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WWW.ALABAMARETAIL.ORG VOLUME 9, NUMBER 2

ARA Annual Meeting

— ARA and the UAB kicks off 2010 elections School of Business honored 15 as Retailers of the Year with a keynote address at the 2009 Retail Day celebration in Birmingham. by GOP gubernatorial — ARA member is one of the candidate Bradley Byrne ’s newest members. on Thursday, Nov. 12, at the ARA/ARC In 2009, Alabamians Annual Meeting at the Vestavia Hills have elected six new lawmakers during special elections. Country Club. The Nov. 2, 2010, General

— Hibbett Sports’ Election is just one year away. All Mickey Newsome constitutional offices, including governor; says retailing success comes from going all seven congressional seats; one U.S. where a product or Senate seat; three seats on the Alabama service is needed. Continued on page 4 Bradley Byrne — Alabama and the nation is in the midst Alabama Retailers Starting Earlier, of a pandemic. Find out what you can do to protect yourself, Working Harder for Holiday Sales your employees and your customers. Get the latest buzz on Alabama holiday shopping at alabamaretail.org/retailbuzz.aspx State retailers started early more than 2004-level spending. Before the — If your business 2008/2009 recession, the five-year average hol- invoices for goods or pulling out all the stops to get iday sales growth for Alabama was 4 percent. services after the shoppers in their stores during “The good news is although sales revenues fact, you should have the crucial holiday period. may fall slightly, the negative impact on profits a written identity theft Even with anticipated increased advertising will be substantially reduced as retailers have prevention program in place. Learn and deep discount promotions, Alabama more planned appropriate assortments, levels of about the federal Red Flags Rule than likely will see its holiday sales decline for a inventory and staffing,” said Dr. Bob inside. second year. The Alabama Retail Association’s Robicheaux, chair of UAB’s Marketing & — The most local economic advisers don’t expect the drop in sales Industrial Distribution Department and ARA governments ever to be as dramatic as last holiday season and board member. participated in the anticipate better sales numbers in the final two The fact that the Iron Bowl falls on 2009 sales tax months of the year than we have seen in the Black Friday this year will further exas- holiday. first 10 months. perate the 2009 holiday season chal- Alabamians spent $8.4 billion during lengesfor Alabama retailers. In 2008, November and December of 2008, Black Friday was the busiest shopping slightly more than $790 million less dayof the year. On a positive note, than in 2007, representing an almost there is one more shopping day this 9 percent decline in holiday year between Thanksgiving and sales for last year. 2008 holi- Christmas (28 days vs. 27 days day sales dipped to slightly last year). 43505-1 ARA.qxp:Layout 1 10/21/09 11:02 AM Page 2

VOLUME 9, NUMBER 2 FOURTH QUARTER PUBLISHER: RICK BROWN EDITOR: NANCY KING DENNIS etailers can’t wait to say good- Washington to communicate retailers’ 2009-2010 OFFICERS bye to 2009 and the greatest federal concerns directly with CHAIRMAN: recession of our generation. Alabama’s congressional delegation. DARRELL BOURNE R Ragland Brothers Retail Co. Inc., Huntsville But like you, your association hasn’t You saved as much as $200 this VICE CHAIRMAN: just been waiting for better times. year because your association provid- JIMMY RAY SMITH While working on your behalf this ed you with completely updated state Jimmy Smith Jewelers, Decatur year, we’ve kept our focus on the and federal workplace posters for PRESIDENT: future. Membership has actually FREE! (Need more? See ordering RICK BROWN Montgomery grown; lawmakers approved more information on Page 3). VICE PRESIDENT: retail-supported legislation than any And something to look forward to ALISON WINGATE year this term; a strong business coali- next year: Your workers’ compensa- Montgomery tion including your association tion fund will return a record $4 mil- TREASURER: blocked a massive unemployment tax lion to those members who qualify. BOB AKERS (See story on back page.) Davis Direct, Montgomery increase; you helped elect one of your Goodbye to 2009. Hello to bringing SECRETARY: fellow members to the Alabama VIRGIE TODD Senate (see story Page 4) and a you even more BENEFIT FROM Montgomery RetailPAC-endorsed candidate was THE VALUE of membership in 2010. IMMEDIATE PAST CHAIRMAN: elected to the Alabama House. Your Rick Brown: KEN HUBBARD ARA executive committee also visited Western Supermarkets, Birmingham [email protected]

2010-2011 OFFICERS TRUSTEES: Food establishments: Get certified DARRELL BOURNE Ragland Brothers Retail Cos., Inc., Huntsville food protection manager by Jan. 1 KEN HUBBARD new food safety policy two bonus points on its health score rat- Western Supermarkets, Birmingham mandated by the U.S. Food and ing if it also meets other minimum CAREY ROME Drug Administration goes into requirements. Cypress Resources, Birmingham A effect in Alabama on Jan. 1. Since 2007, ARA members have been JIMMY RAY SMITH The FDA food standard policy requires able to take an online course through Jimmy Smith Jewelers, Decatur all restaurants to have at least one certi- LearnSomething on the ARA Web site to BUD SKINNER fied food protection manager on duty. prepare them for the certification test. Jubilee Seafood, Montgomery Certification is good for five years. The online course, the equivalent of a CRAIG VINSON JR. Accredited programs are offered by the 16-hour manager certification training Granville Interiors LLC, Montgomery National Restaurant Association workshop, teaches the basic knowledge PHILLIP WEAVER Educational Foundation’s ServSafe Food required for a certified food safety man- Buffalo Phils, Tuscaloosa Safety Program and the Food Marketing ager and helps prepare managers for the

