres Sultan Salaam LLC, Auburn Hills A & T Trucking, Auburn Hills Family First Trucking, Auburn Hills Chrome Transportation, Auburn Hills RAW Trucking, Auburn Hills Lincoln Street Pediatrics PLLC, Bay City Niche Aging Center LLC, Bay City Bob’s Towing & Recovery Inc., Bay City House of Renew LLC, Berkley Radio Programming & Management Inc., Bloomfield Hills Detroit Rock City Promotions LLC, Brown City NCA Transport Inc., Brownstown Twp. MCM Disposal LLC, Caledonia The Local Indoor Garden Store Two LLC, Caro Lakeshore Landscaping Inc., Clinton Twp. TS Transit LLC, Coldwater The Local Indoor Garden Store Inc., Columbiaville Community Health and Comfort Care Inc., Davison Passage Boat Works, De Tour Village Centaur on the Park LLC, Detroit Unique Glass & Metal LLC, Detroit Brian Evans Transmissions, Detroit Bashar & Mark Brothers Market Inc., Detroit A Ewing Country Estate AFC Inc., DeWitt Zimmer’s Sales & Service Co., East China Michigan Golf Course Owners Association, East Lansing Timber Ridge Golf Club, East Lansing Stephenson & Company PC, East Tawas Steve Winnie Auto Sales Inc., Edmore Mike’s Grocery, Flint Catt Spindle Grinding, Fort Gratiot Fremont Chamber of Commerce, Fremont Garden City Rental, Garden City M 5 Sign, Grand Rapids Evans Tempcon Michigan LLC, Grand Rapids Professional Education Services, Grand Rapids Atelier Inc., Grosse Pointe Diane Woolsey Interiors LLC, Grosse Pointe Farms A & B Webb Engterprises Inc., Hale West Ottawa Public Schools, Holland Shoreline Orthopaedics & Sports Medicine, Holland Ecobuns Baby & Co., Holland Cascardo Oil Co., Howell Cottage Inn Pizza, Howell Ionia Free Fair Association, Ionia

Dancin’ with Woofs LLC, Irons The Music Box, Jackson General Equipment Rental, Kalamazoo Cravebetter LLC, Kalamazoo Beaulier Buildings, Kingsford Michigan Association for Justice, Lansing A Complete Rental, Lansing CoreLED Systems LLC, Livonia Bela Floral LLC, Ludington J Spagnuolo & Associates, Macomb RWN & Associates Real Estate Inc., Marquette International Antimicrobial Council, Midland Shorty’s Shoe Repair, Midland Medical Mgt. & Dev. Group LLC, Midland Oscoda County Area Transit Specialists, Mio Tilmann Hardware, Mount Pleasant Sun Sation Harbor LLC, New Baltimore Lelo’s Main Street Café, Ohio M89 Bar & Grill, Otsego Owosso Graphics Arts Inc., Owosso Deus Juice LLC, Paw Paw Michigan Marihuana Safety Compliance Facility, Petoskey Phoenix Surveying LLC, Plymouth Auto Anodics Inc., Port Huron Strictly Performance Motorsports LLC, Portage Macon Marine Center LLC, Prudenville Nepper’s Body Shop Inc., Quinnesec Laser Mark-It, Richmond Cousineau Chiropractic, Riverview Rockford Family Eye Care, Rockford Jen’s Scone & Treat Company LLC, Roseville State Street Grill Ltd., Saginaw The Norserv Group Ltd., Saint Clair Tutburg Place AFC, Saint Clair Shores Jones Concrete Inc., Saint Helen Hospice of the Eastern UP, Sault Sainte Marie Bow’s Diner LLC, Scottville Jemar Tool, Shelby Twp. National Trails, Southfield Olives & Wine LLC, Traverse City Northwest Michigan Supportive Housing, Traverse City T Square Construction Inc., Warren Marble & Granite Fabricators Inc., Warren Super Steel Treating Inc., Warren Buscemi’s Liquor, Waterford B & C Electrical LLC, West Branch Grand Valley Medical Specialists PLC, Wyoming Hoekwater Family Dentistry PC, Wyoming

October 2017

INSURANCE: Medicare open enrollment for 2018 coverage has begun By Ally Nemetz, Customer Service/Data Administration The Medicare a n n u a l e n ro l l ment period has begun; you have until Dec. 7 to enroll or make changes for coverage that takes effect Jan. 1. Here is a list of changes you can make to your coverage: • Switch from original Medicare coverage to a Medicare Advantage Plan or vice versa. • S w i t c h f ro m o n e M e d i c a re Advantage Plan to another. • Switch from one Medicare Part D Plan, which is a Medicare prescription drug plan, to another. • Enroll into a Medicare Part D Plan if you did not enroll in one when you were first eligible for Medicare, although a late enrollment penalty may apply. Please contact our of fice at 800.366.369, ext. 681 if you have questions or need assistance. Here’s what else is happening in health insurance news:

