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THE SALES SLIP A Member Service of Vermont Retail & Grocers Association (802) 839—1928 | [email protected] | vtrga.org | @vtrga

JOIN US ON TUESDAY, FEBRUARY 7TH VRGA’S ANNUAL LEGISLATIVE DAY AT THE CAPITOL

Meet with State Legislators and constitutional officers, including Governor Phil Scott, House Speaker Mitzi Johnson & Senate President Pro Tem Tim Ashe. Lt. Governor David Zuckerman has been invited. SCHEDULE OF EVENTS 8:30 am 9:30 am 10:00am

12:00 pm

Registration & Coffee Meet with Governor Phil Scott Hear from Legislative Leadership Lt. Governor David Zuckerman (tentative), House Speaker Mitzi Johnson - D, South Hero, and Senate President Pro Tem Tim Ashe - D, Chittenden Cnty. Luncheon @ Capitol Plaza 100 State St. Montpelier

Be sure to register at: 2017legday.eventbrite.com This event offers attendees a unique opportunity to learn more about the legislative process, meet key lawmakers and receive updates on important issues before the General Assembly. It also provides a great networking opportunity for all!

This event is made possible by our generous event sponsors

2017 Legislative Session Begins

After a full week of pomp and circumstance, the legislative session is back in full swing. New leaders have been confirmed, House and Senate Committees have been identified and legislators, whether seasoned or new, will settle in for the next 15+ weeks to tackle agendas set forth by leadership and the new Administration. As stated in the first 2017 VRGA legislative update from Shouldice & Associates the 82nd Governor of Vermont, Phil Scott, was sworn into office, as was Lt. Governor David Zuckerman, State Treasurer Beth Pearce, Attorney General TJ Donovan, Secretary of State James Condos, and State Auditor Doug Hoffer. The tone and tenor of the first days of the Legislative Session were of excitement and a renewed faith that with a new Governor and Legislative Leadership, Vermont is going to get back on track. A common theme could be heard in the speeches of three of the State’s new leaders. Governor Scott’s inaugural address touched on the shrinking workforce and the inability to find strong workers, the rising costs of education with a declining enrollment, and an overall drive to right state government. New House Speaker Mitzi Johnson – D-South Hero, Immediately after taking over the Speakership, made several changes to the jurisdiction of issues that some House Committees will oversee. She explained that her hope is these changes will lead House members to “evaluate state government and prioritize what Vermonters most need.” And finally, the new Senate President Pro Tem Tim Ashe – D/P- Chittenden Country, succinctly described the dichotomy of two different Vermonts and the significant challenges that many Vermonters face. Stepping back from the discussions during the first week of the legislative session one came away with three different political views urging legislators to work toward very similar outcomes – a more prosperous and stronger Vermont. The struggle over the next 15+ weeks will be how the new Republican Governor, a moderate Democratic House Speaker and a Democratic Liberal Senate President will lead their colleagues to get the same outcome while walking down three very different paths.

Clarification on VISA Debit Screens In our December Sales Slip, we included an article about the National Retail Federation applauding VISA for ending their practice of steering debit card transactions to the VISA Debit screen. With the recent EMV shift in liability, VISA introduced confusing screen prompts on POS terminals when VISA-branded chip debit cards were inserted. The prompts typically ask the cardholder to pick one of two options for routing: VISA Debit or US Debit, causing some confusion on which option to choose. We wanted to clarify that while VISA reversed their practice many retailers or your customers may still see the screen with the two payment options. At this time, it is unclear whether that screen will go away with a new update or whether a new certification will be required and VISA had been cryptic in their messaging. However, VISA has clarified that merchants are able to steer customers to choose the US Debit option. VRGA suggests that you encourage your customers to choose the US Debit option because VISA’s interchange fees are higher than the interchange fee of the US Debit option. In addition, if your customers would like to receive cash back when using a debit card, they must choose the US Debit option because VISA does not allow the option for cash back. The Durbin Amendment in the 2010 Dodd Frank Act requires debit card issuers of any size to offer merchants a choice of at least two unaffiliated networks for transaction routing. In response to this amendment, VISA appears to have passed on the option to the consumer of which network to use. VAICS Private Facebook Group Page “Vermont Alliance of Independent Country Stores - VAICS” is available to help with important idea exchange and networking among retailers, Kevin Neubert of the Belmont General Store helped us set up a private VAICS facebook page for members.

