Newsletter — July 17, 2025 | | |
RETAIL THEFT & PUBLIC SAFETY
POLICY
ECONOMY
ON THE LOCAL FRONT
POLITICAL NEWS
TRENDS
| | |
Macy’s Tukwila tour strengthens ORC collaboration efforts
Last week, the Washington Retail Association (WR) team, including Board Member and Southcenter General Manager Navdeep Singh, CEO Renée Sunde, Director of Policy & Government Affairs Crystal Leatherman, and Senior Executive Legislative Assistant Kathie Davies, visited Macy’s at Westfield Southcenter in Tukwila for a behind-the-scenes tour and strategy session focused on addressing organized retail crime (ORC).
WR extends sincere thanks to Store Manager Cameron Aman and her team for their warm hospitality, and to Dermot Fitzsimons, Senior Manager of Asset Protection and Public Sector Liaison, for facilitating the visit. Macy’s Asset Protection team, Rebecca Higbee, Christian Bird, and Christopher DiFonzo, showcased cutting-edge loss prevention technologies and robust merchandise protection strategies.
The tour brought together key partners, including prosecuting attorneys from the Washington State Attorney General’s Office, King County Prosecuting Attorney’s Office, and the City of Tukwila. The session fostered meaningful dialogue around collaborative approaches to combating ORC and reaffirmed a shared commitment to action through the newly established public-private partnership between the Washington State AG’s Office and Washington Retail Association.
At the conclusion of the visit, Renée Sunde and Tienney Milner, Chief of the Attorney General’s Economic Crimes Section, invited Macy’s Asset Protection team to join the monthly ORC Task Force meetings. Macy’s will share how their investigative techniques and advanced technology are being used to disrupt ORC networks and dismantle fencing operations.
Retailers across the state are encouraged to participate in the monthly ORC Task Force meetings, a valuable platform to increase transparency, enhance intelligence-sharing, identify repeat offenders, and strengthen the overall impact of these efforts statewide.
“It’s inspiring to see such dedication and innovation on the ground level. We look forward to continuing to partner with Macy’s and other retailers to address ORC head-on. Thank you to everyone who shared their expertise and ideas; this type of collaboration is critical to creating safer, more vibrant retail environments.” — Renée Sunde, WR CEO
WR is proud to support these vital partnerships and remains committed to building safer retail environments and more resilient communities.
For more information about WR’s ORC and public safety initiatives, or to join the ORC Task Force calls, please contact Crystal Leatherman at cleatherman@washingtonretail.org.
| | |
Department of Revenue hosts listening sessions on new sales tax changes
The Washington State Department of Revenue is inviting business owners and stakeholders to participate in upcoming listening sessions regarding changes under ESSB 5814, which expands the state’s retail sales tax to include a variety of service-based industries starting October 1, 2025.
The virtual sessions, running from July 22 through July 31, are designed to gather public input and answer questions on the implementation of the new law. Each one-hour session will focus on a specific industry, including information technology services, advertising, live presentations, custom software, and temporary staffing, among others.
Participants can raise concerns, seek clarification, and offer suggestions to help shape the Department’s guidance. Space is limited to 100 registrants per session, and written feedback is also being accepted online through August 1.
Businesses affected by the expanded tax categories are encouraged to review the proposed changes and participate in a session or submit their input online.
Wondering How New Tax Laws Might Affect You? Explore this 2025 Tax Legislation page for a summary of tax-related bills passed by the legislature and signed into law by Governor Ferguson during the 2025 session - and see what they could mean for your business.
For registration links, session topics, and more details, visit: dor.wa.gov.
| | |
State Long Term Care rulemaking to strengthen portability and protections
The Legislature passed SB 5291 in 2025 to implement recommendations from the Long-Term Services and Supports Trust Commission. The changes expand participation, simplify benefit qualifications, and strengthen coordination with private insurance. With an effective date of January 1, 2026, employers should stay informed of the rulemaking to prepare for compliance.
Key updates for employers and workers:
- Out-of-state participants – individuals who opt into coverage after relocating out of Washington cannot withdraw from the Program but may lose coverage for non-payment.
- Automatic exemptions - active-duty military working civilian side jobs and foreign temporary workers are exempt unless they choose to opt in.
- Rescinding opt-outs: individuals who voluntarily opted out in the past may rescind their exemption before July 1, 2028.
- Employer reporting: employers must report participation and remit payments on time to avoid penalties.
Additional improvements under SB 5291:
- Simplified benefit qualifications – benefits are now easier to access, requiring either 10 years contributions without needing to avoid five-year gaps, or after 3 years of contributions within a six-year window (with at least 500 hours worked per year).
- Private insurance coordination: Starting May 1, 2026, supplement long-term care private insurance must align with WA Cares regarding deductibles, benefits, elimination period, and care coordination to preserve continuity of providers.
