Newsletter — August 3, 2023 | |
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PRIMARY RESULTS
ECONOMY
ON THE LOCAL FRONT
POLITICAL NEWS
TRENDS
SAFETY
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On Tuesday, our local governments held their primary elections, with results in most of the races still being tallied. No statewide issues were on the ballot this year. However, mayors, council members, school boards, port commissioners, and others around the state are standing for election.
It has been said that "all politics are local," and this is especially true in odd-year elections. Why are these local government races so important? Voters should pay attention, learn about the candidates, and cast their ballots for many reasons, but two are especially important. First, these individuals will directly impact our everyday lives, including overseeing our water, sewer, trash, the roads we drive on, and the schools our kids go to. Second, today's mayor or school board member is often the state legislator or congressperson of tomorrow.
These local races typically give voters relatively easy access to the candidates. Many show up in person on our doorsteps. Many come to our Kiwanis and Rotary meetings to share why they should be the best choice to represent us. These candidates are usually our neighbors, co-workers, and kids' friends' parents. "Do yourself and your community a favor and get to know the candidates and support them where you can," says Mark Johnson, WR Senior VP of Policy & Government Affairs.
Many local government offices are non-partisan, as they should be. But, Washington is also a 'top two' state, meaning the two candidates with the highest votes—regardless of party—advance to the November 7 General Election. This system can result in a race with two Democrats or two Republicans running against each other in the fall election.
WR has a Local Government Political Action Committee. We recognize the importance of supporting these crucial positions in our communities for our industry's immediate benefit and long-term health. We are always looking to support candidates that embrace our issues, such as public safety, retail theft, and organized retail crime—those we can get behind and help get elected.
"Our interest and participation in choosing our elected leaders is one of our most important rights and responsibilities as Americans," said Johnson.
If you know a candidate for office that we should look into supporting, please don't hesitate to contact Mark Johnson, or if preferred, have the candidate contact him directly.
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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 City 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 Joy Hollingworth, whose family owns a small business, 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.
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The first half of 2023 has been a rollercoaster for the retail industry, marked by economic challenges and evolving consumer habits, according to a recent report by Placer.ai. Despite the turbulence, several sectors have demonstrated resilience and adaptability, offering a glimmer of optimism for the remainder of the year.
The year began with a hangover from 2022’s inflation and soaring gas prices, causing a dip in retail visits in April and May. However, the summer sun brought shoppers out, and by the end of June 2023, year-over-year foot traffic turned positive, indicating a potential recovery.
Discount and dollar stores seized the day as inflation-impacted shoppers sought value. These stores attracted a diverse range of consumers, demonstrating the broad appeal of value-conscious shopping.
Off-price retailers like T.J. Maxx, Marshalls, Burlington, and Ross Dress For Less also capitalized on the growing demand for value, expanding their store counts and offering consumers the thrill of the treasure hunt for attractive finds at steep bargains.
The first half of 2023 also saw significant consolidation in the retail sector. Brands like Burlington and Barnes & Noble have quickly taken over struggling chains’ retail locations, expanding their footprints without cannibalizing existing visits.
Finally, the return-to-office (RTO) trend has significantly impacted retail visits. Shopping districts with a more significant increase in year-over-year office attendance were likelier to have greater retail foot traffic growth, highlighting the symbiotic relationship between workplace attendance and retail foot traffic.
Despite the economic challenges, the first half of 2023 has shown that the retail industry can adapt and thrive. As retailers move into the second half of 2023, these insights may prove invaluable in charting a path forward for ongoing success.
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The Seattle City Council released a report last week titled “The City Can Do More to Tackle Organized Retail Crime in Seattle,” offering specific advice on tackling these complex issues.
The report provided seven crucial steps the City can implement to enhance its approach to addressing the underlying fencing operations contributing to ORC, including:
Step 1: Continue to Support City Participation in ORC Collaborations — Collaboration among law enforcement agencies, retailers, and prosecutors is essential to combat ORC effectively. To capitalize on available resources, the City should maintain its participation in collaborative efforts, such as the Washington State Attorney General’s ORC Task Force. A designated central point of contact and a shared repository for ORC information are recommended to improve coordination.
Step 2: Leverage Federal and State Crime Analysis Resources — To identify and gather evidence on fencing operations, the City should seek support from the Washington State Attorney General’s ORC Unit and Homeland Security Investigations for crime analysis assistance. Additionally, the City should explore using federal technical assistance to apply problem-oriented-policing techniques.
