Newsletter — February 06, 2025 | |
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You're invited: Legislative Retail Reception!
We invite you to connect with your Washington State legislators at a special reception on Thursday, February 13, 2025, from 5:30 PM to 8:00 PM at Lord Mansion in Olympia. This is a unique opportunity to discuss the challenges and opportunities facing the retail industry, including how to keep your business thriving, employees safe, and customers engaged in a rapidly changing landscape.
Don’t miss your chance to be part of the conversation shaping the future of retail! Please RSVP by emailing kdavies@washingtonretail.org or calling (360) 790-0359.
We look forward to seeing you there!
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POLICY
ECONOMY
ON THE LOCAL FRONT
POLITICAL NEWS
RETAIL THEFT & PUBLIC SAFETY
TRENDS
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HB 1671: WR strongly opposes deeply flawed privacy bill
This week, WR joined a coalition of industry groups in strong opposition to HB 1671, a deeply flawed privacy bill that imposes costly, contradictory, and unworkable compliance mandates - harming retailers, small businesses, and consumers alike.
The bill recently had a public hearing in the House Committee on Technology, Economic Development, & Veterans.
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Unfairly Penalizing Washington Businesses - HB 1671 punishes retailers that maintain IT, website, and data operations in Washington by forcing them to comply with the law for all U.S. consumers—not just Washington residents.
The result? More jobs leaving Washington as retailers move operations elsewhere to avoid excessive compliance costs and unfair data requirements.
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A False Promise on First-Party Data - While the bill claims to allow first-party data collection for advertising and customer engagement, it simultaneously blocks the ability to collect the data needed to do so. Even if consumers opt in, businesses will still face restrictions that prevent them from offering personalized shopping, loyalty rewards, and discounts.
Retailers depend on first-party data to improve the customer shopping experience. This bill strips them of that ability, making it more difficult to best serve Washingtonians.
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Hurting Small Businesses & Startups - Washington’s small businesses and startups will be hit hardest by vague and costly requirements. Digital tools, online advertising, and customer data are essential for emerging businesses to compete with larger companies. By restricting these capabilities, the bill stifles growth and innovation.
While this may not be the bill’s intent, the economic impact on small businesses will be severe.
- A Lose-Lose for Washington
- Retailers face job losses, higher costs, and relocation pressures.
- Small businesses lose the ability to compete.
- Consumers lose access to personalized experiences, discounts, and convenience.
- Washington’s economy suffers as jobs and innovation move elsewhere.
HB 1671 is a serious threat to Washington’s economic future. WR will continue urging lawmakers to reject this bill and instead work collaboratively with retailers and the broader business community to develop a balanced, effective privacy framework that protects consumers without crippling businesses.
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Washington Retail testifies on key tobacco & vapor legislation
Washington Retail testified on two critical bills addressing tobacco and vapor product regulation: HB 1203 and HB 1534. While both bills seek to address youth access to dangerous and unregulated vapor products, WR emphasized the importance of smart, enforceable policy over broad bans that would unintentionally fuel the illicit market.
HB 1203: Well-Intended, But Harmful Consequences
WR supports HB 1203’s goal of reducing youth access to flavored tobacco and vapor products but warns that outright bans drive sales underground. Washington already ranks 5th nationally in illicit tobacco smuggling, with nearly 37% of all cigarettes in the state coming from illegal sources. If HB 1203 passes, illicit networks will likely take over flavored product sales, eliminating oversight, ID checks, and consumer protections.
Data from California and Massachusetts shows similar bans increase youth access as unregulated markets flourish. Instead of protecting consumers, HB 1203 would shift sales from responsible retailers to criminal enterprises.
HB 1534: A Solution for Harm Reduction
WR supports HB 1534, which offers a practical approach to keeping dangerous vape products away from youth. The bill establishes a statewide tobacco and vapor registry, ensuring only legal, regulated products are sold in Washington. This measure:
- Creates transparency across the supply chain, holding manufacturers and retailers accountable.
- Prevents illegal products from entering the market.
- Levels the playing field for responsible businesses that follow the law and want to sell legal products to adults while protecting youth.
During testimony, WR urged lawmakers to support HB 1534’s enforcement-first approach, which prioritizes public health, helps legitimate retailers, and cuts off illegal product sales at the source.
