Newsletter — December 5, 2024

IN THIS ISSUE

POLICY

ECONOMY

ON THE LOCAL FRONT

POLITICAL NEWS

RETAIL THEFT & PUBLIC SAFETY

IN THE NEWS

TRENDS

Legislators have begun pre-filing bills before session


December 2 marked the start of pre-filing for the 2025 Legislative Session, when legislators began submitting bills for consideration.


Bill numbers begin at 1000 in the House and 5000 in the Senate. Representative Jim Walsh was the first to file, introducing a bill to add fentanyl to the list of controlled substances. In the Senate, Jeff Wilson submitted a bill to officially adopt "The Evergreen State" as Washington’s nickname.


Key Facts About Legislative Bills:

  • No Limits: Legislators can introduce an unlimited number of bills, even as late as the last day of the session.
  • Two-Year Lifespan: Bills introduced in odd-numbered years remain active for the two-year legislative biennium. Bills from the 2024 session have expired and must be reintroduced with new numbers if desired.
  • Consideration is Not Guaranteed: There is no obligation for an introduced bill to be heard, although some states mandate hearings for all submitted bills.


Bills can cover a wide range of topics, often originating from constituents’ suggestions, voter requests, or advocacy by special interest groups. For example, WR is collaborating with legislators on bills addressing public safety, retail theft, and organized retail crime.


What to Expect in 2025:

  • Bill Volume: Approximately 2,000 to 3,000 bills are expected to be introduced. However, few will be given a hearing, and only about 10% of these will become law.
  • Budget Priority: The Legislature’s only mandated task is to pass a biennial operating budget. Failure to do so by June 30 would disrupt state operations starting July 1.
  • Broad Focus: In addition to the budget, lawmakers will debate various spending and policy issues.


The WR government affairs team will review and monitor every bill introduced, assessing its potential impact on retailers, their employees, and their customers, and will take appropriate action.

Pre-session WR Policy and Government Affairs Committee call December 13


Mark your calendars! WR dues-paying members are invited to participate in a pre-session Policy and Government Affairs (PGA) call on Friday, December 13, from 9 to 10:30 a.m. This exclusive event will provide an overview of the upcoming legislative session, focusing on bills impacting the retail industry.


WR’s government affairs team is committed to advocating for our members. During the session, the PGA Committee will meet weekly to review and discuss retail-related legislation, ensuring that WR stays at the forefront of policy changes.


Interested in joining the conversation? Contact Mark Johnson, Sr. VP of Policy and Government Affairs, at mjohnson@washingtonretail.org or 360-704-0048 for more details on how to participate.


Don’t miss this opportunity to stay informed and engaged!

Washington Legislature gears up for 2025 with December Committee Days


As the 2025 legislative session approaches, the Washington State Legislature is preparing by holding their Committee Days. During these days, committees will discuss priority topics, review progress on current projects, hear public testimony, and explore potential legislation for the upcoming session.


The House of Representatives will meet on December 9th and 10th, followed by the Senate on December 12th and 13th.


Committee Days are open to the public. To view the full schedule and details, visit the Committee Schedules website. Be sure to take part in these important conversations as Washington sets its course for 2025!

New online tool helps businesses navigate corporate Transparency Act compliance


Confusion around the Corporate Transparency Act (CTA) has left many small businesses struggling to understand their obligations under this new federal law.


To help small businesses comply with the Corporate Transparency Act (CTA), the U.S. Chamber of Commerce has created a free, step-by-step guide for filing Beneficial Ownership Information Reports (BOIR). This resource is crucial as the law requires businesses to report ownership details, including their legal name, trademarks, U.S. address, taxpayer identification number, and formation jurisdiction, by January 1, 2025.


Failure to meet the deadline could result in steep fines and criminal penalties. The CTA, enacted in 2021, aims to combat tax fraud, money laundering, and terrorism financing by collecting detailed ownership information from certain U.S. businesses.

Plan ahead: Save now before potential tariffs drive prices up


With President-elect Donald Trump pledging steep tariffs on imports from Mexico, Canada, and China, prices on many consumer goods may rise sharply. Experts suggest now might be a good time to purchase items likely to be affected, particularly electronics, appliances, and toys.


Trump's proposed tariffs include a 25% blanket tariff on imports from Mexico and Canada and up to a 60% tariff on Chinese goods. If implemented, these could significantly impact the costs of commonly imported items, including:

  • Smartphones and Electronics: Prices could increase by 26% for smartphones and as much as 45% for laptops and tablets.
  • Household Appliances: Items like toasters and vacuums could see price hikes of nearly 20%. 
  • Gaming Consoles and Accessories: Expect potential price jumps of up to 40%. 
  • Shoes and Toys: Costs for shoes and toys might rise by 18% and 36%, respectively.


Retailers warn that stockpiling could strain supply chains and raise prices further. Consumers are encouraged to consider their needs now to potentially avoid steeper costs later.


Though the exact details and duration of the tariffs remain uncertain, planning ahead could save money in the long run.

Seattle Council approves 2025 budget, closing deficit without new taxes


On November 21, the Seattle City Council approved a budget for 2025 by an 8-1 margin, eliminating a $250 million deficit in the City’s $2 billion general fund without new taxes.


