Newsletter — August 10, 2023 | |
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POLICY
ON THE LOCAL FRONT
RETAIL THEFT & PUBLIC SAFETY
TRENDS
SAFETY
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From left: Carl Kleinknecht, President of the Washington Organized Retail Crime Association; Alisha Shemwell, Kemper Development Company, Kent Wilson, Target; US Representative Kim Schrier (D-8); Renée Sunde, WR President & CEO, and Mark Johnson, WR Senior VP of Policy & Government Affairs. | |
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The Target Store at Issaquah Commons was pleased to welcome Congressman Kim Shrier (WA-8) for a tour of their store. The store’s management team discussed the impact of Organized Retail Crime (ORC) on team members and the communities they serve.
Immediately following, the Congresswoman held an outdoor press conference to announce her co-sponsorship of HR 895 -The Combatting Organized Retail Crime Act.
Recent data from the Seattle City Auditor’s Office paints a concerning picture: over half of Washington’s retailers have seen a rise in theft, translating to a staggering $2.7 billion in losses statewide. “These crimes are not victimless,” emphasized WR President Renée Sunde. The ripple effects of ORC are felt deeply by retail workers, many of whom now fear for their safety at work.
WR has acknowledged the fact that no single solution will resolve these issues and tackling this growing crisis will require a multi-pronged approach. The association urged the legislature to approve $2.6 million to help fund an ORC Unit in the Office of the Attorney General to assist with investigations and prosecution across multiple jurisdictions.
We know that these crimes cross city, county state and national boundaries. The need for legislation at the federal level is the next critical step in helping to further coordinate resources and provide critical resources.
Congresswoman Schrier voiced her strong support for the Combating Organized Retail Crime Act. The bill proposes the establishment of a Coordination Center within the Department of Homeland Security (DHS). This center’s mission is to unite federal, state, and local law enforcement agencies with the private sector, creating a cohesive strategy against ORC.
Highlighting the broader implications of ORC, Schrier stated, “The proceeds from these thefts often support other illicit activities, including drug and human trafficking.”
Despite the alarming statistics, there has been progress. Issaquah’s Police Chief Schwan indicated that the city has witnessed a 15% reduction in shoplifting incidents over the past year. This positive trend is attributed to new community partnerships, proactive business groups and strong coordination with retailers.
As this bipartisan and bicameral bill progresses through the House Judiciary Committee, the consensus is clear: federal intervention is crucial. As Sunde succinctly stated, “Federal legislation is the next critical step.”
Several local news organizations covered the event, including KOMO4 and KING5.
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This week’s primary election featured all seven Seattle City Council seats elected by district, including three Seattle City Councilmembers seeking reelection. Another incumbent Councilmember was on the ballot but running for a seat on the King County Council.
As expected, the primary confirmed that the three incumbents are locked in tight races. In District 2, incumbent Tammy Morales barely edged her top challenger, Tanya Woo, by a 48.14% to 45.41% margin in a three-candidate race. In District 6, incumbent Dan Strauss leads his next challenger, Pete Hanning, by a wider 50.77% to 29.61% margin. The third incumbent, Andrew Lewis, leads his top challenger, Bob Kettle, by a 40.9% to 33% margin in District 7.
The other four districts also saw tight primary results. One highlight was in District 3, with small business owner Joy Hollingworth, taking 40% of the vote in the race to succeed Socialist Alternative Councilmember Kshama Sawant.
Citywide Councilmember Teresa Mosqueda is seeking a seat on the King County Council that retiring Councilmember Joe McDermott vacated. Mosqueda won her primary by a 54.75% to 39.77% margin over Sofia Aragon in a 3-way race. If Councilmember Mosqueda wins the County Council seat, the Seattle City Council will name a person to serve in that citywide seat until filled in the November 2024 general election.
It’s important to note that the King County Elections office will continue counting votes for the next few weeks. Historically, the candidates endorsed by The Stranger will up a disproportionate number of votes after primary night. We will update these races once it is clear which candidates are moving on to the general election.
