Newsletter — October 10, 2024 | |
|
RETAIL THEFT & PUBLIC SAFETY
POLICY
ECONOMY
POLITICAL NEWS
ON THE LOCAL FRONT
IN THE NEWS
TRENDS
| |
|
King County Summit launches new partnerships 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
| |
|
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
| |
|
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.
| |
|
Join Fight Retail Crime Day on October 24
Organized retail crime (ORC) continues to have a severe impact on businesses, the economy, and communities across the nation. To address this growing issue, the National Retail Federation (NRF) is hosting "Fight Retail Crime Day" on October 24 at 1 p.m. ET.
This one-hour webinar will provide attendees with a comprehensive overview of the current state of retail crime and offer insights on how to effectively advocate for change at local, state, and federal levels. Participants will gain actionable steps and strategies that businesses can implement to combat ORC.
Retailers and industry partners are encouraged to join this important conversation to help protect the future of retail and ensure the safety of both businesses and consumers.
Let’s come together to end retail crime.
Register here
| |
 | |
Olympia’s fast-tracked minimum wage increase faces opposition from multiple sectors
On September 15, the Olympia City Council’s Finance Committee introduced a fast-tracked plan to increase the minimum wage by 25-50% by the end of this year. The Council also plans to consider additional items from local unions’ undated Workers’ Bill of Right in 2025. However, local small businesses and nonprofits have expressed strong opposition to the proposal.
Councilmember Cooper first introduced the Workers’ Bill of Right concepts in 2015, modeling it after Seattle’s initiative at that time. He cited renewed interest following a Workers’ Summit in July. While the proposal is framed as part of the city’s Olympia Strong Initiative, none of the initiative’s four focus areas outlined in the initiative’s summary booklet align with the items in the current proposal, raising questions about the timing and intent.
On October 1, the Thurston County Chamber and the Thurston Economic Development Council hosted a meeting with over 100 small business and nonprofit representatives, all concerned about the potential impact of the wage hike. In an Olympian Op-Ed co-signed by several prominent nonprofits Chris Wells, Executive Director of the United Way of Thurston County, argued that while Olympia faces an affordability crisis, raising the minimum wage could unintentionally cause “significant collateral damage across the local economy.”
For updates on grassroots responses, please contact Rose Gundersen, VP of Operations and Retail Services, or Crystal Leatherman, Director of Local and State Government Affairs.
| |
 | |
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.
| |
 | |
Washington’s minimum wage set to rise to $16.66 in 2025
Starting January 1, 2025, Washington's minimum wage will increase to $16.66 per hour, reflecting a 2.35 percent rise from 2024. The Washington State Department of Labor & Industries (L&I) announced this adjustment based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Rising housing and food costs contributed to this increase.
Washington currently boasts the highest state-level minimum wage in the nation, compared to the federal minimum wage of $7.25. Certain cities, including Seattle, SeaTac, and Bellingham, will set even higher minimum wages. Additionally, the new state minimum wage will apply to workers aged 16 and older, with younger workers (ages 14-15) earning $14.16 per hour.
The wage increase also affects the salary thresholds for overtime-exempt employees, requiring small employers to pay exempt workers at least $1,332.80 per week and large employers $1,499.40 per week in 2025. Rideshare drivers will also see their minimum pay increase based on new legislation.
For further details on the minimum wage and worker rights, visit L&I's website or contact their Employment Standards Program at (360) 902-5316.
| |
 | |
House Environment & Energy Committee Work Session provides a preview for the 2025 session
On Tuesday, October 8, the House Environment & Energy Committee held a work session to discuss several important issues, including extended producer responsibility (EPR) and supply chain transparency in the fashion and textile industry. These topics offer a preview of what retailers may see addressed during the 2025 legislative session.
Supply Chain Transparency in the Fashion and Textile Industry
Washington is poised to reintroduce legislation focused on transparency in the fashion and textile industry's supply chain. The 2024 proposal would have required large manufacturers and retailers to:
- Map and disclose their supply chain across all production tiers, from raw materials to final production.
- Implement processes to identify and mitigate environmental impacts, aligned with international standards.
- Publish an environmental sustainability report on their website, detailing supply chain mapping, due diligence efforts, and performance targets.
