Newsletter October 27, 2022

IN THIS ISSUE

The Washington Retail Association hosts Annual Meeting November 15

POLICY

UPDATE: ESD announces 8% Paid Family and Medical Leave (PFML) premium increase

ON THE LOCAL FRONT

Chamber releases latest poll of Seattle voters

RETAIL THEFT & PUBLIC SAFETY

TRENDS

SAFETY

Management’s positive statements bring positive safety consequences

2022 has been an impactful year for the retail industry. As Washington retailers have continued to navigate the many challenges and uncertainties of the past year, the association has been laser focused on providing valuable resources and strong advocacy for our members and stakeholders.

Register to attend WR’s virtual meeting on November 15 from 11am-12pm PST, and hear from the WR Executive leadership team as they discuss trends, top priority issues and resources available to WR members.

Special guest, economist Dr. Bill Conerly, will provide a real-time update on Washington’s economy as we head into the 2022 holiday season. His insights will offer retailers important insight on how to prepare and adapt their businesses by taking a “flexible stance” in facing the economic uncertainties ahead.

The event is free to members, potential members, stakeholders, and retail partners.

UPDATE: ESD announces 8% Paid Family and Medical Leave (PFML) premium increase

Last Thursday, ESD announced that premium rates will increase to 0.8% for 2023. This rate was confirmed several hours after IWR had reported on the status of the independent actuarial studies and reviews of Washington's Paid Family and Medical Leave program (PFML).

Starting January 1, 2023:

The total premium rate will be 0.8%.
Employers will pay 27.24% of the total premium, and employees will pay 72.76%.
Employers will continue to report each employee's total gross wages, not including tips, and collect premiums up to the Social Security cap ($160,200 in 2023). Once an employee meets the Social Security cap, employers must stop collecting premiums but continue to report their wages.
Businesses classified by the Employment Security Department as having fewer than 50 employees are not required to pay the employer portion of the premium. However, they must continue to collect the employee premium or pay the employees' premiums on their behalf

Premium rates were 0.4% in 2021 and increased to 0.6% in 2022. With this premium hike, the rate will have doubled in just two years.

The 2022 Legislature formed a legislative task force to review the independent actuarial studies and to develop recommendations for reforming the PFML program to avoid the fiscal challenges that emerged over the past two years. The task force's recommendations will be considered in the 2023 legislative session.

Chamber releases latest poll of Seattle voters

The Seattle Metropolitan Chamber of Commerce released the results of its September poll of Seattle voters. Not surprisingly, the top concerns of Seattleites were homelessness (57%) and public safety (45%).

Seattle voters also expressed serious concerns about the state of downtown. Poll respondents reported making fewer non-work trips into downtown. Plus, 7 of 10 do not feel safe downtown at night (a slight improvement from the previous poll).

It’s important to note that Seattle voters expressed concern about businesses in the city. Indeed, 3 of the top 7 issues “to improve quality of life” were focused on helping businesses:

#3: Helping local businesses deal with public safety concerns

#6: Addressing organized retail theft

#7: Making Seattle a good place to do business

We appreciate the hard work of the Chamber to gather and communicate information about the attitudes and concerns of Seattle residents.

Thurston Chamber’s November Forum to tackle impacts of crime on business

Washington State’s Attorney General, Bob Ferguson, and Renée Sunde, President/CEO of WR, will speak on the timely topic of crime impacting businesses at Thurston Chamber’s Forum luncheon on Wednesday, November 9.

According to a December 2021 report by the U.S. Federal Bureau of Investigation, property crime accounted for over 60% of the 8.9 million crimes reported in 2020. These property crimes include larceny-theft, burglary, motor vehicle theft, arson, and vandalism.

These crimes cost companies $17.2 billion in annual losses, according to Entrepreneur.com.

The pandemic has allowed organized retail crime to expand attacks. These crimes include smash-and-grabs and other “brazen in-store attacks.” While businesses have changed how they provide goods and services, criminals have found new ways around security gaps.