Read the rest of the article and results
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Front from left to right: Michele Whinery, Retail Services Sr. Claims Analyst, Brittany Shannon, Retail Services Business Development Manager Naomi Paige, Pioneer Human Services Director of Workforce and Community Services, Jessica Viera, NRF Foundation Outreach Coordinator, Rose Gundersen WR V.P. of Retail Services, Leslie Patten with the Workforce Council King-Seattle, Cherey Smith, Fireworks Gallery General Manager of Stores, Back row from left: Jerry Irwin, Sr. General Manager Brookfield Properties/Alderwood & Westlake Center and WR Board Member, and John Glynn, Director of Business Relations & Workforce Solutions with the Workforce Development Council of Seattle-King County. | |
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Over 40 people participated in WR’s first roundtable conversation connecting retailers to nonprofits that serve second-chance job seekers. The events were held at Southcenter and the Burlington Chamber on Aug 8.
The events aimed to promote sustainable employment for workforce nonprofits and their clients. Highlighted were the nonprofits' comprehensive services, including client placement, follow-up, and continuous coaching for a set duration.
Jessica Summerton-Moore, who leads the YouthForce Program with the Boys and Girls Club of King County, said she felt energized by the retail partners’ engagement and openness to working with community partners to reduce barriers to entry into the retail industry. Jessica shared how employers can engage their clients in the form of internships with full-onboarding services for the employer.
Federal bonds are available for employers concerned about recidivism when hiring second-chance workers. These bonds would reimburse employers for any thefts or crimes committed against them by these workers. According to John Glynn, the Director of Business Relations & Workforce Solutions with the Workforce Development Council of Seattle-King County, recidivism cases are extremely rare.
Jessica Viera, the Outreach Coordinator for the NRF Foundation’s RISE Up program, spoke about the value of the four RISE Up retail workforce certifications for employers and job seekers. Workforce partners agreed these credentials would be promising for good jobs when paired with support from their social workers and employers.
These successful conversations could not have been possible without the partnership of Westfield Southcenter, the Burlington Chamber, the Workforce Development Council of Seattle-King County, and the NRF Foundation. WR will continue sharing the success stories of employed second-chance workers and promoting these resources to advance justice, equity, diversity, and inclusion principles.
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The popular U.S. retailer, Hot Topic, experienced a series of security breaches spanning 12 days in multiple phases during the first half of the year and is currently assessing the extent of the damage. The breaches from February 7 to June 21 were primarily due to automated attacks targeting the company's online platform and mobile app, as revealed in a recent data breach notification report submitted in California.
All U.S. states, including the District of Columbia, Guam, Puerto Rico, and the Virgin Islands, mandate businesses and, in many states, public agencies to inform individuals about security breaches involving personal data. Specifically, Washington's breach notification law, established in 2005, dictates that entities must inform Washington residents about unauthorized access to their unsecured personal data within 45 days of identifying the breach. However, notification isn't necessary if the breach doesn't pose a significant risk to consumers. In cases where over 500 residents of Washington are affected, the involved entity must also provide a sample breach notification and the count of affected consumers to the Attorney General.
According to an email to Retail Dive, Exabeam's Chief Information Security Officer, Tyler Farrar, highlighted the incident as a reminder of the pressing security issues of handling compromised credentials and differentiating between regular and suspicious activities.
In response to the breaches, Hot Topic has collaborated with cybersecurity professionals and fortified its online and mobile platforms with anti-bot software. Hot Topic operates over 600 outlets in shopping hubs throughout the U.S. and Canada.
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As families gear up for the new academic year, counterfeiters are active, targeting unsuspecting shoppers. Each year, authorities seize billions in fake products, including school essentials. However, some still reach consumers, jeopardizing individual safety and the global economy.
The counterfeit market, worth an alarming $500 billion, leads to a loss of 2.5 million jobs globally. In August 2022, the U.S. Customs and Border Protection (CBP) highlighted the issue's magnitude by confiscating 17,000 fake items valued at $2.4 billion. This illicit trade doesn't just hurt consumers and businesses; it's linked to grave human rights violations, including terrorism and child labor.
These fake products, often bypassing safety standards, pose health threats. The risks are real, from malfunctioning electronics to toys with hidden dangers and items tainted with harmful chemicals. Moreover, while they might seem cost-effective, counterfeit sellers often use their platforms for fraud, jeopardizing consumers' financial security.
Organizations like the U.S. Chamber of Commerce, CBP, and Amazon are raising awareness to combat this. They recommend:
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Trust Your Instincts: If a deal seems too good, it probably is.
