Newsletter — February 20, 2025 | |
Governor Bob Ferguson with WR staff and board members. | |
|
Washington Retail Association Board of Directors convenes in Olympia – February 13, 2025
The Washington Retail Association (WR) held its Winter Legislative Board of Directors meeting on February 13, 2025, in Olympia, Washington, bringing together a diverse group of retail leaders. The Board is made up of representatives from small main street retailers, regional Washington-based businesses, and multi-state retailers with a strong employment presence in the state.
Overview of the 2023/24 WR/RS Consolidated Financial Review
A key agenda item included a presentation by the audit manager of Johnson, Stone & Pagano, who provided a high-level review of the 2023/24 WR/RS Consolidated Financial Review. This annual review ensures that the WR maintains strong financial health, and a full financial audit is conducted every third year. The Board engaged in a thoughtful discussion, emphasizing the importance of transparency and continued prudent financial management.
| |
Attorney General Nick Brown, Senator Adrian Cortes (D-18), Governor Bob Ferguson. | |
|
Guest Speakers: Attorney General Nick Brown and Governor Bob Ferguson
The meeting was especially noteworthy with the attendance of newly elected Attorney General Nick Brown and Governor Bob Ferguson, who both addressed the Board. AG Brown shared his primary focus areas and confirmed his support of the ongoing work of the Organized Retail Crime (ORC) Task Force, and ORC Unit which is now fully staffed with 10 personnel.
Governor Ferguson shared his top priorities, including his commitment to public safety, noting that Washington currently ranks last among states with the lowest number of law enforcement officers per capita, which he believes is unacceptable. The Governor also spoke candidly about the state's fiscal challenges and significant budget shortfall. The state's fiscal gap, estimated between $6.7 billion and $16 billion, results from a surge in state spending, outpacing revenue growth, and putting pressure on the state's ability to provide services.
Governor Ferguson highlighted the difficult budgetary decisions ahead, stressing the need for effective policy solutions to address priorities while balancing the state’s multi-billion-dollar budget deficit. The Governor’s remarks underscored the ongoing need for collaboration between state leaders and organizations like WR to support the state's priorities, particularly in public safety and the retail sector.
| |
|
POLICY
ECONOMY
ON THE LOCAL FRONT
RETAIL THEFT & PUBLIC SAFETY
TRENDS
| |
|
February 21 marks legislature’s first cutoff
Friday, February 21, marks the first legislative cutoff, meaning all bills must be voted out of their original committees. To advance, a bill must have had a hearing and received a committee vote. Bills with financial implications must also pass through a fiscal committee by February 28.
Following committee approval, bills move to the Rules Committee, which acts as a filter before they reach the full legislative body. The House Rules Committee is chaired by the Speaker of the House, while the Senate Rules Committee is led by the Lieutenant Governor. Only bills selected and voted out of these committees proceed to the floor for debate.
Once on the floor, the House Speaker or Senate Majority Leader decides when a bill will be debated and voted on by the full chamber - 98 members in the House and 49 in the Senate. Typically, a bill is only brought to a vote if it has enough support to pass. If approved, the bill moves to the opposite chamber, where the process begins again. The deadline for bills to pass their chamber of origin is March 12.
The 2025 Legislative Session is scheduled to adjourn on April 27, the 105th day of the session. The only bill the Legislature is required to pass and send to the Governor is the two-year Operating Budget, which covers the state’s fiscal cycle from July 1 to June 30 each year.
| |
|
Retailers sound the alarm as concerning data privacy bill advances
Despite widespread opposition from retailers, small businesses, and industry groups, HB 1671 has advanced out of the House Technology, Economic Development, and Veterans Committee. While a few amendments were adopted, they fail to resolve the bill’s core flaws, leaving businesses with unclear compliance mandates, excessive legal risks, and an unworkable regulatory framework that hinders retailers’ ability to serve their customers.
This bill lacks meaningful regulatory oversight, diverges sharply from existing privacy laws in other states, and undermines consumer choice by severely restricting first-party data use. Instead of establishing balanced, enforceable privacy protections, HB 1671 opens the door for opportunistic lawsuits, allowing bad actors to exploit enforcement for financial gain rather than genuine consumer protection.
