ALABAMARETAIL.ORG JULY 2016 ISSUE 2 VOL 16 RetailerAlabama MEMBER BENEFITS Shipping program with no obligation, no minimums

FEDERAL ISSUE Salary threshold for overtime exemption doubles Dec. 1

BOOK CURATOR Healthcare Q&A: Terry Finley Explanation of CEO OF BOOKS-A-MILLION Affordable Care Act terminology

MEMBER HIGHLIGHT SKIP AND TREY JOHNSTON OWNERS OF J&M BOOKSTORE From the President RetailerAlabama We Are Better July 2016 Issue 2 Vol 16 When We Speak Publisher with One Voice Rick Brown

Editor Retailers are better when Nancy King Dennis

we speak together on Design public policy. COPPERWING DESIGN

That was evident when Cover Photo the first statewide law of BRANDON ROBBINS the Alabama Legislature’s 2016 regular session put a stop to an influx of local minimum wage and other mandated benefit ordinances. 2016-2017 Officers 2016-2017 Officers With less than a day’s notice, one city voted to increase what Chairman employers must pay their minimum-wage employees by Chairman FREDRICK W. “RICKY” KEN HUBBARD almost $3 an hour. The Legislature and governor moved BROMBERG Western Market, Birmingham quickly to preempt Alabama localities from determining local Bromberg & Co. Inc., Birmingham wages and such benefits as paid or unpaid leave, vacation Trustees Vice Chairman DARRELL BOURNE time or work schedules. Retailers made their voice heard. JACOB SHEVIN Ragland Brothers Retail Cos. Inc., Huntsville Standard Furniture, Alabama and Tennessee After many called our offices to express concerns about CAREY ROME unregulated, for-profit companies conducting sales tax audits President Cypress Resources, Birmingham in our state, the Legislature made a first step toward reform. RICK BROWN Montgomery JIMMY RAY SMITH Thanks to Woody Baird and Charlie Ferguson who shared Jimmy Smith Jewelers, Decatur their stories (Page 16). Vice President ALISON SCOTT BUD SKINNER One voice can make a difference. Terry Shea talked with WINGATE HOSP Jubilee Seafood, Montgomery Congress and the media about what it would mean to Montgomery GEORGE WILDER more than double the overtime salary threshold for exempt Treasurer The Locker Room, Montgomery and Auburn employees. Shea’s voice (Page 7) joined with almost BOB AKERS 300,000 others, resulting in a slightly lower threshold and Davis Direct, Montgomery PHILLIP WEAVER Buffalo Phil’s, Tuscaloosa other modifications. Executive Committee Designee TODD NODEN Fund Administrator When our executive committee traveled to D.C. in May Books-A-Million, Birmingham-based RICK BROWN (Page 13), Alabama’s congressional delegation heard how Montgomery many retailers are faced with paying out thousands to ward Immediate Past Chairman GEORGE WILDER Fund Manager off the threat of Americans with Disabilities lawsuits. They The Locker Room, Montgomery and Auburn MARK YOUNG got that giving businesses 30 days to fix deficiencies is a Montgomery more reasonable approach. And almost all of our delegation Alabama Retailer is the official publication of the Alabama Retail Association, supports sales tax parity, or efairness. 7265 Halcyon Summit Drive, Montgomery, Alabama 36117-3502. Telephone (334) 263-5757; FAX (334) 262-3991. Retail is better together. Join us! Alabama Retailer is published three times a year. Views and conclusions expressed in articles herein are those of the authors, not necessarily those of the editors or officers of the Alabama Retail Association. Opinions expressed in this magazine do not necessarily reflect the policies of the Alabama Retail Association. ADVERTISING: Inquiries should be directed to the Alabama Retail Association. Rates will be furnished on request. The Alabama Retail Association reserves the right to omit any advertising or editorial copy deemed to be unsuitable for Rick Brown, Publisher and President publication. Publication herein does not necessarily imply endorsement of any product or service offered. Postmaster: Send address changes to Alabama Retail, P.O. Box 240669, 2 Alabama Retailer July 2016 Montgomery, Alabama 36124-0669. July Contents 4 15 BACK TO SCHOOL SHARING THE PASSION Three generations Salon owners of Gees have put invest in next pants on students generation

8 7 Overtime Rule 17 Member Benefits MEMBER HIGHLIGHT 10 Book Curator: 18 New Members Terry Finley Auburn brothers 21 Affordable Care carry on family 13 ARA Takes on D.C. Act Q&A tradition 14 Member News 22 Socially Speaking 16 Combatting Audit Abuse

BETTER TOGETHER

Mark Your Calendar for Alabama Retail Day 2016

11:30 a.m. - 1:30 p.m. • Tuesday, Oct. 18, 2016 • Cost: $50* Reserve your seat by Sept. 30 at alabamaretail.org/retaildayregistration

Terry Finley, president and chief executive officer retailers who make noteworthy contributions to their of Books-A-Million, will be the keynote communities, enhance significantly the well-being speaker for the 35th Annual Alabama Retail of their associates and positively influence the Day luncheon set for Tuesday, Alabama economy. The day also promotes the Oct. 18. Learn more about our study and practice of modern retailing. speaker on Pages 10-12. Alabama Retail Day began in 1982 at the The luncheon at the Vestavia Country University of Alabama main campus in Club in Birmingham coincides with Tuscaloosa. In 2006, Retail Day moved to the University of Alabama at Birmingham Collat School Birmingham under the direction of the Retail Excellence of Business’ Retail Day. The Alabama Retail Association Initiative within the UAB Collat School of Business. and Bridgestone Retail Operations also serve as hosts for * No cost for Alabama Retail board and Alabama Retail Comp trustees as Retail Day. well as Retailers of the Year, Centennial Retailers and their nominators.