Councilmember Cathy Moore introduced legislation this month to create a 2% capital gains tax on investment-sale profits above $262,000 a year. The capital gains tax failed on a 6-3 vote but it could receive additional consideration in 2025.


A shift of $287 million in JumpStart tax revenue from affordable housing programs to the general fund enabled the Council to close the deficit while adding spending on public safety. Previous Councils did similar reallocations of JumpStart revenues since its creation in 2021.


Despite the shift of JumpStart revenues, the 2025 budget includes a record $340 million in spending on affordable housing, thanks for voter approval of the housing levy in 2023. The Council also authorized limited cuts to jobs and programs.

2024 election results certified by Secretary of State


The Washington State Secretary of State has officially certified the 2024 General Election results. All 39 counties have reported their outcomes. Of the 5,018,245 registered voters, 3,961,569 cast ballots—a turnout of 78.94%.


The final results showed little change from earlier reports. In the state House of Representatives, Democrats gained one additional seat, securing a win in the 26th District race, which covers Gig Harbor, Port Orchard, and parts of Kitsap County. Former state representative Jesse Young (R) lost to former candidate Adison Richards (D) by 3,330 votes.


The state Senate also saw a Democratic gain in the 18th District of Vancouver and Clark County. Former candidate Adrian Cortes (D) defeated political newcomer Brad Benton (R) by just 172 votes. When the 2025 Legislature convenes on January 13, the House will have 59 Democrats and 39 Republicans, while the Senate will seat 30 Democrats and 19 Republicans. Joining them will be newly elected Governor Bob Ferguson (D), who previously served as Attorney General.


On the initiative front, I-2066—preserving natural gas as an energy choice for Washingtonians—easily passed by a margin of 128,305 votes.


WR extends congratulations to all the winners and looks forward to working collaboratively with the Governor and members of the Legislature to preserve and enhance the retail industry for customers, employees, and business owners across the state.

WR signs joint letter urging port labor negotiations to resume


WR has joined a coalition of organizations representing manufacturers, retailers, and other supply chain stakeholders in urging the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) to return to the negotiating table.


This action follows the ILA’s withdrawal from discussions on November 13, citing concerns over port automation. With the current contract extension set to expire on January 15, 2025, the risk of a prolonged strike looms, potentially disrupting supply chains across the East and Gulf Coasts.


The letter emphasizes the urgent need for both parties to engage in continuous negotiations to resolve their differences, particularly around automation, which remains a sticking point. It calls for a balanced approach that allows for modernization to maintain global competitiveness while fostering collaboration between labor and management.


A previous three-day strike in October demonstrated the significant ripple effects on businesses reliant on these ports. The coalition’s letter highlights the importance of reaching a resolution to avoid further uncertainty and mitigate ongoing challenges for stakeholders.


WR remains committed to supporting efforts that ensure stability in port operations, recognizing their critical role in facilitating commerce nationwide.

Retail crime is not simply a financial loss for retailers — it is a public safety issue for employees, customers and our community at large, write the authors. Pictured is a security guard watching customers inside a Target store in Sacramento, Calif. (Sara Nevis/Sacramento Bee file / TNS, 2023)

Organized retail theft is costing WA millions per year


Special to the Seattle Times

By Jesse AndersonLeesa Manion, and Erik Nordstrom

Nov 29, 2024


On a Friday afternoon, shots rang out outside the Nordstrom at Southcenter Mall in Tukwila. While no one was injured, shoppers were rattled. As one customer said: “It’s a public spot where families and everyone comes out, so I don’t know why they would risk anyone’s life.” The investigation has revealed that it involved a gang-affiliated group stealing merchandise inside the store before the altercation.


Organized retail crime like this is a growing challenge that demands urgent action. By many measures, Washington has the unfortunate distinction of being the state most impacted by organized retail crime. Washington state experienced over $2.7 billion in retail theft in 2021, which means major losses for our businesses large and small, hundreds of millions in lost taxes for governments and an impact on consumers. The risk and threat of violence also means that local stores are less welcoming to customers and less safe for employees.


We see it in downtown Seattle and in every other community along the Interstate 5 corridor and beyond. It strikes small neighborhood shops as well as big box retailers and department stores. Many of the retail crimes known to law enforcement and retailers are tied to other public safety issues we face in King County: gun violence, robberies, assaults, human trafficking, the fentanyl crisis, identity theft and auto theft. While the assessable impact is already high, it is also likely an undercount.


Despite law enforcement’s efforts, the perpetrators are often prolific, mobile and organized — whether it’s individuals stealing and reselling, informal groups doing the same or highly sophisticated, transnational criminal enterprises. We must stop viewing this as a private-sector problem. Retail crime is not simply a financial loss for retailers — it is a public safety issue for employees, customers and our community at large and requires an unprecedented public-private partnership to fight it.


As the retailers who witness it, and prosecutors and investigators responsible for building these cases, we know the evidence proves that basic needs are not the motivation. Take a few recent cases: A makeshift storefront in Burien contained 74,000 items of stolen merchandise valued at $2.4 million. The individuals would turn around and sell the merchandise online, completing 150,000 transactions worth $4.5 million. One woman was found to have stolen $527,000 worth of athletic wear from stores up and down the I-5 corridor.

