Newsletter — October 24, 2024 | |
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RETAIL THEFT & PUBLIC SAFETY
POLICY
ECONOMY
ON THE LOCAL FRONT
POLITICAL NEWS
TRENDS
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Today is Fight Retail Crime Day: A call for action on CORCA
Organized retail crime (ORC) continues to have a significant impact on retailers, the economy, and communities across the nation. Today, October 24, marks Fight Retail Crime Day, an opportunity for retailers, policymakers, and industry leaders to come together and push for stronger measures to combat this growing problem.
A key focus of today’s efforts is support of the Combating Organized Retail Crime Act of 2023 (H.R. 895), or CORCA, which aims to enhance federal enforcement against ORC. This bill expands the scope of criminal offenses related to ORC, making it easier to prosecute organized groups that transport stolen goods across state lines and engage in large-scale retail theft. CORCA also proposes the establishment of the Organized Retail Crime Coordination Center within the Department of Homeland Security, which would centralize federal efforts to fight ORC and increase collaboration between law enforcement agencies.
CORCA has garnered bipartisan support in Washington state, with the following members of Congress as co-sponsors:
WR, along with other stakeholders, is calling on Congress to support CORCA and pass it into law. By doing so, we can strengthen protections for businesses and consumers alike, helping to combat the growing threat of organized retail crime.
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Crime and punishment: No consensus in Olympia
In Olympia, lawmakers are deeply divided on the issue of public safety. Rep. David Hackney, D-Renton, a former federal prosecutor, emphasizes the impact of under-policing on communities of color, noting that crime, rather than police, is a bigger concern for his constituents. Hackney helped form the Public Safety Caucus to support accountability for lawbreakers and advocates for stronger law enforcement.
Rep. Roger Goodman, D-Kirkland, chairs the Community Safety, Justice & Reentry Committee and champions a more rehabilitative approach. He emphasizes evidence-based reforms to the criminal justice system, focusing on minimizing trauma and enhancing community safety through decriminalization and diversion programs.
Both lawmakers have different views shaped by the communities they represent. Hackney’s district in Renton experiences higher levels of gun violence, while Goodman’s district in Kirkland reports fewer crime incidents. Their differing philosophies highlight the challenge of achieving consensus in Olympia, as Hackney pushes for tougher measures while Goodman advocates for a more compassionate approach.
As the public safety debate continues, these contrasting perspectives will shape the legislative agenda in the upcoming session, with proposals ranging from drug treatment accountability to police pursuit laws. Both Hackney and Goodman remain unopposed in their re-election bids, signaling continued influence in these discussions.
WR has been on the front lines as retailer’s tackle the challenges of retail theft in their stores, impacting employees and consumers alike. We agree that public safety is not a one-size-fits-all solution and that legislative action is necessary. To address the growing issue of Organized Retail Crime (ORC), collaboration between the public and private sectors will continue to be essential. That’s why WR, in partnership with Challenge Seattle and WAORCA, developed the Organized Retail Crime Resource Hub. This platform provides retailers, law enforcement, and policymakers with best practices, tools, and resources to strengthen efforts in combating ORC. As debates on public safety continue, WR remains committed to fostering collaboration and delivering practical solutions to protect Washington’s retailers.
SeattleTimes.com
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Chef Ethan Stowell and his restaurant group are closing one of his Seattle restaurants
By Joey Thompson – Reporter, Puget Sound Business Journal
Oct 16, 2024
The Puget Sound region's most prolific restaurateur is shuttering one of his Seattle restaurants.
After nearly 10 years in business, James Beard-nominated chef Ethan Stowell and his restaurant group are closing the Ballard Pizza Co. location at 4010 Leary Way NW in Frelard, between Fremont and Ballard. Its last day in operation will be Saturday, he told the Business Journal Wednesday.
Stowell cited pervasive property crime issues and public safety concerns for the closure, as well as a decline in delivery orders.
"That neighborhood has really taken a beating since the pandemic came into play," he said. "Now on the DoorDash piece, sales have dropped to a point where it's not a viable program. A business has to be able to make some money in order to continue to thrive, reinvest and give people raises."
