Newsletter | November 21, 2025 | | |
A season of gratitude
WR extends warm Thanksgiving wishes to our members, partners, and the communities we serve. This season offers an important moment to reflect on the hard work and dedication of retailers across the state who support jobs, strengthen local economies, and help make our communities vibrant.
We are grateful for your continued partnership and for the commitment you bring to Washington’s retail industry every day. Thank you for all you do, and we wish you and your loved ones a safe and joyful holiday.
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IN THIS ISSUE
ON THE LOCAL FRONT
IN THE NEWS
POLICY
ECONOMY
POLITICAL NEWS
RETAIL THEFT & PUBLIC SAFETY
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Challenger Katie Wilson wins mayoral race by just over 2,000 votes
After trailing by about 8% on election night, Katie Wilson narrowed the margin in successive vote tallies until she pulled ahead of Mayor Bruce Harrell on November 10. She ultimately won by a little over 2,000 votes, slightly more than .5%.
Wilson, the founder of the Transit Riders Union, had an extensive platform during the campaign that mixed new progressive policies – including new progressive taxes – with greater government efficiency and effectiveness. With the City Council now finalizing the 2026 budget, the Mayor-elect will not have a large impact on next year’s budget.
On public safety issues, Wilson has expressed support for expanding the alternative intervention program, CARES, which responds to calls involving people confronting mental health challenges. She has also called for expanding police accountability, but her power is limited by the approved contract for the Seattle Police Officers Guild (“SPOG”).
The Mayor-elect recently announced her transition team, a director and four co-chairs.
In the meantime, President Trump fired his first salvo at the incoming mayor. Calling Wilson a “very, very liberal-slash-communist mayor,” the President urged FIFA President Gianni Infantino to pull the 2026 World Cup games from Seattle. The World Cup is the biggest sporting event ever to arrive in Seattle, with 750,000 people expected to attend the games. Earlier this year, Mayor Bruce Harrell pushed back against similar comments by President Trump.
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Seattle voters overwhelmingly approve B&O tax reform
With just shy of 71% of the vote, a measure to shift the city’s business and occupancy tax (“B&O tax”) was approved by Seattle voters. Proposition 2 will eliminate the B&O tax for about 75% of the city’s businesses and reduce the tax for another 15%. The remaining 10% of businesses – those with the greatest gross receipts – will see their B&O tax jump by about 60%. Proposition 2 is also expected to raise an additional $80 million in revenue for the city.
Proposition 2 was sponsored by Mayor Bruce Harrell and Councilmember Alexis Mercedes Rinck and backed by the United Food and Commercial Workers union. UFCW 3000 President Faye Guenther and a QFC store manager wrote an OpEd urging approval of the ballot measure. They argued that groceries generally have operate at a 2% profit margin on a very large volume of sales, generating large profits.
In an editorial urging voters to reject Proposition 2, The Seattle Times editorial board argued that the tax measure would raise taxes on a business community already dealing with $9.4 billion in new state taxes, mostly targeting businesses. The editorial board highlighted the 51% increase in the City’s operating fund over the past 7 years as the source of its budget problems.
The Downtown Seattle Association also raised alarms about Proposition 2, citing the fact that 20% of all downtown storefronts are now vacant. “Raising a B&O tax that is already the highest in the nation doesn’t solve the city’s self-inflicted spending problems,” declared the DSA in a statement.
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Seattle City Council approves public safety sales tax
The Seattle City Council has approved a 0.1 percent public safety sales tax by a vote of 8–1, a measure expected to generate about $39 million in 2026. The new tax, authorized under HB 2015, will fund public safety initiatives, including behavioral health and crisis response programs.
Mayor Bruce Harrell’s proposed 2026 budget includes $9.5 million from the tax to expand the city’s Community Assisted Response and Engagement Department (CARE), which sends behavioral health experts to crisis calls instead of police. Supporters, including Council Chair Sara Nelson, said the investment will strengthen treatment services and improve neighborhood safety.
Councilmember Maritza Rivera cast the lone vote against the measure, citing concerns over affordability and the regressive nature of sales taxes, which disproportionately affect low-income residents. Seattle’s sales tax rate, now at 10.35 percent, is among the highest in the country.