FUND ADMINISTRATOR: FUND MANAGER: Institute. national examination. Pair the online RICK BROWN MARK YOUNG Beginning in January, any food estab- course ARA offers with the Montgomery Montgomery lishment in Alabama without a certi- SuperSafeMark® food safety manager fied food safety handler on duty dur- examination to meet the requirement for ALABAMA RETAIL QUARTERLY is the official publication of the Alabama Retail Association, 7265 Halcyon Summit Drive, Montgomery, Alabama ing operating hours automatically will having a certified food safety manager. 36117-3502. Telephone (334) 263-5757; FAX (334) 262-3991. receive a five-point deduction from its The cost for the online course is $60. ALABAMA RETAIL QUARTERLY is published four times a year, quarterly (two editions only for 2009). Views and conclusions expressed health inspection score. There is a charge for taking the examina- in articles herein are those of the authors, not necessarily those Through the end of the year, any tion as well. of the editors or officers of the Alabama Retail Association. Opinions expressed in this magazine do not necessarily reflect the policies establishment with an To take the online course to prepare food of the Alabama Retail Association. employee on duty who safety managers for certification, go to Online Advertising: Inquiries should be directed to the Alabama Retail has completed Training under the ARA Benefits tab on the Association. Rates will be furnished on request. The Alabama Retail Association reserves the right to omit any advertising or editorial copy the certifica- home page of alabamaretail.org, click on View deemed to be unsuitable for publication. Publication herein does not tion Current Offerings, then the Catalog Page. The necessarily imply endorsement of any product or service offered. process Guide to Food Safety Online is under the Food Postmaster: Send address changes to ALABAMA RETAIL QUARTERLY, Safety tab. You can view a sample of the P.O. Box 240669, Montgomery, Alabama 36124-0669. receives course before purchasing.

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YOUR QUESTIONS...OUR ANSWERS From time to time ARA members contact their association for answers to questions about a wide range of subjects. Here are answers given to recent member questions. Call the Employment Law Hotline (find the number in the Employment Law Resource Center at www.alabamaretail.org) for free advice on employment issues. Identify yourself as an ARA member calling the Employment Law Hotline. Do I have to pay a full-time Our company’s employee What employees, if any, are employee who is on jury duty? manual states that employees exempt from the federal minimum Any full-time employee, or receive Independence and wage? employee who works a full-time Christmas days off as paid Employees exempt from the minimum schedule on a regular basis, is enti- holidays. In 2010, July 4th falls wage requirements include youth under tled to his/her usual compensation on a Sunday and Dec. 25th falls the age 20 in certain conditions, student minus the fee or compensation the learners, farm workers and commissioned employee receives for serving as a on a Saturday, neither of which sales persons, among several others. juror (SEE MORE ON THIS ISSUE IN THE are regular work days. Do I have THIRD PARAGRAPH). The Alabama to let my employees off on work To determine whether a worker is attorney general has concluded that days to make up those holidays? exempt from the minimum wage, the phrase "full-time employee" The U.S. Fair Labor Standards Act employers should visit the U.S. includes an employee who is paid does NOT require pay for holidays, Department of Labor’s web page hourly wages, as well as a salaried on exemptions: employee. vacations or sick days, nor does the act require employers to provide employ- http://www.dol.gov/elaws/esa/flsa/screen75.asp The requirement to pay an employ- ee on jury duty does NOT apply ees with holiday, vacation or sick day TIPPED WORKERS: benefits. The act also does not require to part-time employees. However, For tipped employees, the employer premium pay for working on weekends, Alabama law requires employers must pay the employee at least $2.13 an holidays, or during any particular time to excuse any employee summoned hour in direct wages. If the $2.13 plus of the day. Instead, many employers to jury duty. The employee must their tips does not equal the federal mini- show a superior the jury summons. offer pay and/or premium pay for holi- mum wage, currently $7.25, then the days as part of their employee benefit Alabama law provides that jurors be employer has to make up the difference. compensated at the rate of $10 per package and spell those benefits out day, plus five cents for each mile in their employee manuals. YOUNG WORKERS: traveled going to and returning Consequently, it is totally up to the A minimum wage of $4.25 per hour from court. According to an AG employer to decide how to handle a applies to young workers under the age opinion, the $10 per day received of 20 during their first 90 consecutive by a juror for his services in state holiday that normally would be observed by the business that falls on calendar days of employment with an court is considered to be an expense employer, as long as their work does not allowance rather than a fee for serv- a day the business would be closed displace other workers. After 90 consecu- ice. Accordingly, employers may and employees wouldn’t be working NOT deduct the daily $10 “expense anyway. tive days of employment or the employee reaches 20 years of age, whichever comes allowance” from the employee’s Most businesses give employees the first, the employee must receive a mini- regular compensation. However, if a choice of either taking a paid day off juror were to receive a fee in addition mum wage of $7.25 per hour. the Friday before or the Monday after a to an expense allowance, the fee may The employer that hires students can be deducted by the employer. weekend holiday. Paying for an extra work day is also done, particularly obtain a certificate from the Department of Labor which allows the student to be NEED MORE LABOR LAW POSTERS? when the employer wants employees ARA recently mailed members new to work on the Friday before or paid not less than 85 percent of the mini- federal and state labor law posters, which Monday after a weekend holiday. mum wage. The certificate also limits the reflect state child labor law and recent hours that the student may work to 8 federal law changes. If you need addition- An employer also may tell employees hours a day and no more than 20 hours a al copies of the new state and federal that when a normally observed holiday posters, please contact Virgie Todd week when school is in session and 40 falls on a non-workday, employees lose at [email protected] hours when school is out. or 1-800-239-5423 that holiday as a benefit. If so, employ- with the number of additional copies ers should make that decision part Save $86 on ALABAMA EMPLOYER’S DESK MANUAL needed and where you would like them of the company’s written policy. Available to ARA members shipped. for $99 at alabamaretail.org

