Newsletter — August 1, 2024 | |
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POLITICAL NEWS
POLICY
ECONOMY
ON THE LOCAL FRONT
RETAIL THEFT & PUBLIC SAFETY
IN THE NEWS
TRENDS
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Election Day Primary is just around the corner
Tuesday, August 6, is Washington state’s primary Election Day. Please ensure your ballots are submitted by 8 p.m. to make your voice heard.
As part of our commitment to supporting a thriving retail industry in Washington, WR’s Retail Action Council has endorsed candidates who align with these goals and values. WR encourages you to review the list of endorsed candidates before casting your vote. These candidates have demonstrated a strong commitment to policies that benefit the retail community and support economic growth.
Full list of WR RAC endorsed candidates.
Remember, your vote is crucial in shaping the future of our state and the retail industry. Don't forget to submit your ballot by 8 p.m. on August 6!
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Pictured Left to Right: WR State & Local Government Affairs Manager, Crystal Leatherman, State House candidate Mark Herr, State Senate candidate Maia Espinoza, WR Senior VP of Policy & Government Affairs, Mark Johnson.
28th District fundraiser showcases Espinoza and Herr
Crystal Leatherman, Local and State Government Affairs Manager, and Mark Johnson, Senior Vice President of Policy and Government Affairs, attended the 28th District fundraiser in support of State Senate candidate Maia Espinoza and State House candidate Mark Herr. Both candidates have demonstrated strong advocacy for the retail industry.
Maia Espinoza is an entrepreneur who supports public safety solutions and promotes thriving communities, which are essential for a healthy retail environment. Mark Herr, a small business owner, understands the challenges of employing people, creating sound business plans, and maintaining a budget for success. His skills will be a valuable addition to the legislature.
WR’s Retail Action Council has endorsed both candidates and encourages voters in the 28th Legislative District, which includes Lakewood, University Place, Steilacoom, and DuPont, to support them.
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Pictured Left to Right: WR State & Local Government Affairs Manager, Crystal Leatherman, Representative Cindy Ryu (32nd Legislative District), Representative Brandy Donaghy (44th Legislative District)
Women of Color joint fundraiser emphasizes diverse representation in government
WR State and Local Government Affairs Manager Crystal Leatherman attended the House Democratic Campaign Committee’s “Women of Color Joint Fundraiser,” hosted by renowned travel writer and television host Rick Steves. The event emphasized the importance of diverse representation in government and provided a platform for attendees to engage with and hear directly from current legislators running for reelection or seeking new positions.
Among the legislators recognized were two of WR’s endorsed candidates: Representative Cindy Ryu (32nd Legislative District) and Representative Brandy Donaghy (44th Legislative District).
Representative Lillian Ortiz-Self (21st Legislative District) and Senator Manka Dhingra (45th Legislative District) also participated in the event.
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2023-2024 summary of employment laws impacting retailers
An unprecedented number of bills were passed during the 2023-2024 biennium, significantly impacting employment practices, payroll, and costs for retail businesses. WR is offering an exclusive summary of these laws to all dues-paying members.
If you are interested in becoming a WR member to access this summary and benefit from the many other resources and services we offer, please contact Brittany Shannon, Business Development Manager, at (360) 429-0017 or email her at bshannon@waretailservices.com.
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Retail advocacy and education remains a cornerstone for WR
During the interim, the GA Team has been meeting with key legislators to discuss priority issues and to educate on the vital role the retail industry holds in Washington state. These meetings are part of the association’s ongoing efforts to advocate for policies that support the growth and sustainability of the retail sector.
The retail industry is a cornerstone of Washington's economy, supporting nearly 400,000 jobs and generating billions in annual tax revenue for local and state governments. The retail sector is essential not only for providing goods and services but also for community vitality and economic stability through job creation and sales tax contributions.
In meetings with lawmakers, WR emphasizes the retail sector's economic and community contributions while educating lawmakers on the challenges retailers face, including organized retail crime, workforce shortages, and the need for a balanced regulatory environment. By providing a comprehensive overview of the industry's contributions and challenges, we aim to foster a better understanding among policymakers of the critical role the industry plays in our state's economy.
WR encourages members to stay engaged with its advocacy efforts. Together, we can ensure that the retail industry remains a vibrant and essential part of Washington's economic landscape.
