Inside Washington Retail : Our Latest News

Newsletter May 13, 2021

IN THIS ISSUE

One Year Later – what’s next for retail’s recovery?
Theft Rate Soaring in Washington and U.S.
Emergency Reporting Requirement under SB 5115 – Health Emergency Labor Standards Act (HELSA)
Paid Family and Medical Leave rulemaking in progress
Don’t let COVID fatigue wear you down - Resources are available to keep you healthy and open for business
Kids as young as 12 can now get vaccinated
Buy now, pay later options on the rise
Look for the next Inside Washington Retail newsletter on May 27
Organizational Safety Culture

One Year Later – what’s next for retail’s recovery?

Renee Sunde – President & CEO

To understand recovery, it requires a look back to a very different time one year ago. As an industry that has experienced significant transformation for years, the onset of the COVID-19 pandemic accelerated even greater changes. Retailers have historically been on the front lines of emergency response and that was certainly the case with the pandemic. Essential retailers were forced to deal with impacts on supply chains and the rapidly changing consumer demands as the entire world adjusted to a digital-first approach to shopping.

While many retailers were adapting to new in-store capacity limits and the quickly ever-changing safety protocols they also had to navigate the changes that came with shifting to an online business model.

The ups and downs of COVID infection rates impacted consumer confidence as shoppers adapted their habits from week to week. When cases when up in Washington state retail sales saw an associated drop the following month. This shift in confidence extended Cyber Week into Cyber month – a trend that may be here to stay.

Recovery has also looked different based on sector. Grocery, home improvement, electronic, and general merchandise, for instance, many with strong online platforms did very well over the past year. But other non-grocery small retailers struggled using PPP and EIDYL loans to simply stay afloat.

The gap between large and small and essential/non-essential has set a very uneven stage for recovery.

But with all the challenge has come opportunity and the industry in many respects has fared quite well. Nationally retail sales grew by a healthy 6.7% in 2020. In Washington, forecast revenues came in much higher than expected and retail trade increased 6.2% in February year-over-year.

The recent US Census small biz survey showed signs of optimism in Washington State with more than 50% of small business owners indicating they are now back to pre-covid levels or will be in the next 6 months.

Full recovery however will hinge on getting our businesses and economy opened back up. The state is one of the few in the country that lacks a plan for full reopening. It is a rare business that can flourish indefinitely in an environment of sustained uncertainty. Although the timeline for virus containment is uncertain the path forward as Washingtonians become vaccinated and hospitalizations and deaths decline – should be clearly defined.

Theft Rate Soaring in Washington and U.S.

Mark Johnson, Senior Vice President of Policy and Government Affairs

The rate of thefts in Washington and the United States has soared – fueled in part by the pandemic. Several factors have contributed to this. With mask requirements it has become increasingly difficult for retail loss prevention and asset protection officers and police to identify suspects. As violent crimes have spiked, police and prosecutor resources have been stretched thin – often forced to put theft and other property crimes on the back burner or ignore them outright. Retailers and their customers are caught in the middle. Theft in Washington is approaching a billion dollars a year – over 45 billion nationally. This leads to product shortages, higher prices, and an increase in counterfeit goods.

In order to stem the tide of theft – we unfortunately will never be rid of it – retailers, law enforcement, prosecutors, and governments need to think outside the box and develop creative ways to address this plague on our society. Pierce County is leading the way in putting resources in a solution – that I hope will be successful and replicated around the state and across the nation.

Here is the problem. A vast majority of theft is committed by individuals unfortunately suffering from substance addiction, mental illness, or both. Theft ring leaders knowingly prey on these folks in crisis and “employ” them to commit the crimes. They know that someone with a substance addiction will do just about anything to get their fix. The leaders will often give their employees lists of items to steal, with specific instructions on which stores to hit and how much to steal and what to do if they are caught. If the thief is caught, the consequences are usually minor. They may be trespassed by the store. They may be taken into custody by police and even jailed for a period of time. Unfortunately, it is rare that these cases go to trial. The thief is often back out stealing again the next day or even the same day. This system is not working. These people need help to break the cycle.

The solution. Pierce County has recently opened a diversion center. This center is staffed by professionals trained in helping people suffering from substance addiction and mental health issues. A police officer can take a suspect to the center rather than straight to jail to see if they can receive the needed treatment to hopefully get the individual healthy again and out of the cycle of stealing to feed their illness or addiction. This in turn will hopefully lessen the strain on our overburdened police, prosecutors, and courts.

This is a bold new approach to a growing problem. I hope Pierce County is successful in its efforts and others will follow suit. Together we can break the cycle of theft and help many vulnerable people find a new path away from crime.

Emergency Reporting Requirement under SB 5115 – Health Emergency Labor Standards Act (HELSA)

On May 11, 2021, Governor Inslee signed SB 5115, the Health Emergency Labor Standards Act (HELSA), into law. Under HELSA, any “frontline” employee that contracts an infectious or contagious disease that is the subject of a public health emergency is presumed to have contracted the disease at their workplace. Accordingly, for purposes of workers' compensation, the disease is considered an occupational disease.

