Newsletter — June 19, 2025

Celebrating Juneteenth, WR offices will be closed on Thursday, June 19, 2025


WR honors the resilience, strength, and enduring spirit of the Black community. Juneteenth commemorates the emancipation of enslaved African Americans and serves as a powerful reminder of the ongoing pursuit of freedom, equality, and justice for all.


At WR, we celebrate the rich heritage and contributions of the Black community that continue to shape and inspire the retail industry. We encourage you to join us in recognizing and supporting Black-owned businesses and brands that make our retail landscape vibrant and diverse.

IN THIS ISSUE

POLICY

ECONOMY

IN THE NEWS

New rule requires employers to report address changes within 30 days


The Washington State Employment Security Department (ESD) has adopted a new rule requiring employers to notify the Department within 30 days of any address change. While state law has long required businesses to keep their records current, this update clarifies that address changes must now be reported within a specific timeframe.


The rule takes effect on July 7, 2025, and aims to improve communication between employers and the Department.


This update is part of the Department’s ongoing efforts to streamline processes and ensure accurate employer records. Employers can find more details and track additional rulemaking activities on the ESD rulemaking homepage.

New voluntary disclosure program offers relief for unreported investment income


Starting July 1, 2025, Washington businesses with unreported investment income may be eligible for penalty and interest relief under the state’s temporary expanded Voluntary Disclosure Program. Created through ESSB 5167, the initiative allows qualifying businesses to report previously unreported revenue subject to the business and occupation (B&O) tax without incurring financial penalties.


The program will be administered in two 10-month phases. Phase 1 runs from July 1, 2025, through April 30, 2026, and Phase 2 from July 1, 2026, through April 30, 2027. This temporary relief also applies to other income reported on the combined excise tax return. However, penalties will still apply to unremitted retail sales tax that was collected.


Eligible participants include registered or unregistered taxpayers with unreported investment income, unless they have been notified of an audit or enforcement action before July 1, 2025. Affiliates of entities under audit may still qualify. Financial institutions and similar businesses defined under RCW 82.04.4281 are excluded from participation.


To learn more or begin the application process, businesses can visit the Washington Department of Revenue website starting July 1, 2025, or email rulings@dor.wa.gov for taxability questions.

SCOTUS unanimously dismisses lawsuit against gunmaker, reinforces liability limits


On June 5, the U.S. Supreme Court unanimously dismissed a $10 billion lawsuit filed by the Mexican government against Smith & Wesson. The lawsuit alleged that the company’s distribution model contributed to cartel violence by enabling firearms to reach criminal groups in Mexico.


Justice Elena Kagan, writing for the Court, stated that the Mexican government did not show that Smith & Wesson took any deliberate actions to support criminal activity. The decision clarified that “aiding and abetting” liability under U.S. law requires clear intent and active participation, not just passive business practices.


The ruling reinforces legal protections under the federal Protection of Lawful Commerce in Arms Act (PLCAA), which limits the liability of gun manufacturers and sellers for crimes committed with their products. The Court emphasized that lawful businesses cannot be held responsible unless there is direct and intentional involvement in criminal conduct.


This decision provides legal clarity and protection to gun manufacturers, wholesalers, and retailers, limiting the scope for both foreign and domestic lawsuits seeking to expand liability through indirect legal theories.

Get paid by the pound: A smart move for small businesses


Washington businesses with fewer than 50 employees can recycle computers, monitors, and TVs for free through E-Cycle Washington.


Your business can even become a public drop-off site.


It’s a way to support your community, boost visibility, and get paid by the pound for accepted items.


E-Cycle covers transportation and recycling costs - you provide storage space and staff to accept items during business hours. Visit ecyclewa.org or email info@wmmfa.net to get started and make a lasting impact on your community and your business.


Not ready to host? You can still drop off electronics at over 220 locations statewide. Visit ecyclewa.org, and find a drop-off location near you.

Graduation spending reaches new heights


Americans are celebrating this year’s graduates in grand style. The National Retail Federation forecasts a record-breaking $6.8 billion in graduation-related spending for 2025. That figure reflects purchases of gifts, parties, cards, grad attire, flowers, and more, as 36 percent of U.S. consumers plan to buy a gift for a high school or college graduate.