- Track and report on energy use, greenhouse gas emissions, water and chemical management, material production volumes, and recycled content use.
The legislation also included private right of action and civil penalties for non-compliance.
Although Rep. Sharlett Mena, the bill’s prime sponsor, intends to revisit the issue, it's uncertain if the legislation will return in its current form. WR has been actively engaged in this issue, working with members and the broader business community, and meeting with key legislators during the interim.
Extended Producer Responsibility (EPR)
EPR is a policy framework that requires producers to manage their products throughout their lifecycle, including end-of-life disposal. EPR proposals have gained momentum nationwide, and Washington is no exception.
| |
|
Dockworkers’ strike ends, Ports reopen on East and Gulf coasts
After three days of disruption, dockworkers across 36 East and Gulf coast ports are returning to work following a tentative agreement reached on October 4, 2024. The International Longshoremen’s Association (ILA) secured a 62 percent wage increase as part of a deal extending their current contract through January 15, giving more time to resolve remaining issues. The strike, which caused backlogs of ships, was seen as a potential economic threat as the U.S. heads into the holiday season.
The National Retail Federation (NRF), along with nearly 300 other industry groups, including WR, urged President Biden to intervene. In a letter, they called for the use of "any and all authority" to end the strike, warning that the longer it lasted, the greater the economic damage. NRF President Matthew Shay emphasized that the supply chain disruption, exacerbated by the ongoing recovery from Hurricane Helene, was the last thing American families needed.
Ports are reopening, but disruptions may continue as backlogged ships await processing. Challenges remain, particularly regarding automation, which the union opposes. The U.S. Maritime Alliance, representing shipping companies, continues to push for modernization to improve efficiency at U.S. ports.
| |
|
I-2109: Repealing the State capital gains tax
WR stands in full support of Initiative 2109, which seeks to repeal Washington’s capital gains tax. This tax, enacted just two years ago, has added complexity and uncertainty for businesses, impacting financial planning and long-term investments. WR believes that repealing the capital gains tax will promote a more stable economic environment, benefiting both businesses and consumers.
The current tax, though targeted at a small group of high-income earners, has broader consequences. Its volatile nature makes it difficult to forecast, and collections have already declined by 50% from the first to the second year. Removing this tax would eliminate the unpredictability that retailers and other businesses face, enabling them to focus on growth and job creation without the looming threat of fluctuating tax liabilities.
While state revenue reductions from the repeal would impact the Education Legacy Trust Account, WR emphasizes that funding for key programs like the common schools construction account remains untouched. By creating a more business-friendly tax climate, WR believes Washington can encourage investment, support job growth, and foster economic resilience.
Voters will have the opportunity to decide on this critical measure on November 5, and WR urges support for I-2109 to drive future prosperity.
Washington Research Council Policy Brief
| |
|
Seattle Times Editorial Board recommends voting yes on Initiative 2066 for a better gas transition plan
The Seattle Times editorial board recommends voting “Yes” on Initiative 2066, urging Washington voters to support a more thoughtful approach to the state’s natural gas transition. The initiative, on the fall 2024 ballot, aims to correct the rushed legislation that allowed utilities like Puget Sound Energy (PSE) to advance electrification with limited consideration for its impact on consumers and the state’s strained power grid.
Washington’s climate goals push for rapid decarbonization, but the cost and speed of the transition have raised concerns. I-2066 demands a re-evaluation of policies that may hastily restrict natural gas usage, leaving consumers vulnerable to higher costs. The editorial board emphasizes that natural gas might still play a role as a backup energy source, especially during peak demand.
Lawmakers' previous efforts, such as House Bill 1589, faced criticism for their rushed nature, resulting in confusion and pushback from various industries. The Building Industry Association of Washington and Washington Hospitality Association led the charge for I-2066, collecting over half a million signatures.
The initiative urges legislators to approach this complex energy shift with more care, ensuring that Washington's decarbonization is both sustainable and consumer friendly.
