Newsletter — January 30, 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
IN THE NEWS
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Washington introduces textile EPR legislation: What retailers need to know
The 2025 legislative session in Washington is shaping up to be the “year of clothing.” Following the introduction of HB 1107 – Fashion Supply Chain Transparency, lawmakers have now introduced HB 1420, a sweeping Extended Producer Responsibility (EPR) bill targeting the full lifecycle management of textiles. This legislation would cover a wide range of products, including apparel, footwear, accessories, and most items containing cloth or fiber components.
Under HB 1420, producers would be required to take on the financial and operational responsibility for the collection, sorting, repair, and recycling of textile products sold in Washington. The bill aims to reduce textile waste, promote sustainability, and encourage a circular economy.
Similar legislation—SB 707—was recently enacted in California despite significant concerns from industry groups, including the U.S. Chamber of Commerce. While Washington's proposed bill aligns with California's approach, key differences may introduce additional operational and compliance challenges. Retailers are particularly impacted, as the bill’s broad scope could hold them accountable for products they do not manufacture.
HB 1420 is scheduled for a public hearing today, January 30 in the House Environment & Energy Committee, providing an opportunity for stakeholders to voice their concerns and provide input on the bill’s potential impact.
WR has been proactive on both HB 1420 and HB 1107 by engaging with lawmakers and uniting a coalition of industry groups to advocate for balanced, practical solutions. To further these efforts, WR has established a dedicated workgroup of members to discuss legislative impacts and develop strategic responses.
Retailers interested in joining the clothing and textile workgroup are encouraged to contact Crystal Leatherman, Director of Local & State Government Affairs, for more information.
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Expanding Presumptive PTSD Coverage threatens workers’ comp stability
Washington State’s workers’ compensation system covers Post-Traumatic Stress Disorder (PTSD) if proven work-related. In 2018, the Legislature granted presumptive PTSD coverage to public safety personnel (firefighters and law enforcement). Now, lawmakers are considering further expansion to include correctional officers (HB 1070/SB 5043) and county coroners (HB 1002) in the 2025 session.
Financial Impact: Expanding presumption-based coverage without assessing long-term financial and operational consequences threatens the system’s stability. Since 2018, this expansion has strained the workers’ comp system:
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Between 2019–2024, 21% of claims resulted in permanent total disability, costing $1.05 million per case.
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72% of PTSD claims were compensable, averaging $650,000 each.
Cost Shifting Concerns: The financial burden is disproportionately affecting employers. For the public safety risk class, the indicated rate increase was 30%, but L&I capped it at 15%, using contingency reserves. This effectively shifts costs to other employers and industries, creating an unsustainable financial model.
A Sustainable Approach: Instead of continually broadening PTSD presumptions, policymakers should prioritize:
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Preventive mental health treatments to address issues before they escalate.
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Return-to-work strategies to reduce premature total disability and retain skilled professionals.
WR is working with legislators, L&I, and stakeholders to advocate for a holistic approach that prevents further cost shifting and ensures a financially sustainable system.
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Retailers may face new challenges with proposed data privacy bill
Washington State is considering HB 1671, a data privacy bill introduced by Rep. Shelley Kloba (D-1), that could significantly impact the retail industry. The legislation proposes sweeping changes to how businesses collect, process, and manage consumer information.
While intended to enhance consumer privacy, the bill’s broad scope and complex requirements pose substantial challenges for retailers statewide. Key concerns include:
Broad Definition of Consumer Health Data:
The bill broadly defines “consumer health data”, potentially covering everyday purchases like vitamins, fitness products, and over-the-counter medications. This ambiguity forces retailers to treat routine transactions as sensitive data, increasing compliance complexity.
Strict Consent Requirements:
Retailers would need to obtain explicit, separate consumer consent for data collection and sharing. This could disrupt seamless shopping experiences, frustrating customers and leading to abandoned transactions.
Conflicts with Existing Regulations:
Retailers already comply with federal and state data laws. HB 1671’s additional requirements could create a patchwork of conflicting state-by-state regulations, making compliance more difficult and costly.
The bill’s sweeping requirements fail to account for the realities of retail operations and could negatively impact services consumers rely on, such as loyalty programs and personalized shopping experiences. Additionally, it exposes retailers to steep penalties and civil litigation, even for inadvertent compliance failures.
WR is closely monitoring this bill and working with the member workgroup dedicated to Data Privacy to advocate on behalf of retailers across the state.
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AI Transparency and Disclosure bills advance
Two bills aimed at regulating artificial intelligence (AI) recently passed the House Technology, Economic Development & Veterans Committee along party lines (8-5). HB 1168 and HB 1170 focus on AI transparency and disclosure requirements, with significant impacts on retailers.
HB 1168 seeks to increase transparency by requiring developers of generative AI systems to publicly disclose detailed information about the datasets used to train their systems. This includes identifying sources, data types, and whether datasets contain copyrighted or personal information.