Step 3: Use In-Custody Interviews of Boosters to Gather Information on Fences — Conducting in-custody interviews with boosters can provide valuable information about fencing operations. Since SPD faces resource constraints, the City should explore opportunities to involve other law enforcement agencies to conduct and document booster interviews.
Step 4: Explore New Uses of Technology to Address ORC — The current Retail Theft Program is deemed inefficient, and new technology, such as rapid video response, should be considered. Collaboration with retailers and utilizing their technology investments could significantly aid ORC investigations.
Step 5: Use Place-Based Approaches to Disrupt Street Markets — Illegal street markets are hotspots for ORC fences to sell stolen goods. The City should apply its experience in community-led, place-based crime prevention to address these markets. Supporting the completion of SPD’s place-based recommendations for identified intersections is recommended.
Read the rest of the article
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On Monday, Seattle Mayor Bruce Harrell urged city council members to reconsider their stance on the state's new drug possession and public use law, proposing a comprehensive plan that includes additional treatment resources and enforcement guidelines. In June, the city council rejected the state law, which categorizes possession and public use of illegal drugs as gross misdemeanors, in a narrow 5-4 vote.
Harrell's call for reconsideration comes in light of a 72% surge in overdose deaths in Seattle from 2021 to 2022. He has proposed a new bill that would codify the previously rejected state law, allocate $27 million for improved treatment facilities and addiction services, and direct the Seattle Police Department to prioritize diversion and referral to services over arrests in drug-related cases.
"Success will not — and cannot — be measured on how many people cycle through jail; instead, our focus is on improving connections to lifesaving treatment and expanding program options to better meet the needs of those with substance use issues," Harrell stated.
The proposed legislation is the result of a month-long deliberation by Harrell's appointed Fentanyl Systems Work Group, a task force of local officials and public safety experts. The group was tasked with creating a passable version of the failed bill. Harrell believes the new proposals represent significant strides towards a safer, healthier Seattle.
The original bill, introduced at the request of City Attorney Ann Davison, sought to adopt a state law that criminalizes public drug use and makes it a gross misdemeanor along with drug possession. The city council's adoption of the state law would empower Davison's office to prosecute these charges like other misdemeanors.
The new proposed legislation includes the original adoption of the state law and provides clear guidelines for the Seattle Police Department on when and how to enforce the law. It directs police to prioritize "diversion, treatment, and other alternatives to booking" and to consider the potential threat of harm before making arrests.
The proposal also significantly increases the city's investments into treatment and diversion, allocating $27 million towards harm reduction, overdose response, and post-overdose care. The funds will be sourced from settlements from pharmaceutical companies involved in recent opioid lawsuits and the Community Development Block Grant request for proposal program.
The legislation is set to be discussed by the Public Safety and Human Services Committee before the council goes on break on August 21. The council will then return in September to begin the budget process.
Read the Seattle Times article for the full story
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Securing qualified, well-trained staff is an increasing challenge for many retail businesses, which is where the Retail Workforce Training Roundtables can make a difference. These sessions, coming on August 8, offer retail businesses an invaluable opportunity to tap into resources and networks that can help them locate and train ready-to-work talent.
Roundtable event participants will learn about the benefits of retail-specific job skill certifications, which can help optimize their workforce’s productivity. They will also have the opportunity to connect with workforce organizations offering subsidies for worker training, easing the financial burden of upskilling staff.
In addition, participants will gain insights into attracting and hiring qualified workers, a critical component of any successful retail operation. Participants will also be introduced to the NRF Foundation’s RiseUP program by its Outreach Coordinator, Jessica Viera. RiseUP can be a strategic ally in attracting quality employees.
The roundtables will take place at two locations:
Burlington Council Chamber, 833 S. Spruce Street, Burlington, WA 98233, from 10:00 PM to 11:30 AM, or,
Southcenter Mall, 2800 Southcenter Mall, Seattle, WA 98188, from 2:00 PM to 3:30 PM
To attend, RSVP to Kathie Davies at kdavies@washingtonretail.org and specify the preferred location. The event welcomes various partners, including Workforce Development Council, chambers in King, Skagit, and Snohomish counties, local Mall Operators, and retailers.
The roundtables are part of WR’s Retail Workforce Initiative, operating under the JEDI (Justice, Equity, Diversity, and Inclusion) principles. The initiative aims to grow partnerships, promote training and employment for entry-level and second-chance workers, and highlight diverse career opportunities within the retail sector. Join us on August 8 to uncover the key to hiring qualified staff and enhance your business’s growth and development.