By honoring the 2016 Alabama Retailers of the Year and the Visit us at alabamaretail.org Alabama Centennial Retailers, the day recognizes successful

July 2016 alabamaretail.org 3 BACK-TO-SCHOOL Three Generations of Gees Have Put the Pants (and More) on Students and Others

PLAN FOR ALABAMA’S 11TH BACK-TO-SCHOOL SALES TAX HOLIDAY AUG. 5-7

Story and photos by Melissa Johnson Warnke

4 Alabama Retailer July 2016 ack-to-school means big business for Alabama’s where he kept the pants. Before long, friends and neighbors retailers. For some, it’s second only to the holidays started shopping out of his warehouse, and the wholesale Bas the busiest shopping period of the year. Many operation gave way to retail. The business affectionately stores count on a boost in business as parents get their became known as “the Pants Store,” and the name stuck. children stocked up on clothing, electronics, supplies and Michael’s and John’s father, the late Morris “Mickey” Gee, other classroom essentials. The shopping frenzy intensifies took over the business in the 1970s, growing the inventory during Alabama’s back-to-school sales tax holiday weekend to include all types of apparel for the entire family. Michael in early August. and John purchased the company in 2008 and continue to run the business “I think it just gets together today. people really excited. member For us, the sales tax since “I can remember holiday makes a big 1992 sitting there on our difference. Outside lunch breaks, with of December, that my grandmother is probably our and grandfather, my biggest weekend dad and brother. of the year,” said Looking back on Michael Gee. that now, that was pretty special,” Michael, the Michael recalls. president and co- owner of the Pants “It meant a lot to be Store, says the The 66-year-old Pants Store doesn’t just sell pants. Its five locations sell all types of clothing and accessories able to work with for the entire family, plus gifts and outdoor items. Visit online at pantsstore.com timing of the holiday my dad every day provides his stores for a number of with a one-two punch when it comes to sales. years. Not everyone gets to see their parents every day, and that is something I am really thankful for. And now, working “We plan a tent sale around the no-sales-tax weekend and with my brother every day is a really neat experience, and clear out a lot of stuff from spring and summer. But, then I’m thankful for that, too. It is nice to be around family all again, a lot of people are already buying for fall and winter day and to be able to rely on each other and have each as well, taking advantage of the no sales tax. We sell a lot of other’s back.” stuff; it’s a great weekend for us.”

The Pants Store sells casual lifestyle clothing, shoes and Economic Impact accessories for men, women and children with such brands It’s estimated that Alabamians spent more than $1 billion on as Southern Marsh, Columbia Sportswear and more. The back-to-school shopping last year, or an average of $627 business also sells gifts and outdoor items from brands such for families with school-aged children, $961 for those with as Yeti. college-aged students.

Third Generation Retailer While retailers like the Pants Store benefit from back-to- school shoppers, the holiday is for everyone, not just those Headquartered in Leeds, The Pants Store also has locations preparing to head back to the classroom. Anyone looking in Crestline, Trussville, Tuscaloosa and Huntsville. Michael and to purchase clothes, computers, tablets, school supplies his brother, John, own and operate the business. They are and even diapers can also benefit from buying during the the third generation of the Gee family to do so. tax-free weekend. The added foot traffic in stores from the The Gees’ grandfather, Taylor Gee, started the business in holiday has increased Alabama’s August sales tax collections 1950. Working as a pants wholesaler, he built a warehouse in eight of the first 10 years of the sales tax holiday. n

July 2016 alabamaretail.org 5 Alabama’s Back-to-School Sales Tax Holiday

BY THE NUMBERS

12:01 a.m.: The time this year’s tax holiday starts Friday, Aug. 5. It ends at 12:01 midnight Sunday, Aug. 7. Plan for extended hours during the weekend. 10% Many cities and counties will also waive their local tax, The number of states, including meaning a savings of up to 10 percent in those Alabama localities. 17 Alabama, with a back-to- school sales tax holiday.

$750 OR LESS Single The number of years Alabama has had a back-to- purchases of computers and school sales tax holiday. The first sales tax holiday computer equipment with this was in August 2006. selling price are tax free. 11 The amount of tax 304 The record number of cities $50 OR LESS saved statewide on and counties that participated in Each of the qualified school the qualified items the 2015 sales tax holiday. Cities supplies can cost this amount or counties must notify the state and still be tax free. Not every For more free that they will participate item on schools’ supply list will be tax free. Place copies of resources relating to in the sales tax holiday no later than July 6. the Quick Reference at cash the sales tax holiday, registers, group tax free items in visit alabamaretail. $100 OR LESS a special display and/or create org/alabamasalestaxholidays distinctive signage for tax- Value of each item of There you will find a quick clothing customers can exempt school supplies. reference sheet of tax-exempt buy tax free during items, a downloadable promotional the weekend. poster and a primer to help guide you and your employees through $30 OR LESS Each book can be this much, and buyers pay no sales the holiday. tax. Textbooks valued at $50 or less also can be purchased tax free.

6 Alabama Retailer July 2016 OVERTIME RULE Salary Threshold for Overtime Exemption Doubles Dec. 1

BUSINESS OWNER SAYS IT’S TIME TO TAKE NOTE OF ‘DRASTIC’ CHANGE THAT IS COMING

Story and Photo by Nancy King Dennis

erry Shea, co-owner of The rule, which is effective Dec. 1, “will Wrapsody in Hoover and force us to convert some salaried TAuburn, who has worked management to an hourly wage and tirelessly to seek a delay, says most require them to clock in and out as non- Alabama businesses have yet to grasp exempt employees,” said Shea. the implications of a federal overtime The Alabama Retail Association’s regulation finalized in May. employment law partner conducted a The increase in minimum salary that June webinar explaining the implications must be paid before an executive, OVERTIME RULE of the rule for employers. A recording administrative or professional employee of that webinar, provided at no cost can be exempt from overtime more Effective Dec. 1, 2016 to ARA members, is available at: than doubles under the rule from alabamaretail.org/overtimerule/ Minimum salary threshold: $23,660 annually, or $455 a week, to a $47,476 annually, or $913 a Federal legislation could block the rule threshold of $47,476 annually, or $913 a week, 40% of Southeast wages temporarily until a more thorough week. While an increase in the threshold (lowest Census region) economic analysis is complete, but was warranted, “that’s drastic,” said Shea. the president says he’ll veto it. If a “Like most retailers, our labor costs are Threshold indexed every delay happens, it should be evident a fixed percentage of our sales, which 3 years; DOL projects 2020 by September. means we can’t just increase everyone’s threshold will be $51,168 Meanwhile, employers should evaluate salaries by such a large amount, nor Up to 10% of salary can be their workforce to determine structural can we pass the more than 100 percent non-discretionary bonuses, changes needed and proceed with increase along to our customers in the if paid quarterly caution toward implementation by the form of higher prices,” she told the U.S. last month of this year. House Small Business Committee in No change in duties test October of 2015 when the U.S. Labor The change could mean blanket Department was proposing an even Highly compensated employee reclassifications for all employees. higher threshold of $50,440 annually, or threshold: $134,004 annually, That possibility has the plaintiff bar $970 a week. 90% of full-time salaried gearing up to challenge employers workers nationally on misclassifications.