WR remains committed to advocating for common-sense, enforceable policies like HB 1534 that balance regulation with harm reduction.
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Too many employer mandates, too little support
The Legislature is considering an unprecedented number of employment-related mandates without fair notice or adequate technical support. These include:
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Allowing striking workers to access unemployment insurance (SB 5041)
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Creating a private right of action for personnel record violations (HB 1308)
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Prohibiting job applications from requiring a driver’s license unless essential to the job (SB 5501, HB 1402)
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Raising the minimum wage to $25 by 2032, along with paid time off and bereavement mandates (SB 5578, HB 1764)
Increasing Private Right of Action (PRA) without support - Expanding PRA without technical assistance will leave businesses struggling to comply, facing penalties and costly legal battles. Many mandates grant a PRA, allowing lawsuits for alleged non-compliance—even when businesses act in good faith. Given Washington’s worker-friendly courts, many employers settle to avoid prolonged litigation. With rising class-action lawsuits over job posting violations, more PRA proposals will only accelerate this trend.
WR advocates for a balanced approach that upholds worker protections while recognizing business realities. SB 5408 is a step in the right direction, introducing a “right-to-cure” provision for job posting mistakes. Retailers are resilient, but they need legislative policies that support, not hinder, their success.
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The flags of Mexico, the United States and Canada fly in Ciudad Juarez, Mexico February 1, 2025. (Reuters) | |
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Trump pauses tariffs on Mexico and Canada amid fentanyl trade negotiations
After days of intense negotiations surrounding President Donald Trump's proposed tariffs, he announced a pause on his plan to impose 25% tariffs on goods from Mexico and Canada while simultaneously initiating discussions with China regarding a separate 10% tariff tied to concerns over fentanyl smuggling.
Over the weekend, Trump had effectively ended decades of tariff-free trade between the U.S., Mexico, and Canada by imposing a 25% tariff on imports from both neighboring countries, along with a 10% tariff on Canadian energy resources. He stated that these tariffs would remain in place until illegal fentanyl trafficking showed a significant decline. Additionally, he introduced a 10% tariff on imports from China, citing that country’s role in the production of chemicals used to manufacture fentanyl, a substance largely responsible for the U.S. opioid crisis.
Following two days of negotiations, Trump eased the restrictions after securing temporary agreements with Mexico and Canada, a move that helped stabilize Wall Street, although major indexes still ended the trading session on a downward trend.
Mexican President Claudia Sheinbaum pledged to deploy 10,000 National Guard troops along the border to combat drug smuggling, an issue that has plagued the region for years. Similarly, Canadian Prime Minister Justin Trudeau committed to strengthening border security in exchange for the tariff suspension.
Renée Sunde, President and CEO of the Washington Retail Association, emphasized the significance of stable trade policies for Washington businesses.
"Tariffs can create uncertainty and disruption for retailers and consumers alike. It is critical that leaders work toward long-term trade solutions that foster economic stability and support supply chain resilience," Sunde said.
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Little impact so far from Seattle’s drug and prostitution zone laws
Seattle’s Stay Out of Drug Areas (SODA) and Stay Out of Areas of Prostitution (SOAP) laws, passed in September, empower prosecutors to request court orders barring individuals accused or convicted of drug or prostitution offenses from designated zones.
Since these laws took effect in October, a judge has issued a “stay out” order in only one case. In that case, a woman arrested for smoking fentanyl on Capitol Hill was barred from a 25-block area by Municipal Court Judge Damon Shadid.
Police staffing shortages appear to be a key factor in the laws’ limited enforcement. The Seattle Police Department (SPD) has only recently begun hiring more officers than it loses. In 2024, SPD hired 84 officers but lost 83 to retirement or resignation, resulting in a net gain of just one. The department’s current force of about 950 officers is still well below the 1,300 it had in early 2020.
Despite the slow implementation, Downtown Seattle Association President Jon Scholes, a supporter of the laws, remains optimistic. “We still believe that the public safety sector should have a range of tools, interventions, and additional resources, and that’s a good thing.” He also noted a noticeable quieting of downtown in recent months.
In an effort to improve public safety, the city has increased available beds at the King County Jail from 80 to 135, addressing a longstanding challenge of limited jail space.