WR supports I-2066, citing the potential benefits for businesses and consumers. Voters will decide the outcome of these impactful measures on November 5.
| |
|
Retailers step up to support Hurricane Helena relief efforts
In response to the devastation caused by Hurricane Helena, one of the deadliest storms to hit the U.S. since 2005, major retailers are leading relief efforts with substantial donations and aid. Companies like Lowe’s, Walmart, and Publix are contributing millions of dollars to support recovery across the southeastern United States, where over a million residents remain without power.
Lowe’s has pledged $2 million to assist first responders and nonprofit partners in addressing urgent needs like shelter and food, while also contributing to long-term rebuilding. Walmart has committed $6 million in donations and launched a nationwide campaign to match customer donations up to $2.5 million.
Publix is donating $1 million through Publix Charities and has activated a companywide checkout donation program. Amazon has delivered over 12 truckloads of supplies and set up a donation page for additional support.
Other retailers like Kroger, Target, and Bloomin’ Brands are providing meals, water, and ice to affected communities, first responders, and military personnel. With contributions totaling millions, the retail industry continues to play a crucial role in aiding disaster relief and rebuilding efforts.
For more information on how to support relief efforts, visit the American Red Cross.
| |
|
Attend NRF 2025: Retail’s Big Show with WR
Get ready to unlock new possibilities for your business at the NRF 2025: Retail’s Big Show, happening from January 12-14, 2025, in New York City! Retailers from across the globe will converge to discover cutting-edge solutions, meet top vendors, and experience innovative products firsthand. The Expo offers a unique chance to explore new technologies at the Innovators Showcase, connect with fresh talent at the Startup Hub, and dive into the latest trends in prepared food at the Foodservice Innovation Zone.
For a limited time, retailers can secure a free Expo Pass. Don’t miss this opportunity to grow your business and forge new partnerships!
WR President & CEO Renée Sunde will be attending. Join her and other industry leaders to shape the future of retail!
| |
|
Halloween 2024: M&M's takes the candy crown
As Halloween approaches, candy lovers across the U.S. are gearing up for sweet celebrations. In 2024, consumer spending on Halloween candy is projected to hit $3.5 billion, a slight dip from last year’s $3.6 billion, according to the National Retail Federation. So, what’s topping the treat charts this season?
For the first time, M&M's has overtaken Reese's Cups as America’s favorite Halloween candy, dominating in nine states, according to data from CandyStore.com. Reese’s Cups now hold second place, followed by Sour Patch Kids, Skittles, and Starburst to round out the top five.
Here’s the list of 2024’s favorite Halloween candies:
- M&M’s
- Reese’s Cups
- Sour Patch Kids
- Skittles
- Starburst
On the flip side, some candies aren’t as beloved. Circus Peanuts, the controversial orange marshmallow treat, retains its spot as America’s least favorite candy, followed by Peanut Butter Kisses and Necco Wafers.
Whether you're a fan of the new favorite or an old classic, Halloween 2024 promises a sweet time for all!
| |
|
Emerging AI leaders: Amazon, Walmart, and Wells Fargo
A new analysis from Georgetown University reveals unexpected contenders in the AI landscape among S&P 500 companies, highlighting Walmart, Ford, and Wells Fargo as significant players. The study ranked the top 30 AI leaders based on patent filings, hiring trends, and research contributions. IBM leads this index, but retail giant Amazon follows closely, boasting the largest AI workforce—over twice that of Alphabet, which ranks third.
According to Zachary Arnold from Georgetown's Emerging Technology Observatory, Amazon's impact in AI may be underestimated. While it lacks a high-profile AI product like ChatGPT, Amazon's extensive AI cloud infrastructure through Amazon Web Services and its innovative retail operations showcase its potential for future growth in the AI sector.
The analysis also identifies notable financial institutions, including Capital One, Wells Fargo, and Bank of America, as emerging leaders in AI. Meanwhile, Ford secures the 18th position and Walmart ranks 23rd.
| |
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.
| |
|
Renée Sunde, President/CEO — 360.200.6450 — Email
Mark Johnson, Sr. VP of Policy & Government Affairs — 360.943.0667 — Email
Crystal Leatherman, Dir of Local & State Government Affairs — 360.200-6453 — Email
Rose Gundersen, VP of Operations & Retail Services — 360.200.6452 — Email
| | | | |