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Ensure Secure Transactions: Shop on sites with "https://" and look for a padlock symbol in the browser.
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Inspect Products: Check labels, packaging, and contents for signs of counterfeiting.
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Prioritize Cybersecurity: Update devices and be cautious of suspicious websites.
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Spread the Word: Educate others about counterfeit risks.
If you encounter a fake product, report it to CBP or the National IPR Center.
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According to the Global Port Tracker report released last week, cargo volume at major U.S. container ports will peak this month, the highest since last fall. This surge is attributed to retailers stocking up for the winter holidays.
Earlier supply chain threats due to labor negotiations at ports and package-delivery sectors have been addressed. “Retailers are gearing up for the crucial holiday season. Despite potential supply challenges, holiday goods are steadily entering the country, ensuring a smooth shipping season,” commented Jonathan Gold, NRF Vice President for Supply Chain and Customs Policy.
Several labor disputes have been tentatively resolved, including a 13-day port strike in western Canada and potential strikes at West Coast ports and United Parcel Service. While the Canadian labor agreement has been ratified, others are still in the ratification process.
Ben Hackett, the founder of Hackett Associates, highlighted a discrepancy. Despite increased consumer spending and employment, cargo volume has seen double-digit year-over-year declines. He explained, “The discrepancy between rising growth in sales and declining cargo volumes is happening because retailers are working their way through inventory built up over the last 12 to 18 months. Cargo growth should resume as inventories deplete.”
June’s data showed U.S. ports handled 1.83 million Twenty-Foot Equivalent Units (TEU), a decline from the previous year. The first half of 2023 recorded 10.5 million TEU, a 22% drop from 2022’s first half. However, August is expected to hit 2.03 million TEU, the first time since October that numbers have reached 2 million. Projections for the remaining months of 2023 indicate fluctuations, but the total for the year is estimated at 22.3 million TEU, a 12.8% decrease from 2022.
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The global apparel industry is making transformative changes, influenced by political tensions, ethical considerations, and an intensified cultural emphasis on sustainability. These shifts are reshaping sourcing strategies and operational practices of fashion companies worldwide.
Recent data shows a decline in the U.S. fashion industry's dependence on China. This change is driven by mounting diplomatic uncertainties and deepening concerns regarding forced labor in the region. A telling survey by the USFIA indicates that 61% of apparel CEOs have transitioned away from China as their principal supplier, a notable increase from the pre-pandemic figure of 30%. Moreover, a majority of these CEOs, nearly 80%, anticipate further reducing their sourcing from China in the near future.
A deeper dive into the numbers reveals that U.S. apparel imports from China have dwindled, representing only 18.3% in the first five months of the present year, a decrease from 30% in 2019. In a related trend, China's share of U.S. cotton imports has descended to its lowest since 2017, at just 10%. On the flip side, U.S. imports from other prominent Asian suppliers, such as Vietnam, Bangladesh, Indonesia, India, and Cambodia, have soared, reaching an all-time high of 44.3%. In a nod to nearshoring, countries like Mexico, Guatemala, and Nicaragua are now among the top fashion suppliers this year.
Alongside these sourcing shifts, fast fashion is undergoing a sustainability revolution. Brands, once criticized for their environmental footprint, are now advancing the cause of sustainability by urging consumers to opt for repairs over replacements. Leading brands like Zara are rolling out repair services across major markets, Uniqlo is integrating repair studios in its stores, and H&M is partnering with startups to facilitate the repair of damaged garments. While not new to luxury brands, this move marks a paradigm shift for mainstream fashion retailers, transitioning from transient fashion to a sustainable and conscientious consumption model.
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Amidst the evolving economic landscape, consumers are becoming increasingly discerning with their spending. While many are searching for bargains, there's a simultaneous desire to indulge in life's little luxuries and enhance daily routines. Retailers are realizing how adapting to this dichotomy is crucial.
Recent studies shed light on this trend. Attest, a market analysis platform, reports that nearly 59% of U.S. consumers will continue being cautious with their expenditures in 2023. This trend is pronounced among the Boomer generation. Additionally, research from PwC highlights this attitude, revealing that half of consumers are deeply concerned about their financial future, and 96% are gearing up to embrace frugal habits in the coming months.