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Fireworks erupt over the former Bon Marché and Macy’s department store at Fourth Avenue and Pine Street during the downtown Seattle tree-lighting celebration on Friday. (Karen Ducey / The Seattle Times)

Black Friday not too bright in downtown Seattle, where retail struggles


Published in the Seattle Times

By Alex Halverson – Reporter

Nov 30, 2024

 

While more than 183 million Americans are expected to shop online or in person between Thanksgiving and Monday, Black Friday — the in-person retail phenomenon that once saw shoppers pack downtown Seattle — isn’t what it once was.


The National Retail Foundation said in a report earlier this week that a record number of people plan to shop throughout the holiday weekend, with Black Friday and Cyber Monday being the two most popular days. 

In downtown Seattle, the retailers along Pine and Pike streets all splashed Black Friday sale posters across their front doors. But the lines of years past were gone.


Alongside the shoppers bouncing between Uniqlo, Nordstrom and Zara, crews around Westlake Center set up the enormous Christmas tree that sits in Westlake Park. The annual Friday evening tree lighting celebration signaled the launch of the holiday shopping season downtown.


Seattle’s retail scene has taken hits with major departures from Nike, The North Face and Saks OFF Fifth Avenue. The major shopping centers at Westlake Center and Pacific Place faced an exodus of smaller shops. Cyber Monday has also turned the end of November into an online sales bonanza.


Uniqlo, a new addition and bright spot in downtown Seattle, was even marketing an “early Black Friday” sale from Nov. 22 through Thanksgiving, before its actual Black Friday sale began.


Jim Wright, who was visiting Seattle from Los Angeles for the holiday weekend, said almost all of his shopping has shifted online. But as he walked up the hill out of Pike Place Market along Pike Street with a bag full of nuts and pottery, he said he liked to be among the crowd.

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Kohl’s welcomes new CEO


Kohl’s has announced Ashley Buchanan, current CEO of Michaels Companies, as its new chief executive officer, effective January 15, 2025. Buchanan will replace Tom Kingsbury, who has led the retailer since February 2023. Kingsbury, initially interim CEO following Michelle Gass’s departure to Levi’s, will remain on Kohl’s board until his retirement in May.


Buchanan, with over a decade of leadership experience at Walmart and Michaels, brings operational expertise and a focus on transformation. Kohl’s Board Chair Michael Bender described Buchanan as an “innovative leader” poised to steer the company toward growth.


Buchanan’s appointment signals Kohl’s commitment to revitalization as it navigates a competitive and evolving retail landscape.

Best Buy anticipates strong holiday season amid growing customer activity 


Best Buy is entering the holiday season with confidence, bolstered by promising early Q4 trends and an optimistic outlook. While Q3 2024 domestic revenue saw a slight dip of 3.3% to $8.7 billion, the retailer experienced growth in key categories like computing, tablets, and services. Online sales remained a bright spot, climbing to 31.4% of total domestic revenue, with $2.73 billion in revenue for the quarter.


Internationally, Best Buy’s expansion efforts, including new Best Buy Express locations in Canada, helped offset broader market challenges. CEO Corie Barry highlighted early signs of increased customer demand as holiday shopping ramps up. “We’ve seen a strong start to Q4, with customers responding well to our competitive deals, engaging merchandising, and seamless fulfillment options,” Barry shared.


Best Buy’s refined FY25 revenue guidance of $41.1 to $41.5 billion reflects its commitment to adapting to customer needs while maintaining momentum through the season. Barry noted the company’s strength in membership offerings and robust service performance as key drivers of its holiday strategy.


With an eye on delivering exceptional value and experiences, Best Buy is well-positioned to make the most of the holiday season and delight customers in stores and online.

"Wicked" casts a spell on retail 


The release of Wicked has sparked a cultural and retail phenomenon, rivaling the blockbuster marketing blitz of Barbie just a year earlier. The highly anticipated adaptation of the Broadway hit has transformed the marketplace with a sweeping campaign of collaborations. Anchored in pink for Glinda and green for Elphaba, the movie’s themes of empowerment and friendship have inspired hundreds of partnerships across fashion, beauty, and lifestyle brands.


Universal Pictures enlisted global names like Starbucks, Target, and Aldo Shoes, alongside beauty giants R.E.M. Beauty and Shark Beauty, to create exclusive collections. The products include everything from themed apparel and accessories to bath bombs, nail polishes, and even pimple patches shaped like witches’ hats.


Retailers have embraced the moment with immersive experiences, including pink-and-green store façades and yellow brick roads leading shoppers inside. At Ulta Beauty, a dedicated Wicked hub showcases 69 themed products, while Aldo's collection highlights theater nostalgia for longtime fans and a new generation of enthusiasts.


As TikTok trends amplify the hype and stores sell out of select items, brands are already gearing up for Part 2, slated for late 2025. The magic of Wicked is proving to be a retail force as timeless as its story.

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.

Washington Retail Staff

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