Newsletter | October 8, 2024 | |
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WR President & CEO elected Chairwoman of the Council of State Retail Associations
Renée Sunde, President and CEO of WR, has been elected Chairwoman of the Council of State Retail Associations (CSRA) during its annual Membership Meeting in Stowe, Vermont, on August 28, 2024.
Sunde, who has served on the CSRA Board of Directors since 2021 and held key leadership roles such as Vice Chairwoman in 2023 and Secretary-Treasurer in 2022, will lead the CSRA from September 1, 2024, to August 31, 2025.
The CSRA serves as a crucial communication hub for state retail associations, focusing on legislation and regulations that impact the retail industry. Under Sunde’s leadership, the CSRA aims to continue supporting state retail associations by sharing legislative strategies and best practices, ensuring that retailers nationwide are well-equipped to navigate the evolving policy landscape.
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Crystal Leatherman promoted to Director of Local and State Government Affairs
Washington Retail Association (WR) is proud to announce the promotion of Crystal Leatherman to Director of Local and State Government Affairs. The promotion reflects Crystal’s outstanding contributions in her first year as the Local and State Government Affairs Manager, where she demonstrated exceptional leadership, legislative expertise, and a strong commitment to advancing the association’s advocacy priorities.
Since joining WR, Crystal has quickly become an integral part of the team. She has been successful in building coalitions among key stakeholders, including lobbyists, state agencies, and retail member companies; driving the organization’s mission forward.
“Crystal’s legislative mastery and adaptability have been key assets to our team,” said WR President and CEO Renée Sunde. “Her ability to effectively communicate through written reports, oral testimony, or coalition-building efforts, has significantly enhanced WR’s impact in both our local and state government affairs efforts. We are excited to see her leadership grow in this new role.”
With a focus on future challenges, Crystal will play a pivotal role in WR’s efforts to enhance its grassroots advocacy and develop innovative solutions to support the retail community across Washington. Her commitment to high-quality work and leadership will continue to drive WR’s mission to advocate for a vibrant and thriving retail industry.
Please join us in congratulating Crystal Leatherman on her well-deserved promotion to Director of Local and State Government Affairs.
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King County Summit launches new partnerships and resource hub to combat organized retail crime
On October 2, 2024, the first-ever King County Public Safety Summit on Organized Retail Crime (ORC) convened in Redmond, Washington, bringing together regional leaders, law enforcement, business executives, and prosecutors to address the escalating threat of retail theft. Hosted by Challenge Seattle in collaboration with the Washington Retail Association. The summit marked a significant step toward fostering a long-term public-private partnership aimed at combatting organized retail theft throughout King County and beyond. Challenge Seattle Report.
The event featured a diverse range of speakers, including former Governor Christine Gregoire, U.S. Attorney Tessa Gorman, Nordstrom CEO Erik Nordstrom, and King County Prosecutor Leesa Manion. These leaders discussed the complex nature of ORC, which has become one of the most pressing public safety challenges in Washington State. According to the Retail Industry Leaders Association (RILA), Washington State faced more than $2.7 billion in retail theft in 2021 alone, making it the second-highest state per capita for these crimes.
|  | One of the summit's most anticipated outcomes was the launch of the Organized Retail Crime Resource Hub, presented at the event by WR’s President & CEO, Renee Sunde. This new online platform is designed to help businesses and law enforcement partners collaborate more effectively. The resource hub offers tools to share information across jurisdictions, improving the coordination of efforts to detect and prevent criminal activities before they strike again. By streamlining communication and providing a central repository for best practices, the hub aims to be a key asset in reducing organized retail theft across the Puget Sound region. The resource hub can be accessed at ORCResourceHub.org. |  | |
The success of this inaugural summit lays the foundation for further statewide efforts to curb ORC, with the potential for the strategies and solutions developed to be shared with other counties and presented to the Washington State Legislature for broader implementation. By leveraging collective resources, the public-private partnership formed at the summit aims to create a safer environment for businesses, employees, and communities across Washington.
Fox13 Leaders discuss organized retail theft at King County Public Safety Summit
Komo News Washington business leaders push for partnerships against organized retail theft
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Introducing the Organized Retail Crime Resource Hub: A collaborative tool for fighting ORC
WR, in partnership with Challenge Seattle and WAORCA, is proud to unveil the Organized Retail Crime (ORC) Resource Hub. This online platform was developed to combat the increasing threat of organized retail theft by providing a centralized source of resources, tools, and best practices for retailers, law enforcement, and community stakeholders.