Despite the additional revenue, Seattle still faces a projected $140 million general fund deficit starting in 2027. The business and occupation tax restructuring, set for a November vote, is also expected to influence future city revenue.
The new public safety tax awaits Mayor Harrell’s signature to take effect in time to capture full 2026 revenues.
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Olympia City Council raises B&O tax to address budget deficit
Following months of analysis and community input, the Olympia City Council provided staff with direction on October 14 to move forward with Business & Occupation (B&O) tax Scenario 4, a plan designed to close the City’s $6 million budget gap while protecting small businesses.
WR commends the Council for its thoughtful approach in considering the unique realities retailers face. Prior to the vote, WR submitted a letter to council outlining the vital contributions retailers make to public revenues and the disproportionate costs they shoulder. While over 90% of retailers have less than 50 employees, they provide an uncompensated public service by collecting and remitting sales taxes on behalf of state and local governments—an uncompensated responsibility that directly supports public budgets. They also incur higher transactional costs than most other sectors due to the widespread use of credit cards by consumers.
In earlier proposals, the retail B&O tax rate was slated to double. The Council’s final decision reflects a more balanced approach—raising the retail rate from 0.1% to 0.15%—while also increasing the filing threshold to ease administrative burdens for the smallest businesses.
In addition, the Council also raised the sales tax by .1% to fund public safety with the intent to qualify for state matching funds available through HB 2015, a 2025 legislative measure that WR supported to help cities strength public safety investments.
WR thanks Mayor Dontae Payne and the Olympia City Council for engaging the business community throughout this process to preserve Olympia’s reputation as a vibrant and inclusive place to live, work, and shop.
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Bellevue emerges as a growing tech and retail hub
Bellevue, Washington is experiencing rapid growth, attracting attention as a leading city for technology and commerce. Once a small agricultural town, Bellevue has transformed into a vibrant urban center with a strong retail presence and a thriving tech scene. Companies including Amazon, Microsoft, TikTok, and OpenAI are establishing offices in the city, contributing to its fast-paced development.
Key to Bellevue’s growth has been thoughtful city planning, a focus on cleanliness and safety, and robust commercial development. The city offers ample parking, bustling office districts, and a lively mix of restaurants, bars, and hotels. Retail has remained a particularly strong sector, with Bellevue consistently ranking among the top-grossing centers in the country.
Local developers and business leaders have played a major role in shaping the city’s landscape, creating a business-friendly environment that draws both employers and residents. As other metropolitan areas face challenges, Bellevue’s combination of amenities, infrastructure, and strategic growth make it a noteworthy example of a thriving urban economy in the Pacific Northwest.
This growth highlights the city’s potential for continued success in retail, technology, and commerce, positioning Bellevue as an important hub for both businesses and consumers in the region.
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Empower your business and the industry – become a Washington Retail Association member
Washington Retail Association has released The Retail Advantage, a membership guide now available that highlights how WR protects and advances retailers statewide. Members gain proactive advocacy, real-time policy alerts, compliance support, and access to valuable resources. The guide highlights how WR engages in coalition efforts addressing public safety, AI policy, employment law, and initiatives that strengthen the retail workforce.
Members say the value is real. North 40 Outfitters calls WR “a trusted and essential partner.” Drees says “small business voices are heard.” Brookfield Properties praises “a strong, unified voice in Olympia.”
Explore the new guide and consider joining to add your voice, connect with experts, and equip your team with tools that help your business and community thrive.
The Retail Advantage, A Guide to Membership
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WA lawmakers will join WR to attend NRF’s State Legislative Leadership Experience for the first time
WR and a group of Washington State legislators will attend the 2026 NRF State Legislative Leadership Experience, held during the National Retail Federation’s Big Show in New York City. This marks the first time Washington will participate, as previous Big Show dates have coincided with the start of the legislative session.
The NRF State Legislative Leadership Experience brings state lawmakers from around the country to experience an immersive look into the size, strength, and innovation driving the retail industry. Last year, legislators from across the country toured major retail stores to gain firsthand insight into how retailers create jobs, invest in communities, and address challenges such as retail theft and evolving consumer needs.