To participate, just request to join and an existing group member can add you in. Based on the ideas that Troy Kingsbury shared at a recent meeting, the exchange promises to be well worth your time. He is a walking encyclopedia of ideas to increase sales and promises to share some on a regular basis. Internet-tax case could change online shopping The U.S. Supreme Court rejected a case recently that could lead to states’ collecting billions of dollars in sales taxes lost to increasingly popular internet retailers.

the rule has been widely ignored. States have spent years examining ways to capture those lost tax dollars, but their options are limited when the retailers are based out of state. Sales taxes account for about a third of revenue in many states, more in those with no income taxes, such as Texas and Florida. And with online sales going up about 15 percent a year, states increasingly are feeling the effects of those taxes going unpaid.

Reminders:

The court declined to hear a challenge to a Colorado law requiring online sellers such as Amazon to notify customers and the state how much they owe in taxes. State officials have estimated that Colorado alone has been missing out on as much as $172.7 million a year.

Vermont’s Minimum Wage Increased on January 1 The Vermont minimum wage rate has increased from $9.60 per hour to $10.00 per hour effective on January 1, 2017. Vermont law requires that employers post the minimum wage rate. You can find the minimum wage poster here.

At least three other states — Louisiana, Oklahoma and VERMONT — have passed similar laws that could take effect given the resolution of the Colorado case.

Vermont’s Paid Sick Leave Law Is In Effect—Have Questions? Effective January 1, 2017, under the new Paid Sick Leave law, employees will be able to earn up to twenty-four hours (three days) of paid leave per year in 2017 and 2018, and up to 40 hours (five days) per year in the years following. The new law exempts businesses with 5 full time employees until January 1, 2018. Additional exemptions apply to various types of employees. Review the PowerPoint slides from VRGA’s members -only webinar and the FAQs at vtrga.org/ MemberResources. If you need assistance logging in, please contact the VRGA office at [email protected] or 802-839 -1928.

Though the court didn’t endorse Colorado’s law and could even weigh in against it if given a different case, other states are likely to see the move as a green light to step up collection efforts. That comes despite a 1992 Supreme Court decision saying retailers must have a physical presence in a state before officials can make them collect sales tax. Online shoppers have owed state sales taxes on their purchases, but

Employment Tax Due Dates Generally, employers must report wages, tips and other compensation paid to an employee by filing the required form(s) to the IRS. You must also report on the taxes you deposit. Tax season is right around the corner. If you have employees, below are some forms that need to be filed by January 31 (Note new due dates for Tax Year 2016 Form W-2, Wage and Tax Statement, and Form 1099, Miscellaneous Income with Box 7 entries)  Employer’s Annual Federal Unemployment (FUTA) Tax Return. However, if you deposited all of the FUTA tax when due, you have 10 additional calendar days to file.  Employer’s Annual Federal Tax Return, for the previous calendar year instead of Form 941 if the IRS has notified you in writing to File Form 944.  Annual Return of Withheld Federal Income Tax, to report any nonpayroll income tax withheld in the previous year. If you deposited all taxes when due, you have 10 additional calendar days to file. See Nonpayroll Income Tax Withholding under Reminders in Publication 15 for more information.

 Forms W-2, Wage and Tax Statement, with Form W-3, Transmittal of Wage and Tax Statements, or file electronic Forms W-2, with the Social Security Administration to report wages, tips and other compensation paid to an employee. For information on reporting Form W-2 information to the SSA electronically, visit the SSA Employer W-2 Filing Instructions & Information Web page. See SSA Publication No. 42-007 for help in electronically filing Forms W-2.  Form 1099, Miscellaneous Income, with Form 1096, Annual Summary and Transmittal of U.S. Information Returns, or file electronic Forms 1099, Miscellaneous Income with the IRS, when you are reporting non-employee compensation payments in box 7.See IRS Publication 1220 for help in electronically filing Forms 1099. Need to be filed by February 28  Employer’s Annual Information Return of Tip Income and Allocated Tips, with the IRS. See section 6 of Publication 15. For electronically filed returns, see By March 31 below.