On the other hand, consumers aren't focused entirely on penny-pinching. There's a hunger among consumers for moments of joy and contentment. This presents an optimistic bright spot for businesses. While price remains a significant factor in purchasing decisions, other factors, such as quality, sustainability, and the promise of unique experiences, are gaining traction.
For instance, the concept of "value" is evolving. It's no longer just about price. A product's longevity, its environmental impact, and the emotional satisfaction it offers are all part of the equation. Retailers are responding by highlighting the long-term benefits of their products, emphasizing sustainability, and crafting narratives around the joy and contentment their products bring.
As consumers have adapted to a new post-pandemic normal, there's been a noticeable shift in their routines. People are eager to rediscover the world, redefine their daily rituals, and integrate products that align with their new lifestyles.
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Unlike last year when every retailer on the 2022 Hot 25 Retailers list experienced over 25% sales growth, 2023 saw only the top six surpassing this mark.
Notably, five of the top fifteen are active retailers in Washington State: 7-Eleven, Chico's, Ulta Beauty, Costco, and Total Wine & More.
A significant trend in 2023 was the dominance of food-centric retailers. From Mexican grocer Chedraui to Superior Grocers and 7-Eleven, many of the top performers had a strong emphasis on food. In fact, if wine is considered, half of the Hot 25 primarily dealt in food and wine. David Marcotte of Kantar highlights the role of mergers and acquisitions (M&A) in this sector, suggesting that the growth in grocery is largely driven by these activities.
However, not all growth was acquisition-driven. Retailers like Grocery Outlet, Publix, and Costco expanded organically, focusing on enhancing their regional presence and services. On the digital front, Chewy.com and Wine.com were the only pure-play e-commerce entities on the list. Chewy's success, as Marcotte points out, lies in its ability to emotionally connect with its customer base, emphasizing the emotional bond between pets and their owners.
The home sector, too, witnessed significant growth catering to DIY enthusiasts and professionals, reflecting the surge in home improvement sales during the pandemic.
Luxury retail also made its mark. Despite economic challenges, brands like Tiffany & Company showcased robust growth, indicating that luxury consumption remains resilient.
The Hot 25 Retailers of 2023 is a testament to the dynamic nature of the retail industry. Whether through strategic M&As, organic growth, or tapping into emotional consumer needs, these retailers have showcased adaptability and resilience in a challenging market landscape.
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Many employers worry about compliance and want to ensure they do what it takes to keep regulators satisfied. ‘Compliance’ is a safety standard that meets the absolute minimum expected under the law—a starting point to make the workplace safe for employees. While compliance is necessary to meet legal obligations and avoid penalties, it does not elevate a company’s quality safety practices.
To be considered safe, employers should strive to go beyond compliance by implementing additional measures to motivate habitual safety practices. A proactive approach to safety creates a healthier and more productive work environment, reduces accidents and injuries, and improves overall employee well-being.
Here are a few ways to motivate habitual safety practices:
- Ask the team — Follow up with employees’ safety recommendations and concerns. They are doing the work, and they often know best.
- Complete incident and near-miss investigations — Look at claims and near-miss situations to ‘see’ where problems could be brewing. These occurrences make for excellent safety meeting topics.
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Consistency in safety practice implementation — When everyone follows the same protocols without excusing safety with a ‘just this time because I’m in a hurry’ mentality, it becomes part of the culture and an expectation without skipping a beat!
- Easy to access safety information — Make safety meetings and related training materials readily available for employee access.
- Collect data to inform improvements and trends in the safety program.
- Encourage workers to show care and concern for their co-workers.
Although employers often believe that their efforts to be within the OSHA guidelines will be enough to keep employees safe, compliance is only the beginning. Setting goals of higher quality safety practices can happen by making safety one of the company’s core values.
Participating in the Washington Retail Association’s Ambassador Program is another way to help achieve that goal.
Our dedicated safety team is ready to assist members in improving their safety programs, moving beyond compliance toward quality safety practices. Contact us at safety@waretailservices.com to learn more.
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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
Email
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Rose Gundersen
VP of Operations
& Retail Services
360.200.6452
Email
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Mark Johnson
Senior VP of Policy & Govt. Affairs
360.943.0667
Email
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Robert B. Haase
Director of
Communications
360.753.8742
Email
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