HB 1170 focuses on informing users when content has been developed or modified by AI. It requires providers of AI systems with over 1 million monthly users to provide public AI detection tools and ensure AI-generated content includes clear, permanent disclosures identifying its origin.
For retailers, these bills could introduce operational challenges. Compliance with disclosure requirements and the use of detection tools may increase costs, especially for businesses using AI in low-risk uses like marketing, customer interactions, and inventory management. Additionally, the broad scope and definitions in both bills could unintentionally sweep retailers into the “deployer” role.
WR, along with other industry groups, actively engaged on both bills, offering reasonable amendments to address retailer concerns. While some minor changes were accepted, the most substantial amendments, improving definitions and exploring alternative enforcement mechanisms, were not adopted.
The legislative process is ongoing, and WR will continue advocating to ensure retailers' concerns are addressed as these bills progress.
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Beverage Container Refund Program introduced in Washington
Senate Bill 5502, sponsored by Senator June Robinson (D-38), and its companion, House Bill 1607, introduced by Representative Monica Stonier (D-49), aim to establish a beverage container refund program similar to Oregon’s bottle recycling initiative. SB 5502 received a hearing in the Senate Environment Committee on Wednesday, during which WR provided testimony.
WR, in collaboration with its Extended Producer Responsibility (EPR) Workgroup, has worked extensively with stakeholders to refine the bill’s language. The goal is to ensure the program can be implemented effectively while minimizing legal challenges and mandates. One key addition to the bill is the following provision:
“While retail establishments may choose to host a redemption site, nothing in this chapter shall be interpreted to create a legal obligation on the part of a retail establishment to either accept a returned covered beverage container or allow a redemption site to be sited at a retail establishment.”
Concerns have been raised about the potential impacts of a beverage container refund program on other packaging recycling initiatives currently under consideration, such as HB 1150 and SB 5284.
WR has also highlighted the challenges posed by a patchwork of state-specific laws. For multi-state retailers, complying with varying regulations across states is complex, costly, and burdensome. Since retailers source products for all stores nationwide, a federal solution would be far more practical. WR has emphasized that Washington represents only 2% of the U.S. market, underscoring the need for lawmakers to consider broader implications.
WR will continue collaborating with bill sponsors and stakeholders to ensure that any adopted program is consumer-friendly and feasible for retailers to implement.
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Valentine’s Day spending hits record $27.5 billion
Valentine’s Day 2025 spending is projected to reach a record-breaking $27.5 billion, according to a survey released by the National Retail Federation (NRF) and Prosper Insights & Analytics. This marks a $1.7 billion increase from last year and slightly surpasses the previous record of $27.4 billion in 2020. On average, consumers plan to spend $188.81, up from $185.81 in 2024.
More than half (56%) of consumers plan to celebrate Valentine’s Day, with men showing the largest increase in participation—55% compared to 51% last year. Top gift categories include candy (56%), flowers (40%), greeting cards (40%), an evening out (35%), and jewelry (22%). Spending highlights include $6.5 billion on jewelry, $5.4 billion on dining out, and $2.9 billion on flowers.
Gifting beyond significant others is also on the rise. Spending on family members is expected to reach $4.3 billion, and 32% of consumers plan to buy gifts for friends, the highest recorded in the survey’s history. Pets aren’t left out either, with 32% of shoppers planning special treats for their furry companions.
The NRF survey also highlights the growing popularity of online shopping (38%), followed by department and discount stores. Even non-celebrators (28%) plan to mark the occasion with self-care or gatherings.
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Image of Mark A. Solomon being sworn in to fill the vacant position on the Council, representing District 2, which encompasses south Seattle. (Photo: Seattle City Council) | |
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Seattle City Council appoints Mark Solomon to represent District 2
On January 27, the Seattle City Council selected Mark Solomon to represent District 2 (southeast Seattle) for most of the remainder of 2025.
Solomon has announced he will not seek election in November, meaning a newly elected Councilmember will be sworn in once the election results are certified. Like the other six district seats, District 2 will be back on the ballot in 2027.
Solomon, an Air Force retiree who works as a crime prevention coordinator with the Seattle Police Department, was picked from the group of six finalists. He secured the appointment with a 5-3 vote, edging out Adonis E. Duckworth.
The District 2 seat became vacant following the January 6 resignation of Councilmember Tammy Morales. Solomon narrowly lost to Morales in 2019 and previously sought appointment to the citywide Position 9 in January 2024, after Councilmember Teresa Mosqueda resigned to join the King County Council. Tanya Woo won that appointment but lost the 2024 general election to Alexis Mercedes Rinke.