During the multi-day experience, lawmakers will attend NRF’s Big Show events, explore new retail technologies, and engage in policy discussions with industry leaders on key issues including organized retail crime, data privacy, AI, and supply chain resiliency.
Washington’s participation in 2026 represents an exciting opportunity to strengthen collaboration between retailers and policymakers and deepen their understanding of the industry’s role as a major economic engine for the state.
Register to attend
Retailers, claim your free expo pass
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Time to “Re:” Think Your Marketing Emails: Washington’s Expansive Subject Line Ruling
and Its Nationwide Implications
By Stephanie A. Sheridan, Meegan Brooks, and Kennedy Dickson
November 13, 2025
In the six months since the Washington Supreme Court issued Brown v. Old Navy, the state’s Commercial Electronic Mail Act (“CEMA”), RCW § 19.190.020(1)(b), has quickly emerged as what may be the largest threat to online retail in years.
More than thirty CEMA class-action lawsuits have been filed in Washington since Brown. Most of these suits are driven by a growing list of out-of-state lawyers, some of whom are even seeking admission to the State Bar to invest further in these cases. These new class actions attack a broad range of promotional email practices, including: emails that promote “limited time” deals that are later extended, offer “free gifts” that are contingent on undisclosed purchase requirements, or even trick customers into thinking they will get a better deal on their purchase through commonplace “%-off” language. This litigation trend extends beyond Washington: plaintiffs’ attorneys in Maryland and California are already mobilizing under parallel laws, as at least sixteen other states have similar laws.
Legislative Background
Washington enacted CEMA in 1998, during the infancy of commercial internet use. At that time, consumers often paid per-minute connection fees, and each unwanted or misleading email imposed tangible costs in time and money. The legislature’s purpose was to reduce these burdens by prohibiting deceptive or disguised commercial communications.
Under RCW § 19.190.020(1), it is unlawful to send a commercial email to a Washington resident that either: (1) conceals or falsifies the sender’s identity, or (2) contains false or misleading information in the subject line. For retailers who send emails—or even those that assist with their transmission—from a computer located in Washington, every single email sent nationwide is a potential violation.
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Boiler rules update under review
The Board of Boiler Rules and the Washington State Department of Labor and Industries are reviewing potential updates to the state rules that govern boilers and pressure vessels. The review focuses on rules in chapter 296 104 of the Washington Administrative Code and aims to align state standards with national safety practices while clarifying and modernizing existing requirements.
The proposed updates would refine several parts of the rules. They include adding or revising definitions, clarifying inspection requirements for low-pressure boilers, extending inspection intervals for organizations that operate and maintain their own equipment, and outlining new expectations for boiler operation and maintenance. Labor and Industries is also considering fee increases that would follow the fiscal growth factor for fiscal year 2027. A preproposal notice was filed in October and, if adopted, the final rules would take effect in July 2026.
Stakeholders are encouraged to follow and participate in the rulemaking process. Study and board meetings are scheduled for November 18 and 19 and additional opportunities for comment will follow after the proposed rules are filed in January. A public hearing is planned for late February, with final adoption expected in April. More information is available on the Labor and Industries website.
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Department of Revenue updates webpage and resources for new sales tax law
The Washington State Department of Revenue (DOR) has updated its webpage to provide clearer information about the new sales tax law, ESSB 5814. The changes were made following feedback from the Business Advisory Council and additional input from community and business leaders.
To help businesses better understand and comply with the law, DOR has created several new resources, including an updated webpage, an informational flyer, and a short awareness video. These materials aim to make the requirements easier to navigate and share with business owners across the state.
The Department encourages organizations and community partners to distribute these resources to ensure businesses are informed and prepared. More details and materials are available on the DOR website.
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Paid Family and Medical Leave premiums to rise 23% in 2026
The Washington State Employment Security Department has announced new Paid Family and Medical Leave (PFML) premium rates beginning Jan. 1, 2026. The total premium rate will rise to 1.13 percent of each employee’s gross wages, up from 0.92 percent in 2025. Employers will contribute 28.57 percent of the total premium, while employees will pay 71.43 percent.
For employers, the 23% rate increase from 2025 to 2026 represents an additional $608 in annual PFML taxes for every $1 million in payroll. An employer with a $17 million payroll would therefore pay approximately $10,000 more per year. For workers earning the 2024 average wage of $95,000, the increase amounts to roughly $56 more in annual PFML premiums.