Need to be filed by March 31  File electronic Form 1099, other than those with entries in box 7, (see By January 31 above)  and electronic Form 8027 with the IRS. (See Publication 1220 for help in electronically filing Forms 1099 and Publication 1239 for help in electronically filing Forms 8027.) Need to be filed by April 30, July 31, October 31, and January 31  File Form 941, Employer’s QUARTERLY Federal Tax Return, for the fourth quarter of the previous calendar year. If you timely deposited all taxes when due, you have 10 additional calendar days from January 31 to file the appropriate return. Universal Recycling Refresher The Vermont Department of Environmental Conservation (DEC) recently released it’s first “Universal Recycling Status Report.” The 16-page report summarizes the status of recycling, composting, and food donation across the state. The law requires recycling of "blue bin" recyclables (paper, cardboard, steel and aluminum cans and tins, glass bottles and jars, and plastic bottles and containers #1 and #2) and not disposing of leaf and yard debris, clean wood and food scraps over a six-year timeframe. To view the full report, go to: bit.ly/VURL_Dec2016 Judge tosses lawsuit against Philadelphia soda tax A Philadelphia judge has dismissed the beverage industry's lawsuit against the city of Philadelphia over the so-called soda tax in a 14-page decision. But the fight is far from over since an attorney for the plaintiffs says an appeal is coming. Judge Gary S. Glazer dismissed the complaint "in its entirety," ticking off the argument lawyers for the city had previously told the Business Journal was the crux of its case. Referred to as the Philadelphia Beverage Tax, or PBT, Glazer said the city's sugary beverage tax does not duplicate the Pennsylvania's sales and use tax, violate the state Constitution's Uniformity Clause, nor force SNAP beneficiaries to spend the program's funds on the sales tax.

Characterizing the ruling as a victory for the city, not just the administration, Mayor Jim Kenney issued a statement that implored the beverage industry should take this as a sign that it is not worthwhile to pursue further litigation. Read More at bit.ly/PASodaTax Country Stores of Vermont: A History & Guide A supplement to the "Country Stores of Vermont" book has been release It's meant for significant changes (openings and closings, new phone/fax numbers, new email/websites, new owners, etc.) that will affect how people visit the stores. Since the next edition of the book won't be for another five years, store folks can email me with any significant changes so I can include them. An ebook edition is on Amazon; the new print edition appeared in November. Find our more at countrystoresofvermont.org Weakening grocery volume puzzles analysts U.S. grocery sales continued to slump in December, as deflated prices remained but volume slowed on top of it, painting a puzzling picture of weakening demand, an analyst recently told Supermarket News. For the four weeks ended Dec. 18, International Retail Institute said dollar sales were down by 1.7% and volume was down by 2.3% for U.S. grocery stores, excluding mass merchants like Walmart. That marked the second-weakest monthly sales growth figure since 2010 when BMO Capital Markets began tracking such data, BMO analyst Kelly Bania told Supermarket News in an interview. The only worse month was November of 2013 during which numbers were affected mainly by a Thanksgiving calendar shift. For the three-month period, volume is down by 1% on a 0.8% decline in dollar sales, IRI figures showed. Burt P. Flickinger III, managing director for Strategic Resource Group, suggested that a heavily promotional holiday for department stores and mass merchants may have drawn some dollars away from grocery in the December period. Relatively light promotions from consumer goods companies may also have kept store traffic down, he suggested. Many CPGs, Flickinger said, have been putting less support into promotions and more toward everyday pricing programs.

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vtrga.org/benefits & vtrga.org/services

MONTHLY TIP BY:

DOL OT Rule Update Nov. 22, 2016, the DOL’s overtime rule was halted by a preliminary injunction, issued by a federal judge. The rule, which was to take effect Dec. 1, 2016, would have increased the salary threshold for “white collar OT exemptions” to $47,476. Dec. 1, 2016, the DOL filed an appeal of the decision. Final briefs on the appeal are due Jan. 31, 2017. Employers should continue watching for new developments, given the uncertainty. Until a final decision is reached in the case, employers can rely on existing OT exemption rules. Employers that have already adjusted to comply with the new rule may find it difficult to reverse any changes; however, employers may decide to postpone any changes that have not yet been made. For employers looking to stop salary adjustments, consider employee morale before rescinding changes. HR is a valuable resource for communicating any changes.