Open enrollment period for 2018 coverage The open enrollment period for individual health coverage is from Nov. 1 through Dec. 15, for coverage taking effect Jan. 1. There are no extensions on the enrollment period for the upcoming coverage year as there have been in recent years. For our small employer members that don’t have a group health plan option, it might be a good idea to inform your employees of the impending open enrollment. Also, pass along our contact information as we can provide help to anyone looking for individual coverage. To contact us: • Jodi Barber, 800-366-3699, ext 352; email jbarber@retailers.com; • Ally Nemetz, 800-366-3699, ext 350; email anemetz@retailers.com; or • Visit the website to obtain an estimate on rates and compare some BCBSM and BCN individual plans: https://bcbsm-exchange.gohealth. com/agent/34qa48bgt

reported a medical loss ratio rebate liability for the 2016 benefit period. Many Michigan small businesses that had a Blue Cross Blue Shield of Michigan or Blue Care Network group health plan in 2016 will receive a rebate check for a percentage of their group insurance premiums paid in 2016. Under health care reform, the rebate checks were to be processed by Sept. 30,. The employers can either reduce the premium for the upcoming year or provide a cash rebate to each employee who was on the insurance in 2016. It is the employer’s responsibility to communicate how they will handle the rebate with their employees. The rebates are required under the Affordable Care Act (ACA). The ACA mandates that, for small group plans, 80 percent of premium dollars must go directly to the cost of

What Blue Cross rebates mean to you In their 2016 Annual Report, Blue Cross Blue Shield of Michigan Mutual Insurance Company and Subsidiaries

Regulations You cannot impose a minimum transaction or a surcharge amount on debit, prepaid or gift card transactions. Partial authorization may be enabled on your terminal. If the credit card receipt displays “Amount Due” you must collect the remaining balance by another form of payment. If the customer’s credit card does not process when you insert the chip or swipe the mag stripe, hand the card back to the customer and request another form of payment.

Your New Year just got a little happier. Retailers Insurance Company dental rates go down Jan. 1! Rates will decrease up to 6 percent, thanks to the positive performance of our program. Enroll between Nov. 1-Dec. 15. Call Ally Nemetz: 800.366.3699 ext. 350 Adminstered by Delta Dental.

1017

health care claims. If claims paid are under the 80 percent threshold, the insurance carrier must send a refund to each applicable group. Reduced dental rates for 2018 We are pleased to announce that Retailers Insurance Company dental rates are going down again on Jan. 1, thanks to the positive performance of the program. Rates will decrease anywhere from 2 to 6 percent, depending on the plan. Those with Family Coverage will see small decreases because a pediatric rider is attached. The open enrollment period starts Nov. 1 and runs through Dec. 15, with coverage starting Jan. 1. Eligible employees and dependents have the opportunity to enroll for coverage during this time. To learn more, please contact our office at 800.366.3699, ext. 681.

CREDIT CARD SERVICES

Fraud Control Be on alert for suspicious/fraudulent transactions. Call 800.563.5981 option 4 and say “CODE 10” to speak to a specially trained operator in the event of: • Multiple card numbers provided for the purchase • Customer tries to distract or rush you during the sale • Numerous purchases in a short period of time • Customer purchases a lot of merchandise without regard to size, style, color or price • Several purchases on the website • Large purchases at open or close of business • Requests for merchandise to be shipped as “rush” or “overnight” • Customer asks you to wire money to a freight company Terminal functions that assist with fraud control: • Process with a chip card-enabled terminal/device

• Address Verification (AVS) requires the street number and zip code. If it doesn’t match the credit card, you will receive a mismatch response and be prompted to proceed • Security Code Verification (CVV) requires the 3-digit code on the back of the credit card. If it doesn’t match the credit card, you will receive a mismatch response and be prompted to proceed • Password Protection requires a password for all returns, reversals, f o rc e c a p t u re , s t o re / f o r w a rd , reports, etc. • Fraud Control, when enabled, will prompt for the last four digits of the credit card to be verified. If incorrect, the prompt will state invalid card number • Verify the credit card receipt to make sure the customer name and credit card number on the front of the card are identical to what’s on the printed credit card receipt. If not, call 800.563.5981 option 4 and say “CODE 10.” Data Security Compliance Data security compliance is mandatory. You must complete an annual PCI Self-Assessment Questionnaire to verify if your business is PCI compliant. Visit http://www. compliance101.com to begin the questionnaire. These terminals are no longer PCI Compliant and must be upgraded: Zon, Tranz, Omni, Hypercom, Nurit, Equinox, Verifone 510 and 570. Please contact customer service to obtain upgrade options.