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ARA Annual Meeting since 2002. The Alabama Retail Association was host for a July reception Association welcomed the new senator in Keahey’s honor. kicks off 2010 elections during a June reception at ARA Those elected for the Continued from Page 1 headquarters. six vacancies filled Supreme Court; two other appellate SENATE DISTRICT 19 during special elections judgeships and all 140 seats in the Former Rep. Priscilla Dunn of Bessemer in 2009 will serve will be on the 2010 was elected June 30th to the Alabama through January 2011, ballot. The noon luncheon and 1 p.m. Senate District 19 seat vacated when Sen. when those elected annual meeting are a perfect time to begin E.B. McClain, D-Midfield, during the Novem- to prepare for this pivotal election year. was convicted of multiple ber 2010 General SPECIAL ELECTIONS DOMINATE 2009 felonies. Election take office. 2009 served as a warm-up period for the Fund-raising began SENATE DISTRICT 22 Rep. Cam Ward 2010 elections with six Alabama legisla- June 2 for the 2010 Former Rep. Marc Keahey, tive seats being filled through special legislative races. State Rep. Cam Ward, D-Grove Hill, was elected elections. Four of those seats had been R-Alabaster, kicked off his fund-raising June 2 to fill the seat filled at press time with two of the elec- with an event on the lawn of the ARA vacated by the death of tions wrapping up in November. headquarters. He is running for the Pat Lindsey, D-Butler. HOUSE DISTRICT 6 Senate District 14 seat. The 2010 primary The Alabama Retail Sen. Marc Keahey RetailPAC-endorsed Phil Williams was is June 1. elected July 14th to fill the Alabama House District 6 seat vacated after the felony convictions of Rep. Sue Schmitz, Lawmakers Propose New Budgeting Process D-Toney. After working for the Strategic t the end of September, Gov. Bob the Canfield/French method uses spend- Missile Defense Command, Williams Riley declared 7.5 percent proration ing ceilings based on the historical 15- successfully created two startup electron- Aof the state’s 2009-2010 education year average annual growth rate for sales ics companies in the Madison County budget, right on the heels of an 11 percent and income taxes. area, creating hundreds of jobs. proration for the budget year that had just In years when revenues exceed the 15- HOUSE DISTRICT 56 ended. year average, excess funds would be Claire Mitchell, a first-time candidate and Two Alabama lawmakers are trying to transferred to a “Budget Stabilization wife of Bessemer’s mayor, and Lawrence end the cycle of prorated budgets in Fund” that would “roll” from one year to McAdory, who served in the Alabama Alabama. the next. If revenues fall short, money House from 1994 until 1998, meet In the 2010 legislative session, which from the fund would transfer to prevent Tuesday, Nov. 10, in a Democratic Party begins Tuesday, Jan. 12, Rep. Greg proration, with no “pay-back” require- runoff to determine who will replace for- Canfield, R-Vestavia Hills, and Sen. Steve ment, thus eliminating the need to borrow mer Rep. Priscilla Dunn, who earlier this French, R-Birmingham, plan to reintroduce from the state’s Rainy Day Fund, which year won the Senate District 19 seat. the Education Trust Fund Rolling Reserve does mandate taxpayer reimbursement. HOUSE DISTRICT 65 Act to create a budgeting process that A special General Election on Tuesday, allows for growth, eliminates proration and Like this proposal? Let ARA VP Alison Wingate creates reserve funds for future capital know what legislation you’d like to see your Nov. 3, was to determine who will fill the association support in the 2010 regular legisla- House seat vacated by Marc Keahey, D- needs. tive session. Contact Alison at 334.263.5757, Union Grove, who was elected to the Instead of budgeting based on projections, Ext. 104, or [email protected] state Senate in June. The District 65 can- didates are Democrat Elaine Beech, a Chatom pharmacist and Washington County school board member, and Rep. Greg Canfield, left, and Republican Jerry Reed, a retired insur- Sen. Steve French, talk about their proposal for education budgeting ance agent, schoolteacher and principal. based on 15-year averages, rather SENATE DISTRICT 7 than annual projections. Paul Sanford, ARA member endorsed by RetailPAC,was elected June 9 for the seat vacated when Parker Griffith was elected to Congress. Sanford and his wife, Danielle, own and operate Little Paul’s Barbecue in Hunts- Sen. Paul Sanford ville, which has been an ARA member