WR remains firmly opposed to HB 1671 and will continue advocating for a privacy framework that protects consumers without punishing Washington businesses. Lawmakers must work with stakeholders to craft clear, effective, and fair privacy policies that safeguard both privacy and economic growth.
| |
|
Fiscal note inconsistencies in the 2025 session must be addressed
The fiscal note process in the Washington Legislature is intended to estimate a bill’s financial impact on the state budget before a vote. However, in the 2025 session, this process has been applied inconsistently. Some bills move forward without fiscal notes, others receive notes only after committee votes, and some are incomplete, omitting key components necessary to capture the full impact on all state agencies.
For example, HB 1308 expands personnel record requirements and imposes a private right of action on employers who fail to respond within 21 days. Its fiscal note masks a $4.45 million cost to public agencies by incorrectly categorizing requests under the Public Records Act, granting them “good faith” lawsuit protection. This discrepancy unfairly penalizes private employers while shielding public entities.
Similarly, HB 1707, which would provide presumptive Post-Traumatic Stress Disorder (PTSD) workers’ compensation coverage for correction officers, includes an incomplete and underestimated fiscal note. WR testified before the House Appropriations Committee that this note lacks several key components found in a similar bill (SB 6214, 2018) for law enforcement officers and firefighters (LEOFF). Notably, correction officers would be eligible after just 90 days of service, compared to 10 years for law enforcement, yet the projected cost fails to account for this broader eligibility.
These inconsistencies must be addressed to ensure that legislative proposals accurately reflect financial impacts and fairly distribute burdens.
| |
|
HB 1517: The wrong approach to digital equity
The Washington Legislature recently held a public hearing on HB 1517, which proposes a $2 tax on smart wireless devices over $250 to fund digital equity programs. While the WR and our members support efforts to close the digital divide, this bill takes the wrong approach.
Key Concerns with HB 1517
-
Overly Broad Scope – The bill defines "smart wireless devices" too broadly, capturing a wide range of products beyond what is necessary.
-
Unfair Burden on Retailers & Consumers – The tax disproportionately targets retailers and their customers, creating an uneven playing field.
-
High Compliance Costs – Retailers would face significant administrative challenges in tracking, SKUing, and taxing qualifying devices.
WR, alongside a coalition of industry groups, testified in strong opposition, arguing that if digital equity is a legislative priority, it should be funded through the state budget, not an arbitrary tax that increases costs for businesses and consumers.
WR will continue to monitor the bill’s progress.
| |
|
Rulemaking notice: Retail alcohol product placement
The Washington State Liquor and Cannabis Board (LCB) will be seeking input from businesses, especially retailers, on upcoming rulemaking regarding Retail Alcohol Product Placement. This is critical for retailers to engage directly and shape the rules that will impact store layouts, product placement, and compliance requirements.
What’s Happening?
LCB is evaluating new regulations focused on where alcohol products can be displayed in retail stores. Key areas of concern include:
- The placement of alcohol on end caps
- Products near store exits
- Cross-category product placements, ensuring alcohol is not displayed near items marketed toward children
The board acknowledges the unique challenges faced by retailers, particularly those with limited space, and is actively seeking feedback from the industry.
LCB has outlined a tentative timeline for rulemaking:
-
March & April: Stakeholder engagement
-
Late May: Proposed rules (CR 102) released
-
July: Public hearing
-
September: Final rules adopted
To inform their decisions, LCB is looking at best practices from Illinois, Michigan, and Virginia, as well as recommendations from the Distilled Spirits Council.
Why This Matters to You
These regulations will directly affect store operations, requiring potential layout changes and new compliance measures. While WR will be engaging with LCB on behalf of our industry, we strongly encourage retailers to participate directly where possible.
Next Steps
Stay tuned for updates as we engage with LCB. In the meantime, we encourage you to review the LCB rulemaking page here.
| |
|
Proposed rulemaking mandates employer address updates; Public comment open
The Employment Security Department (ESD) has proposed a new rule requiring employers to notify the Department of any address changes within 30 days. While employers are already required to maintain up-to-date records under RCW 50.12.070, the current rules do not explicitly state this requirement. This rulemaking aims to clarify the obligation and ensure compliance.
Employers and stakeholders are encouraged to review the proposed rule language and provide feedback. Written comments can be submitted to esdgpuirules@esd.wa.gov or mailed to Stephanie Frazee, Legislation and Rules Coordinator, at ESD’s Olympia office.