So, what’s top of mind for grads and gift givers? Cash reigns supreme, with NRF noting it as the most popular gift choice once again. Gift cards, keepsakes, jewelry, electronics, and clothing round out the rest of the list. Across the board, consumers are showing strong intent to spoil family and friends marking milestone achievements.


This surge in spending highlights the powerful role of graduation season for retailers, not just as a moment to move merchandise, but as an emotional touchpoint when consumers feel compelled to celebrate. The rising total signals optimism as shoppers look to commemorate milestones in a big way.

Retail sales show resilience amid economic uncertainty


Despite concerns over tariffs and shifting economic conditions, retail sales continued to grow in May, according to the CNBC/NRF Retail Monitor powered by Affinity Solutions. Total retail sales, excluding autos and gas, rose 0.49 percent from April and 4.44 percent year over year. Core retail sales, which also exclude restaurants, saw a 0.23 percent monthly increase and a 4.2 percent annual gain.


Growth was reported in seven out of nine retail sectors compared to May 2024. Digital products led with a 28 percent year-over-year increase, followed by sporting goods at 8.2 percent and general merchandise at 4.6 percent. Modest gains were also seen in grocery, health and personal care, and clothing. Some categories, such as furniture and building materials, experienced slight declines.


National Retail Federation President Matthew Shay noted that while early demand related to potential tariffs appears to be tapering, consumer fundamentals remain stable. A gradually slowing job market continues to support household spending, even as economic uncertainty grows.


Unlike traditional government surveys, the Retail Monitor draws from real-time, anonymized credit and debit card data, offering timely insights into consumer behavior without monthly or annual revisions.

Small retailers share tariff challenges with lawmakers


Small business retailers from across the country met with nearly three dozen congressional offices in Washington, D.C., this week to voice concerns over the growing impact of tariffs. Organized by the National Retail Federation, the effort focused on how ongoing trade uncertainty is creating serious challenges for small businesses ahead of the holiday season.


Retailers shared personal accounts of how the current tariff environment has increased costs, delayed shipments, and forced tough decisions around pricing, product development, and supply chains. Many described the situation as more disruptive than the pandemic, with limited flexibility to relocate sourcing or absorb financial strain.


Business owners from states like Texas, Pennsylvania, Montana, and California emphasized that tariffs are slowing innovation, discouraging expansion, and threatening the survival of long-standing companies. Some reported taking out loans or pausing popular products to stay afloat.


Small businesses make up 98 percent of the retail industry and support over 13 million U.S. jobs. As trade policy remains a critical issue, retailers continue to call for more predictable and supportive solutions.


Learn more about the National Retail Federation’s ongoing advocacy at nrf.com/tariffsimpact.

Employers encouraged to prepare for wildfire smoke hazards


As wildfire activity increases across Washington, state officials are encouraging employers to take steps to safeguard outdoor workers from the health risks of wildfire smoke.


The Washington State Department of Labor & Industries is highlighting “Smoke Ready Week” by providing resources to help businesses prepare for hazardous air conditions. With forecasts showing above-normal wildfire risk this summer, early planning is strongly advised.


Smoke from wildfires contains fine particles that can travel deep into the lungs, leading to health issues such as reduced lung function, aggravated asthma, and other respiratory or cardiovascular problems. Outdoor workers in industries like agriculture, construction, and landscaping are especially vulnerable.


L&I is urging employers to monitor air quality, communicate clearly with employees, and have a plan in place when smoke levels become dangerous. Employers can access guidance, planning tools, and health information directly from the agency to support worker safety throughout the wildfire season.

PQAC releases temporary guidance on prescription transfers amid pharmacy closures


The Washington State Pharmacy Quality Assurance Commission (PQAC) has released a new guidance document in response to anticipated pharmacy closures, including those resulting from Rite Aid’s recent bankruptcy filing. These changes are expected to affect prescription access across the state.


The guidance, titled Pharmacy Closures and Prescription Transfers of Noncontrolled Legend Drugs Under WAC 246-945-345, offers direction to pharmacies on how to handle transfers of noncontrolled prescriptions during temporary or permanent closures. The goal is to maintain continuity of care and minimize disruptions for patients.


This guidance is effective through November 6, 2025, and will be available on PQAC’s policies, procedures, and guidelines webpage.


Retailers with in-store pharmacies or pharmacy partnerships are encouraged to review the document and assess how the guidance may impact their operations.

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.

Washington Retail Staff

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 Retail Services — 360.200.6452 — Email