Inside Washington Retail : Our Latest News

Newsletter May 27, 2021

IN THIS ISSUE

What does June 30 mean for retail?
Be sure you are up to date on your state taxes!
Unemployment Insurance and Return to Work Requirements
Stay vigilant with reporting UI fraud claims
Seattle Candidate Filing Deadline Has Passed. Who’s Running?
Compassion Seattle Charter Amendment Initiative Campaign is Collecting Signatures
JustCare – An Innovative Program to Help the Homeless of Seattle
Walgreens and other retailers honor those who have served this Memorial Day
Father’s Day Spending to Hit $20.1 Billion
Discount retailers make comeback as shoppers crave ‘treasure hunting’ again
Are you hiring?
Look for the next Inside Washington Retail newsletter on June 10

What does June 30 mean for retail?

Renée Sunde, President & CEO

After 460 days retailers will finally be allowed to open their doors allowing full capacity for shoppers in brick-n-mortar stores.

Retail recovery has looked very different based on sector. General merchandise, grocery, home improvement and electronics, many with strong online platforms did very well over the past year. Many non-grocery, small businesses and mall retailers however have struggled needing PPP, EIDYL loans and state grants to keep afloat.

As the vaccine injects hope, more retailers especially those categorized during the pandemic as non-essentials, are anxiously awaiting shoppers’ return to their stores.

For many large format retailers, the capacity limits have not impacted them as keenly as small retailers. When shoppers consider a wait to get into a store, they often choose more convenient options.

Although optimism is growing as June 30 draws near, there are real challenges facing the industry as we move into our post-pandemic reality. Retailers will have to answer the question – how will customers engage with retail post-pandemic?

We saw a major shift in 2020 with consumers spending $861 billion online. Online share of total retail sales hit 21.3% in 2020 up from 15% in 2019 as shoppers looked for safe options. This forced many retailers to get creative and use the months of shutdown to develop online platforms and to put in place options like curbside and BOPIS.

Some small retailers have moved to online marketplaces and this trend will likely continue as we recover. But even with the growth of e-commerce, 80% of retail sales still take place in brick-n-mortar stores.

The experiential element of retail that so many of us know and love isn’t going away, but retail is no longer defined by only one channel. The Digital and Physical have merged to become the new baseline for the industry, and retailers must learn to navigate an omnichannel environment if they want to stay competitive in the marketplace

Although recovery will be challenging, retail’s future is bright and there will be more blue skies ahead.

Be sure you are up to date on your state taxes!

Mark Johnson, Senior Vice President of Policy and Government Affairs

It is important that you make sure that your business is up to date on its state tax liability soon – or have made arrangements with the Department of Revenue.

During the pandemic, the Washington State Department of Revenue paused much of its tax enforcement collection activities on delinquent accounts in recognition that many businesses were struggling with the forced shutdowns. DOR repurposed its collection outreach efforts to focus on educating businesses on available options for assistance. One of the centerpieces in that outreach has been the expansion of flexible payment plans available to businesses that have been impacted by the pandemic. These include payment plans for extended durations with low monthly payments, no interest, and no penalties. In September of 2020, an online self-serve payment plan option was made available to businesses with delinquent taxes, allowing them to enter into extended payment plans without the need to interact with a revenue agent.

Many businesses have taken advantage of these relief efforts – however, a significant number of businesses have been unresponsive regarding outstanding taxes owed. The longer you are out of compliance, the amount of collected sales tax owed to the state grows and this revenue becomes increasingly difficult to collect. With restrictions lifting in Washington

and around the country, now is the time to contact the Department of Revenue.

Unemployment Insurance and Return to Work Requirements

As Washington’s economy slowly re-opens, many retailers have reported challenges with finding employees willing to return to work. The question has surfaced whether workers are unwilling to return to work because of the level of benefits they may be receiving under Washington’s unemployment insurance system. Under Governor Inslee’s emergency proclamations, which eased work search requirements during the pandemic, claimants risk losing unemployment insurance benefits if they refuse to accept suitable work, or return to work to their employer under most circumstances. There are some nuances:

"Suitable work" is defined as work that is in line with the claimant’s prior training, work experience and education. If you are offering an employee a return to work, the working conditions, wages earned, and hours worked by the employee must be similar to those previously provided.
Under normal circumstances, UI claimants must be able, available, and actively seeking work. The requirement that UI claimants actively seek work has been waived throughout the crisis, but UI claimants must still be able and available for work.
Individuals generally do not have the option to choose between receiving unemployment benefits or an offer to return to suitable work from their employer. Individuals must have a good cause reason not to accept suitable work to continue either state or federal benefits.

Good cause reasons an employee may refuse work and continue to collect unemployment benefits include:

Being at high risk of or sick with COVID-19 or taking care of a household member who is at high risk of or sick with COVID-19.
Staying home to take care of a young child because their school or daycare is closed.
If the job has substantially changed, such as significantly cutting pay, moving the job location a significant distance, or if the worksite does not meet COVID-19 safety guidelines.

For additional information and guidance for employers, please see ESDWAGOV - Refusal to work

Washington Retail will be working with the Employment Security Department, the Governor’s office, and stakeholders to urge a return to pre-pandemic job search requirements as Washington State opens its economy on June 30th.

Stay vigilant with reporting UI fraud claims

Rose Gundersen, VP of Operations and Retail Services

Fraudulent unemployment applications have contributed to the rise in claim numbers for the weeks of May 8 and May 15 according to ESD’s Press Release on May 20. While initial unemployment claims are 86% below the same period last year, these two weeks ended with 58% and 18.2% increases over the previous week, respectively.