At the same time, Stowell is moving the original Ballard Pizza Co. on Ballard Avenue Northwest to a bigger space about a block away. The pizzeria opened at 5107 Ballard Ave. NW in 2012. It will close Oct. 26 as the chain prepares to move to the former Pike Taproom space at 5205 Ballard Ave. NW.
The former taproom's 2,500-square-foot space will be an upgrade for the pizzeria, with a full bar and TVs, Stowell said. It's set to open Nov. 1.
"We want to consolidate two locations and have better service," Stowell said. "Our specific message to the team is we’re doing this to make this program better."
The taproom closed earlier this spring, about a year after it opened.
Seattle Hospitality Group, which owns a stake in Pike Brewing Co., is also a major investor in Ethan Stowell Restaurants. In Ballard, Stowell managed the taproom's food operations.
The building in Frelard that Stowell is leaving is owned by Fremont Dock Co., a real estate company with dozens of retail properties around Fremont. The lot is also home to Turkish fine dining restaurant Hamdi.
The pizzeria's closure highlights the challenging economic environment for restaurants in Seattle and across Washington, as both operating and non-operating costs soar and cautious consumers become more resistant to higher prices.
Ballard Pizza Co. opened in 2015. In the last five years, Stowell said the restaurant has been broken into 40 times, and the surrounding area has become a hazard for staff and guests.
The drop in delivery orders since January has been felt by restaurants across the city, after companies such as DoorDash and Uber Eats instituted new fees in the wake of Seattle's new minimum wage law for gig drivers.
Ballard Pizza Co.'s other locations include Woodinville and South Lake Union.
Washington Retail (WR) emphasizes the urgent need for continued progress in addressing public safety and property crime in Seattle. The closure of Ballard Pizza Co., after facing numerous break-ins and growing safety concerns, highlights the significant challenges local businesses endure. WR remains committed to advocating for stronger public safety measures and fostering collaboration between the public and private sectors to ensure a safer environment where businesses can not only survive but thrive.
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Protecting your business from physical and cyber threats: CISA event
Join the Cybersecurity and Infrastructure Security Agency (CISA) for a critical discussion on protecting your business from physical and cyber threats. This free, 60-minute event will be held at the Kent Library on Wednesday, October 30th, from 3:30 to 4:30 PM.
Business owners will have the opportunity to learn from CISA experts about safeguarding their operations and customers from a range of risks. The event is open to the public and offers valuable insights into maintaining business security in an increasingly digital landscape.
The Kent Library’s Large Meeting Room, located at 212 2nd Avenue N, Kent, WA 98032, will serve as the venue, with free and ample parking available on-site.
To attend, RSVP here. For any questions, please reach out to Triniti Gorbunova at triniti.gorbunova@mail.house.gov or call 425-793-5180.
Take advantage of this informative event, hosted by Representative Adam Smith’s office, to ensure your business stays protected.
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Everett voters have a choice between two initiatives to raise the minimum wage
On November 5, Everett voters will have the choice between Initiative 24-01 or Initiative 24-02, both of which will raise the minimum wage. WR encourages a yes vote for I-24-02 which is a balanced measure that raises wages while supporting the long-term health of local small businesses. WR recognizes the importance of both providing workers with fair wages and maintaining a healthy economic environment for retailers and businesses across the state. I-24-01 ignores these important facts and will damage the business climate and hurt workers and small businesses in Everett.
Here’s what Initiative 24-02 will do:
- Raise the Minimum Wage: It sets a minimum wage of $20.24 for workers within Everett city limits. For large employers, this wage increase will take effect on July 1, 2025, while smaller employers will see a phased implementation over two years, reaching full effect by July 1, 2027. The minimum wage will also increase annually, starting in 2026, to keep up with inflation.
- Total Compensation Credit: Establishes a total compensation (including tips, payment for medical benefits, and retirement plans) allowance to make up the difference between the state minimum wage and what would be the Everett minimum wage. This is important to ensure that workers do not lose access to expensive health insurance and other benefits provided by employers.
- Support Small Businesses: Large employers (with over 500 employees) will adopt this wage sooner, while smaller businesses (those with 15 or more employees or annual revenues of $2 million or more) are given additional time to adjust. This thoughtful approach ensures that businesses of all sizes can adapt and thrive.
