Yearend ReportBankcard volume tops half-billion markMichigan Retailers Association continued growing in size and financial strength during the fiscal year ending June 30, 2002. But the sputtering economy and tough retail climate—made worse by the September 11, 2001, terrorist attacks and their aftermath—slowed the Association’s rate of growth from that of previous years.
Growth in bankcard processing, Michigan Retailers’ largest member service, was significantly stronger. Processing volume reached a new milestone as it topped the half-billion-dollar mark for the first time. Volume reached $536.9 million by June 30, an 8-percent increase over 2001. That pushed Michigan Retailers’ gross sales to $559.8 million, also an 8-percent boost. Although the increase in gross sales was less than the 16- and 18-percent increases of the previous two years, it continued to strengthen Michigan Retailers’ financial position and market clout. “In 2002, MRA was not immune from the economic slowdown hurting retailers and other businesses, large and small,” said Larry Meyer, chairman and CEO. “But more important, the Association continued to grow in size and financial strength in order to better serve retailers. The stronger the Association, the more it can do to help members reduce costs and improve performance.” James P. Hallan, president and chief operating officer, noted that management acted decisively early in the budget year to reduce spending in order to maintain net revenues and avoid more drastic cuts later in the year. The result was an 11 percent increase in membership equity and no reductions in service to members. “This past year, MRA has done more with less, producing membership and revenue growth without adding—and, in some cases, without replacing—personnel,” said Hallan. “The result was another successful year for MRA and continued enhancement of the organization’s ability to serve the membership.” Other key accomplishments for 2001-02 included: • In the Capitol, passage of sales tax simplification legislation that provides a critical first step toward ”leveling the playing field” for Main Street retailers. MRA also won passage of legislation prohibiting the possession of devices designed to defeat stores’ theft-detection equipment. • Growth in the new Electric Choice program. As of June 30, the service was covering 84 members’ electric meters and providing participating stores with projected annual savings of $300,000. • Bankcard-processing growth through the addition of six community-bank partners and one association partner. • A 3.5-percent overall rate reduction for Retailers Fund workers’ compensation insurance, which helped generate 59 new members in the program. Retailers Fund also achieved its 20th consecutive year of paying dividends to participants and its third consecutive year of providing an 8.75-percent premium credit to all participants. • A contract to provide legislative services to an additional association. • The awarding of 15 college scholarships totaling $12,250 to students affiliated with MRA-member stores. • Continued growth in the Michigan Retailer of the Year Awards program, which recognizes outstanding community involvement, and the Michigan Centennial Retailer program, which honors retail business’ longevity. • Release of a study by the Federal Reserve Bank of Chicago, MRA’s partner on the monthly Michigan Retail Index survey, showing the value of the Index to retail |
Membership
grew to 5,674 members, a 1-percent increase. Although 831 retailers joined
the Association, net growth was hampered by the number of members retiring
or otherwise going out of business. Membership had grown by more than
2 percent in 2001 and 12 percent in booming 2000.