The ORC Resource Hub allows users, from retailers to prosecutors, to access training materials, share information across jurisdictions, and implement coordinated efforts to prevent, detect, and prosecute ORC. By streamlining communication and centralizing critical resources, this tool supports safer communities and more efficient crime prevention.
We have designed the ORC Resource Hub with a widget tool that can easily be linked to your own company website. If integrating the ORC Resource Hub on your company’s website aligns with your audience needs, you can request access by clicking the "Get Started" button in the widget section here.
By working together—sharing strategies, knowledge, and resources—we can develop a robust defense against ORC. Success will require the commitment and action of policymakers, retailers, the criminal justice community, and the public.
ORCResourceHub.org
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Nordstrom CEO singles out King County as retailer's 'worst area' for theft nationwide
Published in the Puget Sound Business Journal, Opinion
By Jared Nieuwenhuis – Bellevue city councilmember
Sep 10, 2024
King County has earned the unfortunate distinction as Nordstrom Inc.'s (NYSE: JWN) worst market for retail theft nationwide.
That's what CEO Erik Nordstrom told a room oflaw enforcement officers, politicians and prosecutors at a summit on retail crime held on Microsoft's campus in Redmond last week. Nordstrom's King County stores make up about 3% of the luxury department store retailer's global footprint and account for 10% of its companywide losses due to theft.
"We're born and raised here and huge homers when it comes to anything local," Nordstrom said. "Unfortunately, King County is our worst area for this. It's a big financial headwind."
Across the country, retailers have reported sharp increases in theft since the onset of the pandemic, with organized groups often taking tens of thousands of dollars of goods from a string of stores at once. Such theft totaled nearly $3 billion of merchandise in Washington state in 2021, per the Retail Industry Leaders Association, a national retail trade group.
Some retailers, such as Target and Goodwill, have cited losses from theft when closing stores in Seattle.
The summit in Redmond was organized by Challenge Seattle, the civic-minded coalition of private companies in the area led by former Gov. Chris Gregoire, in addition to the Washington Retail Association, Seattle Metropolitan Chamber of Commerce, Bellevue Chamber and Sound Cities Association.
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Seattle City Council passes bills to restrict prostitution and illegal drug activity
On September 17, the Seattle City Council approved legislation aimed at curbing illegal prostitution and drug dealing in specific areas of the city.
Councilmember Cathy Moore sponsored CB 120836, which gives the City the authority to create Stay Out of Area of Prostitution (“SOAP”) zones. The first SOAP zone, established under this legislation, encompasses Aurora Avenue North (including two blocks east and west) from 85th Street to the city’s northern border at 145th Street. This legislation targets those who promote prostitution or purchase such services while offering additional support for victims of the sex trade.
Similarly, CB 120835, introduced by Committee Chair Bob Kettle, authorizes the City to establish Stay Out of Drug Area (“SODA”) zones. Initially, two SODA zones were created: one in the Chinatown-International District and another downtown, covering areas north and south of 3rd and Pine. Amendments approved by the Public Safety Committee added SODA zones in Belltown, Pioneer Square, Capitol Hill, and the University District, and expanded the Chinatown-International District zone. An amendment by Councilmember Rob Saka also requires judges to consider an offender’s residence, place of employment, and location of service providers when crafting a SODA order. This legislation was drafted by Seattle City Attorney Ann Davison.
Both pieces of legislation passed with an 8-1 vote, with Councilmember Tammy Morales casting the sole vote against. The bills now move to Mayor Bruce Harrell, whose spokesperson stated that he is "supportive of additional tools to help keep neighborhoods safe."
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Seattle retailers face significant minimum wage increase in 2025
On October 4, the Seattle Office of Labor Standards (OLS) announced that the minimum wage will rise to $20.76 per hour on January 1, up from $19.97.
For employers with fewer than 500 employees, the increase could be even more impactful. Prior to 2025, those employers could get a credit of up to $2.72 per hour for medical benefits provided to employees, effectively lowering their minimum wage to $17.25. However, that total compensation credit, which also includes credit for tips, will expire on December 31, 2024, unless the City Council takes action to extend it.
This $3.51 hourly increase poses a challenge for many smaller retailers. In response, WR is collaborating with the Washington Hospitality Association and other organizations to urge the Council to extend the total compensation credit.