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Sen. Roger Marshall (R-KS), the lead Republican advocate for the Credit Card Competition Act (CCCA), issued a statement last week. He revealed that he had brokered an agreement ensuring a forthcoming vote on the CCCA in return for his consent to advance the National Defense Authorization Act (NDAA) without voting on a CCCA amendment. Retailers expressed their disappointment as the CCCA was not considered for inclusion in the NDAA. However, without their support, Sen. Marshall wouldn't have been able to generate the influence needed to guarantee a future vote on this legislation within the year.
Retailers can keep the pressure on by continuing to send messages, attend local events, and host small business roundtables with Senators in their community. This helpful response page tool is also highly recommended.
In a statement, Sen. Marshall said, "The number one concern back home is inflation. Prices for gas and groceries are skyrocketing, especially in rural America. We need to do all we can to drive down costs, and our legislation will do just that. We are looking forward to getting this bipartisan bill passed together in the near future. Today, we were given assurances that the Credit Card Competition Act will be given a vote this Congress. Swipe fees, the Visa-Mastercard duopoly, and the Wall Street banks that back them are price-gouging American families nationwide at a rate seven times higher than the EU. That will soon end. We will inject competition into the credit card market without price controls and help our Main Street businesses and consumers. The days of globalists on Wall Street taking advantage of American families will soon be over."
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A tentative agreement has been reached by the International Longshore and Warehouse Union (ILWU) of Canada and the British Columbia Maritime Employers Association (BCMEA) following a two-week strike that disrupted supply chains.
The ILWU publicly displayed the support of all five union locals for the current deal on its Facebook page on July 30. These signatories included individuals who were instrumental in rejecting the first tentative agreement. On Tuesday of this week, another post announced a two-day vote to ratify the agreement, including today and tomorrow, August 3 and 4. Uncertainty continues to fuel apprehension among stakeholders, as the previous deal was rejected by union members last week.
Paul Brashier, vice president of drayage at ITS Logistics, emphasized the importance of maintaining supply chains, stating that their clients are already facing a two-month delay in product delivery.
The labor dispute has severely impacted Canadian ports and U.S. inbound trade, leading to over 16 canceled sailings to Canadian ports. This disruption has affected the profitability of railroads and trucking companies and caused significant supply chain delays.
The strike has already affected the revenues of railroad companies, with Canadian Pacific Kansas City estimating an $80 million loss.
The strike's timing coincides with the retailers' peak season, causing further complications. The American Apparel and Footwear Association estimates a six to eight-week supply chain disruption before conditions normalize.
As the labor actions continue, rail traffic from Canada into the U.S. has decreased for the third consecutive week, and the first two weeks of the strike prevented over 80% of rail trade from entering the U.S., with a further 12% decrease in trade this week.
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According to predictions, back-to-school retail sales are anticipated to grow by 2.9% this year, reaching nearly $72 billion, according to forecasts. While different projections exist, one is sure to remain: retailers will innovate to attract sales. The challenge lies in efficiently catering to both parents and kids, as highlighted by analyst Suzy Davidkhanian in the "Behind the Numbers: Reimagining Retail" podcast.
Leading back-to-school players are offering value through discounts and enhanced shopping experiences. Walmart is setting an example by promoting in-store inclusivity. During Saturday mornings from July to August, the store is creating sensory-friendly hours for individuals with sensory disabilities. This move aligns with the fact that 15% of all public school students receive special education services. Embracing inclusivity can attract a broader customer base.
Amazon's back-to-school ad campaign encourages parents to spend less and save more by shopping for discounted items. The campaign emphasizes value, targeting cost-conscious parents—especially those with reduced discretionary dollars. Prime Day's early back-to-school deals also provide valuable insights into high-demand products and categories for the holiday season.
Target is focusing on college students by offering a registry tool to add products to their wish lists easily and can share them with parents. Additionally, Target Circle offers college students a 20% discount on one shopping trip. Leveraging its brick-and-mortar advantage helps to capture a customer base that previously relied on competitors like Bed Bath & Beyond for college essentials.
Retailers are tapping into markets with unique needs to capture their share of back-to-school sales and identify opportunities to fill gaps. Inclusivity, discounts, and targeted offers catering to specific customer segments, such as on-campus college students, are essential for success. As the back-to-school season approaches, these innovative strategies show retailers' resilience in an often-frenzied marketplace.
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The journey of a product from conception to consumer is often complex and lengthy. For instance, a $7.95 bottle of Bath & Body Works foaming hand soap used to take three months and a 13,000-mile journey to reach the company’s Ohio distribution center. However, Bath & Body Works embarked on a transformative production initiative to streamline this process and expedite product delivery.