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Featured Mickey Newsome congratulates ARA Immediate Past Chairman Ken Hubbard for having the Member correct answer to a sport trivia question during the 2009 Retail Day luncheon and thus winning a gift-filled bag from Hibbett. CEO: Go where your products and service are needed ichael “Mickey” Newsome, received apparel and equipment plus money,” Newsome said, relating such chairman and chief executive $3,000 toward renovation supplies cost-saving measures as reusing card- Mofficer of Hibbett Sporting through Hibbett’s Operation Sports board boxes, putting used furniture Goods Inc., adheres to the philosophy Renovation program. Hibbett Superstars, in offices and keeping all the office, of Birmingham business pioneer A.G. another program that gives back to com- warehouse and store thermostats set Gaston, who often advised entrepre- munities, has honored more than 100 on the same temperature in the summer neurs, "Find a need and fill it." young athletes and made donations and winter. For Birmingham-based Hibbett Sports to charities in their communities. Hibbett also uses the latest computer that means locating its stores 20 or more Hibbett continues to give and expand software in the information technology driving minutes away from any big-box even in the down market. It added 57 area to deliver the correct product to its sporting-goods competitors, Newsome stores in 2008 and 75 stores in 2007. stores based on the demographics of the told those gathered Sept. 29th for the In 2010, Hibbett expects to open community. 2009 Retail Day in Birmingham. 30 to 32 new stores, while expanding "It is our belief that the retailer with Gov. Bob Riley also proclaimed it 18 to 20 high- the best systems is going to win long- Hibbett Sports Day in Alabama. performing stores. term," he said. "If you go where you're truly needed, The company has Newsome started his career in sporting where your products and your store and identified an addi- goods in 1958 while attending Howard the service you offer is truly needed, tional 400 markets College (now Samford University) you've got a lot better chance for suc- in the 24 state area in Birmingham. cess," Newsome said. where it now In 1965, he joined the Hibbett team In places like Selma, Troy and Jasper, operates that could just before the company opened its “the consumer needs us ..., landlords support Hibbett second store in Huntsville. Hibbett was and vendors need us, and we are a very stores. "We're going founded as Dixie Supply Co. Inc. desirable place to work in these small to (those markets), in 1945 in Florence by high school towns,” Hibbett said. it's just a matter Mickey Newsome coach Rufus Hibbett. Newsome worked Hibbett Sports, a public company of time," Newsome said, adding, “when his way up through the company, serv- with 761 stores in 24 states, including the economy turns around, we are going ing as outside school salesman, store 80 in Alabama, has been an ARA mem- to be ready.” manager, area manager and president ber since 1986. When deciding where to locate its before assuming his current position. Hibbett associates and the corporate stores, Hibbett also pays attention to the Newsome served seven years on the entity play a vital role in those small moves of two other ARA members, National Sporting Goods Association communities. Two Alabama schools Walmart and Target. Those discounting board of directors, one year as its chair- particularly have benefited from giants put cars in parking lots, drawing man and in 2007 was inducted into the Hibbett’s presence. The athletic pro- customers to Hibbett stores, which offer Sporting Goods Industry Hall of Fame. grams at Enterprise High School, which a full-service option and more famous was destroyed by a March 2007 tornado brands compared to the self service at For more on Retail Day, see Pages 6 and 7. For more on Hibbett Sports, go to hib- that rocked that Alabama city, and Peter the bigger stores that share the parking bett.com F. Alba Elementary and Middle School lot, Newsome said. in Bayou La Batre, which was flooded Another reason for Hibbett’s success is Top photo by Tracy Young, Young Photography, Auburn. in 2005 during Hurricane Katrina, each “we are careful with our stockholders’ Inset photo provided by Hibbett.

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PAYS TRIBUTE TO R 2009 Retail Day honors 15 exemplary retail During the 2009 Retail Day Luncheon on Sept. 29, the Alabama retail businesses in operation in Alabama for 100 or more years. ment p Retail Association in cooperation with the University of Alabama This marked the 10th presentation of the Retailer of the Year Gold R at Birmingham School of Business recognized 15 outstanding Awards since 1999, and the seventh presentation of the Centennial winner Alabama retailers operating 12 retail businesses in eight Alabama Retailer awards since 2002. the 20 cities as Retailers of the Year. ARA also recognized a Hoover busi- An independent panel of judges chose the Retailers of the Year. The C ness as being an Alabama Centennial Retailer, an award given to Retailers of the Year must have had a physical operating or manage- busine 2009 ALABAMA RETAILERS O ANNUAL SALES MORE THAN $5 MILLION A SILVER AWARD: BRONZE AWARD: Michael Mazer Brian Bice MAZER Bice Motors Inc., DI$COUNT Alexander City $UPER$TORE, This winner kept his Homewood family’s 60-year-old This customer- and car dealership open civic-oriented owner without any layoffs Andy and Andrew Brown of a home-building during the 2008-2009 GOLD AWARD: and remodeling store recession, while main- Andy and Andrew Brown – Brown spent 2009 coping taining his community involvement and keep- Lumber & Building Supply Inc., Columbiana Michael Mazer with the most diffi- Brian Bice ing the business on the This father and son/owner and vice president cult economic times cutting edge of technology. Bice Motors began duo provide leadership for a third-generation since his grandfather founded the company GO as an automotive shop business in 1949 and family business, which employs 31 and is in 1932. Still, he found time to advocate for Tim J added new car sales in 1965. affiliated with the Ace Hardware chain of a grant to revitalize an historic park in his The M community. stores. Cited for “great sales numbers” in These relation to the population of the city where downt the business is located. Farme Down ANNUAL SALES $1 MILLION TO $5 MILLION es fou holida SILVER AWARD: BRONZE AWARD: George Wilder Stanley Enfinger The Locker Room Badcock Home and TLR Furniture & More, Outdoors, Ozark Montgomery The 31-year-old Managing inventory Ozark store operated and margins helped by this winner has a Leo, J.L. and Ken Shaia minimize the con- customer base of more sumer spending than 1,300 accounts GOLD AWARD: decline so the two and is one of the top- Montgomery high- performing stores for Leo, J.L. and Ken Shaia George Wilder Stanley Enfinger BR Shaia's of Homewood end men’s clothing ARA member Badcock These gentlemen operate a fourth generation stores this winner operates could stay strong Home Furniture & More. But it was the owner’s Justin family business that is older than the city of during the recession. He balances running the compassion for his customers and community Momm Homewood. In 2009, these retailers of high businesses, which have been ARA members that cinched this award. These quality men’s clothing, furnishings and shoes since 1993, with remaining involved in the eatery To learn more about the Retailers of the Year, go to life of his community. trimmed expenses everywhere possible, with the “2009 Retailers of the Year” under “Alabama Retailer of anothe exception of their employees. Shaia’s has been the Year” in the “Awards and Events” section of Home an ARA member since 1992. www.alabamaretail.org 2008-2

