Newsletter — June 13 , 2024

Happy Father's Day!

At WR, we celebrate the incredible dads who inspire us every day. Your dedication, hard work, and love make a difference in the lives of your families and communities. Today, we honor and thank you for all that you do. Happy Father's Day to all the amazing dads out there!

Celebrating Juneteenth

WR honors the resilience, strength, and enduring spirit of the Black community. June 19 marks the emancipation of enslaved African Americans and serves as a powerful reminder of the importance of freedom, equality, and justice for all. At WR, we celebrate the rich heritage and contributions of the Black community that continue to shape and inspire the retail industry. Join us in recognizing and supporting Black-owned businesses and brands that make our retail landscape vibrant and diverse. Happy Juneteenth!

POLICY

• DOE announces summer webinars on Safer Products for Washington

ECONOMY

• Consumers continue spending amid slower growth
• NRF report shows strong sales rebound in May
• Monthly import cargo to hit highest level since 2022

IN THE NEWS

• WR nominee Blake Garfield, Bedrooms & More, named top 5 finalist for NRF's America’s Retail Champions program
• Join us for the Retailer Roundtable in Spokane!
• Walmart enhances employee benefits and career opportunities

RETAIL THEFT & PUBLIC SAFETY

• First prosecution by AG Ferguson’s Organized Retail Crime Unit leads to prison time for offender
• Washington's expansion of behavioral health services is a boost for mental health and retail crime prevention
• WR celebrates new police pursuit rules enacted in Washington

ON THE LOCAL FRONT

• Seattle's Delivery Pay Ordinance costs businesses $27M+ in lost revenue

DOE announces summer webinars on Safer Products for Washington

The Washington State Department of Ecology (DOE) announced updates on the Safer Products for Washington initiative, covering two major cycles. Legislative reports and supporting documents for cycles 1.5 and 2 were published on May 30, accompanied by public comment summaries.

Cycle 1.5, now in its third phase, focuses on regulatory determinations, with comprehensive legislative and technical reports available. Cycle 2, currently in its first phase, prioritizes identifying harmful chemicals, supported by detailed documentation.

This summer, DOE will host webinars to discuss these reports and ongoing efforts. Key dates include:

July 11, 2024: Two sessions (9:30 a.m. and 5:30 p.m. PDT) on Cycle 2, covering priority chemicals and initial priority product research. 

July 30, 2024, 9:30 a.m. PDT: A session on Cycle 1.5’s regulatory determinations and upcoming rulemaking. 

August 14, 2024, 9:30 a.m. PDT: An update on rule development for Cycle 1.5, inviting public feedback.

These webinars are opportunities for stakeholders to engage with the DOE’s work on safer products and provide input. For more information or to share feedback, contact SaferProductsWA@ecy.wa.gov. Join DOE this summer to contribute to a safer, more sustainable Washington.

Consumers continue spending amid slower growth

Despite slower job and wage gains and high interest rates, American shoppers remain willing to spend, according to National Retail Federation Chief Economist Jack Kleinhenz. Kleinhenz highlighted that while economic growth has decelerated, consumer spending continues to drive momentum. The U.S. GDP is projected to grow around 2.3% in 2023, supported by an unexpected rise in employment and moderated inflation.

Kleinhenz noted that stronger-than-anticipated immigration has boosted the labor supply, particularly in low-wage sectors, mitigating wage-driven inflation and sustaining consumer spending. The Congressional Budget Office reported net immigration of 3.3 million last year, significantly higher than previous estimates. This influx has alleviated labor shortages and enhanced production capacity without spurring excessive inflation.

Inflation trends, particularly in services, have been a concern but are expected to stabilize. The PCE Price Index indicated a 2.7% inflation rate in March, primarily driven by service-sector costs. Goods prices, however, remained unchanged from the previous year. While initial projections suggested the Federal Reserve might lower interest rates by July, persistent inflation may delay cuts until later in the year.

Despite challenges, core retail sales, excluding automobiles, gas, and restaurants, rose 3.8% year-over-year for the first four months, aligning with NRF’s forecast of 2.5%-3.5% growth in 2024. Kleinhenz emphasized the resilience of consumer spending as a critical driver of the economy, even amid slower growth.

NRF’s Monthly Economic Review

NRF report shows strong sales rebound in May

In the bustling world of retail, May brought a surge of activity, as revealed by the CNBC/NRF Retail Monitor. Released by the National Retail Federation (NRF), this report unveiled a notable uptick in sales, both compared to the previous month and the same period last year. Despite persistent inflation, largely confined to services rather than retail goods, May's figures mirrored earlier positive trends, signaling resilience in the sector.

Excluding automobiles and gasoline, total retail sales soared by 1.35% seasonally adjusted month over month and 3.03% unadjusted year over year. Core retail sales, which exclude restaurants in addition to automobiles and gasoline, witnessed a similar upward trajectory. Notably, online sales, health and personal care stores, and clothing and accessory stores led the charge in yearly sales growth.