Three sectors with the highest initial claim increase are Healthcare and Social Assistance, Educational Services, and Retail Trade. With the rollback to phase 2 in three counties in early May, it is not surprising for the Retail sector, the third-largest employment sector in our state, to experience a high increase in furlough or layoffs.

ESD reported having controls in place to identify fraudulent claims so they are not paid. However, employers and workers should stay vigilant in reviewing all notices from the Employment Security Department. Reporting imposter fraud and fraud tips are accessible online.

Employers frequently receive UI claim notices tied to names that have never worked for them, but ESD does not provide instructions or a portal to report such claims online. For now, it is imperative to write a note of fraudulent claim explanation and use the ESD fax or mail information on these UI notices to report fraud as soon as possible.

Seattle Candidate Filing Deadline Has Passed. Who’s Running?

Now that we’ve passed the May 21st candidate filing deadline, the field of candidates for Seattle citywide offices is now clear.

A total of 15 candidates filed for Seattle Mayor, including several who are considered serious candidates:

Council President Lorena Gonzalez
Colleen Echohawk, the former executive director of the Chief Seattle Club
Andrew Grant Houston, architect and housing advocate
Bruce Harrell, former Seattle Councilmember
Jessyn Farrell, a former state legislator who ran four years ago
Casey Sixkiller, Deputy Mayor

Councilmember Teresa Mosqueda drew 10 challengers in her bid to win reelection to Council Position 8. While Councilmember Mosqueda has raised over $140,000, none of her opponents have yet hit the $5,000 mark.

In the open Position 9 race (the seat Council President Gonzalez left to run for mayor), seven candidates filed to run. Based on their fundraising success, the leading candidates are:

Sara Nelson, co-founder of Fremont Brewing and a former Council staffer
Nikkita Oliver, a 2017 mayoral candidate and attorney
Brianna Thomas, legislative aide to Council President Gonzalez

City Attorney Pete Holmes drew two challengers in his bid to win a fourth term.

Read more here.

Compassion Seattle Charter Amendment Initiative Campaign is Collecting Signatures

Compassion Seattle, the broad-based campaign to amend the Seattle City Charter to bring greater resources and accountability to the City’s efforts to help the homeless, was given the final green light from King County Superior Court Judge Brian McDonald.

The campaign is now free to begin collecting signatures to place the charter amendment on the November general election ballot. It must collect valid signatures from 33,060 Seattle voters to qualify for the ballot.

Click here to learn more about Compassion Seattle.

JustCare – An Innovative Program to Help the Homeless of Seattle

JustCare is a program organized by the Public Defender Association with collaboration by the Chief Seattle Club, Asian Counseling and Referral Service, and REACH. With seed funding from King County, JustCare is making a difference in a couple of Seattle neighborhoods and for the homeless who live there.

Launched in October 2020 as a pilot program, JustCare has focused its work on Pioneer Square and the International District. In the subsequent seven months, JustCare has moved over 200 people off the streets and into hotel rooms, where they have access to meals and services. Before JustCare, those neighborhoods had a homeless population of about 500 people. Amazingly, only a handful of people have turned down JustCare’s offer of housing and services.

The Retail Industry Coalition of Seattle and Washington Retail are intrigued by the work – and success – of JustCare, which hopes to expand its work to all of downtown. JustCare needs additional funding for that expansion.

We are meeting with the Public Defender Association to learn more about JustCare, and we will share that information as we get it.

Click here and here for more information about JustCare.

Walgreens and other retailers honor those who have served this Memorial Day

For many, the Memorial Day weekend means a time for big sales and bargain hunting as the Summer season kicks off, but more importantly it’s a time to honor and recognize the brave Americans who selflessly served in our armed forces.

Walgreens is offering a weekend Memorial Day discount to all veterans, active-duty military personnel and their immediate family members, including the families of those who lost their lives in service to their country. “Every day we are honored to serve our veterans, military personnel and their families,” said Kristen Vargas, vice president of retail operations at Walgreens. “Memorial Day is an opportunity to pay tribute in this small way to their service, commitment and sacrifice, for which we at Walgreens are deeply grateful.”

Beginning May 28 through May 31, customers with a myWalgreens membership and valid military ID or proof of service will receive 20% off regularly priced products at any Walgreens nationwide.

In addition, here is a list of other retailers that offer military discounts on Memorial Day and all year long.

Father’s Day Spending to Hit $20.1 Billion

According to a recent survey by the National Retail Federation, consumers are expected to spend more than $20.1 billion on gifts for the Father’s Day holiday this year, surpassing last year’s record figure of $17 billion.

Of the almost 8,000 consumers surveyed the top gifts shoppers plan to purchase are greeting cards (59%), clothing (49%), a special outing such as dinner or brunch (46%), gift cards (45%) and personal care items (28%). Consumers plan to spend on average about $174 on Father’s Day items, which is about $26 more than last year and a record high for the survey. Those ages 35-44 will be this year’s biggest holiday spenders. They plan to spend an average of $259 on Father’s Day gifts, which is $49 more than last year.

As of May 18 all counties in Washington are in Phase 3 and the state is expected to fully reopen by June 30. Retailers are gearing up and preparing for an influx of shoppers to return to stores as restrictions are lifted and more people get vaccinated. Consumer confidence is on the rise along with a strong desire to get out and celebrate with loved ones again.