Newsletter — December 12, 2024

IN THIS ISSUE

POLICY

ECONOMY

ON THE LOCAL FRONT

POLITICAL NEWS

RETAIL THEFT & PUBLIC SAFETY

IN THE NEWS

TRENDS

WR Board convenes to shape 2025 priorities and welcome new leadership


The Washington Retail Association (WR) Board of Directors, alongside President and CEO Renée Sunde, convened for its final meeting of the year on December 4 at Lincoln Square in Bellevue, Washington. This comprehensive, day-long session provided an opportunity to reflect on the progress made in 2024 and to strategically align WR’s legislative priorities for 2025.


The 19-member WR Board is composed of a diverse group of leaders representing both Washington-based and multi-state retailers, collectively contributing to a significant employment impact across the state. As the Board prepares for 2025, leadership transitions were confirmed. Opio Dupree, Vice President of Government and Public Affairs at Macy’s, will step into the role of Chair, succeeding Alesha Shemwell, Director of Retail at Bellevue Collection/Kemper Development Company, who will continue serving as Past Chairwoman. Krista Beck, CEO of Jerry's Auto Supply/Piston Service of Wenatchee, Inc., will assume the position of Vice Chairwoman.


Key Highlights of the Meeting


Guest Speaker: Senator Manka Dhingra

Senator Manka Dhingra, Senate Majority Leader, addressed the Board as a guest speaker, providing insights into her caucus’s legislative priorities for the upcoming year. She emphasized the importance of addressing public safety and organized retail crime, outlining potential areas for collaboration between the legislature and WR to ensure shared goals are effectively achieved.


Industry Insights from RILA CEO Brian Dodge

Brian Dodge, CEO of the Retail Industry Leaders Association (RILA), delivered an update on the King County Vibrant Communities Initiative (VCI) Pilot Project. He highlighted key outcomes and discussed the potential for a partnership transition in King County with WR, aimed at sustaining and expanding the initiative's early successes. Dodge emphasized the importance of fostering local collaboration to address challenges impacting retailers and their communities.


Panel Discussion: Collaborative Approaches to Public Safety

The WR Board also engaged in a compelling joint panel discussion featuring Seattle City Attorney Ann Davison and King County Prosecutor Leesa Manion. The panel offered valuable insights into the collaborative efforts between their offices to address high-impact offenders who continue to pose challenges to King County and its surrounding communities. Their perspectives provided critical context for shaping WR’s strategies to mitigate these issues effectively, reinforcing the importance of coordinated efforts to enhance public safety and support the retail sector.


Looking Ahead to 2025

The meeting laid the groundwork for a productive year ahead, focusing on collaboration, strategic planning, and alignment of WR’s priorities to meet the evolving challenges and opportunities in Washington’s retail landscape. The Board is committed to advancing legislative efforts, strengthening partnerships, and driving impactful initiatives that support the retail sector's growth and resilience.


This forward-thinking session reaffirmed the Board’s dedication to fostering a thriving retail environment while addressing critical issues such as public safety, organized retail crime, and economic development.

Legislature meets to prepare for 2025 session


The House and Senate are holding their pre-session warm-up, known as Committee Assembly Days, this week. The House met on Monday, December 9, and Tuesday, December 10, while the Senate will convene on Thursday, December 12, and Friday, December 13.


These meetings provide an opportunity for caucuses to organize, finalize committee structures, and select committee chairs. Committees are conducting work sessions and receiving reports from stakeholders, agencies, and interest groups on issues likely to be addressed in the 2025 session.


On Tuesday, the House Appropriations Committee—the largest legislative committee—held a work session covering topics including the budget outlook, childcare, and behavioral health. This week also allows retiring legislators to bid farewell to the Capitol community while newly elected members begin transitioning into their roles. Office relocations are underway, and Senate Republicans are moving into a new office building.


Washington Retail’s team is actively engaging with both returning and newly elected legislators on the hill, gearing up for the 2025 Legislative Session, which begins on January 13.

Correction: Nationwide injunction issued against Corporate Transparency Act


In light of recent developments, WR would like to correct last week’s article regarding compliance with the Corporate Transparency Act (CTA). On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction against the enforcement of the CTA in Texas Top Cop Shop v. Garland et al. The court found the CTA likely unconstitutional, citing concerns about privacy violations, compelled speech, and federal overreach.