This data, drawn from actual credit and debit card transactions, offers a granular view of consumer behavior, untethered from survey biases. The upward momentum across various retail categories paints a picture of an economy on the move.

Monthly import cargo to hit highest level since 2022

This summer, the volume of inbound cargo at major U.S. container ports is set to reach its highest levels in nearly two years, according to the Global Port Tracker report by the National Retail Federation (NRF) and Hackett Associates. The surge, anticipated over the next seven months, reflects strong consumer spending and retailers' efforts to stock up for peak shipping season.

"Consumers are spending more than last year, driving retailers to meet demand," said NRF's Jonathan Gold. However, overseas port congestion poses challenges, impacting operations and shipping rates. Ben Hackett of Hackett Associates noted that the prolonged peak season, extending beyond traditional months, is partly due to retailers restocking post-pandemic, preparing for new tariffs on Chinese goods, and ensuring ample holiday inventories.

In April, U.S. ports handled 2.02 million Twenty-Foot Equivalent Units (TEU), a 13.2% increase year-over-year and the highest since October 2022. Projections for May indicate a rise to 2.09 million TEU, with further increases expected in the coming months. The first half of 2024 is projected to total 12.1 million TEU, up 15% from last year.

NRF forecasts a 2.5% to 3.5% growth in 2024 retail sales, excluding auto dealers, gas stations, and restaurants. The Global Port Tracker report, available to NRF members, offers detailed data on key U.S. ports, assisting retailers in navigating economic conditions.

WR nominee Blake Garfield, Bedrooms & More, named top 5 finalist for NRF's America’s Retail Champions program

WR is thrilled to announce that Blake Garfield, owner of Bedrooms & More in Seattle, has been named one of the top five finalists in the National Retail Federation's (NRF) America’s Retail Champions program. This prestigious recognition celebrates small retailers who excel in advocating for their businesses and communities. Blake, along with WR President & CEO Renée Sunde, will represent Washington state in Washington, DC, at the 2024 Retail Advocates Summit in July.

Blake Garfield and his family, including founders Jeff and Wanda Garfield and Blake’s wife Krystal, have long been dedicated to championing small business interests. From addressing issues with the state Department of Revenue to advocating for legislation supporting injured workers, Blake's commitment to the retail sector is unwavering. His efforts have extended to federal advocacy, including engaging with Senator Patty Murray's office on credit card swipe fee concerns.

Locally, the Garfields have made significant contributions to public safety and community support, including leadership roles in the Seattle Celebrate Wallingford Neighborhood non-profit. Their dedication exemplifies the spirit of small business advocacy, making Blake Garfield a standout candidate for the America’s Retail Champion 2024 award.

Stay tuned for more updates as Blake and Renée travel to the nation's capital to participate in this distinguished event.

Join us for the Retailer Roundtable in Spokane!

Retailers are navigating unprecedented challenges across multiple fronts. You’re invited 

to this exclusive roundtable to protect your business and employees with common sense.

Date: June 26, 2024 (Wed)

Time: 8 – 9:30 am

Location: North 40 Outfitters - West Spokane Store Conference Room

Benefits to participants:

• Stay Informed
• Gain insights into new employment legislation impacting employers
• Learn about current and proposed safety rules that cost you money
• Make Your Voice Heard
• Share your challenges with rules and regulations
• Example: Wildfire Smoke Rules
• Explore ways to make an impact together

Complimentary continental breakfast coffee/juice provided

RSVP: Brittany Shannon bshannon@waretailservices.com

Walmart enhances employee benefits and career opportunities

Walmart, the largest private employer in the U.S., has announced new perks and career opportunities for its hourly workers to reduce turnover and address a competitive labor market. The new bonus plan for eligible part-time and full-time store workers, including those in pharmacies and Vision Centers, ties potential bonuses to store performance and years of experience. For instance, a full-time worker with one to five years of service can earn up to $350 annually, while a 20-year veteran can earn up to $1,000. This plan will benefit 700,000 U.S. workers.

Additionally, Walmart is launching a training program aimed at moving hourly employees into skilled trade jobs, such as facilities maintenance, HVAC, and automation. The program, part of Walmart Academy, will start with 100 workers in Dallas-Fort Worth and aims to increase skilled trades workers from 450 to 2,000 within two years. These roles pay between $19 and $45 per hour, and training is paid.

Walmart is also expanding its skills certificates program, now offering 50 certificates, up from five in 2020, in areas like data science and project management. The initiative aims to fast-track workers into 100,000 higher-paying, in-demand jobs over the next three years. These moves come as Walmart reports strong financial results and attracts higher-income shoppers seeking value amid inflation.