Supporters of the rule are committed to what they describe as fair increases in the OT exemption salary threshold; but, the DOL may be facing an uphill battle in implementing the changes. In his ruling, sided with the parties challenging the rule when resolving the case. He stated that, in issuing the rule, the DOL “exceeds its delegated authority and ignores Congress's intent by raising the minimum salary threshold such that it supplants the duties test.” It is also possible that President-elect Donald Trump could take executive action to block the rule, but it is not clear what approach he would take. If the court strikes down the rule, further action may be unnecessary. Although changes may not take effect for some time, employers must comply with current regulations. In preparing for the rule, many employers have discovered that employees may have been misclassified, which is an issue that must be addressed to avoid violating FLSA regulations.

Scheduling Reform Pushes Its Way into the Retail Industry Businesses in New York City may see scheduling and hours reform as part of their future. It’s too early to tell what the outcome will be, but city lawmakers have proposed new legislation that would address this issue and require employers to offer employees more predictable schedules, according to the Wall Street Journal. There are six bills, focused on low-income, hourly workers in the retail and food services industries. Legislation of this nature is being proposed in cities nationwide.

Retail Tips & Trends:

NEWS

Visual merchandising is an important component of retail store success; how products are displayed in a store drives sales. How your store looks is sometimes more important that what you are selling. Is your store entrance inviting? Are your fixtures and wall standards easy to access?

That formula consists of these five simple goals: 1. Create Excitement 2. Stimulate All Five Customer Senses 3. Create A Successful Floor Plan 4. Know Your Shopper Demographics 5. Be Inspired By Others

BRIEFS

How To Create Great Visual Merchandising for Retailers According to Design:retail magazine, “visual merchandising takes your consumer from the retail display to the cash register. Encouraging sales through creative color and commercial retail design is a key element to keeping a customer interested.” So what does this mean for you as a store owner?

All of these questions are key to success when you’re attempting to create a space that customers want to shop and spend time – as well as their money. Land more loyal customers in 2017 by learning the basics of visual merchandising and how to build a formula to keep your store fresh and exciting for all your customers.

IF YOU HAVE NEWS ABOUT YOUR BUSINESS, BE SURE TO SHARE IT WITH US AT [email protected] We send our condolences to the family and friends of Martha Dwyer. Martha formerly owned the Ginger Tree in Rutland until she retired just over 2 years ago. She was a long time VRA board member up until the merger of VRA and VGA.

The VRGA Legislative Fund is used to ensure decision makers in Montpelier hear your voice consistently throughout the legislative session

The option to support our legislative efforts is included on your annual membership renewal invoice. However, you are welcome to make a donation anytime throughout the year by calling 802-839-1928 or sending a check with the memo simply stating: Legislative Fund Contribution.

A special thank you goes out to the 31 MEMBERS who contributed to VRGA’s legislative efforts in 2016

Associated Grocers of NE - Cambridge Village Market - Cartier's Meats - Clark's Quality Foods - Coburns' General Store - Coca-Cola Bottling Co of NNE - Craftsbury General Store - Crossroads Discount Beverage & Deli - Crossroads Travel Center Davis Family Deli Provisions - Derby Village Store - Dorset Union Store - Hannaford General Office - Harborside Harvest Market - Jiffy Mart - Jimmy Kwik Store - Kamuda's Supermarket - Lipton Energy - Marty's 1st Stop - Mehuron's Market - North Bennington Variety - Pearl Street Beverage - Pump & Pantry - River Road Beverage - Rivers Edge Quik Stop - Small City Market - Stowe Mercantile - The Morgan Country Store - The Village Butcher - Village Peddler - Wayside Country Store - Will's Store.

VRGA Board Chairman Todd Keyworth, his wife Lisa and the staff of Harborside Harvest Market spent Christmas day volunteering their time to serve guests at the Islands in the Sun Senior Center in Alburgh. The team prepared and serve a luncheon of ham, scalloped potatoes, green bean casserole, and homemade pies. Congratulations to Todd and the entire Harborside crew for a job well done. We were sorry to hear that Jim Heal of the Putney General Store passed away from after a short battle with cancer. Over the years, the Putney General Store had faced adversity in it’s 220 year old history. The Putney General Store, is believed to be the oldest continually operating general store in Vermont. We send condolences on the passing of Jim, and send best wishes as the Putney General Store works to re-open after a transition. Sam Adams, owner of Pump & Pantry installs a 200-panel rooftop solar array from SunCommon and shares that “We went solar because we have a duty to do what we can to be responsible stewards of the environment. Gasoline is a necessity of life here in rural Vermont – we accept that. But, it doesn’t mean we can’t do what we can to be more energy and fuel-efficient.” When the new Maplefields opened up at Exit 7, Assistant Manager Chris Johnson underestimated the number of employees he would need. He had figured on 16 - a and now he's up to 19 and is still hiring. Cambridge-based Runamok Maple, a maker of all-natural, organic maple syrup, including a collection of barrel-aged, smoked, and infused maple syrups,