A public hearing via Zoom will be held on March 27, 2025, at 10:00 AM PST for verbal comments. Employers can join using Meeting ID: 846 3081 0093 and Passcode: 537428.
All comments must be submitted by March 27, 2025. Please reference "Employer address change" in all correspondence.
| |
|
Washington State plastic producer registration & reporting now open
The 2024 registration and reporting cycle for plastic producers in Washington State is now open. All producers of covered products must register by April 1, 2025, regardless of whether their post-consumer recycled content (PCRC) requirements have taken effect.
Workload Analysis Open for Comment
The annual Workload Analysis (WLA), which outlines Ecology’s projected expenses and helps determine annual producer fees, is open for public comment until March 3, 2025.
Key FAQs for Producers
-
Covered Product Sizes: Household cleaning and personal care product containers between 8 oz and 5 gallons are subject to reporting requirements.
-
Producer Fees: Invoices are issued after registration reviews, typically in May. All covered producers pay annual fees, with additional penalties for non-compliance.
Registration vs. Reporting
-
Registration: All producers must register annually, even if PCRC minimums do not yet apply.
-
Reporting: Producers selling covered products must report resin totals for the prior sales year if they are subject to PCR requirements.
For more details and recorded information sessions, visit the Plastic Producer Registration & Reporting webpage.
| |
|
Annual reporting deadline for large refrigeration & A/C systems
The deadline for the 2025 annual report is fast approaching! Businesses with refrigeration or air conditioning systems containing 1,500 pounds or more of refrigerant that began operation before January 1, 2024, must submit their report by March 15, 2025.
To assist with the process, drop-in Office Hours are available on:
Key Reporting Insights:
- Use the RAMP platform to review and update facility details, report refrigerant usage, and log service events.
- Only equipment 1,500+ pounds requires reporting this year; medium-sized units (200–1,499 pounds) begin reporting in 2027.
- Registration for medium-sized systems starts in 2026, with inspection requirements beginning in 2026 for medium and 2028 for small systems.
For additional guidance, access the RAMP user guide, the HFC rule guidebook, and the Refrigerant Management Program webpage.
Missed a session? Catch up with key takeaways from our latest Office Hours recap on the HFC webpage. Don’t wait. Ensure compliance before the deadline!
| |
|
Washington State faces multi-billion-dollar budget deficit
Washington state is grappling with a multi-billion dollar budget deficit after years of increased spending. Estimates on the exact shortfall vary widely, with figures ranging from $6.7 billion to over $16 billion. Despite a strong economy, state spending has surged by 40% in the past four years, outpacing revenue growth.
Enterprise Washington, a non-profit organization, has launched BudgetBreakdown.org to educate the public on the state’s financial trajectory. Their analysis shows that while tax collections have nearly doubled over the past decade, state spending has increased by 114%, contributing to the deficit.
With no clear consensus on solutions, some lawmakers are advocating for a wealth tax, while others are calling for spending reforms. The upcoming March 18 revenue forecast is expected to provide more clarity on the state’s financial outlook. In the meantime, Enterprise Washington urges voters to stay informed about government spending and fiscal policy decisions.
| |
|
Retail sales slow in January, but economic growth continues
Retail sales dipped in January following a strong holiday season but still showed year-over-year growth, according to the latest U.S. Census Bureau data. National Retail Federation (NRF) Chief Economist Jack Kleinhenz noted that the slowdown was expected after vigorous holiday spending. Contributing factors included weaker payroll growth, persistent high prices, and weather disruptions, such as cold temperatures and California wildfires.
Overall, retail sales declined 0.9% seasonally adjusted month over month but increased 4.2% unadjusted year over year. Core retail sales, which exclude automobiles, gasoline, and restaurants, followed a similar trend, decreasing 0.9% from December but rising 4% year over year.
Despite the January slowdown, the retail sector remains strong, following a 4% year-over-year increase in core retail sales during the 2024 holiday season. The CNBC/NRF Retail Monitor also reported a 5.72% annual gain in core retail sales for January, further supporting signs of a stable economy.