Washington State Retail 101
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Important updates on post-consumer recycled content penalties and upcoming changes
As of July 31, 2024, the Washington State Department of Ecology (DOE) has completed sending out violation notices for Post Consumer Recycled Content (PCRC) laws. These notices serve as formal warnings for non-compliance in two key areas.
First Violation Type: Registration, Reporting, and Labeling
Producers who failed to register, report, or label products according to the law's requirements are subject to civil penalties of up to $1,000 per day, starting from the day they received their first violation notice. In August, in-store and online audits will be conducted to identify unregistered or improperly labeled products, with additional violation notices expected in early fall.
Second Violation Type: PCRC Minimum Requirements
Producers who did not meet the PCRC minimum requirements for plastic beverage containers and trash bags, as specified in their annual reports, have received violation notices and corresponding penalties.
Upcoming Changes
PCRC minimum requirements will gradually increase over the next 12 years. By 2036, all packaging must include at least 50% post-consumer recycled content, with trash bags required to include at least 20% by 2027. Household cleaning and personal care products have a starting requirement of 15%, increasing over time.
For more information and a list of registered producers, contact DOE’s Recycled Content Team.
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Census data for June shows modest gains for retail
The U.S. Census Bureau's June retail sales report reveals modest gains despite fluctuating spending patterns in recent months, according to National Retail Federation (NRF) Chief Economist Jack Kleinhenz. He noted that while household spending has been uneven, it remains steady despite slower payroll growth, low consumer confidence, and retail goods price deflation. However, high interest rates are discouraging new borrowing by making credit purchases more expensive.
Key highlights from the report:
- Overall retail sales in June remained flat month over month but increased by 2.3% year over year.
- May saw increases of 0.3% month over month and 2.6% year over year.
- Core retail sales (excluding automobile dealers, gasoline stations, and restaurants) rose by 0.9% month over month and 1.3% year over year in June.
- For the first half of 2024, core retail sales grew by 3.2% year over year, aligning with NRF's forecast of a 2.5%-3.5% growth over 2023.
Additionally, the CNBC/NRF Retail Monitor, using actual credit and debit card data from Affinity Solutions, reported a 0.3% month-over-month increase and a 3.07% year-over-year rise in core retail sales for June, slightly down from May's figures.
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WR’s Johnson speaks to Bellevue Rotary
WR Senior Vice President of Policy and Government Affairs, Mark Johnson, was the guest speaker at the Bellevue Rotary Club Tuesday luncheon. Bellevue Rotary is one of the oldest and largest clubs in Washington State. Johnson’s speech was titled “The State of Retail and Major Issues Facing the Retail Industry.”
Johnson highlighted the importance of the retail industry in terms of sales, tax collections, and employment opportunities. He noted that Washington State has long been a leader in retail, at the forefront of innovation and creativity.
The major issues Johnson addressed included worker and customer safety, retail theft and organized retail crime, artificial intelligence, workforce development, tax increase proposals, gift cards, and the initiatives on the November ballot. He placed particular emphasis on organized retail crime and the solutions being explored, including an ORC Summit scheduled for October.
The sold-out crowd posed many thought-provoking questions. One question concerned how the state expects retailers to get reimbursed for the value of gift cards returned to the state when the customer redeems them. There was also significant discussion about the energy choice initiative, I-2066, which would allow customers to continue the use of natural gas in their homes and businesses.
The energy and accomplishments of the Bellevue Rotary Club, particularly the amazing kid’s park appropriately named “Inspiration Playground” in the heart of town are impressive.
Part of WR’s mission is to educate and activate citizens and leadership groups to ensure the retail industry continues to thrive and grow.
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Seattle City Council raises penalties for illegal street racing
The Seattle City Council, led by Councilmember Bob Kettle, chair of the Public Safety Committee, and Councilmember Tanya Woo, passed new legislation targeting illegal street racing. Councilmembers Kettle and Woo worked closely with City Attorney Ann Davison in developing the legislation.
Spurred by violence at illegal street races, the Council reclassified the offense as a reckless driving gross misdemeanor. It also increased fines for illegal street racing:
- $500 for a first infraction;
- $800 for a second infraction; and
- $1,500 for third and subsequent infractions.
Additionally, individuals who attend and support illegal street races can be fined $100 if they fail to leave when instructed by the police.