To learn more, go to alabamaretail.org/overtimerule/

July 2016 alabamaretail.org 7 MEMBER HIGHLIGHT FAMILY TRADITION ‘It’s about more than just shopping. It’s the experience.’

AUBURN BROTHERS OPERATE TWO COLLEGE TOWN BOOK/GEAR STORES

Story and Photos By Melissa Johnson Warnke

Alabama Retail Board Member Skip Johnston oversees operations at the South College Street location of J&M. His brother, Trey, runs the downtown Auburn store (photo opposite).

8 Alabama Retailer July 2016 or more than 60 years, the familiar look and feel of One of those former student employees says working at J&M Bookstore has greeted Toomer’s Corner visitors. J&M Bookstore launched a lifetime career in book sales. FGenerations of Auburn University students, alumni Terry Finley, who is now the CEO of Books-a-Million, the and fans say visiting and shopping at the store is an AU second largest bookseller in the country, worked at J&M family tradition. Bookstore to put himself through college (See Pages 10-12).

“We are truly blessed with the following that we have,” said Skip said, “We still have books, although they’re not as Trey Johnston. “People will say, ‘Y’all are the one constant popular as they used to be for us. Now, it’s the souvenirs and that I remember from my time at Auburn University.’ It’s AU gear that bring people to shop. We have parents who about more than just shopping. It’s the experience.” come here and shop. And now their kids and even their grandkids come here and shop, too.” The downtown bookstore and a second location at University Village on South College Street sell textbooks, art Skip Johnston is the newest member of the Alabama Retail supplies, Auburn apparel and souvenirs. Association board of directors. His term began Jan. 1. Skip, who holds a bachelor of science in education from Auburn J&M Bookstore was opened in May 1953 by George University, officially joined the family business in 1983. He’s Johnston and Paul Malone. In the 1960s, George bought out proud of the big Paul’s portion of the footprint the store business and since “Having a small, family-run business allows leaves on every then, J&M has been Tiger fan. wholly owned by the us to fully invest in the community.” Johnston family. - SKIP JOHNSTON It’s not just the store Today, brothers Skip itself that holds a and Trey Johnston member revered place in the own and operate since hearts of all Auburn the family business. 1992 students, past and Most days, you’ll present. The store find Trey greeting maintains a painted customers and brick wall next to the energizing fans on original location that game day at the bears the university’s downtown location, battle cry “War while Skip oversees Eagle.” It is arguably operations at the the most popular South College backdrop for Street location. photos, particularly for graduating “We love Auburn. seniors, that’s not Having a small, J & M Bookstore at 115 S. College St. and J&M II (University Village) at 1100 S. College St. in Auburn are open Monday through Saturday. Business hours vary based on the season and kick off time for Auburn officially part of family-run business University football games. Visit online at jmbooks.com Auburn’s campus. allows us to fully invest in the community. It’s especially fun around here in the While the landscape of downtown Auburn and Auburn fall when alumni come back,” said Skip Johnston. University continues to change, the Johnstons say they have no plans to change the look of J&M. Between the two stores, 35 people are gainfully employed. “A lot of people depend on J&M. We have people who’ve “Those shingles out front have hung on the building for worked for the business for 50 years. And we have a lot of more than a century,” said Trey. “It’s important to maintain college students who work for us as well,” said Skip. that presence.” n

July 2016 alabamaretail.org 9 FEATURED MEMBER

Book Curator By Nancy King Dennis

AN INTERVIEW WITH Terry Finley President and Chief Executive Officer of Books-A-Million Inc.

Photo By Brandon Robbins “There is a lot about our company, ’ve only done one thing in my life,” Terry Books-A-Million CEO which people … Finley said surrounded by the objects of his Terry Finley will tell the don’t know. It “Ichosen profession. What Terry does is sell books. story of Books-A-Million is a fascinating on Oct. 18 when he will be “In 1972, when I graduated from high school, I went to work family story, the keynote speaker for for George Johnston at Johnston and Malone Bookstore and I want to the 35th Annual Alabama (see story Pages 8-9) in Auburn, Alabama,” Terry said tell it.” Retail Day luncheon. See among the stacks at the Brookwood Village Books-A-Million details, Page 3. - TERRY in Birmingham. “I paid my way through college, working 40 hours a week in a book store.”

After earning a degree in communications from Auburn University, Terry became an assistant book buyer for Rich’s The Books-A-Million story is almost 100 years old, and every Department Store in Atlanta, working for Faith Brunson, page was written in the state of Alabama. who at the time was the president of the American “This is a great place to stay grounded,” Terry said. “We don’t Booksellers Association. anticipate ever leaving Alabama.” “I became a publisher sales rep after that stent, and then “Clyde W. Anderson started the business in 1917 in Florence, began working in a Gateway Bookstore in Knoxville, Alabama,” he said. “He built a newsstand out of old piano Tennessee, a chain of 60 stores, which ultimately were crates” to sell newspapers and magazines to the workmen bought by the predecessor of Books-A-Million. I ended up building what is now Wilson Dam. going to Books-A-Million 31 years ago,” said the president and chief executive officer of the second largest bookseller “The family is the same family that owns Books-A-Million in the country. today,” Terry said.