The CTA, designed to combat money laundering by requiring businesses to disclose beneficial ownership information to the U.S. Treasury Department, has faced significant criticism for its compliance burdens and privacy implications. Judge Amos Mazzant's ruling highlighted these issues, imposing a nationwide injunction halting the Act’s enforcement.


This decision means that businesses are not currently required to file Beneficial Ownership Information (BOI) reports. However, businesses should remain prepared as the government is expected to appeal.

Online sales surge to $41 billion during Black Friday weekend


The Black Friday to Cyber Monday shopping period set new records, with U.S. online sales reaching $41.1 billion, according to Adobe Analytics. Each day saw unprecedented growth, highlighting the continued shift toward e-commerce. Cyber Monday alone accounted for $13.3 billion, a 7.3% increase from 2023, marking the highest single-day online sales in history.


The National Retail Federation (NRF) reported a surprising 197 million consumers shopped over the five-day period—13.6 million more than anticipated. NRF CEO Matthew Shay noted the weekend’s importance for both consumers and retailers, despite early promotions and a shorter holiday shopping season.


In-store shopping saw mixed results. Sensormatic Solutions recorded a 2.3% decline in store visits compared to 2023, though traffic outperformed year-to-date averages. Meanwhile, Mastercard Spending Pulse reported a modest 0.7% rise in Black Friday in-store sales, compared to a 14.6% jump in online sales.


Mobile shopping surged, with 57% of Cyber Monday purchases made on mobile devices, up from 33% in 2019. Shopify merchants also broke records, generating $11.5 billion globally, a 24% increase over 2023.


As the holiday season progresses, retailers anticipate last-minute shopping to drive both in-store and online sales.

Import surge: Retailers brace for tariffs and potential port strike


U.S. container ports are experiencing a surge in import activity as retailers prepare for potential disruptions from increased tariffs and a possible East Coast and Gulf Coast port strike. The National Retail Federation (NRF) and Hackett Associates’ Global Port Tracker report anticipates heightened import volumes through spring 2025.


“A strike or broad tariffs would hurt the economy,” said Jonathan Gold, NRF’s VP for Supply Chain and Customs Policy. “Retailers are frontloading goods to mitigate potential impacts, but we urge all parties to reach agreements quickly.” Talks between the International Longshoremen’s Association and U.S. Maritime Alliance have stalled, with the current contract extension expiring January 15.


Meanwhile, President-elect Donald Trump’s plans for sweeping tariff increases add urgency. Hackett Associates Founder Ben Hackett emphasized the strain on supply chains, noting, “The window to avoid these disruptions is closing.”


In October, ports handled 2.25 million TEUs (twenty-foot equivalent units), marking a 9.3% year-over-year increase. This growth trend is expected to continue into 2025.

2025 Seattle minimum wage of $20.76 takes effect January 1


Effective January 1, 2025, all Seattle businesses must pay employees at least $20.76 per hour. This new minimum wage applies citywide and eliminates tip credits and employer-provided medical benefit deductions for small businesses.


The Minimum Wage Ordinance ensures annual adjustments based on inflation, as measured by the Consumer Price Index (CPI-W). For 2024, large employers currently pay $19.97/hour, while small employers paying medical benefits or including tips offer $17.25/hour. Starting in 2025, all businesses will adhere to the $20.76/hour rate, regardless of size.


For complete details, visit the OLS website. Employers are encouraged to review these changes to ensure compliance with Seattle labor laws.

Scam Alert: Fraudulent notices target Washington small businesses


Washington’s small businesses are being targeted by scammers posing as the Secretary of State’s Office. These fraudulent letters, designed to mimic official government communications, demand excessive fees and threaten fines, dissolution, or even jail for noncompliance. Latino businesses have also reported similar scams via phone.


The scam letters often include authentic-looking details, such as the Washington state seal and Unified Business Identifier (UBI) numbers, to appear legitimate. However, key clues reveal their deceit, such as incorrect addresses, including one for “Olympia, CA,” and QR codes linking to websites ending in .org instead of .gov.


Attorney General Bob Ferguson urges businesses to verify filing statuses directly with the Secretary of State and report scams to his office. Businesses should avoid paying suspicious demands and consider halting payments if already made.


Ferguson’s Small Business Protection Initiative combats such scams. Recent victories include shutting down fraudulent companies and securing penalties exceeding $25 million against businesses preying on Washington entrepreneurs.


For guidance, visit the Corporations and Charities Filing System or contact the Secretary of State at (360) 725-0377 or corps@sos.wa.gov. Protect your business by staying vigilant against deceptive solicitations.