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High crime rates and insurance challenges face Pierce County business owners
Nirav Sheth, who owns Meinecke stores in Gig Harbor, Silverdale, and Des Moines, is at risk of losing his insurance due to repeated property crimes. Nationwide has informed him that his policy will not be renewed after more than three reported losses in three years, including a significant break-in in March 2023 where thieves stole customers' vehicles.
Without insurance by September 29, Sheth faces eviction and loan default. He's found an alternative policy quoted at $50,000 annually—more than double his current rate—potentially leading to bankruptcy.
Mark Johnson, WR’s Senior VP of Policy & Government Affairs emphasized the broader issue, stating, “Insurance companies, when they continue to pay these insurance claims, they’re getting more and more cautious.” He noted that small businesses are particularly vulnerable, with some paying out of pocket to avoid losing coverage or facing high premiums.
In response to these challenges, a summit on October 2 in King County will bring together prosecutors, mayors, police chiefs, and others to find solutions to support small businesses affected by crime.
WR remains committed to advocating for the needs and protection of small businesses across the state, particularly in the face of rising crime rates and insurance challenges.
KomoNews.com
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Seattle's misdemeanor crime surge ignites a call for action
Seattle businesses and residents are increasingly frustrated with rising misdemeanor crimes, despite a decrease in violent crime. At the recent City Council Public Safety Committee meeting, business owners shared incidents of theft, property destruction, and harassment, urging immediate action. Interim Police Chief Sue Rahr and City Attorney Ann Davison discussed King County Jail restrictions, limiting bookings for many misdemeanor offenses. The Seattle Police Department faces significant staffing shortages, with 400 fewer officers than needed.
Despite a more supportive city council and efforts to increase staffing, misdemeanor crime remains prevalent, with repeat offenders causing ongoing issues. Business leaders report that rampant drug activity, particularly fentanyl use, is exacerbating the problem, driving tenants to consider leaving downtown. The city’s contract for jail beds remains underutilized, with disputes over costs and operational decisions further complicating the issue.
WR's focus on Organized Retail Crime aligns with the concerns raised by Seattle's business community. The rise in property crime and theft has a direct impact on retailers, underscoring the need for effective law enforcement and strategic partnerships to address these challenges and ensure a safer business environment.
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WR President & CEO joins D.C. Retail Experience and Advocates Summit hosted by NRF
The National Retail Federation (NRF) hosted the Retail Experience and Retail Advocates Summit this past week in Washington DC. President & CEO, Renee Sunde and Retail Champion nominee, Blake Garfield with Seattle-based Bedrooms & More attended the exciting and not so typical D.C. fly-in event.
The Retail Experience included six immersive exhibits that demonstrated retail’s role in driving the economy, providing jobs, and impacting lives and communities in Washington State and across the country. More than 98% of retailers are small businesses and the exhibit showcased nearly 50 main street retailers from 26 states. Technology pushes the retail industry forward and several companies demonstrated their technological innovations.
Joining Sunde at the event were over a dozen State Retail Association Executives from across the country. Maryland Retailers Alliance, President & CEO Cailey Locklair was awarded as the first female recipient of NRF’s prestigious J. Thomas Weyant award. The award recognizes an outstanding retail association executive of the year.
NRF also honored 281 lawmakers with the “Hero of Main Street” award for their unwavering support of policies that bolster the retail sector. Among the recipients were Washington State U.S. Representatives Marie Gluesenkamp-Perez, Cathy McMorris Rodgers, and Dan Newhouse. These representatives were recognized for their consistent advocacy of the NRF’s Retail Opportunity Index, which promotes a healthy and vibrant retail industry.
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Seattle City Light foresees higher rate increases
Facing higher demand, volatility in power markets, and climate change impacts, Seattle City Light is projecting higher electricity rates than previously expected.
Over the next two years, customers will experience annual rate increases of 5.4%, followed by 5% annual increases through 2030. Previous projections estimated 3% annual increases through 2028. The average customer will pay an additional $5 per month starting next year.
Several factors contribute to the increased demand: rapid population growth, government policies promoting the electrification of vehicles and buildings, and the proliferation of data centers. A recent forecast by the Northwest Power and Conservation Council predicts that data centers could consume up to 4,000 average megawatts of electricity by 2029 — five times the power consumed by the entire city of Seattle.
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Amazon's Prime Day hits record sales, topping $14 billion
Amazon announced its most successful Prime Day event ever, with Prime members purchasing more items than in any previous year. The Seattle-based e-commerce giant reported that millions of new customers joined Prime in the weeks leading up to the event to take advantage of the deals.