Businesses with fewer than 50 employees are not required to pay the employer portion but must continue collecting employee premiums or pay them on behalf of workers. Employers should begin withholding the updated rate from wages paid on or after Jan. 1, 2026, and note that the Social Security wage cap will increase to $184,500. First-quarter premiums using the new rate will be due by the end of April 2026.
The Employment Security Department will release updated employer resources by the end of November, including new guides, posters, and paystub inserts. Additional program updates include expanded job protections, clarified health care benefit requirements, and changes to small business assistance grants.
More details and resources can be found at paidleave.wa.gov/employer-roles-responsibilities.
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Toxic-Free Cosmetics Act sell-through deadline set for Dec. 31, 2025
Washington retailers and distributors should prepare now for the sell-through deadline under the Toxic-Free Cosmetics Act (TFCA). The law’s initial restrictions took effect Jan. 1, 2025, and products containing prohibited chemicals may be sold only during the one-year sell-through period that ends Dec. 31, 2025.
Key compliance points for retailers:
- Review current inventory and identify any products that may contain restricted substances, including formaldehyde releasers.
- Work with suppliers to confirm formulations and obtain documentation showing products meet TFCA requirements.
- Note interim rules on lead impurities and other transitional provisions that may affect product eligibility.
- Maintain records demonstrating good-faith efforts to comply in case of enforcement inquiries.
- Expect the Department of Ecology to continue clarifying rules and enforcement approaches as the program matures.
For implementation help, compliance resources, and guidance materials are available on the Department of Ecology’s webpage.
Retailers should act promptly to ensure prohibited products are removed from shelves by Dec. 31, 2025, and to minimize disruption to shoppers and operations.
For questions, contact WR’s Director of Policy and Government Affairs, Crystal Leatherman, CLeatherman@WashingtonRetail.org.
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Thanksgiving weekend shopping expected to set new record
The National Retail Federation reports that Thanksgiving weekend is shaping up to be the busiest shopping period ever, with an estimated 186.9 million people planning to shop between Thanksgiving Day and Cyber Monday. Retailers are preparing for strong demand as holiday budgets remain a priority for many households.
Black Friday continues to be the top shopping day, with more than two-thirds of consumers expected to participate. Cyber Monday remains a close second. Many shoppers also plan to visit stores on Saturday, with a significant share saying they want to support local businesses and the Small Business Saturday tradition.
Early November data shows that most consumers have already begun their holiday shopping and have completed about one quarter of their planned purchases. Popular gift ideas this year include clothing, gift cards, and toys. Gift card spending alone is projected to exceed $29 billion.
Debit cards remain the most common payment method, followed by credit cards, while digital wallets continue to see steady use. Most shoppers also say they plan to take part in charitable activities during the season, including donations or supporting retailers that contribute to community causes.
NRF’s broader holiday forecast anticipates that total spending in November and December will surpass one trillion dollars for the first time.
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Tariff update on agricultural imports
The federal government has announced new tariff exemptions for more than two hundred agricultural products. Items such as coffee, tea, tropical fruits, fruit juices, bananas, oranges, tomatoes, beef, and select fertilizers are now exempt from the ten percent global tariff that took effect earlier this year. The change is retroactive for goods entering the United States beginning November 13, and eligible importers may request refunds under standard customs procedures.
According to the administration, the exemptions reflect recent progress on a series of trade agreements with countries that produce goods not commonly grown domestically. In recent months, the United States has finalized agreements with Cambodia and Malaysia and advanced discussions with several other nations, including El Salvador, Guatemala, Thailand, Vietnam, the United Kingdom, and members of the European Union.
Industry groups have long raised concerns about tariffs on products that have limited domestic availability. and have noted that certain commodities rely on imports due to climate and geographic factors. They welcomed the recent decision as a step that may help stabilize supply and support more predictable pricing for consumers and retailers.
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Holiday sales expected to surpass one trillion dollars
The National Retail Federation is forecasting a historic holiday season with retail sales for November and December projected to exceed one trillion dollars for the first time. The outlook reflects steady consumer activity even as many households navigate continued economic uncertainty.