2025 Workplace posters now available in 29 languages


Employers, take note! The Office of Labor Standards (OLS) has released the 2025 workplace posters, now translated into 29 languages. These posters can be downloaded on the OLS Languages webpage and must be displayed in both English and the preferred languages of your employees. Printed posters were mailed to businesses holding a Seattle business license, alongside important updates on Seattle labor standards.


To stay informed about poster updates and labor standards, subscribe to the OLS newsletter on their website.

Tammy Morales listens to public comments at Seattle City Hall on Sept. 17. (Kevin Clark / The Seattle Times)

Seattle City Councilmember Tammy Morales to resign


On December 4, Seattle City Councilmember Tammy Morales announced her resignation from the District 2 seat, effective January 6. Following her departure, the Council will have 21 days to appoint a temporary replacement who will serve most of 2025. The seat will be on the ballot in 2025, with the election winner assuming office upon certification of results to complete the final two years of Morales's term.


In her resignation announcement, Morales described the decision as "very difficult" and voiced sharp criticism of her Council colleagues. She condemned their passage of 11 public safety bills, stating they failed to provide “meaningful accountability for our police department.” This comes despite a 2023 federal judge’s dismissal of most of the federal consent decree over Seattle’s police, citing that the "Seattle Police Department has made tremendous improvements in its policies, methods of operation and leadership with respect to the areas of use of force, stops and detentions and crisis intervention."


Morales also expressed frustration over police presence in Council chambers during discussions on controversial legislation and the arrest of protesters disrupting meetings. She highlighted the personal toll of her role, saying, “[t]his role has caused my mental and physical well-being to deteriorate.”


Morales, who narrowly lost to then-Councilmember Bruce Harrell in 2015, won the District 2 seat in 2019 and secured a close reelection in 2023 against Tanya Woo. Woo was later appointed to fill the citywide Council seat vacated by Teresa Mosqueda, who moved to the County Council. Woo, however, was defeated in 2024 by Alexis Mercedes Rinke, who joined the Council in late November.


Morales's resignation adds another race to the 2025 ballot. All citywide positions — Mayor, City Attorney, and Council Positions 8 and 9 — will also be up for reelection. Mayor Bruce Harrell, City Attorney Ann Davison, Council President Sara Nelson, and Councilmember Alexis Rinke are all expected to seek reelection.

Left to Right: Senator Joe Nguyen (D-34) and Crystal Leatherman, WR State & Local Government Affairs Director

December’s big freeze


Elected lawmakers and other officials are hosting their final fundraising events as the legislative session freeze approaches. Starting December 14, the freeze prohibits legislators and state officials from soliciting or accepting campaign contributions, including funds for debt retirement, from 30 days before the session begins to 30 days after it ends.

 

  • Senator Joe Nguyen (D-34) hosted his 5th Annual "Pho-Raiser." As chair of the Senate Environment & Technology Committee, Senator Nguyen has worked closely with WR on AI legislation and continues to be a key partner in advancing innovative policies.
  • Representative Michelle Caldier (R-26) held an event announcing her intent to run for the 26th District Senate seat during a special election in 2025. Rep. Caldier has been a strong supporter of WR and the retail industry.
  • Attorney General-Elect Nick Brown (D) hosted a debt-retirement party to close out his campaign. WR looks forward to working with AG-Elect Brown on ORC and other retail-related issues.


As the year ends, WR is preparing for the 105-day legislative session, ready to advocate for policies that strengthen and protect Washington’s retail sector.

Organized Retail Crime Unit files charges in $48,000 theft scheme


The Washington State Attorney General’s Organized Retail Crime Unit has filed its sixth criminal prosecution, targeting three individuals accused of orchestrating a “double-dipping” theft scheme involving Home Depot stores across four counties. The suspects, Volodymyr Tsuman, Veniamen Tsuman, and Leonid Trotskovets, allegedly stole over $48,000 in merchandise through more than 50 thefts.


The scheme involved using original purchase receipts to steal matching items or exploiting pick-up paperwork to claim unpaid goods. Charges include first-degree and second-degree organized retail theft, carrying potential sentences of up to 10 years in prison and fines of $20,000. Restitution for Home Depot will also be pursued.


Attorney General Bob Ferguson’s Organized Retail Crime Unit, established in 2023, addresses sophisticated theft operations impacting retailers and employees. The unit provides centralized resources and supports multi-jurisdictional investigations.