The Chamber luncheon is at the Olympia Hotel at Capitol Lake, 2300 Evergreen Park Dr. SW, Olympia, WA 98502. The event begins at 11:30am with meal service at 11:45am and program at noon.

For more information, contact Jessica Houchin at the Thurston Chamber at jhouchin@thurstonchamber.com.

October 26 is 'Fight Retail Crime Day' - Tell Congress to act now

October 26 is Fight Retail Crime Day! Retail crime is rising and threatens retailers, their customers, and the communities they serve. That is why WR is partnering in support of the National Retail Federation (NRF) in recognizing October 26 as National Fight Retail Crime Day to highlight the need for swift and comprehensive action by Congress to address the growing incidence of these crimes.

It only takes one minute to tell Congress to act to fight rising retail crime. Our top two priorities are:

Curb the sale of stolen goods online by passing the INFORM Act
Increase federal coordination to fight crime by passing the Combatting Organized Retail Crime Act

FIGHT RETAIL CRIME NOW

Prosper report reveals consumer spending intentions

Prosper Insights & Analytics released the results of its most recent survey on consumer spending and brand awareness. The October data included responses from approximately 7,500 US consumers.

According to the report, consumers are spending, albeit somewhat differently. Price increases have consumers shopping for sales more often, switching to store brands and generics, and more frequently using coupons.

Consumers are returning to shopping in brick-and-mortar stores, which correlates with decreased levels of consumer concern about COVID-19. Gas prices are influencing the frequency of shopping trips, down 7.5% year-over-year, leading to shopping at stores closer to their homes. In the same period, there has been an 11% increase in consumers shopping for sales, and a 5% increased focus on wants rather than needs.

Major retailers offer early holiday discounts

The holiday season is usually the best time for shoppers to take advantage of great sales, and this year is no exception. At least three major retailers are sitting on excess inventory this year, motivating them to offer special discounts ahead of Black Friday. According to data from the U.S. Census Bureau, retailers had a record $732 billion in inventory as of July—a 21% increase over last year.

Three retailers worth paying attention to:

Amazon

On Oct. 11 and 12, Amazon ran a second Prime Day event that consumers were genuinely excited about. That doesn't mean the deals are over until late November, though. Amazon regularly discounts items ahead of Black Friday and the holiday season, and there is no reason we shouldn't expect to see significant deals in the coming weeks.

Target

Target ran a Deal Days promotion October 6-8. If you visit the retail giant's website today, you will continue to find advertised Black Friday deals. Given Target's reputation for its competitive prices, it's worth a look to see what items it has at a discount.

Walmart

Walmart recently announced plans to offer many holiday discounts beginning in early November. Those customers who do much of their gift shopping at Walmart won't have to wait until Black Friday to find discounts, nor will they have to wrestle with their fellow shoppers while attempting to get their hands on doorbuster deals.

Why it pays to shop ahead of the holidays:

Read the rest of the article

Management’s positive statements bring positive safety consequences

Safety messaging often involves “or else” statements, such as “wear your safety glasses or else you’ll get something in your eye.” However, the power of positive reinforcement and feedback from management is more effective in motivating safety behaviors.

Research shows that when management provides positive reinforcement when a worker performs a safe action, the behavior will be repeated with increased frequency. Giving verbal praise to workers who perform well helps demonstrate that management is observant of their successes and is one of the most effective ways to improve morale and productivity while achieving safe outcomes. Workers who feel validated and recognized for their accomplishments are more likely to help coworkers proactively and spread a sense of belonging and camaraderie.

Simply put, the best way to achieve a positive workplace is by recognizing the excellence of the staff. Thanking workers for quickly cleaning up a spill is more impactful on their mood and desire to proactively address safety concerns than any amount of policy or rulemaking.

Most workers report they rarely, if ever, experience positive reinforcement at work. However, providing a healthy and happy workplace can be an effective way to improve outcomes. And when workers see management demonstrate safe practices, it reinforces an attitude of safe behaviors as well.

Rick Means, Director of Safety and Education, is available to help members with safety. Contact Rick at 360-943-9198, Ext. 118 or rmeans@waretailservices.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.