And other than a brief interlude as a national sales manager The four sons of Charles C. Anderson Sr., the founder’s son, for a New York publisher, Terry has been with Books-A- each run one of the Anderson Companies. Million (BAM) ever since. Clyde B. Anderson, executive chairman of Birmingham- A Family Story based Books-A-Million, “is the retail brother,” said BAM’s Terry plans to tell the story of Books-A-Million on Oct. 18 CEO. Terry Anderson heads Florence-based TNT Fireworks, when he will be the keynote speaker for the 35th Annual the largest U.S. distributor of fireworks and sparklers. “The Alabama Retail Day luncheon (See Page 3 for details). older brother, Charlie, has a wholesale business (Anderson Media) that primarily services Wal-Mart stores with books, “There is a lot about our company, which people would be magazines, music and more,” said Finley. “The youngest interested in and don’t know,” he said. “It is a fascinating son, Harold, runs the publishing division,” Anderson Press, family story, and I want to tell it.” Continued on page 12

THE ESSENTIALS

Founded Mentors Wisdom Shared 1917 Charles C. and If you love what you See more Clyde B. Anderson do, no work is too hard, of this story at alabamaretail.org Number of no challenge too great, Employees Smart Move no setback is beyond 5,190 nationwide; Coming home to recovery. Instead, 1,092 in Alabama Books-A-Million the rewards are even more sweet. Learning Moment My year in New York City!

July 2016 alabamaretail.org 11 Continued from page 11 “We find ourselves today in a very different place which publishes children’s than where we were 30 books, sells coin and years ago, but the book stamp collecting supplies business is back. People and memory preservation have decided that those such as photo and devices maybe weren’t quite scrapbook albums. as exciting as they thought. “Mr. Anderson Sr., our Booksellers are thriving, chairman emeritus, is a both the independents and wonderfully supportive, the chains,” Terry said. amazing entrepreneur who According to the American is still very active in all of Booksellers Association, the businesses,” said Terry. Birmingham-based Books-A-Million has 258 stores in 31 states, including 20 in Alabama. It employs 5,190, including more than 1,000 in Alabama. The company was founded in 1917 in the number of independent The story of how he built Florence. Learn more at booksamillion.com bookstore locations rose the businesses earned to 2,311 in May of 2016, Anderson Sr. a Horatio Alger Award in 2015. compared with 2,227 at the same time in 2015. During the Terry credits Charles C. and Clyde B. Anderson for nurturing depths of the recession in 2009, the number of independent his career. locations had dwindled to just 1,651.

“I have had the great support and mentoring of the Books-A-Million, the second largest chain in the country, Anderson family,” said Terry, who served Books-A-Million as operates some 260 stores in 31 states, employing more than a merchandising vice president, president of booksamillion. 5,000 with more than 1,000 in Alabama. com, executive VP and president and chief operating officer Terry emphasizes that BAM stores aren’t just about books. before becoming president and chief executive officer in 2011. “Increasingly book stores have become gift stores, and stores “I like to joke; it only took me 28 years to get there,” he said. that are very responsive to what is going on in the popular culture,” he said. The Book Business is Back Books-A-Million sells “books in every format imaginable. Public vs. Private We sell hard cover, paperback, mass market paperback, “We have evolved in a lot of different directions as a digital and e-readers,” Terry said. At the Brookwood store in company,” Terry said. Birmingham and one in Portland, Maine, you can even have a What Books-A-Million sells and how the company sells it isn’t 40- to 800-page book you wrote printed or have a hard-to- the only change. find book written by someone else printed. The company also has gone from private to public and back In the 31 years Terry has been with the company, the industry to private again. has changed significantly. “When we went public (in 1992), we did that to fund a rapid “Books have probably been the most dramatically affected expansion,” said Terry. “At that point in time, super stores had commodity by the internet,” he said. just become the rage, and we wanted to grow quickly to When mega-online-retailer Amazon began in 1995, the become competitive in the markets that we serve.” first product it sold was books. “We had to face that reality By December of 2015, Books-A-Million had again become a a long time ago before most businesses had to face it. We private company. have found ways to keep our stores relevant.” Terry said. Next came the digital era “with reading devices and people “As the business has evolved, we determined that it would be migrating from not buying physical books as much and better and give us more flexibility to be a private company reading on devices,” he said. again. Frankly, as a private company, we will save a lot of money, because it is expensive to be a public company,” Terry said. n

12 Alabama Retailer July 2016 RETAIL ADVOCATES Alabama Retail Association Brings the Voice of Retail to Capitol Hill

Story and Photos by Melissa Johnson Warnke

etailers need to work together to make our Bromberg and Shea were joined by Alabama Retail’s Vice voice heard. If we don’t speak up for ourselves, Chairman Jacob Shevin, president of Birmingham-based “R I promise you no one else is going to do it,” Standard Furniture; Immediate Past Chairman George said Ricky Bromberg, president of Bromberg and Co. and Wilder, owner of The Locker Room in Montgomery and chairman of the Alabama Retail Association’s board of Auburn; President Rick Brown; Vice President Alison Hosp; directors. Bromberg was one of seven people representing and Melissa Warnke, ARA’s manager of communications the Alabama Retail Association who recently traveled to and engagement. Washington, D.C., for the “You can only share so Retail Advocates Summit. much in a letter,” said The Summit, hosted Shevin, who attended by the National Retail the Summit with ARA Federation, took place May for the second time this 23-25. Retail advocates year. “When you get to and business owners tell a story face-to-face from throughout the with our lawmakers, they country came together get to hear firsthand how to meet with members legislation affects small of Congress about issues businesses in the state that are critical to a thriving of Alabama.” retail industry. During the Summit, ARA board members Terry Shea, Ricky Bromberg, George Wilder and Jacob Shevin traveled Alabama Retail met to Washington, D.C., in May to make the voice of retail heard. Bromberg was named individually with Sens. a Top 5 Finalist for Richard Shelby and Jeff the America’s Retail Sessions and Reps. Robert Aderholt, Bradley Byrne, Gary Champion of the Year award. Founded in 1836, Bromberg’s Palmer, Martha Roby, Mike Rogers and Terri Sewell. In the has the distinction of being the oldest retailer of any kind meetings, the ARA team focused on the new overtime salary in the state of Alabama, and the oldest continuously, family threshold (see story, Page 7), sales tax parity or “efairness,” owned and operated retailer in the United States. and Americans with Disabilities Act lawsuit abuse. Shea was also honored as a Retail Champion, one of 41 small “There are so many new bills, rules and regulations that are U.S. retailers noted for their advocacy involvement. coming down, specifically the new overtime rule. I think it’s To learn more about these Retail Champions, go to important that we give them our expert opinion on how it’s alabamaretail.org/news/brombergsheachampions/ going to impact us at store level or street level. We are the experts in our field,” said Terry Shea, co-owner of Wrapsody Inc. and an ARA board member.