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Strategies for retro success – webinar
Are Workers’ Compensation and Payroll Costs Keeping You Up at Night?
Retail Services, a subsidiary of Washington Retail is here to help you take control and cut costs! You will discover how this partnership can:
- Refresh your understanding of Retro
- Transform strategies
- Unlock tools and insights
- Navigate the new contract
Multiple sessions to choose from:
This is your chance to stay ahead of the curve and build a stronger, more successful program.
For any additional questions please contact bshannon@waretailservices.com
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Support the Credit Card Competition Act: Sign on today!
The National Retail Federation (NRF) and the Merchants Payments Coalition are gathering support for the Credit Card Competition Act (CCCA) through state-specific sign-on letters. Businesses that sign will be included in letters sent to their Members of Congress ahead of the bill’s anticipated reintroduction in early spring.
The bipartisan CCCA aims to increase competition in the credit card routing market by requiring major financial institutions to offer multiple network options for processing transactions. This would give merchants the ability to choose networks based on service quality, security, and interchange rates.
State retail associations are encouraged to share the sign-on letter with their members and help collect as many signatures as possible. While there is no official deadline, the goal is to gather significant support before reintroduction.
For more details or to sign on, click here.
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Public safety: A multi-legged approach
The 2025 Legislature and Governor are prioritizing public safety, a core function of government. WR strongly supports efforts to increase the number of law enforcement officers—especially since Washington ranks last in per capita police and has for 14 years.
However, policing alone isn’t enough. A fully functional criminal justice system requires adequate prosecuting attorneys, judges, and defense attorneys. Without them, cases stall, and accountability suffers. WR supports providing cities and counties with the sustainable resources needed to strengthen these critical areas.
A final key component of public safety is addressing the root causes of crime, including substance addiction and mental illness. Simply cycling individuals through jails or hospitals without treatment doesn’t solve the problem. They need specialized care to break the cycle, benefiting both them and the community. WR supports efforts to expand treatment options, creating a safer and more effective public safety system.
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Gap is introducing GapVintage, a series of vintage drops curated by Sean Wotherspoon. Courtesy of Gap | |
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GapVintage: A Nostalgic Revival for Retail
Gap is expanding its collaboration with vintage curator Sean Wotherspoon to launch GapVintage, a series of seasonal and themed drops featuring classic Gap pieces from the 1980s, 1990s, and 2000s.
The first release, available online and at Gap’s Flatiron store in New York, includes a 1990s striped pocket T-shirt ($55), a classic logo hoodie ($85), a nylon anorak windbreaker ($90), and a 1980s denim jacket hoodie ($90).
“As the vintage and secondhand market continues to grow, I’m excited to bring GapVintage to today’s youth,” Wotherspoon said.
This initiative aligns with the growing consumer demand for sustainable fashion and nostalgia-driven retail, offering shoppers a chance to own a piece of Gap’s heritage while reinforcing the brand’s relevance in the evolving retail landscape.
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Petite customers score a win
JCPenney is expanding its focus on petite customers with a new fashion collection in collaboration with singer-songwriter Ally Brooke. The Bold Elements x Ally Brooke line highlights petite sizes, alongside standard and plus sizes, reinforcing the retailer’s long-standing commitment to this market.
Brand CEO Michelle Wlazlo sees the collection as both an opportunity to attract new shoppers and strengthen customer loyalty. She emphasized that once petite customers discover the brand’s extensive offerings and well-fitting designs that eliminate the need for alterations, they tend to stay loyal.
Ally Brooke, who stands at 5 feet tall, was chosen as the face of the collection due to her personal connection to the petite community and her strong cultural ties with JCPenney’s Latinx customer base. Wlazlo noted that this marks the first time the brand has designed a collection specifically from a petite perspective, breaking traditional fashion norms.
JCPenney is also leveraging this partnership to grow its private-label business while staying true to its mission of serving working families across all income levels and locations. With economic challenges affecting consumers, Wlazlo highlighted the brand’s commitment to providing high-quality, affordable fashion, ensuring customers can celebrate life’s moments without breaking the bank.
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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, Dir of Local & State Government Affairs — 360.200-6453 — Email
Rose Gundersen, VP of Operations & Retail Services — 360.200.6452 — Email
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