announced the acquisition of Brattleboro's Bascom Maple Farms’ maple candy operation. Effective immediately, the candy operation of Bascom Maple Farms, consisting of maple candy and maple butter, will be owned by Runamok Maple and operated under the name of True North Maple. Phoenix Books made a stand against hunger this holiday season by matching customer donations - up to $5,000 - to the Vermont Foodbank between Thanksgiving and December 24th. SPROUT launched by member, Vermont Community Loan Fund will provide a low-interest, deferred payment loan program for working lands entrepreneurs. The new financing program was created to meet the capital needs of Vermont farms, food producers & processors, foresters, forest products businesses and others in the start-up and early stages of operations. New VSFA member, Full Sun Company was the first approved borrower. Congratulations to Bove’s as they celebrate their 75th anniversary and work toward nearing the end of construction on their new location in Milton, VT, which is expected to open soon. VSFA Member Lake Champlain Chocolates release 4 new organic products in collaboration with VRGA member Citizen Cider and companies Mad River Distillers, Heavenly Honey Apiaries & Blue Bandana Chocolate. Costco was named 1 of the 10 best retail companies to work for in 2017 according to businessinsider.com

What’s next for YOU AND YOUR BUSINESS?      

Suggest to us a topic you would like to see offered at an event or as a webinar Connect with fellow members on social media, by mail by requesting a complete member address list or at an event Update your business page on vtrga.org (add images, categories, contact information, or business description) Advertise on the website, in the monthly sales slip newsletter or in our legislative e-updates Be a sponsor at one of our upcoming events or contact us about a new event opportunity Enroll in one of many money saving programs listed on vtrga.org/ benefits & vtrga.org/services

Tell us how we can best help you achieve success! Email [email protected] or call (802) 839 - 1928

SEEKING

Klinger's Bread Co. is starting to shop around for sales entry/invoice creation/Accounts receivable software and wondering if anyone has recommendations to share? If you have a system that works for you, email Andy at [email protected]

JOB OPENING

Momo’s Market (formerly the Willard Street Market) is hiring a General Manager. Momo’s Market is a growing market located in Burlington’s Old North End. Their goal is to create a vibrant, lively place for neighbors and community members to connect. The General Manager will be a key position during their second year of operations. The General Manager is responsible for daily operations and will work closely with the owner to create a thriving small business that meets the needs of the neighborhood and community. An ideal candidate will have 2 - 5 years of experience in a small business, retail setting including specifically operations, employee management and vendor relations. This is a 28 - 32 hour per week position. Pay commensurate with experience. For a full position description and to apply please send resume and references to [email protected].

Upcoming DLC Training Classes for Second Class Licensees To register for any of the DLC seminars, visit: https://secure.vermont.gov/DLC/eventreg or call 802-828-2339

Welcome to the following businesses that recently joined the Vermont Retail & Grocers Association

Welcome to the following businesses that recently joined the Vermont Specialty Food Association

Buxton’s Store (Retail) Andrew Buxton Orwell, VT 802-948-2112

Full Sun Company David McManus Middlebury, VT 802-377-3541 Fullsuncompany.com

Five Stars (Associate) Lillian Nguyen San Francisco, CA Fivestars.com

Douglas Sweets Debra Townsend 802-881-6617 douglas-sweets.myshopify.com

Upcoming Events Legislative Day & Luncheon February 7 Montpelier, VT

Food & Beverage Tasting Reception February 21 Montpelier, VT

VRGA Convention & Expo April 27 & April 28 Burlington, VT

NEW ADVERTISING OPPORTUNITIES AVAILABLE    

Connect with us:

148 State Street Montpelier, Vermont 05602 and at vtrga.org RETURN RECEIPT REQUESTED Since 1934

VRGA will once again be sending a weekly legislative email update, as well as holding bi-weekly calls, beginning in January.

RSVP for the Legislative Day & Luncheon: Tuesday, February 7th 2017legday.eventbrite.com

VRGA IS YOUR RESOURCE FOR LEGISLATIVE UPDATES

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