July 2016 alabamaretail.org 13 Member News

THE NAMEDROPPER GREENVILLE SUPER FOODS WARE JEWELERS MARKS CELEBRATES 75TH YEAR IS BUSINESS OF THE YEAR ANNIVERSARY MILESTONE

member member member since since since 2014 2000 1994

Photo: The Greenville Advocate.

NameDropper celebrated its 75th Super Foods of Greenville is the Greenville Ware Jewelers is 70 years old. Owners anniversary with a special ribbon- Area Chamber of Commerce’s Ronnie and Tina Ware marked cutting in April. Opened in 1941 as 2016 Distinguished Business of the the milestone for the Auburn- Bronson’s in downtown Montgomery, Year. President and Chief Operating based jewelry chain by offering the traditional children’s clothing stores’ Officer John Wilson accepted the special discounts during April, the name and owners have changed. Shea award during the chamber’s annual anniversary month. and Sid Schroll bought it in 1984 and banquet in February. “Over the “The celebration was a chance for now operate it along with their son years, Super Foods has donated us to communicate how appreciative Brian and his wife, Gina. The Schrolls hundreds of thousands of dollars we are of our customers who have combined NameDropper with their back into our community in money supported us for 70 years,” said Tina. baby store Storkland. and goods,” said Tracy Salter, second vice president for the chamber. The Wares recently renovated their Today, the two stores occupy a shared “It is a business that … recognizes downtown Auburn location. The space on EastChase Parkway. Besides the support of the community it three-story jewelry store sits on special occasion outfits for weddings serves by striving to go above and the same spot as the original store and portraits, the store boasts a trained beyond to be a positive force in the opened in 1946 by Ronnie’s parents, staff of children’s shoe fitting experts area.” Wilson is a member of the Lamar and Libby Ware. Ware and a large selection of furniture and Alabama Retail Association board Jewelers has three other locations – accessories for an infant’s nursery. of directors. Visit facebook.com/ Tiger Town in Opelika, the Shoppes Visit namedropperkids.com superfoodsofgreenville/ at EastChase in Montgomery and Eastern Shore Centre in Spanish Fort. Visit warejewelers.com IN MEMORIAM: JERRY GLOVER BEASLEY, 1934-2016

member since Beasley’s Inc. President Jerry Glover Beasley, a former Alabama Retail Association chairman and 1992 Alabama Retail Comp trustee, passed away April 29 at his Ozark home at the age of 81. Jerry served as ARA’s chairman from 2005 through 2006 and served on its board for 20 years. He was an ARC trustee from 1996 to 2009. Two of his sons, John and Bob, continue to run the Honda Yamaha Kawasaki Suzuki dealership, which their father operated for 52 years. Memorials may be made to the Ozark Baptist Church, 282 S. Union Ave., Ozark, AL 36360; or to the American Cancer Society, 3054 McGehee Road, Montgomery, AL, 36111. Visit beasleysinc.com

For more member news, visit alabamaretail.org.

14 Alabama Retailer July 2016 SHARING THE PASSION Salon Owners Invest in the Next Generation

Story and photo by Melissa Johnson Warnke

t’s been nearly 25 years since hairstylists Michelle haircare products from the two brands they’re loyal to – McGough and Paula Lecher first met. The two were Redkin and Pureology, as well as gifts. working under the same mentor at the same salon – I “We love shopping ourselves, so we love going to market that just happened to be in the same building that’s now and picking out items for the shop. Our customers are home to Salon Allure. always busy. We thought, ‘Why not give them the chance to While the two went on to work at different salons for several pick up a gift for a birthday or party while they’re here?’ We years, they reconnected in 2003, and soon after, bought even wrap it for them,” said Michelle. The boutique area also the building where they first worked. Together, they opened includes displays from local companies and artisans. Salon Allure, a full-service beauty salon and spa in Huntsville. Michelle and Paula focus on training new hairstylists, “We have both been hairstylists for several decades,” bringing their story full circle. In the same way the two were Michelle said, sharing a mentored nearly 25 laugh with Paula. “We years ago, the veteran member know a lot about the since hairstylists value salon business.” 2004 the chance to pay it forward. “And when you do something for more “We love getting than 30 years,” Paula students to come added, “you build a lot work for us once they of relationships, too.” graduate. We get to train them and see Paula and Michelle them succeed. It’s describe styling clients’ exciting,” Paula added. hair for prom, doing their hair for a wedding “We enjoy sharing a few years later and our time and our then giving those same Michelle McGough and Paula Lecher own Salon Allure at 821 Regal Drive SW in Huntsville. passion with the The salon is open from 9 a.m. to 7 p.m. Mondays, from 8 a.m. to 8 p.m. Tuesday through clients’ children their Friday, and from 8 a.m. to 5 p.m. Saturday. Visit online at salonallurehuntsville.com next generation,” said first haircuts. Michelle. And their commitment to training, “People come in shaking our hand, and in the end, we end Michelle says, translates to a better experience for Salon up hugging. We believe in getting to know our clients and Allure customers. “Our team of professionals is constantly offering them the best in customer service,” said Paula. “We challenging themselves with the latest styles, trends, have so many people who come here who’ve been coming treatments and services.” for several years.” Read this story online at alabamaretail.org/news/ Aside from typical salon services, Salon Allure also includes member-profilesalonallure/ a large boutique-style retail selection. They sell professional

July 2016 alabamaretail.org 15 FOR PROFIT AUDIT ABUSE Legislature Starts Audit Reform; Regulation May Be Next