“Organized retail crime is a sophisticated problem, and our team is equally sophisticated,” Ferguson stated. “We are committed to protecting Washington’s business owners and employees.”


Washington’s Organized Retail Crime Unit joins similar efforts nationwide, bolstering law enforcement’s ability to combat large-scale retail theft. Since its creation, the unit has secured its first prosecution and continues to address cases threatening the retail sector.


Attorney General’s Press Release

Tacoma Mall’s upscale transformation


As malls across the U.S. grapple with declining foot traffic, Tacoma Mall is defying the odds with a multi-million-dollar renovation to create an upscale shopping destination. Owned by Simon Property Group, the mall is undergoing significant enhancements, including updated entrances, a reimagined food court, and new flooring. These upgrades accompany The Village, a previously announced expansion featuring retailers, cafes, and restaurants with outdoor terraces, set to open next year.


The revitalization also includes repurposing former anchor spaces for popular retailers like Nordstrom Rack and Total Wine. Simon calls the investment a “strategic” move to meet evolving shopper demands, aligning with trends seen in other regional redevelopments like Northgate Station and Kirkland’s The Mall at Totem Lake.


Research from Coresight highlights that top-tier malls are thriving, demonstrating that experiential retail can boost brand awareness. Tacoma Mall’s transformation reflects a broader trend in the Puget Sound region, where malls are reinventing themselves as community hubs and lifestyle centers.

Black Friday 2024


Despite an effort to start the holiday shopping season earlier due to a shorter shopping window, many consumers still postponed their purchases until after Thanksgiving. The economic landscape, influenced by lingering inflation and tight household budgets, continues to shape spending behaviors. While inflation has eased somewhat, many families remain cautious about their finances, with the potential impact of new tariffs under President-elect Donald Trump adding to uncertainties.


Black Friday Trends: A Mixed Picture

Sales Performance

Black Friday 2024 demonstrated strong consumer engagement but reflected ongoing shifts in shopping habits. U.S. retail sales (excluding autos) rose 3.4% compared to last year, according to Mastercard’s SpendingPulse. E-commerce played a significant role, with online sales climbing 10.2% to $10.8 billion, per Adobe Analytics. The use of "buy now, pay later" plans fueled an 8.8% rise in online spending, particularly for mobile shopping, which accounted for 79.3% of transactions.


AI and Chatbots: Emerging Winners

Artificial intelligence proved transformative in driving holiday sales. Salesforce reported that AI agents facilitated over $14 billion in global online sales, with retailers employing generative AI experiencing a 9% higher conversion rate. Chatbot usage skyrocketed, with bot-driven clicks to retail sites increasing 1,800% year-over-year. Consumers relied on AI for deal-hunting, item recommendations, and brand discovery.


Toy Sales Surge

Toys emerged as a surprising category winner, with online sales jumping 622% compared to the prior month’s daily averages. Popular items included Harry Potter Lego sets, Disney Princess dolls, and the Cookeez Makery oven playset. After facing challenges last year, this recovery in the toy sector underscores its resilience during the holiday season.


Pricing Dynamics and Margins

Deep discounts dominated Black Friday, driven by inflationary pressures and the need to clear excess inventory. Adobe noted peak discounts of 27.8% on toys, 27.4% on electronics, and 24.2% on TVs. Retailers extended deals throughout the weekend and beyond, turning the holiday shopping period into an extended value-driven event.


Experts observed that inflation-fatigued consumers are prioritizing essential purchases and spreading out their holiday shopping. This behavior highlights the importance of ongoing promotions to accommodate tighter budgets.


Thanksgiving Day Gains Momentum

Thanksgiving Day itself has become a significant retail event, with online sales reaching a record $6.1 billion, an 8.8% year-over-year increase. This trend reflects a broader shift in holiday shopping, as consumers take advantage of early deals and digital-first experiences.



“Thanksgiving is stealing some of Black Friday’s thunder,” noted Vivek Pandya of Adobe Digital Insights. Brands are spreading promotions over weeks, diluting the urgency of in-person shopping events like Black Friday.


Looking Ahead

Holiday shopping continues to evolve, shaped by economic pressures and technological advancements. While traditional retail remains relevant, digital channels are redefining consumer behavior. For retailers, this dynamic environment presents both challenges and opportunities to innovate and meet the demands of modern shoppers.


The shift toward e-commerce, driven by AI and extended promotional periods, signals a new era for holiday retailing—one where the season is no longer defined by single days but by an ongoing, omni-channel experience.


RetailDive.com

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