NRF continues to monitor and forecast retail trends, providing insights that help retailers navigate shifting consumer behavior. While economic challenges persist, the retail industry remains resilient as it heads into 2025.
| |
|
Amazon’s return-to-office mandate boosts downtown Seattle foot traffic
During the first month of Amazon’s mandate for workers to return to the office five days a week, a report by the Downtown Seattle Association found a significant jump in foot traffic on Mondays and Fridays - previously the most popular remote work days.
Compared to December, the Amazon-focused Denny Regrade and South Lake Union neighborhoods saw 22% greater foot traffic, a jump of 36% over January 2024. The weekday average of 46,000 people in those neighborhoods still represents only 74% of the average in January 2019.
Across all downtown neighborhoods, foot traffic rose by 9%, bringing overall activity to 57% of pre-pandemic levels.
Jon Scholes, President and CEO of DSA, highlighted the positive impact of Amazon’s return-to-office policy, noting that “[c]offee shops are full, lunch spots are buzzing and there’s more activity in the area."
| |
|
Washingtonians struggle with rising grocery prices
A recent Washington State Food Security Survey reveals that grocery prices are taking a toll on households across the state. Conducted between August and October 2024, the survey of over 5,500 residents found that 55% reported food insecurity, a sharp rise from 49% in 2023.
On average, Washingtonians spend $263 per person on groceries each month, with 42% struggling to afford essentials. Red meat (58%), chicken (40%), and fresh fruit (38%) were among the most challenging items to purchase. Even households earning $75,000–$150,000 are feeling the pinch, with one-third reporting food insecurity.
The impact extends beyond the dinner table—70% of food-insecure respondents are cutting back on both quantity and quality of food, leading to health concerns. More than half (54%) of those facing food insecurity report poor or fair health, compared to 22% of food-secure individuals.
To cope, 55% of respondents turn to food assistance programs, with food banks and SNAP being the most utilized resources. Both urban and rural communities report similar food insecurity rates, with counties like Lewis, Franklin, and Pierce seeing higher struggles.
With grocery costs continuing to rise, food affordability remains a critical issue for Washington residents.
| |
|
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
| |
Image of two suspects stealing items from a store in footage shared by police on Feb. 4, 2025. Credit: Renton Police Department | |
|
Organized retail crime ring busted in Puget Sound
Three suspects are accused of stealing over $143,000 in merchandise from stores across western Washington in a series of organized retail thefts, according to Renton police.
The thefts, spanning from late October 2024 to early January 2025, targeted high-end fragrances and cosmetics in cities including Renton, Tukwila, Federal Way, Issaquah, Seattle, Auburn, Lakewood, and Redmond.
A 25-year-old male suspect, with 22 prior convictions, including four for organized retail theft, is in custody on a $325,000 bail and faces 10 charges. An 18-year-old female suspect, also in custody on $50,000 bail, faces six counts of theft. The third suspect, a 26-year-old, has been released on bail but is expected to face four charges.
Retailers across Washington continue to face increasing losses due to organized retail crime, emphasizing the need for stronger preventative measures and enforcement. WR remains committed to advocating for policies that protect businesses and hold offenders accountable.
| |
|
What’s in store for 2025
Last year, consumers once again demonstrated resilience, showing a willingness to spend despite economic challenges such as inflation and rising interest rates. As 2025 unfolds, shoppers continue to navigate an uncertain landscape, shaping the retail industry’s trajectory in the process. Below are trends that will likely emerge in the coming year.
The Evolution of Shopping Exploration
Consumers have always appreciated variety in their shopping experiences, and today, they have more channels to choose from than ever before. Traditionally, physical stores have been the primary setting for discovery and spontaneous purchases, but digital platforms are increasingly offering similar opportunities. Rachel Hardy, director of consumer product marketing at Pinterest, highlighted the growing role of social commerce in enabling consumers to explore trends and discover products they might not have previously considered. More than just purchasing, shoppers seek the “joy of shopping” and the excitement of new finds.
There is a rise in in-store shopping, particularly among Generation Z. However, this increase in brick-and-mortar visits does not necessarily mean all purchases happen in-store. Many consumers blend in-person browsing with online transactions, illustrating a flexible and adaptive approach to shopping that aligns with their immediate needs.
| |
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, Dir of Local & State Government Affairs — 360.200-6453 — Email
Rose Gundersen, VP of Operations & Retail Services — 360.200.6452 — Email
| | | | |