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TO RETAILERS OF YEAR retailers, plus a 140-year-old retail business rs. ment presence in a retail business in Alabama for at least two years. future. Centennial Retailer nominations are due Monday, June 21. Gold Retailers of the Year can only be recognized once. All other Businesses can only be recognized once as a Centennial Retailer. nnial winners can be nominated in subsequent years. Nominations for To be considered a Retailer of the Year or Centennial Retailer, the the 2010 Retailer of the Year awards are due by Monday, June 7. business must collect state and local sales taxes. ear. The Centennial Retailer program recognizes century-old retail Want to nominate a Retailer of the Year or Centennial Retailer? anage- businesses for their contributions to the state’s past, present and Go to Awards and Events at www.alabamaretail.org RS OF THE YEAR CENTENNIAL ANNUAL SALES LESS THAN $1 MILLION WARD:

., t his -old pen offs -2009 main- munity keep- Tim Jennings and Michael Dyer Don Drennen Motor Co. Inc. on the George Jones Jr. Hoover egan GOLD AWARD: SILVER AWARD: nd Tim Jennings and Michael Dyer George Jones Jr. Founded by Hubert, Mack and The Monkey's Uncle and Monkey Tails Baby Emporium, Leeds Snoozy's Kids Inc., These business partners have done all they can to reinvigorate Mountain Brook Mell Drennen in 1869 as downtown Leeds. They were instrumental in starting a weekly Cited as THE biggest Drennen & Co., a dry goods Farmers Market. They help plan and sponsor the Leeds cheerleader for the store, this business began selling Downtown Folk Festival, plus they run two downtown business- Mountain Brook busi- es four doors apart and operate a Christmas store during the ness community and Buicks and Cadillacs in 1908 holiday season. WARD: for grooming the next and has been selling and generation of retailers, servicing cars ever since. ger this winner and other family members run Owner: D. Ward Drennen III ore, two businesses named for his dad. Snoozy’s Kids and Snoozy’s For more about this retailer, go to “2009 Centennial rated College Bookstore Retailer” under “Centennial Retailers” in the “Awards as a have been members and Events” section of www.alabamaretail.org f more of ARA since 1994. unts e top- Justin Edwards, Scott Dean and Hal Craig es for BRONZE AWARD: adcock wner’s Justin Edwards, Scott Dean and Hal Craig nity Momma Goldberg's Deli, Homewood and Inverness These three young men opened a franchise of a beloved Auburn eatery in Homewood in December 2007, and then opened o r of another in Inverness in July 2009. Year-over-year sales for the Homewood location increased from the initial year, despite the 2008-2009 recession. They also cut labor costs by two percent.

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More participation, ARA-member support; but August tax holiday sales results unclear Tell ARA about your store(s) experience during the 2009 sales tax holiday at alabamaretail.org/resources.aspx? ekfrm=24376 A record 255 local governments participated in Alabama’s fourth annual sales tax holiday, but how the holiday impacted total sales during the first weekend in August remains unclear. The state only compiles information about the amount of sales taxes collected. No one tracks exempted taxes, and fewer than two dozen Alabama retailers responded to an ARA survey about their sales performance for Aug. 7-9. However, among those who did respond, 55 percent expe- rienced level or increased sales during the three-day holiday, while 35 percent saw a sales decline compared to the 2008 holiday. Help build a clearer picture by completing the online Huntsville Best Buy Manager Edwin Smith III promotes Alabama’s sales tax survey at the link at the top of this story. sales tax holiday during an Aug. 4 news conference while, from left, ARA Chairman Darrell Bourne, state Sen. Paul Sanford, R-Huntsville, For the first time since Alabama’s sales tax holiday began and Gov. Bob Riley listen. in 2006, the state’s consumers appear to have limited spending to tax-free items. In August of the prior three years, state col- lections increased even though sales taxes weren’t collected on clothes, books, computers and school supplies of certain values for three days out of the month. Sales tax collections this August dropped 18.22 percent compared with last August, according to the Alabama Department of Revenue. The state collected $147.4 million in sales taxes in August compared to $180.2 million in August 2008. Alabama has seen 12 straight months of decline in sales taxes since the high point of August 2008, when the state col- lected even more sales tax than it did in December at the height of the Christmas holiday shopping period. The Alabama Retail Association staff and member repre- Millbrook WalMart manager Ken Hinds welcomes back-to-school sentatives did their part to promote the sales tax holiday. ARA shoppers during an Aug. 7 news conference at his store. State Rep. Mac Gipson, R-Prattville, left, and ARA President Rick Brown, right, Chairman Darrell Bourne, board members Bob Robicheaux appeared with Hinds, along with the governor (not pictured.) and Mickey Gee, President Rick Brown and Director of Public Relations Nancy Dennis all appeared at news confer- Drive in Huntsville, in advance of the holiday; and with Ken ences or made television appearances. Several ARA members Hinds, manager of the Wal-Mart on Kelley Boulevard in were quoted in media reports including Tyson Eaves, owner Millbrook on the opening day of the holiday. of Serendipity, a Montgomery uniform store, and Nancy The Alabama Retail Association was mentioned in more Hefner, owner of the Turtle Shell in Prattville. than 90 news stories and television reports that appeared in 31 Gov. Bob Riley led news conferences at ARA member publications and on six television stations and potentially retailers to encourage shoppers to participate. He appeared reached a total audience of 3.3 million in the weeks leading up with Edwin Smith III, manager of the Best Buy on University to the holiday.