- Additional Hours for Part-Time Workers: Before hiring new staff or using subcontractors, employers must first offer additional hours to their existing part-time employees—providing more stability and income for those already working.
- Protect Workers' Rights: The ordinance includes strong protections against retaliation for workers who seek to enforce their rights under these new standards.
Balancing the needs of workers with those of local retailers, ensuring a competitive and fair environment for businesses to thrive, is important. By voting YES on 24-02, Everett is taking a responsible approach to improving wages, boosting consumer spending, and keeping the local economy strong. Let's continue to support a prosperous retail environment for all—vote YES on Initiative 24-02!
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Washington faces $5.1 billion budget shortfall
Washington state is projected to face a significant budget shortfall of $5.1 billion in the upcoming 2025-27 biennium, according to preliminary estimates. This gap stems from the rising cost of maintaining current services, which exceeds forecasted revenues for the Near General Fund Outlook (NGFO). The shortfall could expand to $7.5 billion over the next four years.
The estimate factors in the September revenue forecast, expected costs for collective bargaining agreements, and inflation adjustments. The state’s rainy day fund is projected to hold $2.977 billion by the end of the forecast period, leaving a considerable deficit to be addressed.
This shortfall isn’t due to a recession but rather a result of legislative choices. Lawmakers increased spending despite knowing that revenue growth would slow. Additionally, reserves were tapped to fund general spending, leaving an insufficient cushion to cover the gap.While these are early estimates, with two more revenue and caseload forecasts to come before the Legislature enacts the 2025-27 budget, the current outlook signals a challenging fiscal period ahead for the state.
Read the report
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Retail sales grow in September amid positive economic signs
The U.S. Census Bureau's latest data shows a rise in retail sales for September 2024, signaling continued consumer confidence and favorable conditions for the retail sector. According to National Retail Federation (NRF) Chief Economist Jack Kleinhenz, the 0.4% month-over-month increase and 1.7% year-over-year growth reflect consumers’ willingness to spend despite signs of tightening in other areas.
“Consumers are still supporting the economy, and as we approach the holiday season, the retail outlook remains strong,” Kleinhenz noted.
NRF's core retail sales data, which excludes automobile dealers, gas stations, and restaurants, showed even stronger gains—up 0.7% month-over-month and 2.4% year-over-year. These figures align with NRF’s forecast that 2024 retail sales will grow between 2.5% and 3.5% compared to last year.
Additionally, the CNBC/NRF Retail Monitor, which tracks real-time spending using anonymized credit and debit card data, reported a slight dip of 0.28% in September but a 0.94% year-over-year increase.
With improving employment, lower inflation, and decreasing interest rates, the retail sector is positioned for a strong finish to the year, including a projected boost in holiday sales.
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Left to right: Edmonds City Councilmember Neil Tibbott and WR Senior VP of Policy & Government Affairs Mark Johnson | |
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WR highlights solutions to organized retail crime at Snohomish County Cities & Towns meeting
WR Senior Vice President of Policy and Government Affairs, Mark Johnson, presented at the Snohomish County Cities and Towns Association’s quarterly meeting last week. Mayors and councilmembers gathered to discuss growing concerns around public safety, organized retail crime, and retail theft. Law enforcement representatives also joined the meeting to provide firsthand insights from the field.
The presentation emphasized the need for increased resources to tackle the growing issue. Law enforcement, prosecutors, defense attorneys, and diversion programs are currently overwhelmed and unable to meet demand.
A key point mentioned in Johnson's address was the ongoing effort to pass Proposition 1 in Snohomish County. If passed, the Public Safety Sales Tax would add 2 cents to every $10 spent on retail sales, not including exempt items like most groceries and all prescription medications. The money would pay for new and expanded public safety programs focused on reducing violent crime and the impacts of the drug epidemic. Funds would be split between Snohomish County (60%) and cities (40%). Johnson highlighted the fact that, when compared to the hundreds of millions stolen by retail crime rings, this proposal represents a minimal investment that could yield significant returns, ultimately fostering safer communities for shoppers and workers alike.
The presentation sparked valuable discussion, with insightful questions and suggestions from representatives across cities large and small, from Everett to Stanwood and Mukilteo. Johnson encouraged all attendees to advocate for Proposition 1 and to encourage their constituents to participate in the vote.