The NRF expects holiday sales to grow between 3.5% and 4.2% compared to last year. In 2024, sales increased just over 4% and reached $976 billion. Shoppers are anticipated to spend an average of $890 each, which would be the second-highest amount recorded since the survey began more than twenty years ago. These estimates do not include spending at automobile dealers, gasoline stations, or restaurants.
NRF leaders note that while consumers are mindful of rising prices and broader economic pressures, they continue to prioritize holiday giving and look for value when making purchasing decisions. Retailers are responding by preparing for steady demand, though holiday hiring is expected to be lower than in past years. The industry is projected to add between 276,000 and 365,000 seasonal workers, down from more than 400,000 a year ago.
Despite workforce reductions earlier this year, retailers remain focused on meeting customer needs throughout the peak shopping season.
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Holiday imports expected to slow as shelves remain stocked
The latest Global Port Tracker report from the National Retail Federation and Hackett Associates indicates that import cargo volumes at major ports are expected to ease in November and December as most holiday goods have already arrived. Despite an uncertain tariff environment, retailers moved early to secure inventory and limit price pressures. NRF reports that stores and warehouses are well supplied and that shoppers should find a wide range of products at stable prices throughout the season.
Analysts note that shifting tariff policies have created challenges for long-term planning among importers and carriers. Current projections suggest modest declines in import volumes at the end of 2025, along with a larger drop anticipated in early 2026. While a slowdown late in the year is common, this year’s softer numbers are also tied to unusually high imports in late 2024 and frontloaded shipments earlier this year.
NRF forecasts holiday sales to grow between 3.7 percent and 4.2 percent over last year, reaching just over one trillion dollars. Global Port Tracker data shows that after a strong first half of 2025, total imports for the full year are expected to finish slightly below 2024 levels.
The full Global Port Tracker report is available to NRF retail members.
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Governor Ferguson outlines challenges ahead for 2026 state budget
Governor Bob Ferguson acknowledged that Washington faces a difficult path as he prepares to propose the state’s 2026 supplemental budget. Speaking in Enumclaw on October 16, Ferguson said slower revenue growth, higher costs, and reduced federal funding could result in a shortfall of nearly $2 billion. He added that upcoming federal reductions to Medicaid and other programs will create further strain.
Republican lawmakers have challenged the governor’s framing of the issue, pointing to the 2025 state budget as the source of some of the Medicaid reductions. Senate Minority Leader John Braun and Rep. Travis Couture both argued that federal cuts have not yet taken effect and that the deficit stems from state-level spending decisions.
Ferguson emphasized that he must submit a balanced budget and said significant reductions are likely. He noted that he continues to communicate with legislative leaders from both parties, including Braun and Rep. Drew Stokesbary, about potential solutions.
The governor signed a $77.9 billion budget earlier this year that included new taxes and expanded spending. Ferguson said he will release his updated proposal in December. The 60-day 2026 legislative session begins January 12.
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Rep. Leavitt Brings Statewide Focus to Public Safety, Retail Theft, & ORC
Washington’s Growing Epidemic: The Rising Cost of Retail Crime
Rep. Mari Leavitt (D-28), in collaboration with the Washington Retail Association and the Washington Organized Retail Crime Association (WAORCA), convened a discussion with lawmakers, law enforcement, prosecutors, and loss prevention professionals from around the state to discuss one of Washington’s fastest-growing, yet often overlooked, public-safety challenges: retail theft and organized retail crime (ORC). The meeting brought together those working on the front lines to share firsthand experience on the rise in retail crime, its impact on workers and customers, and the growing harm being done to the community, as well as local and state governments. Participants also explored opportunities to strengthen coordination and identify legislative needs to reduce theft, support affected businesses and improve public safety.
A National & Local Crisis
According to the NRF’s 2025 Impact of Retail Theft & Violence report, retailers nationwide lost more than $112 billion to theft and organized retail crime last year, and saw a sharp increase in repeat-offenders and violence during thefts. Additionally, small retailers’ survival is at risk. According to a 2024 small business survey from Forbes Advisor, Washington ranked #1 in the nation for small businesses most impacted by retail theft.