First prosecution by AG Ferguson’s Organized Retail Crime Unit leads to prison time for offender

Shawn Nanez, 33, of Bremerton, has been sentenced to two and a half years in prison and an additional two and a half years in community custody under a Drug Offender Sentencing Alternative (DOSA) after pleading guilty to multiple felonies. Nanez's crimes involved stealing over $145,000 worth of merchandise from stores across King, Pierce, and Kitsap counties. This case marks the first successful prosecution by Attorney General Bob Ferguson’s new Organized Retail Crime Unit, established in 2023.

Nanez committed 28 thefts between April and June 2022, using tools to break into secured cases and steal high-value items, which he later sold for cash. Known to local loss prevention teams, his thefts often involved intimidation and physical confrontation with store employees. His arrest in June 2022 led to a confession about his routine in selling stolen goods.

Attorney General Ferguson’s unit, created to tackle sophisticated retail crimes, aims to protect businesses, workers, and the economy from the impacts of organized retail theft. With ongoing efforts and more prosecutions planned, the unit is expanding its resources to effectively address and combat these crimes across Washington.

Ferguson emphasized the importance of holding offenders accountable and reaffirmed the commitment to reducing organized retail crime, which poses significant threats to retail environments and the broader community.

WR congratulates the task force's diligent efforts in bringing justice to those responsible for organized retail crimes, protecting businesses and communities across the state. 

Read the full press release: atg.wa.gov

Washington's expansion of behavioral health services is a boost for mental health and retail crime prevention

Washington has made significant strides in behavioral health care, nearing compliance with the Trueblood settlement, a 2015 federal court decision requiring timely competency evaluation and restoration services for defendants. Historically, the state's mental health crisis led to prolonged jail waits and hefty fines due to insufficient care capacity. However, recent efforts have reduced wait times for psychiatric hospital admission to under seven days, aligning with court mandates.

Key to this progress is Governor Jay Inslee’s behavioral health transformation plan, which has increased provider rates, added staff, and introduced new diversion opportunities. The state’s rapid expansion included reopening Olympic Heritage Behavioral Health, adding 72 new beds, with further expansions at Maple Lane, Western State Hospital, and Eastern State Hospital contributing an additional 292 beds. The recent inauguration of the University of Washington Center for Behavioral Health and Learning further enhances capacity with 150 beds and a focus on training future professionals.

By year-end, Washington will have opened approximately 600 new beds since 2022, addressing the surge in competency service court orders. Complementary legislation has introduced diversion programs and interventions for defendants awaiting competency services, stabilizing demand.

WR applauds these efforts, recognizing that addressing mental health needs not only supports vulnerable individuals but also helps mitigate organized retail crime (ORC) by reducing the entry of individuals with untreated behavioral health issues into the criminal justice system. WR views these advancements as pivotal in creating a safer and more supportive community environment.

Read more: “Wait times decrease for WA mental health patients, but gains are ‘fragile’” 

WR celebrates new police pursuit rules enacted in Washington

WR celebrates the enactment of I-2113, a key legislative victory that restores law enforcement's ability to pursue retail thieves and property criminals in their vehicles. This initiative, effective June 6, 2024, addresses previous restrictive policies on police pursuits that had led to increased criminal activity.

The new rules permit officers to pursue vehicles if there is reasonable suspicion of a crime, aiming to reduce retail theft and property crimes. Chris Loftis of the Washington State Patrol emphasized the necessity of these changes due to the rise in incidents since the 2021 restrictions.

WR remains dedicated to supporting both retailers and law enforcement, promoting safer and more vibrant communities across Washington.

Seattle's Delivery Pay Ordinance costs businesses $27M+ in lost revenue 

Since January, Seattle businesses reliant on third-party delivery apps have faced over $27 million in lost revenue due to the city's Delivery Pay Ordinance. A new revenue tracker highlights the ongoing financial strain on local establishments, including small, independent stores and restaurants. Despite clear data illustrating these losses, the City Council has delayed voting on a compromise bill that would ensure delivery workers earn at least Seattle's minimum wage of nearly $20 an hour, excluding tips and mileage.

Tammie Hetrick, president and CEO of the Washington Food Industry Association, emphasized the unsustainability of the ordinance, noting its detrimental effects on businesses already battling rising costs. She called for immediate action, highlighting the importance of a balanced solution.

Marcos Wanless, president of the Seattle Latino Metropolitan Chamber of Commerce, stressed the ordinance's negative impact on Seattle's restaurants, which are crucial for job creation, tourism, and the city's overall health. He urged the council to rectify the situation promptly.

Reneé Sunde, president and CEO of WR, echoed these concerns, urging the council to act on the compromise measure to alleviate the burden on retailers and delivery workers. The data is clear: it's time for the council to resolve this issue and support the city's businesses and workforce.

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