WR wants to hear from Seattle retailers about how this minimum wage increase will affect your business and employees. Your feedback will help strengthen our case for extending the total compensation credit. Please share your thoughts and concerns with John Engber, Director of the Retail Industry Coalition of Seattle, at john@johnengber.com
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Organized retail crime surge: A growing concern for Washington State
A recent report on Organized Retail Crime (ORC) highlights a troubling trend of increasing retail theft across the United States, with significant implications for Washington State. The study, conducted by the Loss Prevention Research Council, reveals that ORC continues to escalate, with 68.27% of respondents reporting an increase over the past 12 months. Notably, Washington retailers face challenges as retail crime remains underreported, complicating efforts to accurately track and address these incidents.
The report underscores the need for better data collection to understand crime trends fully, as many retail crimes go unreported to law enforcement. This underreporting varies by jurisdiction, further obscuring the true scope of ORC. While states like California and Indiana saw the most significant increases, Washington’s retail sector is not immune to these rising threats.
As ORC evolves, Washington retailers must be vigilant and proactive in addressing these challenges. The full results of this study will be detailed in a series of upcoming reports, which will also explore the changing dynamics of ORC, including the rise in violence and the impact on retail employees.
Loss Prevention Magazine
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Goodwill to close two Seattle stores amid safety and cost concerns
Evergreen Goodwill of Northwest Washington is closing its South Lake Union and University District thrift stores on September 22 due to rising safety concerns, theft, and increasing rent. Derieontay Sparks, senior vice president at Evergreen Goodwill, cited troubling incidents of property damage and break-ins, coupled with high operational costs, as key reasons for the closures.
The South Lake Union store, open since 2012, and the University District store, a community fixture since 2008, have both faced significant challenges. Proceeds from these stores, along with others in the region, fund Goodwill’s free job training and education programs, which have supported over 57,000 individuals in the past decade.
Despite the closures, Goodwill will continue offering job opportunities to affected employees and encourages community support at nearby locations in Capitol Hill and Ballard.
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NRF Foundation launches Customer Conflict De-escalation training for front-line workers
The NRF Foundation has partnered with the Crisis Prevention Institute (CPI) to launch a new 30-minute online course, Customer Conflict De-escalation. As part of the RISE Up program, this training is specifically designed to help front-line retail employees manage conflict. The course provides employees with essential de-escalation techniques to handle tense situations, reduce potential risks, and ensure a safer environment for both staff and customers.
In addition to enhancing safety, the Customer Conflict De-escalation program aims to improve the overall shopping experience by fostering more positive interactions between employees and customers. With the growing demands on retail employees to manage difficult situations, this course serves as a valuable resource in empowering staff to handle customer conflicts confidently and professionally.
Learn More
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Amazon mandates full-time office return by 2025
Amazon will require employees to return to the office full time starting January 2025, ending its hybrid work model. CEO Andy Jassy announced the change, citing the need for better collaboration, innovation, and cultural connection to deliver top results for customers and the business. Amazon's previous three-day-a-week policy, implemented in 2023, reinforced the company's belief that working together in-person is essential.
The decision aligns Amazon with other major U.S. companies, such as JP Morgan Chase, which have also reverted to full-time office policies.
Jassy also revealed plans to reduce bureaucracy, aiming to cut managerial layers and increase the ratio of individual contributors to managers by 15% by Q1 2025. He emphasized operating Amazon like a "world's largest startup," focusing on customer-driven innovation, fast decision-making, and team collaboration. While acknowledging the possibility of layoffs, Jassy's announcement underscores Amazon’s commitment to streamlining its workforce after years of rapid hiring.
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WR Leadership join BOMA Panel highlighting the essential role of retail in communities
At Bellevue Square’s Center Court, the September Membership Meeting of the Building Owners and Managers Association (BOMA) focused on the vital topic, “Why Retail is Essential to Thriving Buildings and Cities.” BOMA President Phillip Scott welcomed attendees, followed by Monica Wallace from Kidder Mathews, who moderated the panel discussion.
Panelists included Renée Sunde, CEO of the Washington Retail Association (WR); Alesha Shemwell, WR Board Chairwoman; and Heather Almond from Avison Young. They explored retail's critical role in the economy and emerging trends. Sunde highlighted retail as the largest private sector employer in the U.S., contributing $5.3 trillion to GDP, and employing 1 in 4 workers. In Washington, retail supports 400,000 jobs and generates $19.8 million in wages.