Economic Fallout for Washington
Lastly, these crimes come with significant economic consequences. The US Chamber of Commerce estimates that in 2021, Washington experienced an estimated $2.7 billion in stolen goods and as a result, lost out in $603 million in state and local tax revenue. These losses cannot be understated, especially as the state faces the possibility of another revenue shortfall, even after passing one of the largest tax packages in its history.
Next Steps: Strengthening Partnerships and Policy Solutions
The discussion underscored the need for comprehensive legislation, stronger public-private partnerships, consistent prosecution standards, and targeted support for retailers and small businesses disproportionately impacted by crime. The consensus from participants was that addressing retail theft and ORC is essential not only to protect Washington’s economy but also to safeguard workers, consumers, and communities across the state.
Join WR in the Fight Against Retail Crime
WR has been the leading voice in Washington advocating for comprehensive solutions to address retail theft, ORC, and strengthen public safety. WR’s efforts were instrumental in the creation of the Attorney General’s Organized Retail Crime Unit, as well as the development of the ORC Resource Hub, launched in collaboration with Former Governor Christine Gregoire and Challenge Seattle to strengthen coordination and share tools statewide.
To learn more about WR’s ongoing advocacy efforts and to find out how you can get involved, please contact Crystal Leatherman, Director of Policy & Government Affairs, at (360) 884-0771 or cleatherman@washingtonretail.org.
| | A security guard stands in the doorway of a store. (Photo: Leon Neal, Getty Images) | | |
KIRO NewsRadio Opinion: WA tolerating its way to dead last in retail theft
By Charlie Harger
Host, Seattle's Morning News
Nov 11, 2025, 9:24 AM
I keep saying we get what we tolerate, and it turns out we’re willing to tolerate a lot in Washington.
A recent Forbes study ranks us dead last in America for retail theft. Not the bottom five. Not near the bottom. Dead last. The thieves have apparently discovered what we already knew: Washington is different.
Here’s what that looks like in numbers. We have 48% more retail theft than our population size would predict. The average Washingtonian’s share of stolen goods? $347. The national average is $173. Small business owners report being hit with theft daily, weekly, and constantly.
Same thieves, same stores, zero consequences
We’re not talking about a desperate mom stealing formula just one time to feed her baby. I’ve introduced you in recent commentaries to people — drug addicted people — stealing $500 to $1,000 of merchandise every single day. They sell it to black market dealers for pennies on the dollar.
They are occasionally arrested, released quickly, and return to the same stores the next morning. No detox or treatment required. No consequences that matter. Just catch and release, like we’re managing a fishing pond.
The U.S. Chamber of Commerce puts a price tag on this: $2.7 billion in stolen goods in Washington in 2021. That’s $603 million in lost tax revenue. In a state that just passed historic tax increases because we’re supposedly broke, we’re letting $603 million walk out the door.
Democratic State Representative Mari Leavitt from West Pierce County deserves credit for actually convening the right people to talk about this. She brought together retailers, police, prosecutors, and loss prevention professionals. Not to wring hands, but to face reality.
What they discussed was sobering. This isn’t just about corporate profits; mom-and-pop stores are closing, and workers are being threatened physically. Prices go up for everyone, and the same names keep appearing on police reports, cycling through the system like it’s a revolving door designed by someone who hates doors.
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Retailers support community safety through naloxone access
Retailers across the country continue to play an important role in responding to the ongoing opioid crisis. Many businesses are choosing to stock naloxone, a medication that can reverse an opioid overdose, as part of their commitment to protecting employees, customers and the wider community. This approach reflects a growing recognition that overdoses can occur in any setting and that immediate access to lifesaving tools matters.
Retail workers are often among those most affected by the epidemic. Many report personal or workplace encounters with overdose situations, and national surveys show that a significant share of retail staff are already familiar with naloxone and how it works. By offering training and keeping the medication available, retailers can help ensure that staff and bystanders feel prepared to act during an emergency. This readiness fosters a supportive environment that benefits everyone who enters a store.
Health experts, including researchers at the National Institutes of Health, note that businesses are an important yet underutilized resource in responding to overdose incidents. They recommend expanding training and widening access to naloxone to help reduce overdose deaths. As more retailers adopt these practices, federal efforts that encourage safe bystander response could offer helpful support.
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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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