The company established a “beauty park” on the outskirts of Columbus, Ohio, where every step of production occurs within a few feet of each other. This innovative approach has reduced the time to get a bottle to distribution to just 21 days and a few miles. This reshoring effort, which began in 2008, required significant negotiation with suppliers and resulted in a campus that includes ten manufacturers and millions of square feet of production and warehouse spaces.
The reshoring trend, driven by disruptions from Covid-19, severe weather, trade wars, and geopolitical tensions, has led to a factory-building boom in the U.S. The government, recognizing the strategic importance of domestic industries, is investing heavily in this area. Over the next decade, public and private investment in reshoring is estimated to reach $3.5 trillion.
However, replicating Bath & Body Works’ model is not without challenges. Factories operate within complex networks of suppliers, parts, and expertise, and moving these networks can be costly. Additionally, land, labor, and compliance with environmental and zoning laws generally cost more in the U.S. than in China and developing countries.
Despite these challenges, Bath & Body Works’ initiative has proven successful. The company can roll out around 7,000 new scented products a year, and its sales reached $7.56 billion last year, an increase of more than $2 billion since 2019. The company’s beauty park strategy revolves around the rapid design and production of new products, allowing Bath & Body Works to charge premium prices and avoid discounts and leftovers. This model, combined with the company’s ability to closely monitor sales and place additional “instant” orders for popular products, has helped cover the added cost of local manufacturing. Bath & Body Works’ reshoring initiative serves as a testament to the potential benefits of bringing production closer to home.
Read more on the Wall Street Journal website
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Forbes recently released its annual list of America's Best Employers for Women, with Costco leading the retail and wholesale sector by making an impressive jump from No. 379 last year to No. 7 this year. Another standout organization on the list is UW Medicine, ranking 14th, which prides itself on promoting women to leadership positions throughout the company.
Cynthia Hecker, CEO of UW Medical Center, reflects on her 42-year journey with UW Medicine as both a nurse and an executive leader. She attributes her success to the early mentorship she received from a female executive more than 25 years ago, which inspired and paved the way for other women to follow suit. Hecker, in turn, now serves as a mentor for other women within the organization.
Despite advancements in promoting female leadership, some women seek alternative career paths to maintain work-life balance. Sarah Raudenbush, a business transformation consultant, and M&A advisor, reveals that many women are overwhelmed and burnt out, leading them to downshift in their careers. The pandemic further exacerbated the issue, blurring the lines between work and personal life for female executives.
In response, organizations like the University of Oklahoma are implementing initiatives to enhance work-life balance. Dorothy Anderson, the University's vice president for human resources and chief human resources officer, highlights benefits such as paid parental leave, flexible work schedules, remote work policies, and female-centric health programs like on-site mammograms. The focus is on creating a supportive and inclusive environment where all employees, including women, feel valued and heard.
According to the Women in the Workplace report, flexible work schedules are a priority for nearly half of women leaders when considering employment opportunities, compared to only 34% of men leaders. Moreover, only a small percentage of women prefer to work primarily on-site.
The Forbes ranking underscores the importance of companies prioritizing the advancement and well-being of women in the workplace. By creating nurturing environments that support work-life balance and offer flexible work arrangements, organizations can attract and retain talented women, resulting in a more diverse and inclusive workforce.
For the full list of America's Best Employers for Women, click here.
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Falls from a height in the workplace aren’t limited to ladder-related such as off a loading dock, from the back of a truck, or even while navigating stairs. These types of falls are similar but different than falls from the same level.
The first step to managing these risks is to identify and assess potential hazards in the workplace. Once these are pinpointed, work with team members to come up with strategies to eliminate or reduce these risks.
Here are some effective strategies to decrease the likelihood of falls from a height:
- Mark areas near edges with a bright color, such as yellow, to alert workers of potential hazards.
- Mark each stair nose with yellow to clearly indicate individual steps.
- Always use handrails when ascending and descending stairs.
- Highlight the tailgate area on trucks to indicate proximity to an edge.
- When using ladders, keep in mind that most accidents happen when descending—commonly at about ten feet from the ground.
- The most straightforward strategy is to ensure workers pay attention to and remain aware of their surroundings at all times.
Implementing these tips can significantly reduce injuries resulting from falls due to falls from elevation changes in floors, proximity to edges, or heights.
For further guidance and ideas for your safety meetings, the RS Safety Library provides more information about this topic. The RS SafetyTV also has videos about Falls (#4 and #5).
Our dedicated safety team is ready to assist members improve their safety programs, moving beyond compliance towards 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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