The panel addressed retailer priorities, including public safety, theft, and organized retail crime, which are impacting profitability and employee safety. Large retailers invest in security technologies, but smaller businesses struggle. In response, WR developed a Guide for Navigating Public Safety and Retail Crime.
Audience feedback praised the event as "valuable, timely, and relevant." BOMA continues its mission to enhance commercial real estate through advocacy, education, and networking.
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Crystal Leatherman appointed co-chair of key subcommittees on Attorney General’s AI Taskforce
Crystal Leatherman, WR’s Local & State Government Affairs Manager, has been selected to Co-Chair three key subcommittees for the Attorney General’s AI Taskforce:
- Consumer Protection and Privacy
- Public Safety
- Ethical & Responsible AI/AI Governance
The AI Taskforce, composed of an executive committee including state lawmakers, technology officials, academics, and industry representatives, convenes at least twice a year. Subcommittees meet more frequently to discuss specific issues and topics, which are then presented to the executive committee for consideration.
The Taskforce was established to develop guiding principles for the state’s use of generative AI, identify high-risk applications, recommend public education strategies, and address public policy concerns such as potential biases and workforce implications.
To participate in any of the AI Taskforce executive committee or subcommittee meetings, visit https://www.atg.wa.gov/aitaskforce or email AI@atg.wa.gov.
The full list of subcommittees includes:
- Education and Workforce Development
- Public Safety
- Healthcare and Accessibility
- Labor & Employment
- Government and Public Sector Efficiency
- State Security and Cybersecurity
- Consumer Protection and Privacy
- Industry and Innovation
- Climate and Energy
- Transportation
- Environment & Energy
- Ethical & Responsible AI/AI Governance
There are also opportunities to provide recommendations for ongoing committees as needed.
Crystal is WR’s AI policy lead and has developed an internal workgroup for members to discuss AI policy issues. If you are interested in learning more about how you can get involved in WR’s AI Workgroup, please contact Crystal Leatherman cleatherman@washingtonretail.org.
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Opinion: Regional collaboration is key to our economic future
Published in the Puget Sound Business Journal, Opinion
By Jared Nieuwenhuis – Bellevue city councilmember
Sep 10, 2024
For decades, the Puget Sound region has been a beacon of innovation and entrepreneurship. Our proactive leadership, clean streets and strong public safety attracted global companies, making us a hub of opportunity. In recent years, we have faced a concerning fragmentation in policies across our metropolitan areas and the greater region. Many in the business community have wondered if our best days are behind us.
Despite these challenges, I remain optimistic. The recent shift to the center in Seattle City Hall gives me hope that we can tackle pressing regional issues such as public safety, economic viability for small businesses and coherent tax and spending policies through collaboration and intentional leadership. However, this requires leaders to embrace a regional vision and align their policies to foster safer communities and economic synergy. In other words, we need leaders who decide they want these goals for our region.
Recently, in partnership with the Ethnic Chamber of Commerce Coalition, we celebrated our minority-owned restaurateurs, who understand all too well the impact of varying policies across cities on wages, gig-worker pay and regulations. The narrative that business deterrence in Seattle benefits Bellevue might hold some truth, as evidenced by Bellevue securing four of the region's five largest tech office leases this year. But these gains are temporary and do not outweigh the risks a declining Seattle poses to the entire region.
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Seattle City Council votes to put competing housing proposals on February 11th special election ballot
In February, Seattle voters will have a chance to vote on two very different proposals to create additional affordable housing in the city.
Social housing advocates collected signatures to place Initiative 137 (I-137) on the November 2024 general election ballot. The initiative would establish an “excess compensation tax” of 5% on employers. The tax would apply to compensation above $1 million paid to an employee in Seattle. Backers of I-137 expect the tax to raise about $52 million annually. Those revenues would finance the development of social housing in which a people with a wide range of incomes would live together, with higher income residents subsidizing the rent for lower income people living in the building.
The City Council voiced concerns about channeling this revenue stream to a newly-formed public development authority with no prior housing construction experience. As an alternate, the Council proposed allocating $10 million per year from JumpStart tax revenes to the public development authority for five years. According to the sponsor of the Council alternative, Councilmember Maritza Rivera, it “balances the need for innovation with the need for accountability.”