Additionally, during a public health emergency, no employer may discharge, permanently replace, or discriminate against an employee who is at high risk and seeking accommodation to protect themself from exposure to the infectious or contagious disease, including using all available leave options

HELSA also includes two new reporting requirements for certain retail locations:

1. An employer with more than 50 employees at a workplace must report to L&I when they have confirmed ten or more of their employees have tested positive for an infectious or contagious disease that is the subject of a public health emergency.

2. Additionally, if an employer receives notice of potential exposure to an infectious or contagious disease that is subject to a public health emergency, they are required to provide written notice to their employees, their union, and any contractors on the worksite.

HELSA contains an emergency clause, hence it takes effect immediately upon the Governor’s signature. The Washington Retail Association is working with the Department of Labor and Industries to clarify guidance for the new reporting requirements. For example, employers need to understand what is meant by “ten or more employees testing positive (e.g. – over what period of time) and that any reporting ensures the confidentiality of employee health information. Further, the new reporting requirements should strive to prevent duplication of current reporting requirements to state and local health departments.

Washington Retail will post additional information and guidance as it becomes available.

Paid Family and Medical Leave rulemaking in progress

The Employment Security Department has filed a CR-103 and adopted rules related to the Paid Family and Medical Leave (Paid Leave) program.

The CR-103 provides notice that the agency has adopted final rules related to appeals, “illegal acts,” hours worked, small business grants, employer size, and employment restoration.

In addition, the department has filed a CR-101 to implement legislation that passed during the 2021 legislative session. A CR-101 is the first of three stages of rulemaking and is filed to notify interested parties of the department’s intent to consider rules. Passed legislation impacting the Paid Leave program includes a bill that expands the definition of “family member” for the purposes of the program and a bill that provides temporary expanded qualifying periods and pandemic assistance grants for employees and employers affected by the COVID-19 pandemic.

The CR filings, final rules described in the CR-103, and associated documentation can be found here.

Don’t let COVID fatigue wear you down - Resources are available to keep you healthy and open for business

Rose Gundersen, VP of Operations and Retail Services

The pandemic has caused both economic and mental exhaustion. Staying vigilant with best practices is still the key to keep COVID-19 at bay to avoid further roll-back. Washington Retail is here to partner with our members and the community to stay open and healthy by continuing to provide the latest COVID-19 safety resources.

This week’s COVID-19 safety resources include:

Communication tools for employers from the Center for Disease Control (CDC):

CDC has assigned a direct contact for Washington Retail to ask questions. Please contact Rose Gundersen at rgundersen@waretailservices.com with your questions.

Free app-based COVID-19 safety training with completion certification:
Washington Retail Association is excited to announce that we have partnered with L&I Small Business Liaison office on a special project of COVID Safety Training. Utilizing our SAFEME app, we have added an additional course on how employers can train employees on proper COVID-19 practices.
You can find this free training tool here.

Vaccine Availability:
Vaccination locator from the Washington State Department of Health
Mass vaccination sites in Washington

Kids as young as 12 can now get vaccinated

According to recent news reports U.S regulators have now expanded the use of Pfizer’s COVID-19 vaccine to children as young as 12 which will help a return to normal social activities such as back-to-school shopping and preparing for in-classroom learning again this Fall.

The Food and Drug Administration declared that the Pfizer vaccine is safe and offers strong protection for younger teens based on testing of more than 2,000 U.S. volunteers ages 12 to 15. The agency noted there were no cases of COVID-19 among fully vaccinated adolescents compared with 16 among kids given dummy shots. More intriguing, researchers found the kids developed higher levels of virus-fighting antibodies than earlier studies measured in young adults.

The latest news is welcome for U.S. families struggling to decide what activities are safe to resume when the youngest family members remain unvaccinated.

In the meantime, the Centers for Disease Control and Prevention says unvaccinated people — including children — should continue taking precautions such as wearing masks indoors and keeping their distance from other unvaccinated people outside of their households.

Source: The Seattle Times

Buy now, pay later options on the rise

During these uncertain economic times it’s good to know shoppers have more options when it comes to paying for the products they need. For families living paycheck to paycheck it can be very difficult to budget for necessary items and many consumers are turning to buy online, pay later (BNPL) services to break up their purchases into several paid installments. Many of these plans which are a high-tech twist on traditional layaway plans are also interest free making it easier for consumers to manage their expenses.

According to a recent study on global payment trends, buy online, pay later (BNPL) services are poised for explosive growth to jump 181% from 1.6% in 2020 to 4.5% by 2024. Bank transfers, charge cards, cash on delivery and other services are expected to decline in the coming years as a result.

Many popular BNPL payment programs from companies like Affirm, Afterpay, Uplift and Klarna grew 166% in March 2021 over the same period last year according to a recent report in USA Today. These buy now, pay later providers have spent years slowly infiltrating the retail market through partnerships with merchants, but the pandemic has accelerated their popularity among online retailers, from luxury brands to independent shops to fast-fashion sites.

Unsurprisingly, this shift in payment preferences is being driven by millennials and Gen Z shoppers who have long embraced digital options due to their speed and ease of use. However, retailers themselves also are playing an important part in the growth: as more and more companies accept and advertise these options, it becomes more convenient for customers to utilize them.