Doug Herrington, who leads Amazon's Prime and online shopping business, attributed the success to the global participation of Prime members seeking fantastic deals.
Adobe Analytics reported a record $14.2 billion spent online during the two-day event, marking an 11% increase from last year. This surge was driven by back-to-school shopping and higher spending on electronics and home appliances. Despite inflation concerns, Adobe noted that the increased spending was due to new demand rather than higher prices, as online prices have been declining for 22 months, with a 4.2% year-over-year decrease in June.
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Judge clears Amazon in high-profile warehouse safety probe
Judge Stephen Pfeifer of the state Board of Industrial Insurance Appeals dismissed four citations issued by the Department of Labor & Industries (L&I). This ruling comes more than a year after Amazon and L&I went to court. Pfeifer found that Amazon’s health and safety programs were robust and that L&I’s evidence was unpersuasive.
L&I had accused Amazon of unsafe working conditions in warehouses in DuPont, Kent, and Sumner, citing risks from repetitive motions and fast-paced work. The department claimed Amazon willfully neglected worker safety, but Pfeifer found no substantial link between high injury rates and specific jobs at Amazon warehouses, or that the pace of work at Amazon was hazardous. Consequently, Amazon avoids paying an $81,000 fine and potential operational changes.
This ruling sets a precedent in workplace safety regulations and enforcement within the state. The case highlights the scrutiny faced by large employers and the importance of maintaining rigorous health and safety protocols. WR members can observe this outcome to understand the regulatory landscape and the potential implications for their operations. As Amazon faces ongoing investigations and appeals, the decision underscores the complex relationship between regulatory bodies and major employers in Washington.
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Target launches denim take-back event for back-to-school season
As the back-to-school shopping season begins, Target is introducing its first nationwide denim take-back event. From Sunday, August 4 through Saturday, August 10, customers can bring up to five pieces of used denim to Target stores and receive a one-time 20% discount code for new denim purchases through the Target Circle loyalty program.
The promotion includes both national brands like Levi’s and Target-owned brands such as Cat & Jack, Goodfellow & Co., Wild Fable, and Universal Thread. The donated denim will be recycled and repurposed by Target’s partners, supporting sustainable practices and reducing landfill waste. This initiative aligns with Target’s broader environmental goals, including a car seat recycling program and a goal to divert 90% of waste from landfills by 2030.
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Female athletes: The new faces of authentic brand storytelling
As female athletes break records and barriers in sports, they are also redefining brand storytelling. Tennis star Coco Gauff and gymnast Jordan Chiles exemplify this shift. Gauff, at just 20, is the youngest and first tennis player to carry the Team USA flag at the Olympics, and she is now a key figure in American Eagle’s “Live Your Life” campaign. Similarly, Chiles recently teamed up with Milani Cosmetics to promote their Make It Last setting spray.
Brand deals with female athletes are on the rise. Gymnast Simone Biles has partnered with Altheta for its Power of She campaign, while Olympic hurdler Anna Cockrell has become the first female athlete on Lowe’s endorsement roster. The collaborations with female Olympians underscore this growing trend.
The surge in viewership for women’s sports and the rise of social media-savvy athletes have made female athletes invaluable partners for brands. Unlike traditional influencers, who often lack authenticity, athletes like Gauff and Chiles connect with consumers through their compelling personal stories and genuine impact.
Brands are increasingly partnering with female athletes to tap into their dynamic narratives and engaged fanbases. American Eagle’s campaign, featuring Gauff in a new collaboration, highlights her as a symbol of Gen Z values—achieving excellence on and off the court. Milani’s campaign, which includes Chiles and other top athletes, promotes a message of beauty and strength, aligning with the modern cultural shift towards inclusivity in sports.
According to marketing experts, brands must focus on storytelling and shared values to resonate with today’s consumers. Female athletes, with their multidimensional lives and advocacy for social causes, offer a rich narrative that brands can leverage to foster authentic connections and drive consumer engagement.
This growing trend underscores that working with female athletes is no longer just about brand goodwill—it’s a strategic move that delivers tangible business results.
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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, State & Local GA Manager — 360.200-6453 — Email
Rose Gundersen, VP of Operations & Retail Services — 360.200.6452 — Email
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