150% of health insurance premiums for small businesses deductible for 2009 Beginning with the 2009 tax year, small companies (those with 24 those plans also would qualify for the deduction. or fewer full-time employees) can deduct 150 percent of the money The determining date for whether a company qualifies for the they spend on health insurance premiums from their state taxes, and deduction is the last day of the tax year, regardless of the number their employees who earn $50,000 or less can do the same. employed during the year. The employer must have fewer than 25 The law allows the deduction for amounts paid by qualifying employees on the final day of the year to qualify under the law. employers and by qualifying employees when health insurance premi- ums are paid as part of an employer-provided health insurance plan. For more information on this new deduction, go to: If vision or dental coverage is included in the healthcare premiums, revenue.alabama.gov/incometax/hlthinsurncefaqs.htm

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Health Department delays cold storage rule he Alabama Department of Public other food service establishment with THealth has delayed enforcement of cold storage temperatures above 41°F a new cold storage rule for one year and up to 45°F will be docked five (5) until Jan. 1, 2011, to allow food serv- points on their health score, but will not ice establishments more time to be subject to fines and other regulatory upgrade equipment. The new rule punishment. As is the case now, those requires cold storage at 41°F or with storage temperatures above 45°F below. The former cold storage rule will face penalties. required 45°F or below. The text of the cold storage rule change That 41°F requirement applies to all can be found on Page 3 of the Cold Questions about implementation of the potentially hazardous foods, which are Storage Rule Change and Appeals cold storage rule, should be directed to subject to spoilage, including meats, Process for Catfish Labeling Violations Mark Sestak, director of the Food and cheese and pre-sliced melons. under Regulation Updates in the Lodging Branch of the Alabama Depart- Beginning Jan. 1 and until 2011, Political Affairs section of ment of Public Health at 334-206-5375 restaurants, delis, groceries or any alabamaretail.org or [email protected] Prevent flu spread in the workplace labama is one of 37 states experiencing a widespread outbreak of VACCINE AVAILABILITY Athe H1N1 influenza pandemic, which began in Mexico in the spring. Alabama began receiving the H1N1 vaccine in early October. At press time, 17 people in our state had died as a result of H1N1, Within a week, about 900 Alabama health-care providers had request- also known as the swine flu. ed more than 1 million doses of the H1N1 vaccine. It will take three Normally, the height of flu season is January through March. Conse- months to fill those requests. Community pharmacies should have the quently, a third wave of this new strain of flu and more illnesses can H1N1 vaccine sometime in November or December. be expected through the spring. The state’s total allotment of vaccine through January will be To help prevent the spread of the flu, retailers and other businesses 2.8 million doses. However, providers won’t be able to place orders should: for more than half of those doses until after Dec. 4. Encourage employees to get vaccinated, either on their own or Member pharmacists and physicians can find a link to the through a company-sponsored program. A seasonal flu shot is Alabama Department of Public Health’s vaccine ordering system recommended now and the H1N1 shot when it is available. Both on the Health Alert page under Emergency Preparedness in the shots can be administered at the same time. News section of alabamaretail.org. Requests for the H1N1 vaccine and antivirals are available only to Alabama licensed physicians Remind employees to wash their hands many times throughout and pharmacists, and shipped only to Alabama addresses. the day. As ARA receives updates from the Health Department, they are Keep hand sanitizers near cash registers, in the break room and posted on the Health Alert page of the Web site. bathrooms. Consider supplying pocket-sized hand sanitizer bottles for associates to sanitize their hands throughout the day. Flu Hotline – 1-877-377-7285 Insist employees stay home if they have flu symptoms or are Open 7 a.m. to 7 p.m. Monday through Friday running a fever. or call the statewide help line, 2-1-1

HOW YOU CAN STOP THE SPREAD OF FLU Communicate These Steps with Your Employees and Customers Cover a cough or sneeze with your sleeve or tissue, not your bare hand. Throw the tissue in the trash after you use it. Wash your hands with soap and warm water for at least 20 seconds many times throughout the day. Alcohol-based hand cleaners are also effective. Avoid touching your mouth, eyes and nose with your hands. Avoid shaking hands with anyone. Stay six feet away from anyone who is sick. Regularly clean and disinfect publicly used surfaces. Do not share items like linens, utensils or dishes. If you are sick, stay home. Do not go to an emergency room or show up at your physician’s office unannounced. Call your doctor first to make arrangements.