WR invites member input to ensure employer concerns are addressed during rulemaking. To provide input or ask questions, contact Rose Gundersen at 360-200-6452 or rgundersen@waretailservices.com.
| | |
Public comment open on new PFAS rulemaking under Safer Products for Washington
The Washington State Department of Ecology is accepting public comment on proposed regulations concerning the use of per- and polyfluoroalkyl substances (PFAS) in consumer products. These changes are part of Cycle 1.5 of the Safer Products for Washington program, which implements the state’s Toxic Pollution Law in collaboration with the Department of Health.
The proposed rulemaking under Chapter 173-337 WAC includes new restrictions and reporting requirements for PFAS, which are commonly used chemicals linked to environmental and health concerns. The Safer Products law aims to reduce toxic chemicals in consumer products when safer alternatives are available and regulates chemicals in 5-year cycles.
The public comment period is open now and will close on July 20, 2025, at 11:59 p.m. Comments can be submitted online, by email, or by mail.
Retailers, manufacturers, and stakeholders are encouraged to participate and share feedback on the proposed changes. Learn more about the rulemaking process and how to submit input by visiting the Department of Ecology’s Safer Products for Washington webpage.
| | |
Economic outlook mixed as policy uncertainty weighs on retail
The U.S. economy remains on steady ground despite growing concerns over new tariffs and evolving federal policies, according to National Retail Federation (NRF) Chief Economist Jack Kleinhenz. In NRF’s July Monthly Economic Review, Kleinhenz highlighted strong consumer and business spending but emphasized that “anxiety and confusion” tied to trade policy, immigration, and regulation are creating uncertainty for retailers and the broader economy.
While gross domestic product (GDP) fell slightly in the first quarter due to a spike in imports ahead of tariff announcements, private sector spending continues to show resilience. Core retail sales, excluding autos, gas, and restaurants, rose 3.9% year over year through May. Personal income and consumer spending also posted solid 4.5% gains in May, with inflation edging up modestly to 2.3%.
The labor market remains stable, adding 147,000 jobs in June with job openings exceeding the number of unemployed. However, Kleinhenz cautioned that sustained tariff increases could eventually drive up consumer prices and impact job growth.
| | |
Shoppers get strategic as economic concerns shape back-to-school season
Back-to-school spending remains a critical barometer of household financial confidence, and this year, shoppers are adjusting their habits in response to continued economic uncertainty. New research from the National Retail Federation reveals three key trends shaping the 2025 back-to-school season: earlier shopping, greater price sensitivity and a shift toward immediate needs.
A growing number of families are shopping earlier, with 26 percent beginning their purchases by early June. Many are motivated by concerns over tariffs and the potential for rising prices later in the season. Budget pressures are also driving more consumers to discount retailers and pushing shoppers to be more selective in what they buy.
Most notably, more families, especially those in lower-income brackets, are choosing to purchase only what’s necessary for the first few weeks of school rather than stocking up for the full year. Unlike in 2023, when federal stimulus and savings offered a cushion, many households are now managing tighter budgets without those supports.
These shifting behaviors reflect how consumers are navigating inflation and market volatility with a practical, cautious approach. Retailers may want to adjust their promotional strategies and timing to align with this more deliberate shopping mindset.
Retailers can gain further insight into these evolving behaviors during NRF’s upcoming 2025 Back-to-School Consumer Trends webinar on July 23 at 10:00 a.m. PT. The session will feature the latest data and insights on how economic conditions are shaping shopper behavior.
Register here: nrf.zoom.us/webinar/register
| | |
Retailers brace for tariff impacts as Port volumes show volatility
Import cargo volumes at major U.S. ports are expected to rebound in July after a sharp spring decline but are projected to fall again later this year, according to the latest Global Port Tracker report by the National Retail Federation (NRF) and Hackett Associates. The recent extension of paused tariffs until August 1 has prompted retailers to accelerate shipments in anticipation of renewed trade costs.
While July imports are forecast to rise 2.1% year over year, volumes are expected to drop significantly through the fall, with September down nearly 20% and November projected to hit the lowest level since early 2023. The uncertainty around tariff policy, particularly new reciprocal tariffs and ongoing questions about China trade agreements, is complicating planning for many retailers.
Retail leaders emphasize the challenge for small businesses, which often lack the resources to manage sudden cost increases. NRF and Hackett Associates stress the need for predictable trade policy and finalized negotiations to ensure stable supply chains and pricing.
| | |
DoorDash raises fees in Seattle, citing impact of city regulations
DoorDash has announced another increase in service fees for Seattle customers, pointing to the city’s regulations for app-based workers as the driving factor. The company, which reported $3 billion in revenue during the first quarter of 2025, says it is operating at a loss in Seattle due to local labor laws, including a guaranteed minimum payment of $5.20 per offer for delivery drivers.
City rules also require a 14-day notice for driver deactivations and outline transparency requirements that are currently under investigation by the Seattle Office of Labor Standards. Officials say these protections have received positive feedback from gig workers, though DoorDash and others argue the regulations increase operational costs and reduce order volume.