As the new chair of the Land Use Committee, Solomon plans to prioritize public safety and economic development. He emphasized his commitment to serving all residents of District 2:
“If you don’t agree with me, fine. I’m still going to advocate for you. I’m still going to work for you. I’m still going to try to make things better by delivering services for the community.”
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Photo by Mike Mozart / Flickr | |
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Why Nordstrom is a brand to watch
Published in Seattle Magazine
By Rob Smith
January 20, 2025
Nordstrom has faced its fair share of criticism over the years, everything from inventory issues to store closures to financial performance. And there’s no denying that department stores are in a serious squeeze.
But Placer.ai — a data company that measures, among other things, foot traffic — calls the Seattle retailer one of its “10 Top Brands to Watch in 2025” because it is outpacing other department stores in attracting young professionals and “educated urbanites.”
“For Nordstrom, service and experience is paramount,” the report reads, noting that the company smashed Black Friday. “The retailer has downplayed promotional activity in favor of driving loyalty among key visitors. Nordstrom also has captured higher shares of high-value, younger consumer segments, which defies commonly held thoughts about department stores.”
Nordstrom’s plan to go private in a partnership with Mexican retail chain Liverpool should lead to “even more innovation in store experience, assortments and service.”
Nordstrom is increasingly focused on value, and opened almost two dozen off-price Rack locations last year. The company says the Rack is its “largest source of new customers.” The report says that the Rack “allows the retailer to still engage price-conscious shoppers of all income levels, which is certainly still a bright spot as we head into 2025.”
Other companies with a local presence on the list include Sprouts, Barnes & Noble — which recently opened a store in Bellevue — Ashley Furniture and H Mart.
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New appointments to the Washington State Legislature
The Washington State Legislature has announced several recent appointments:
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Tana Senn, former Representative for the 41st District, has been appointed by Governor Bob Ferguson as Secretary of the Department of Children, Youth, and Families (DCYF).
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Janice Zahn has been appointed to fill Senn’s seat as the 41st District Representative.
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Emily Alvarado has moved from the House to the Senate, replacing Joe Nguyen, whom Governor Ferguson appointed to lead the state Department of Commerce.
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Brianna Thomas has been appointed to replace Alvarado in the 34th District House of Representatives.
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Vandana Slatter, former Representative for the 48th District, has been appointed as the 48th District Senator, replacing Sen. Patty Kuderer, who was elected Insurance Commissioner.
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Osman Salahuddin has been appointed to fill Slatter’s open seat as the 48th District Representative.
These appointments mark significant shifts in the Legislature as the newly appointed members assume their roles.
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A Home Depot store in Virginia. More retailers have been enlisting companies like DoorDash, Instacart and Uber to offer consumers additional delivery options. Nate Delesline III/Retail Dive | |
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Home Depot expands delivery options with DoorDash and Uber Eats
The Home Depot has partnered with DoorDash and Uber Eats to enhance its delivery services, offering on-demand and scheduled delivery to homes and job sites nationwide. Customers can now order gardening supplies, tools, and building materials, with the ability to track orders via the Uber Eats app.
These partnerships build on Home Depot’s existing delivery options, which include Instacart’s Big & Bulky service for items up to 60 pounds. By teaming with DoorDash and Uber Eats, Home Depot joins a growing trend among retailers leveraging same-day delivery platforms to meet consumer demands.
Jordan Broggi, Home Depot’s EVP of Customer Experience, emphasized the initiative’s focus on creating a seamless, flexible shopping experience, blending speed and convenience with robust digital tools.
In addition to catering to everyday shoppers, Home Depot recently launched specialized delivery services for professional customers, shipping goods directly from distribution centers to job sites.
Despite challenges in the housing market, Home Depot’s financials remain strong, reporting a 6.6% year-over-year increase in net sales to $40.2 billion in Q3. These expanded delivery services are part of the company’s ongoing strategy to stay ahead in the competitive retail landscape.
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Lowe’s Hometowns: Empowering communities through $10M in grants
Lowe’s is continuing its transformative impact with the fourth year of Lowe’s Hometowns, a five-year, $100-million initiative revitalizing community spaces nationwide. In 2024, the program will award $10 million in grants to fund 100 renovation projects that strengthen communities.
Since its launch in 2022, Lowe’s Hometowns has improved lives across 44 states and Washington, D.C., by restoring spaces like youth boxing clubs, fire departments, children’s centers, and veterans’ fitness facilities.
Nonprofit organizations are encouraged to nominate eligible projects now through February 18 at www.Lowes.com/Hometowns. Grants support projects involving physical improvements to community spaces, including:
- Safe and affordable housing facilities
- Community resources like food pantries and senior centers
- Outdoor spaces such as parks and playgrounds
- Cultural preservation projects
- Skilled trades education facilities
Eligible nonprofits must be willing to lead the project and focus on community-centered improvements.
For details, program terms, and examples of past projects, visit Lowe’s Hometowns.
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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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