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Watch for unemployment rate notices in December heck your mailbox in December mailing address since last December, Cfor your 2010 unemployment notify the Department of Industrial compensation tax rate notice from the Relations Status Unit: Marcia Alabama Department of Industrial Pemberton, Supervisor, 334-242-8830 Relations. Don’t throw it away. (phone), 334-242-2067 (fax). Unemployment compensation taxes are Other ways you can manage your individual to each business based on a unemployment insurance contribution formula that takes into account wages rate include: paid; the amount of unemployment Keep track of your former employees among current and former employees; Maintain good employee records the average duration and cost of unem- Help combat fraud. Report fraud NEWS ABOUT ployment benefits paid to all claimants at 1-800-392-8019 STAFF over a three-year period; as well as Report new hires via the Internet shared costs. Consequently, the rate is (See story below) MEMBERS individual to each employer. Your rate Make a timely response to unemploy- Brown, Wingate to serve notice will help you determine the taxes ment insurance forms you must pay by May 1st. Be prompt filing contribution and association exec group If your business has had a change in wage reports via electronic filing Alabama Retail Association President Richard “Rick” Brown Jr., CAE, will serve as president of the Alabama Report new hires within 7 days Council of Association Executives for o keep your business from accru- 2010. He was elected in October during HOW TO REPORT the association’s 18th Annual Convention Ting costly fines, comply with the NEW HIRE INFORMATION Alabama New Hire Act. in Biloxi, Miss. Under current Alabama law, employ- Online: Visit dir.alabama.gov, go ARA Vice President Alison Wingate ers have seven days to report each new to Business Employer Services, click also became a member of the ACAE hire to the Alabama Department of on Alabama New-Hire. If you have five board of directors. She will serve through Industrial Relations. You must provide or more employees, online or electron- 2013. ACAE has more than 400 associa- ic reporting is required. the employee’s name, address, Social tion and meeting professional members. E-mail: [email protected] Security number, and date of hire, as Fax*: 334-242-8956 Contact Rick or Alison at 334.263.5757 or [email protected] / [email protected] well as the employer’s name, address, Write*: and state and federal identification Department of Industrial Relations numbers. The department adds that New Hire Unit information to a State Directory of New 649 Monroe Street, Room 3203 Hires, and then to the National Montgomery, AL, 36131-0378 Directory of New Hires. The require- Call: (334) 353-0408 *Employers with fewer than five employees can ment applies to re-hires and recalled mail or fax a copy of the employee's W-4 form, Rick Brown, second from left, and Alison employees as well as new hires. which include the required information. Wingate, second from right, were among By reporting these hires to DIR, you ACAE board of directors elected recently. make sure that employees aren’t being Assistance for Needy Families (TANF) overpaid for unemployment compensa- recipients if they refuse work for which Dennis joins Auburn tion (thus keeping unemployment costs they are qualified, and reduces the drain down) or receiving over-issuances of on the Unemployment Compensation public relations board food stamps. Trust Fund. The Public Relations Division of the If your business doesn’t comply with Alabama’s new hire program dates Auburn University Department of state law, there is a $25 fine for each back to 1994 when reporting a newly Communications and Journalism recently violation. hired or a recalled worker was per- chose ARA Director of Public Relations Nancy Dennis to be a member Individuals refusing work may also be formed strictly on a voluntary basis. of the department’s Public reported, but this information is option- As a result of the Federal Welfare Relations Advisory Board. al. Reporting job refusals increases the Reform Act of 1996, the Alabama Contact Nancy at 334.263.5757, labor pool, disqualifies unemployment new hire program became state law Ext. 101,or [email protected] compensation and/or Temporary in 1997. Nancy Dennis