Story by Nancy King Dennis. Photos by Melissa Johnson Warnke

on’t just take what they tell you and write them The new law also requires for-profit auditors to present a a check.” signed and dated contract upon entering a business and a local government official to sign off on any final assessment “DThat’s the advice Woody Baird of The Sure or forced collection. Shot in Alexander City gives to anyone facing an audit by unregulated, for-profit auditing and collecting firms working Alabama Retail President Rick Brown said ultimately, “we on behalf of Alabama’s cities and counties. may need to look at a regulatory board or commission to oversee this In May of 2013, an member industry.” Further auditor with one since legislation could of the firms came 2016 be brought in into his 18-year-old future sessions. business to conduct a sales tax audit. Baird cautions that “They were here for fighting an audit has two or three weeks, a cost. He points and they told us we to the business owed them $12,487,” owner who testified Baird said. before legislative committees during After paying an Woody Baird (above), owner of The Sure Shot in Alexander City, says the session. accountant and unregulated, for-profit auditors need retraining to better understand the state’s tax laws. “Don’t just write them a check,” he advises. Pictured taking up his and right: Charlie Ferguson. Charlie Ferguson, his wife’s time for owner of Alabama four months, the Bolt and Supply assessment “got down to zero.” in Montgomery, shared how a for-profit firm subjected his business to an audit that dragged on for two years. Auditors “As we were going in and dissecting this, the amount kept assessed him $95,000 in local sales and use taxes. At that coming down,” he said. “The auditor didn’t understand the point, Ferguson had to hire a lawyer. After two more years tax law.” and $45,000 in attorney costs, the final assessment was During this year’s regular session, the Alabama Legislature, just $136. at the insistence of Alabama retailers like Baird and others, “They come in and tell people, ‘You owe this money.’ But took a first step toward reining in such abuses by for-profit they don’t,” said Baird. “And a lot of people just write them a audit firms. check to get them off their back.” Effective Jan. 1, 2017, only auditors with a four-year Have you been abused by a for-profit auditor? Go accounting degree who have completed a certification to alabamaretail.org/auditabuse to tell us your story program administered by the Alabama Local Tax Institute in confidence. of Standards and Testing (ALTIST) can conduct such audits. Starting Oct. 1, the certification program must include a For more information on the new law, go to course on customer relations and professional courtesy. alabamaretail.org/auditabusereform

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July 2016 alabamaretail.org 17 Welcome New Members

306 BBQ Greenbrier B.D.E. LLC CMJ Fitness LLC Operations LLC FAIRHOPE ENTERPRISE MADISON Bailey’s BBQ Inc. Crestline Bagel Co. Inc. 365 Parts Direct LLC LANETT MOUNTAIN BROOK VESTAVIA Barragan Co. LLC Crimson Spirits LLC A Slab and More LLC WETUMPKA TUSCALOOSA DEMOPOLIS Bern, Butler, CTE Truck and Tire Inc. Aarvi LLC Capilouto & Massey PC MONTGOMERY FAYETTE MONTGOMERY Cyn Shea’s Complete Founded 2013 Aarya LLC Big B Bar-B-Que Inc. Catering Inc. featured new member HAMILTON ALEXANDER CITY HUNTSVILLE OWNERS/BREWERS: BLACK Acapulco Inc. Big City Toys LLC Daphne Rental Center Inc. Jason Spikes, Joe WARRIOR TALLASSEE MOBILE DAPHNE Fuller, Eric Hull BREWING Advanced Dental Big Daddy’s Grill LLC D’armond Catering LLC (pictured), Wayne Solutions Inc. FAIRHOPE HOOVER CO. LLC MOBILE Yarbrough Birmingham Psychiatry David Vess TUSCALOOSA Alabama Colon Pharmaceutical ARDMORE NUMBER OF EMPLOYEES: 8 & Gastro PC Studies Inc. Dekalb Animal HUNTSVILLE BIRMINGHAM Hospital LLC LOCATION: 2216 Alabama Dental Bomarc Inc. FORT PAYNE BIRMINGHAM University Blvd., Holdings LLC Devdarsh Inc. HOOVER Tuscaloosa, AL Bon Secour Tire & ATHENS 35401 Alabama Ophthalmology Automotive Service LLC Dixie Trailer Works Inc. Associates PC BON SECOUR NEWTON BIRMINGHAM MEMBER SINCE: Boosters Inc. Donna Hill Alabama Physical MONTGOMERY FLORENCE Jan. 31, 2016 Services Inc. Boyd’s Marine Inc. BIRMINGHAM Donna J Madden DOTHAN IRVINGTON Allen & Barbour LLC Boys & Girls Clubs of BIRMINGHAM Dothan North Alabama Inc. Ophthalmology PC American Behavioral HUNTSVILLE DOTHAN Benefits Managers Inc. Bradford B Liles, Dmd PC BIRMINGHAM Downtown Car Care Inc. THEODORE MOBILE American Oak Inc. Brooke R. MONTGOMERY Dr. Michael D. Irwin PA Uptagrafft, MD PC MONTGOMERY American Wholesale HUNTSVILLE Distributors Inc. Drake’s Place Buffalo St 2 LLC PELHAM Diner Etc. LLC HAYNEVILLE CHANCELLOR Angel’s Island Coffee LLC Byte Size Inc. HUNTSVILLE Duda Energy LLC BIRMINGHAM DECATUR Asian Cuisine Inc. Cahaba Oaks OPELIKA Bar & Grill LLC PINSON Capstone Veterinary Hospital PC TUSCALOOSA Chen & Wong Inc. BIRMINGHAM Claiborne Foods LLC MONROEVILLE 18 Alabama Retailer July 2016 East Montgomery Genesis Dental Huntsville Golf Club LLC Lions Hospitality LLC Odyssey Skate Animal Hospital LLC Group Foley PC HUNTSVILLE FLORENCE Center LLC MONTGOMERY FOLEY HUNTSVILLE Icing Creations LLC LLH Kids LLC Eastbrook Tire Geny Inc. MONTGOMERY HOOVER Old Black Bear and Auto Center Inc. GADSDEN Brewing Co. LLC Indie Film Lab LLC Los Cabos II Inc. MONTGOMERY MADISON Gilbert Orthodontics PC MONTGOMERY MONTGOMERY Edwards Grocery LLC BIRMINGHAM Otis & Clyde LLC Jasper Family M & B Management Inc. JACKSONVILLE TUSCALOOSA Glory Days Grill LLC Practice Center PC AUBURN Ekadanta Inc. BIRMINGHAM JASPER Palmetto Management M. Scott’s Bakeries Inc. HAZEL GREEN Gourmet 2 Go LLC Jennifer Tran HOMEWOOD Group LLC BIRMINGHAM EKM Enterprises Inc. AUBURN SPANISH FORT Majestic Catering FLORENCE Papa Roc’s LLC Griffith Enterprises Inc. Jeter Ventures LLC Services Inc. MONTGOMERY El Sombrero Mexican RAINSVILLE DOTHAN BESSEMER Restaurant LLC Paradise Lanes Inc. Gulf States Insurance JHR Companies LLC Mandh LLC PRATTVILLE RAINBOW CITY Group LLC AUBURN OPELIKA Enational Insurance AUBURN Pete’s Store Inc. Jin Yao Lin Mcclellan Park Agency Inc. TROY Guthrie’s Tigertown LLC JASPER Merchants LLC MOBILE OPELIKA ANNISTON JMP Enterprises Inc. Picasso’s Grill LLC Estes Pegram & MADISON Haleyville Medical MONTGOMERY Mckinney, Braswell Associates Inc. Associates Inc. & Butler LLC Pike Road VESTAVIA JP Keros Inc. DOUBLE SPRINGS VALLEY HUNTSVILLE Butcher Block LLC Faler Golf LLC PIKE ROAD Halter LLC MGM Kobe Inc. PINSON JSK Hospitality LLC TUSCALOOSA TUSCALOOSA MONTGOMERY Postal Pies LLC Federer Fertilizer Inc. TUSCALOOSA Hans LLC Michael F. Carter, MD PC CULLMAN Keith Gray OPELIKA FLORENCE HUNTSVILLE Postmark Ink Inc. Five Mobile LLC FAIRHOPE Hartselle Finance Inc. Mike and Susan Grayson MOBILE Kevin Reilly Inc. HARTSELLE MONTGOMERY DEMOPOLIS Five Star Enterprises LLC HBT Supply LLC Mike Byrd CALERA Kopp Medical LLC DOTHAN MOBILE EUFAULA Friendship Foods Inc. Hemby Foods I LLC MTPM LLC AUBURN La Familia LLC DAPHNE SPRINGVILLE MOBILE Gardendale Health Hinds & Co. LLC Lake Guntersville Murali Inc. Mart Pharmacy TUSCALOOSA HANCEVILLE GARDENDALE Chamber of Huatulco Mexican Commerce Inc. O Town Ice Cream LLC Gary Parra Restaurant Inc. GUNTERSVILLE OPELIKA CORDOVA WINFIELD Lake Martin Mini Mall LLC Occumed Hughes Cremation ECLECTIC Urgent Care LLC Center & Funeral MONTGOMERY Las Palmas Mexican Services Inc. Restaurants Inc. DAPHNE FAYETTE Layton Huskey LLC AUBURN Legghorns LLC GUNTERSVILLE Lindsey Office Furnishings Inc. BIRMINGHAM