Please remember to return your ballots by November 5!
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Record transportation levy on Seattle ballot in November
The City of Seattle is asking voters to approve a $1.55 billion transportation levy in November. The levy would fund transportation improvements for eight years, providing money for about 30% of the budget for the Seattle Department of Transportation. Seattle voters approved the current $930 million levy in 2015.
Here’s a breakdown for how the levy would allocate this funding:
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$403 million to repave arterial streets.
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$221 million for bridge repairs and preparations for future projects.
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$160.5 million for Vision Zero safety improvements to reduce collisions, injuries, and fatalities at crossings, intersections, sidewalks, and streets.
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$151 million to improve access to transit hubs like Link light rail stations and bus stops and reduce bus route delays.
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$133.5 million to expand Seattle’s protected bike lane network; to connect schools to bike lanes, greenways and paths; and to maintain and upgrade existing bike lanes ($20 million added to expand the bike network, with a focus on South Seattle).
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$100 million for traffic signal upgrades, enhancing pedestrian and bike accessibility, and supporting traffic operations during large events and trips in and out of the port.
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$66.5 million to improve lighting and activate public spaces in partnership with business districts and community organizations.
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$69 million to address climate change, reduce air pollution, and promote sustainable transportation.
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$45 million for freight improvements to support truck deliveries and services.
While the levy does not have an organized opposition campaign, former City Councilmember Alex Pedersen has come out against the ballot measure. His concern is that the levy does not do enough to promote pedestrian safety. According to Pedersen, who chaired the Council’s Transportation Committee before leaving the Council at the end of 2023, “[t]he most traffic fatalities we see by far is pedestrians. But this levy allocates only 10% toward sidewalks.”
The Seattle Times editorial board also opposes the levy, arguing it fails to address the priorities of Seattle residents, questioning whether the investment would lead to noticeable improvements in roadways for taxpayers.
Support for the levy comes from a coalition of environmental and bicycle organizations, labor unions, and the Seattle Metropolitan Chamber of Commerce.
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Left to right: WR State & Local Government Affairs Director Crystal Leatherman and Rep. Monica Stonier (D-49th LD) | |
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WR backs key endorsed candidates as 2024 election nears
As the 2024 election season approaches its final stretch, the WR Government Affairs team has been actively attending campaign events in support of the Association’s endorsed candidates: Rep. Amy Walen (D-48th LD), Rep. Mari Leavitt (D-28th LD), and Rep. Monica Stonier (D-49th LD). These representatives were identified by WR’s Retail Action Council Political Action Committee for their willingness to engage on key issues affecting retailers.
With the General Election set for November 5 and ballots now in the mail, don’t forget to check our full list of WR-endorsed candidates as you fill out your ballot.
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AI shaping the future of retail
The rapid evolution of AI is transforming the retail industry and the consumer experience for the better. From personalizing the shopping experience to streamlining operations behind the scenes, AI is redefining how retailers engage with shoppers and manage their businesses. Here’s a look at some of the most exciting AI-powered trends currently revolutionizing retail.
The In-Store Experience
AI tools are making the in-store shopping experience more seamless and personalized than ever. From navigation to checkout, AI is assisting in ensuring a smooth, efficient shopping journey. Personalization is also being taken to new levels, with AI crafting custom in-store experiences tailored to each shopper’s preferences.
Smart carts are transforming supermarket shopping by enabling instant checkout and providing personalized product recommendations. AI-driven computer vision technology is also making checkout faster and more secure, significantly reducing fraud. In terms of security, AI-powered video systems are offering real-time analytics, enhancing safety and operational efficiency for retailers.
Content Creation
AI copilots are transforming how marketing teams work, helping them streamline content production and campaign optimization, making their workflows more efficient. Meanwhile, AI-powered shoppable videos are pushing video-first ecommerce forward, enhancing product discovery and driving customer conversions. Generative AI is also being used to produce dynamic, engaging content that meets retailers’ specific needs.
Supply Chain Management Revolution
AI is playing a pivotal role in optimizing supply chain management by helping retailers improve efficiency and reduce costs. From improving inventory forecasting to automating the returns process, AI is reshaping how retailers handle logistics. Enhanced supply chain intelligence is helping businesses avoid stock shortages and reduce markdowns, resulting in more efficient operations and less waste.