The Council voted to place both proposals on a February 11, 2025 special election ballot, removing I-137 from the 2024 general election ballot.
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L&I’s proposed 3.8% average rate increase for 2025 raises underlying concerns
Last week, L&I proposed a 3.8% average workers’ compensation rate increase for 2025, which is lower than the 5.5% overall increase their actuaries projected. L&I utilized $64 million from its contingency reserves to preserve its philosophy of steady and predictable rates.
While the business community appreciates the moderate rate increase, concerns remain over the supplemental pension fund and whether L&I has the authority to heavily favor specific risk classes over others.
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L&I data shows that the supplemental pension fund stands out with a proposed 2.8% increase, far exceeding the actuary's break-even estimate of 0.1%. In contrast, all other funds either match or fall below the actuary’s break-even projections.
Firefighters' risk classes have seen significant cost increases since the Legislature approved workers' compensation coverage for post-traumatic stress disorder (PTSD) in 2018. These risk classes now show a 30% indicated rate increase, but L&I limited the 2025 increase to 15% by drawing from contingency reserves. This trend will accelerate because the Legislature expanded PTSD coverage in 2023 to include first responders and certain nurses.
Overall, most retail-related risk classes have experienced rate increases above the average, reflecting a higher-than-average trend in claim costs. Retail Services is offering a new and improved Safety Ambassador Program to help members lower rates by building a premier safety culture to prevent injuries in the first place.
Public hearings are scheduled on Oct 28 at 10 am (hybrid) or on Oct 29 at 10 am in Spokane.
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WR launches legislative store tours
The WR team, alongside representatives from WR member North 40 Outfitters, recently hosted a tour for three state legislators from Spokane and Spokane Valley. The tour provided an opportunity for discussions on various aspects of the retail industry, including career opportunities, local economic impact, and the challenges and opportunities facing businesses in the sector.
State Representatives Jenny Graham, Suzanne Schmidt, and Leonard Christian were welcomed by North 40 staff and the WR Government Affairs team. Key topics covered during the tour included loss prevention, asset protection, employee safety, firearm sales and safety, supply chain reporting, farm animal vaccinations, and career opportunities.
The North 40 Outfitters showcase store stood out as an exemplary model of a well-run, efficient, and welcoming retail environment. Many employees at the store have been with the company for several years, with some embarking on their second careers.
WR plans to continue hosting legislators at member stores across the state to educate and inform decision-makers about the retail industry's vital role in the state’s economy and its diverse job opportunities that cater to people of all talents and abilities.
Special thanks to North 40 Outfitters for hosting our inaugural Legislative Store Tour!
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Paid Leave program celebrates 5-year milestone with over 500,000 recipients
The Employment Security Department’s Paid Leave Program marked its 5-year anniversary on July 31 at the University of Washington Tacoma. The program's success is attributed to bipartisan efforts and collaboration between businesses and labor representatives, leading to the passage of SB 5975 in 2017. Rose Gundersen, WR’s VP of Operations and Retail Services is one of the four business representatives on the advisory committee, attended the celebration alongside Governor Inslee, Senator Karen Keiser, and other advisory committee members.
ESD Commissioner Cami Feek highlighted key achievements as of the anniversary date: the program has received over one million applications and provided benefits to over 410,000 individuals, totaling more than $5 billion. The wage replacement system is designed to be progressive, offering higher benefits to lower-income workers.
Despite these accomplishments, there are ongoing challenges that require continuous improvement. Issues with program implementation have affected the employer community’s ability to respond to ESD inquiries to verify validity of claims and offer supplemental benefits. Additionally, the demand for benefits has surpassed expectations, and policymakers are considering further expansion of eligibility and benefits.
The advisory committee’s business representatives will focus on addressing these implementation challenges and supporting rate stabilization to ensure the program's sustainability. WR is proud to represent our members and the employer community in these efforts.
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WR diversity statement
WR is committed to the principles of justice, equity, diversity, and inclusion. We strive to create a safe, welcoming environment in which these principles can thrive.
We value all people regardless of race, ethnicity, gender, religion, age, identity, sexual orientation, nationality, or disability, and that is the foundation of our commitment to those we serve.
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Renée Sunde
President/CEO
360.200.6450
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John Engber
Director, Retail Industry
Coalition of Seattle
206.850.5517
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