July 2016 alabamaretail.org 19 Professional Collision River Region Depot LLC Springhill Family Trends and Treasures Services Inc. MONTGOMERY Dentistry LLC Gift Shop LLC MOBILE MOBILE SEMMES Riverside Restaurant Inc. Professional Engineering FLORENCE Steven Johnson Triple Dynasty LLC Groups Inc. FALKVILLE BIRMINGHAM Rosato’s Inc. TRUSSVILLE HOOVER Stewardship Investment Triple J.M. LLC Pyramid Industrial Inc. ENTERPRISE Rose Tag LLC Planning LLC DECATUR BIRMINGHAM HUNTSVILLE Troy Family Medicine PC Quadriga LLC TROY Rosegate Design Inc. Straight to Ale LLC MOBILE HUNTSVILLE BIRMINGHAM Tuggle Hardware Inc. R. David Roden Jr., WINFIELD Rosie’s Gourmet Street’s Inc. DMD MD PC BAY MINETTE to Go Inc. Tuscaloosa Library BIRMINGHAM ANNISTON Sweetcreek Bindery LLC Radhy-Krishna LLC TUSCALOOSA Ross Foods LLC Farm Market LLC HANCEVILLE PIKE ROAD FLORENCE United Bank Radiology Associates ATMORE S. Baker Medical Inc. Tanner Tilak LLC of Dothan PC RAINSVILLE MOBILE Universal Solutions DOTHAN S.J. Holmes LLC Thai One On LLC Initiative Inc. Railroad Cafe LLC PELHAM ANNISTON HUNTSVILLE BESSEMER Sachchidanand LLC The Fitzgerald Inc VY MGM LLC Rashmi LLC DORA HUNTSVILLE MONTGOMERY MILLBROOK Sai Hospitality LLC The Furniture Wayne Rolling Ric & Moe’s LLC AUBURN Shoppe LLC LUVERNE MONTGOMERY HENAGAR Salon 505 Inc. Windwood-Winfield LLC Riptide LLC DAPHNE The Lunch Pail LLC WINFIELD DAPHNE HUNTSVILLE Scott Street Inc. Women’s MONTGOMERY The Sure Shot LLC Comprehensive ALEXANDER CITY Healthcare LLC Siddhi Hospitality LLC BIRMINGHAM DECATUR The Surgery Center LLC OXFORD You’re Awesome LLC Simply 10 TUSCALOOSA BIRMINGHAM Thorsby Dental Clinic LLC THORSBY Sky Castle LLC BIRMINGHAM Three Sixty LLC AUBURN SMG Enterprises LLC MARGARET Three States LLC BROOKWOOD Smith, Dukes TNT Outfitters LLC featured new member Founded 1927 & Buckalew, LLP MOBILE MILLBROOK DBA RUSSELL City Drug Son Co Inc. Toothbuds at Lagoon DOTHAN Park LLC PHARMACY LLC OWNER/PHARMACIST MONTGOMERY MONTGOMERY Hamp Russell Son’s of Arley LLC ARLEY NUMBER OF EMPLOYEES: 10 Southeast Alabama Gymnastics LOCATION Academy Inc. 11 Dexter Ave., DOTHAN Montgomery, AL Southern Pain 36104 Control Center Inc. MONTGOMERY MEMBER SINCE Southern Visions LLP Dec. 3, 2015 LOXLEY