Learn More at NRF 2025
These AI trends are just the beginning of what’s possible in the evolving retail landscape. To explore these innovations firsthand and learn how AI is shaping the future of retail, attend NRF 2025: Retail’s Big Show, happening January 12-14 in New York City.
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Walmart offers budget-friendly Thanksgiving dinner
As Thanksgiving approaches, Walmart is helping families celebrate without breaking the bank by offering a $52 meal package that serves up to eight people. Available for pickup or delivery starting October 14, this inflation-free deal includes all the essentials for a classic holiday feast, making it easier for hosts to enjoy time with loved ones.
The $52 bundle features a 16-pound frozen turkey and an array of sides and desserts, including green bean casserole, stuffing, sweet potatoes, and a Southern pecan pie. Additional items in the package include canned goods, broth, seasoning, and rolls, ensuring a festive spread for Thanksgiving dinner.
In the spirit of giving, Walmart is also partnering with the Salvation Army, allowing customers to donate a full Thanksgiving meal directly through Walmart.com. For those wishing to surprise loved ones, the retailer offers the option to have an entire meal delivered straight to their door.
With these savings and convenient options, Walmart aims to make Thanksgiving celebrations accessible to everyone, extending their deals through December 25 for all holiday gatherings.
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Target teams up with Wicked for enchanting shopping experience
Target has partnered with Universal Pictures to launch an exciting new collection inspired by the highly anticipated film Wicked, debuting in theaters on November 22. Starting October 6, over 150 Wicked-themed products became available at Target, with nearly 70% exclusive to the retailer.
Target will bring the Land of Oz to life in stores with themed experiences starting November 3. Special Wicked experiences and giveaways will hit select locations in Chicago, Los Angeles, Minneapolis, and Seattle on November 23 and 24.
Target’s website will feature custom video content, themed animations, and event details. From exclusive clothing by Wicked costume designer Paul Tazewell to budget-friendly accessories and toys, this collection follows in the mass-merchandising footsteps of last summer’s Barbie movie phenomenon.
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Ulta Beauty unveils strategic growth plans and financial targets
Ulta Beauty has announced new long-term financial targets and strategic priorities to accelerate growth during its 2024 Investor Day. The company, a leading beauty retailer, aims to enhance its position in beauty and wellness through four key focus areas: product assortment, customer experience, omnichannel access, and loyalty.
Ulta Beauty plans to increase its store count to over 1,800 in the long-term and expand its loyalty program to 50 million members by 2028. The company also aims to lead in wellness, deepen customer engagement, and enhance in-store and digital experiences. These efforts will support Ulta’s goal to drive strong growth and capture more market share.
The company’s board of directors has also authorized a new $3 billion share repurchase program, signaling confidence in its future financial performance. Ulta projects 4% to 6% annual sales growth and low double-digit earnings per share growth beyond 2026.
Ulta Beauty CEO Dave Kimbell expressed optimism about the company’s future, stating, “We are well-positioned to build on our record of profitable growth and shareholder value creation."
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Macy's and Disney partner for magical holiday celebration
Macy’s and Disney are teaming up this holiday season to create an exclusive limited-edition collection, marking a continuation of their 90-year collaboration. The highlight of this partnership is the debut of a Minnie Mouse balloon at the iconic Macy’s Thanksgiving Day Parade®—a first for the beloved Disney character.
The collection features fashion, accessories, and one-of-a-kind collectibles for all ages, with artwork created by Disney’s legendary director of character art, Jeff Shelly. The collection is available now at select Macy’s stores, macys.com, and the Macy’s app.
To further celebrate, Macy’s will host dedicated Mickey and Minnie Shops in 200 stores nationwide, including its flagship Herald Square location in New York. Customers will enjoy a special augmented reality (AR) experience and LEGO build events in select stores.
“Macy’s and Disney have created magic together for ninety years,” said Nata Dvir, Macy’s chief merchandising officer. “This exclusive holiday collection celebrates that rich history, offering products and experiences for everyone.”
With over 100 items available, from festive pajamas to fashion-forward accessories, this collaboration is the perfect way to bring Disney's timeless charm into the holiday season.
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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
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
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