Newsletter — August 22, 2024 | |
|
POLICY
ECONOMY
ON THE LOCAL FRONT
RETAIL THEFT & PUBLIC SAFETY
IN THE NEWS
TRENDS
| |
|
Crystal Leatherman appointed co-chair of key subcommittees on Attorney General’s AI Taskforce
Crystal Leatherman, WR’s Local & State Government Affairs Manager, has been selected to Co-Chair three key subcommittees for the Attorney General’s AI Taskforce:
- Consumer Protection and Privacy
- Public Safety
- Ethical & Responsible AI/AI Governance
The AI Taskforce, composed of an executive committee including state lawmakers, technology officials, academics, and industry representatives, convenes at least twice a year. Subcommittees meet more frequently to discuss specific issues and topics, which are then presented to the executive committee for consideration.
The Taskforce was established to develop guiding principles for the state’s use of generative AI, identify high-risk applications, recommend public education strategies, and address public policy concerns such as potential biases and workforce implications.
To participate in any of the AI Taskforce executive committee or subcommittee meetings, visit https://www.atg.wa.gov/aitaskforce or email AI@atg.wa.gov.
The full list of subcommittees includes:
- Education and Workforce Development
- Public Safety
- Healthcare and Accessibility
- Labor & Employment
- Government and Public Sector Efficiency
- State Security and Cybersecurity
- Consumer Protection and Privacy
- Industry and Innovation
- Climate and Energy
- Transportation
- Environment & Energy
- Ethical & Responsible AI/AI Governance
There are also opportunities to provide recommendations for ongoing committees as needed.
Crystal is WR’s AI policy lead and has developed an internal workgroup for members to discuss AI policy issues. If you are interested in learning more about how you can get involved in WR’s AI Workgroup, please contact Crystal Leatherman cleatherman@washingtonretail.org.
| |
|
State tax collections fall short of forecast
The Economic and Revenue Forecast Council (ERFC) reported a $33.1 million shortfall in general fund revenue for July, totaling $2.28 billion. This represents a 1.4% decrease from the forecasted amount and a $22.8 million shortfall over the past two months. Key Revenue Act taxes, including sales, use, utility, and business and occupation taxes, fell short by $52.9 million (2.5%), with retail sales tax and B&O tax collections down by 2.9% and 2.8%, respectively. The decline was partly due to disruptions in the auto sector from a cyber-attack and fewer weekdays in June 2024 compared to the previous year.
However, Non-Revenue Act taxes, such as real estate excise taxes, exceeded forecasts by $19.8 million, with a notable 27.7% increase attributed to sales of controlling interests in corporations. Despite recent revenue shortfalls, inflation rates have decreased from last year’s highs, and a potential Federal Reserve interest rate cut in September could improve the state’s revenue outlook.
Full ERFC report
| |
|
July retail sales rise amid economic challenges, boosted by e-commerce
In July, U.S. retail sales surged to $250.37 billion, marking a 6% year-over-year increase in core retail segments (excluding food, auto, and fuel), according to the Commerce Department's Census Bureau. This growth underscores the resilience of consumer spending despite economic pressures like high inflation and interest rates. Bankrate's Ted Rossman attributes this trend to strong consumer activity, bolstered by events such as Amazon's Prime Day.
However, the National Retail Federation reported a more modest 1.7% increase in retail sales, excluding restaurants, autos, and gas. The government's overall figure benefited from a 11.6% rise in e-commerce, driven by competitive sales promotions.
The report highlights a selective consumer base, with increased credit card usage and a shift towards value and essentials. Although back-to-school spending may have occurred early, July’s numbers suggest that consumers are finding ways to navigate economic uncertainties while adjusting spending habits. Electronics saw a notable 7.2% increase, while apparel and department store sales faced slight declines. Sporting goods and hobby stores experienced a 5% drop.
| |
|
Implications of back-to-school season on retail workforce training
As schools resume in September, their impact extends far beyond just classrooms. Everything from street traffic to retail sales sees a shift, and at WR, this time of year, we are focused on retail workforce training opportunities.
National partners, the NRF Foundation, have recently unveiled their updated certification curriculum for Supply Chain, Inventory, and Logistics. This update highlights the growing significance of these areas in the retail industry. Educators and retailers are encouraged to participate in daily webinars, available through September 12, to learn more about these new developments.