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Invoice after the fact? Federal FEDERAL Red Flags Rule could apply to you UPDATE For all the resources you need about developing an identity theft prevention program, click on the Red Flags Rule Guidance for Business under Hot Topics at ftc.gov f your business invoices for goods or WHAT THE LAW REQUIRES services after the fact, you should have a The Red Flags Rule requires many Iwritten identity theft prevention program businesses and organizations to implement a Congress Expected to in place. written identity theft prevention program That’s not just a recommended activity. to detect the warning signs – or “red flags” – Meet Until Christmas Since Nov. 1, it has been required by federal of identity theft in their day-to-day opera- PRESIDENT WANTS HEATH REFORM law under the Fair and Accurate Credit tions, take steps to prevent the crime and Transactions Act (FACTA) of 2003. IN HIS CHRISTMAS STOCKING mitigate the damage such theft inflicts. The president wants to sign a health reform LAW APPLIES TO SOME RETAILERS The warning signs, or red flags, include: Besides banks and other financial institu- bill by the end of the year, and Congress was tions, automobile and motorcycle dealers, discrepancies in address history expected to stay in session close to Christmas jewelers, furniture companies, mortgage fraud alerts on credit reports in an effort to meet that goal. At press time, brokers, doctors, dentists, other health-care suspicious use of Social Security five different (House and Senate) bills had providers, professional tax preparers, educa- numbers received committee approval. A bill combining widely divergent bills passed by the Senate tional institutions, utility companies and inactive accounts that suddenly Finance and Senate Health, Education, Labor telecommunications companies are among the become active and Pensions committees was to reach the entities that could fall under this federal law, credit-freeze notifications which carries civil penalties of up to $3,500 Senate floor by the first week of November. for each customer or transaction. credit reports with suspicious The House planned to merge three bills passed The Federal Trade Commission estimates the activity patterns by committees this summer and pass a com- rule affects more than 11 million creditors and notices from identity theft victims bined bill of its own. ARA will continue to financial institutions. Under the commission’s or law agencies, among others. monitor the process and keep you informed. definition, virtually any business that bills its Besides the written policy for detection INTERCHANGE FEES ACT MOVING customers is a “creditor” and thus subject of such red flags, the required program must Thanks to ARA members who contacted their congressmen in advance of the U.S. House to the Red Flags regulations. If your business describe appropriate responses that would Financial Services Committee hearing on H.R. regularly defers payment for goods or services prevent and mitigate the crime and detail a 2382, The Credit Card Interchange Fees Act of or provides goods or services and bills cus- plan to update the program over time. The 2009. This bill prohibits Visa and MasterCard's tomers later, more than likely this law applies program must be managed by the board restrictive merchant contract rules, gives the to you. Retailers who offer financing or help of directors or senior employees of your Federal Trade Commission authority to detect consumers get financing from others by business, include appropriate staff training any anticompetitive card company practices, processing credit applications would be con- and provide for oversight of any service and provide for increased disclosure of inter- sidered a creditor. Accepting credit cards as providers. change fees. Please let your congressman know a form of payment does not in and Your plan should be specific to your busi- how credit and debit card interchange fees of itself make an entity a creditor. ness. Businesses with little exposure to identi- specifically harm your business. According to the law a creditor is: "any enti- ty theft will have basic plans, while those CARRYBACK CHANGE COULD HELP ty that regularly extends, renews, or continues Under H.R. 2452, the Net Operating Loss at high risk, including stores that set up long- credit; any entity that regularly arranges Carryback Act, businesses suffering losses for the extension, renewal, or continuation term credit accounts, will have more detailed during 2008 or 2009 would be able to “carry of credit; or any assignee of an original credi- plans. back” those losses to offset profits from up tor who is involved in the decision to extend, For most small retailers who extend credit, to five years ago. The companies would then renew, or continue credit.” the Do-It-Yourself Template for Low-Risk receive tax refund checks to help keep doors LAW EFFECTIVE NOV. 1 Businesses on the FTC Web site will be suffi- open and workers on the payroll. Losses can What is known as the “Red Flags Rule” has cient to protect your business and ensure that already be carried back for up to two years. been in effect since Jan. 1, 2008, but the you are in compliance with the law. The five-year carryback period was included Federal Trade Commission (FTC) delayed The Red Flags Rule is enforced by the in the $787 billion economic stimulus bill enforcement for all non-banking institutions, FTC, federal bank regulatory agencies and President Obama signed into law in February, or creditors, until Nov. 1. the National Credit Union Administration. but was limited to companies with up to $15 million in annual gross receipts and applied only to losses suffered during 2008. Obama’s Lead content limits in children’s products being enforced budget proposal for Fiscal Year 2010 would The Consumer Product Safety Improvement 12 or younger should follow the tighter limits allow the five-year period to apply to compa- Act of 2008 took effect Aug. 14. Any ARA on the amount of lead allowed in children's nies of any size and to losses from either 2008 member company that sells, produces, distrib- products and the requirement for new tracking or 2009, as provided under this proposed utes or uses products intended for children age labels. Learn more at cpsc.gov legislation.

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Please send address corrections to: PRESORTED STD US POSTAGE PAID PERMIT #198 MONTGOMERY, AL

Attn: Virgie Todd 7265 Halcyon Summit Dr. P.O. Box 240669 Montgomery, Alabama 36124-0669 reserved. rights All Association. Retail Alabama 2009, ©

Participants to get largest return ever! To learn more about Alabama Retail Comp’s retrospective return, go to Company News at www.alabamaretailcomp.org In 2010, the Alabama RETROSPECTIVE RETURN formula that takes into account individ- DISTRIBUTION FOR 2010 ual participants’ experience versus the Retail Association’s experience of the fund as a whole. The ARC’s $4 million retrospective return workers’ compensation for 2010 will be distributed amount of credit a participant receives insurance fund will return from fund years as follows: is tied directly to the business’ loss $4 million to qualified 2008 $1,000,000 ratio. Lower losses mean a higher retro- 2007 $1,000,000 spective credit at renewal. This acts as participants, the largest retrospective return in its 25-year history. The board 2006 $1,000,000 an incentive for participants to provide of trustees of Alabama Retail Comp, 2005 $700,000 a safe work environment. the self-administered, self-insured 2004 $100,000 Alabama Retail Comp, the state’s workers' compensation fund available 2003 $100,000 most stable, cost-effective workers’ only to ARA members, voted Oct. 12 compensation insurance program to distribute $4 million in the 2010 fund 2002 $100,000 for retailers, is regulated by the year, which begins Jan. 1. Total 2010 Return $4,000,000 Alabama Department of Industrial The 2010 retrospective return fund’s administrator and ARA president. Relations and governed by retailer of $4 million represents a 14 percent trustees who participate in the fund. increase over the 2009 return. Since its inception in 1984, Alabama Retail Comp has returned more than Almost 4,000 Alabama Retail “We are pleased once again to provide $35.3 million to its participants through Association members participate in the this added benefit from the value our its retrospective return plan. The plan fund. members get from their workers’ provides a controlled method for the fund compensation coverage and their to return excess funds accumulated due ARC specializes in the retail industry, membership in the Alabama Retail to favorable operating experience. The but also provides coverage to employ- Association,” said Rick Brown, the retrospective rating plan uses an actuarial ers in other business classifications.