20 Alabama Retailer July 2016 Q&A Affordable Care with employment law expert Jamie Brabston Act Explained

Am I required to provide health insurance for my ACA says coverage provided must be affordable. employees under the Affordable Care Act (ACA)? What is affordable? The ACA employer mandate does not actually REQUIRE all If an employee’s share of the premium does not cost the employers to offer health coverage to its employees and employee more than 9.66 percent of that employee’s their eligible dependents; however, the law penalizes certain annual household income, the coverage is “affordable.” That employers who do not “play.” percentage is indexed annually. The original percentage was 9.5 percent. If an employer offers multiple healthcare The deadlines to “play or pay” were as follows: coverage options, the affordability test applies to the Jan. 1, 2015 – Employers with 100 or more Full-Time (FT) lowest-cost, self-only option available to the employee. The employees or Full-Time Equivalents (FTEs) coverage must also meet the minimum value requirement. Most employers use the W-2 safe harbor, rather than the Jan. 1, 2016 – Employers with 50 or more FT employees household income method. This safe harbor is met if the and/or FTEs employee’s portion of self-only coverage does not exceed Employers with 50 or more FT employees or FTEs are 9.5 percent of their Form W-2 wages, as reported in Box 1. considered applicable large employers, or ALEs. What is the minimum value requirement? Apparently, my definition and the ACA’s definition of A plan provides minimum value if it covers at least 60 full time differ. What does ACA consider full time? percent of the total allowed cost of benefits that are A full-time employee under the ACA is generally someone expected to be incurred under the plan. The Health and who works an average of 30 hours per week, OR 130 hours Human Services Department and the IRS provide a in a calendar month, which would be treated as equivalent minimum value calculator. By entering certain information to 30 hours/week. about the plan, such as deductibles and co-pays, employers What is a full time equivalent? can get a determination as to whether their plan provides minimum value. A full-time equivalent is NOT an actual employee. Rather, the number of “full-time equivalents” is based on a formula At the request of the Alabama Retail Association, Jamie M. provided by the IRS. To calculate “full-time equivalents” for Brabston, senior counsel with Lehr Middlebrooks Vreeland ACA, an employer must look at the aggregate number & Thompson, P.C., prepared explanations of key terminology of hours worked for each month for all non-full-time and processes related to the Affordable Care Act to make employees. A “non-full-time employee” is one who is not the law more understandable for retailers. For the full regularly scheduled to work 30 or more hours/week. document, go to alabamaretail.org/AffordableCareActTerms/ An employee who is not a full-time employee under this For more information, visit alabamaretail.org standard (including a seasonal employee) for a given month is taken into account in the FTE calculation. This includes “variable hour employees,” or someone who is simply part time. July 2016 alabamaretail.org 21 Socially Speaking THE POSTS YOU MAY HAVE MISSED

Get social with us! “One person, one Talk to us about the phone call, one photos, resources, retail updates and member conversation can news we share. make a difference. /Alabama Retail It’s why our membership @AlabamaRetail matters.” Stay informed at - RICKY BROMBERG alabamaretail.org

Legislative Advocacy – one of the reasons #MembershipMatters with the Alabama Retail Association. Explore the benefits, and join us today! #AlabamaRetail March 30

Traveling for business this summer? On a vote of 23-11, the Alabama No one gives better advice Senate passes HB174 about men’s clothing than to preempt mandated George Wilder at The Locker local minimum wages Room of Montgomery. and benefits. Governor Watch as he demonstrates to sign the bill into law a NO WRINKLE solution for before Birmingham’s $10.10 folding or packing your suit minimum wage becomes jackets. June 2 video effective. Feb. 25

Alabama Retail Association board member Terry Shea is quoted in The Wall Street Journal on the new overtime ruling. #TBT to last year’s Retailer of the Year Awards. March 31 May 19

RECENTLY TWEETED @ALABAMARETAIL Small businesses represent 98% of retail companies #NationalSmallBusinessWeek #DreamSmallBiz May 5

22 Alabama Retailer July 2016 AUTOMATIC BANK DRAFT

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Avoid Accidents by Investigating Near Misses

Have you felt a surge of adrenaline of a larger problem. Report these • Who was involved? — only to shake it off a few minutes incidents so they can be investigated • Where and when did the incident later? Have you looked at what before serious injury or property take place? happened and thought, “That could damage occurs. have been a lot worse than it was?” • What exactly happened? INCIDENTS THAT SLOW THE JOB If so, you’ve likely suffered or seen a DOWN. If something unplanned and • How did it happen? And perhaps “near miss.” For every worker fatality, undesired occurs that makes it more most important, as many as 10,000 unsafe acts occur. difficult for you to do your job, ask • Why did it happen? This last piece Identifying and investigating these yourself whether something more of information may be critical incidents may prevent others that serious is going on. to preventing the incident from cause large-scale property damage or NEAR MISSES. Even if no one was happening again. serious injury or death. hurt and nothing was damaged, Don’t stop once you have identified Here’s what to be aware of: could the incident have been more one cause; most accidents have more serious? If you’d been standing in a MINOR ACCIDENTS OR INJURIES. If than one cause, and it’s important to different place, or passed through a sawing and a piece kicks back at you address them all. moment later, would you be in the and causes a bruise, that accident hospital now? Could the incident ©2016 BLR® - Business & Legal Resources may not be anything you think twice happen again? about. If you’re operating a forklift and For more safety resources, visit run up against a barrier while turning, Report minor incidents or near misses alabamaretail.org/safety/ you might think it was a simple matter to your supervisor and describe of isolated operator error and let it what happened. go. Both cases may be a warning

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MEMBERSHIP MATTERS Alabama Retail: The Leading Voice and Resource for Retailers in Our State MORE THAN 4,100 BUSINESSES ALREADY KNOW WHY.

Whether voicing the retail view when public policy is made, negotiating rates for benefits and services or communicating the retail story, the members of the Alabama Retail Association are better together.

Be like these members and take advantage of all your association has to offer. Visit us at alabamaretail.org

Legislative Clout Low-Cost Credit Card Processing “The Alabama Retail Association has been a great “No one can touch CHECKredi®’s rate. We like doing resource to help us to stay up to date on legislation coming business with folks we can talk to.” through the pipeline on a state and federal level. I am George Wilder, The Locker Room always impressed with how quickly they can respond to In-Depth Communication questions and how knowledgeable they are on such a “Alabama Retail does an excellent job of assisting small broad range of topics.” business owners in navigating the complex environment Jacob Shevin, Standard Furniture involved in operating retail stores in Alabama. Always Cost-Effective Workers’ Compensation Coverage readily available and quickly responsive, the ARA is “Alabama Retail Comp provides quick, accurate and an incredible resource, providing many tools that are helpful responses to employers and employees on invaluable in our store operations.” workers’ comp claims.” Margaret Hamm, Monograms Plus Darwin Metcalf, Western Market