At the state level, WR is looking to recruit five retailers to join a one-year retail industry workgroup starting this October. This workgroup will play a pivotal role in shaping strategies for retail workforce training. Working closely with the State Board for Community & Technical Colleges, the group will prepare a report due to the Legislature in October 2025. The report will provide insights into educational opportunities for retail’s workforce and explore how education and training pathways can be developed to enhance career advancement for retail workers. Additionally, the workgroup will recommend four community colleges to implement pilot programs offering short-term retail credentials.
At the local level, WR is proud to partner with the Tumwater School District for the grand opening of the Tumwater Retail and Tourism Center on September 3rd. Rose Gundersen, WR’s VP of Operations and Retail Services, has been instrumental in facilitating strategic discussions between the school district and the NRF Foundation to offer RiseUp certifications and training for teachers.
We invite our members and partners to inquire about any of the opportunities mentioned above. For more information, please contact Rose Gundersen at rgundersen@waretailservices.com.
| |
|
Washington's unemployment rate reflects economic challenges, but private sector shows growth
Washington’s unemployment rate for June stands at 4.9%, placing it as the seventh-highest in the nation. Although this rate might seem moderate, it is higher than the 3.8% from the previous year. Washington’s economy, heavily reliant on tech, retail, and aerospace, has seen significant layoffs, particularly impacting small businesses. During the pandemic, mandatory closures hit these businesses hard, leading to increased unemployment and a depleted unemployment insurance (UI) fund.
The UI fund has since recovered, but employers now face higher unemployment tax rates, contributing to increased costs of products and services. Despite these challenges, the private sector added 700 jobs in June, though public sector losses offset this growth. Moving forward, unemployment benefits in Washington range from $342 to $1,079 per week, depending on the worker's earnings.
| |
|
Aurora Avenue, a neighborhood resistant to change
North Aurora Avenue has long been plagued by violence, drug dealing, and prostitution, making it a challenging area for businesses and residents alike. The complexity of bringing change to this neighborhood goes beyond surface-level solutions.
The rise in crime has significantly impacted the area. Developer Daniel Stoner, who built apartments near Aurora, has witnessed the effects firsthand. Nearby businesses have responded by adding bars to their windows, reducing operating hours, or closing altogether. Despite his commitment to the neighborhood, Stoner has paused a new apartment project after the vacancy rate in his 109th Street building doubled.
Between 2019 and 2023, reported crimes in the area rose three times faster than the citywide rate, with aggravated assaults increasing by 72%. In response, the City of Seattle has added concrete barriers along Aurora to disrupt prostitution and drug dealing.
Last week, the City Council’s Public Safety Committee approved legislation to recriminalize prostitution loitering, which was decriminalized in 2020, and to create Stay Out of Areas of Prostitution (SOAP) zones. The legislation (CB 120836) was introduced by Councilmember Cathy Moore, who represents the area.
Efforts to improve the north Aurora community are met with resistance. The neighborhood business association successfully opposed earlier initiatives to widen sidewalks and reduce traffic lanes on Aurora, which remains State Highway 99, a crucial freight corridor. Aurora is one of the few Seattle neighborhoods that accommodates businesses known for noise.
“There are so many places in the city where you can have a cafe or a restaurant, but there’s limited places where you can have a tire shop, or a scuba dive supply place or a Handy Andy’s,” says Dana Mongillo, who runs a doggy day care, Fuzzy Buddy’s, on Aurora because it was where she “could run a business that makes noise.”
Clearly, the City and the neighborhood face a difficult task as they work to make Aurora Avenue a safer and more welcoming area for residents and businesses.
| |
|
Join WR's Mark Johnson at Fight Retail Crime Day 2024
Mark your calendar for Fight Retail Crime Day (FRCD) on October 24, 2024. This pivotal event unites the retail industry in pushing for legislative solutions to combat rising retail crime. With Congress in recess for the upcoming U.S. elections, this year's FRCD will focus on virtual events and local, in-state engagements with members of Congress. Activities will include grassroots efforts involving employees and state association members, webinars, and media outreach.
To prepare for FRCD, join the NRF on Wednesday, September 11, at 2:00 PM ET for an engagement call. This call will provide insights into the planned activities and offer an opportunity to learn how you can get involved.