Since the law took effect, DoorDash says average store revenue in Seattle dropped by 2%, while similar cities saw double-digit growth. The company claims delivery workers have seen their average hourly earnings decline by more than 20% since late 2023.
As the city and companies navigate compliance and cost concerns, businesses and workers alike are feeling the effects. DoorDash says it will continue adjusting its pricing to maintain service in what it now calls the most expensive market for delivery in the country.
| | Illustration: Shoshana Gordon/Axios | | |
House “Crypto Week” could reshape U.S. financial landscape
The U.S. House of Representatives is launching a legislative push known as "Crypto Week," with three proposed bills that could significantly influence how Americans pay, invest, and interact with digital currencies.
One of the main bills up for consideration is the GENIUS Act, focused on regulating stablecoins, digital tokens pegged to the U.S. dollar. If passed, it would establish rules for issuance and management, potentially encouraging broader adoption among retailers and financial institutions. Experts say it could accelerate the use of stablecoins for faster, lower-cost global transactions, possibly challenging traditional payment systems.
Another bill seeks to build a regulatory framework for digital asset trading, creating a pathway for crypto products to enter mainstream markets through retail brokerages. This could increase retail investor access and participation in the crypto economy.
A third proposal would block the Federal Reserve from creating a central bank digital currency, citing concerns about government overreach.
While the initiative has strong support among House Republicans, it faces opposition from some Democrats who question the implications of these changes and potential conflicts of interest. The outcome of these debates could help define the future role of cryptocurrency in everyday commerce and financial services.
| | |
NRF Unveils 2025 Top 100 Retailers List
The National Retail Federation (NRF) has released its 2025 list of the Top 100 Retailers, compiled by Kantar and ranked by 2024 U.S. retail sales. This year’s list reflects a mix of stability and adaptation, with companies continuing to evolve alongside shifting consumer behaviors and economic changes.
Walmart remains in the top spot with $568.70 billion in U.S. retail sales, followed by Amazon, Costco Wholesale, The Kroger Co., and The Home Depot. While the top 13 companies stayed the same, some repositioning occurred, including Target moving from No. 7 to No. 8 and Walgreens Boots Alliance rising to No. 7.
Several trends influenced this year’s rankings. Drugstores, like Rite Aid, saw notable declines due to reduced front-store spending, while demand for pet-related products leveled off post-pandemic. PetSmart and Petco both saw either flat or declining sales and store counts.
NRF notes that this year’s list highlights not just sales performance, but also the resilience and flexibility of top retailers in the face of economic shifts and evolving consumer demands.
| | |
Ulta expands Korean beauty offerings with new partnership
Ulta Beauty is strengthening its presence in the Korean beauty market through a new partnership with K-Beauty World. This summer, eight Korean brands will be added to Ulta's stores and website, including Chasin’ Rabbits, I’m From, Mixsoon, Rom&nd, Neogen, Some By Mi, Sungboon Editor, and Unleashia.
The move comes in response to rising U.S. demand for Korean beauty products, known for their innovative formulas and loyal global following. K-Beauty World, a platform dedicated to promoting Korean beauty, features over 200 products and operates a traveling pop-up shop designed to educate and engage U.S. consumers.
Ulta’s merchandising leadership highlighted this expansion as part of a broader strategy to diversify offerings across categories and price points. The retailer is working to regain momentum after recent market share losses and is refocusing on core operations, marketing, and exclusive brand partnerships.
This collaboration follows Ulta’s acquisition of British beauty retailer Space NK and its international expansion plans for 2025. The retailer is also reevaluating its shop-in-shop initiative with Target to optimize existing locations.
Ulta’s continued investment in emerging global beauty trends reflects ongoing consumer interest and evolving expectations in the competitive retail landscape.
| | |
Prime Day sparks record-breaking $24.1 billion in online sales
Amazon’s extended four-day Prime Day summer event, held July 8–11, fueled a surge in online shopping, generating $24.1 billion in U.S. e-commerce sales, according to Adobe Analytics. This marks a 30.3 percent increase over last year and surpassed the projected $23.8 billion.
While the event began modestly, sales quickly gained momentum, driven by deep discounts and anticipation of future price hikes due to potential tariffs. Categories that saw especially strong performance included office supplies, electronics, tools, home improvement items, and baby products. Back-to-school essentials and large household purchases also saw notable demand.
Mobile devices accounted for more than half of all transactions, continuing a trend toward convenience-based shopping. Analysts compared the sales volume to two Black Fridays, signaling a shift in seasonal consumer behavior.
Originally launched as a one-day event in 2015, Prime Day has expanded over the years and now sets the pace for a broader wave of competing retail promotions, including Walmart Deal Days and Target Circle Week. As discounting strategies intensify, retailers are weighing the benefits of increased traffic against the risk of narrowing margins and shifting consumer expectations.
This year’s event may mark a turning point in how summer sales seasons are defined.
| |
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
Crystal Leatherman, Dir of Local & State Government Affairs — 360.200-6453 — Email
Rose Gundersen, VP of Retail Services — 360.200.6452 — Email
| | | | |