2024 Fight Retail Crime Day Engagement Call
Date: September 11, 2024
Time: 2:00 PM ET
Register Now
| |
|
Western States ORC Conference: September 10-12, 2024
Join law enforcement and loss prevention professionals for three days of intensive Organized Retail Crime (ORC) training and networking in Draper, Utah at the Western States ORC Conference.
The conference, hosted at eBay’s facility, will cover a range of critical topics including Romanian theft groups, point-of-sale skimming, open-source investigation techniques, ORC interviewing, and ORC task forces. Attendees will also benefit from a keynote address by Utah Attorney General Sean D. Reyes.
The training is priced at $35. Register today.
| |
|
Walmart raises outlook amid stable consumer health
Walmart has exceeded Wall Street's expectations, raising its full-year forecast as it sees stable consumer health, particularly in the first half of the year. The retailer reported a 5% increase in quarterly revenue, driven by higher store and online visits, and a notable rise in non-grocery sales. Despite this strong performance, Walmart remains cautious about the second half of the year due to potential economic uncertainties, including the 2024 election and unrest in the Middle East.
Walmart's U.S. e-commerce sales jumped 22%, and overall transactions increased by 3.6% compared to the previous year. While the company observed stable consumer behavior, with spending focused on essentials, it also noted a positive shift in general merchandise sales for the first time in 11 quarters. Walmart continues to push for price reductions from vendors, with inflation remaining flat year-over-year. The company's stock has risen nearly 31% this year, significantly outpacing the S&P 500. Despite the cautious outlook for the latter half of the year, Walmart's strong performance and strategic moves have reinforced its position as a key indicator of consumer health and economic trends.
| |
|
Target boosts grocery sales to $24 billion with strategic e-commerce and private label success
Target's food and beverage business has experienced substantial growth, with sales surging by over $8 billion since 2019, reaching $24 billion. This growth is largely driven by a focus on assortment, e-commerce, and labor changes. Target's grocery category is now included in over 55% of shopper baskets, underscoring its role in driving store visits.
Digital sales have also seen significant expansion, with online grocery sales growing more than tenfold since 2019. The introduction of same-day e-commerce services and an emphasis on private label products have been key factors in this success. Target's private label brands, such as Good & Gather and Favorite Day, have become significant contributors, with Good & Gather alone generating nearly $4 billion annually.
Additionally, Target's recent price cuts on thousands of grocery and household items, along with leadership changes in its food and beverage division, highlight the retailer’s commitment to maintaining momentum in this sector. Seasonal private label offerings, including Halloween gummies and apple-themed fall treats, further demonstrate Target's strategic approach to capturing consumer interest and growing its grocery business.
| |
|
Best Buy introduces AI-powered real-time delivery tracking for large orders
Best Buy has launched a new AI-driven live delivery tracking feature for customers purchasing large electronics and appliances, including TVs, refrigerators, and washers. This innovation, accessible via Best Buy’s ecommerce site and mobile app, allows shoppers to track their deliveries in real time with a live map view.
Upon purchase, customers can schedule a delivery day and receive a morning reminder with a four-hour delivery window. As the delivery driver begins their route, customers get real-time updates on estimated arrival times and a live map showing the driver’s location. When the delivery is imminent, the map zooms to a street view for precise details. Best Buy will also send a final notification if customers aren’t actively tracking the delivery.
This new feature enhances the delivery experience by using data on demand, traffic patterns, and route optimization. It is part of Best Buy’s broader initiative to improve customer experience through technology, including AI-powered services and a personalized app interface. Brian Tilzer, Chief Data, Analytics and Technology Officer, highlights the feature’s aim to eliminate the common frustrations associated with waiting for large deliveries.
| |
WR diversity statement
WR is committed to the principles of justice, equity, diversity, and inclusion. We strive to create a safe, welcoming environment in which these principles can thrive.
We value all people regardless of race, ethnicity, gender, religion, age, identity, sexual orientation, nationality, or disability, and that is the foundation of our commitment to those we serve.
| |
|
Renée Sunde, President/CEO — 360.200.6450 — Email
Mark Johnson, Sr. VP of Policy & Government Affairs — 360.943.0667 — Email
Crystal Leatherman, State & Local GA Manager — 360.200-6453 — Email
Rose Gundersen, VP of Operations & Retail Services — 360.200.6452 — Email
| | | | |
