Newsletter — July 18, 2024 | |
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POLITICAL NEWS
POLICY
ECONOMY
ON THE LOCAL FRONT
RETAIL THEFT & PUBLIC SAFETY
IN THE NEWS
TRENDS
SAFETY SPOTLIGHT
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WR Action Council endorses candidates in key races
The Washington Retail Association (WR) Retail Action Council (RAC) proudly announces its endorsement of candidates for the upcoming elections, demonstrating a strong commitment to supporting leaders who understand the vital role of retail in Washington’s economy.
This election cycle, the WR RAC endorses candidates who advocate for policies beneficial to the retail sector and the communities they serve. The endorsed candidates include:
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Jason Ritchie (D), Challenger for WA House of Representatives District 05 – Open Seat.
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Curtis King (R), Incumbent for WA State Senate District 14.
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Larry Springer (D), Incumbent for WA House of Representatives District 45.
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Ron Muzzall (R), Incumbent for WA State Senate District 10.
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Yvonne Gallardo-Van Ornam (R), Challenger for WA House of Representatives District 10.
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Dave Larson, Non-partisan Challenger for the WA State Supreme Court – Open Seat.
Each candidate has demonstrated a commitment to advancing policies that foster a vibrant retail environment, supporting economic growth and job creation across the state. The WR RAC is confident that these endorsements will lead to the election of representatives who will champion the interests of Washington’s retail industry.
View the full endorsement list.
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Energy choice initiative headed to the ballot
WR endorsed Initiative 2066 – protecting energy choice – is headed to the November 5, 2024 general election ballot.
The initiative is all but guaranteed to qualify with an astonishing 546,000 signatures turned in of the 325,000 needed to qualify. The Washington Secretary of State recommends a minimum of 405,000 signatures to ensure meeting the threshold to account for duplicates and errors. The signatures were collected in a record time of only 44 days.
This measure would repeal or prohibit laws and regulations that discourage natural gas use and require certain utilities to provide natural gas to eligible customers.
On behalf of its members, customers, and employees, Washington Retail has endorsed the initiative to allow energy consumers to make their own choices. The current law would eventually phase out natural gas use and force businesses and homeowners to retrofit their homes when they sell and lead to costly new construction requirements.
I-2066 restores consumer choice in their energy needs. WR encourages voters to approve Initiative 2066 November 5, 2024.
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Pictured left to right: WR State & Local Gov't Affairs Manager, Crystal Leatherman, WA State Governor candidates Sami Bird (R), Mark Mullet (D), and Renton Chamber of Commerce CEO/President, Diane Dobson.
Renton Chamber hosts '2024 Meet the Governor Candidates' reception
The Renton Chamber of Commerce hosted the "2024 Meet the Governor Candidates" Reception, creating a relaxed environment for attendees to meet and interact with gubernatorial candidates. Crystal Leatherman, WR's Local & State Government Affairs Manager, engaged with candidates including Mark Mullet (D) and Semi Bird (R) among other candidates vying for governor. The event attracted community members, business leaders, elected officials, and constituents eager to discuss key issues shaping Washington State's future. Special thanks to the Renton Chamber of Commerce for organizing an inclusive and equitable event that provided a platform for diverse candidates to be heard.
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WR co-sponsors fundraiser for John Snaza for State Rep.
Last week, WR staff Mark Johnson and Rose Gundersen attended the John Snaza for State Representative fundraising event – co-sponsored by WR.
WR endorsed candidate John Snaza is running in the 2nd Legislative District, which includes Yelm, Roy, Rainier, Eatonville, and parts of Pierce and Thurston Counties, is seeking to fill the open House seat being vacated by long-time retail advocate State Representative JT Wilcox.
Snaza, the former Thurston County Sheriff, was an easy choice for endorsement and contribution from the WR Retail Action Council Political Action Committee. With his keen focus on public safety and holding criminals accountable, he will be an excellent addition to the legislature and the bipartisan Public Safety Caucus.
John Snaza also understands that a healthy retail and business community is essential to creating wealth and prosperity, as well as generating crucial tax dollars to provide the services citizens need and deserve.
Washington Retail encourages voters of the 2nd Legislative District to support a candidate who will fight for you in Olympia: John Snaza.
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Kelly Chambers seeks Pierce County Executive seat
WR endorsed candidate Kelly Chambers held a fundraiser in Tacoma last week, attended by WR team members Mark Johnson and Crystal Leatherman.
Chambers is the current State Representative from the 25th Legislative District, which includes Puyallup, Fife, and Sumner, and parts of Pierce County. Kelly has been endorsed and supported by WR for each of her House elections. She has proven herself by championing retail and business issues and has one of the highest WR Voting Records in the Legislature. Chambers is also a small business owner.
Chambers hopes to fill the position being vacated by long-time WR supporter Pierce County Executive Bruce Dammeier, who has endorsed Kelly for his position.
Kelly will continue the great work Executive Dammeier has accomplished and ensure Pierce County remains an excellent place for retailers, their workers, and customers.
WR strongly encourages Pierce County voters to support Kelly Chambers for Executive.
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Pictured left to right: City of Olympia Mayor, Dontae Payne, WR State & Local Gov't Affairs Manager, Crystal Leatherman, and WA Attorney General Candidate, Nick Brown.
Meet-and-greet with Attorney General candidate Nick Brown
WR’s Local & State Government Affairs Manager, Crystal Leatherman, attended a meet-and-greet for Washington Attorney General candidate Nick Brown. Nick launched his campaign over a year ago when incumbent AG Bob Ferguson announced his run for governor.
With nearly a decade of experience as a federal prosecutor, Nick also served as general counsel for Governor Jay Inslee. Before his bid for Attorney General, he was the U.S. Attorney for the Western District of Washington.
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Fed weighs interest rate decisions amid easing inflation
The U.S. economy is at a "critical moment," according to National Retail Federation Chief Economist Jack Kleinhenz. As inflation eases, attention turns to the Federal Reserve's decisions on interest rates. While the labor market remains strong, current inflation levels are prompting careful consideration. Year-over-year GDP growth fell from 3.4% in Q4 2023 to 1.4% in Q1 2024, attributed largely to reduced consumer activity—a key aim of higher interest rates.
Inflation measured by the Personal Consumption Expenditures Price Index decreased from 3.4% to 2.6% from Q1 to May 2024, with service prices rising while goods prices fell. Despite concerns over high prices, consumer sentiment remains optimistic about continued inflation moderation. The Fed has room to wait as household income, spending, and saving rates show resilience, indicating a slower but steady economic growth. Monthly job gains are robust, supporting overall income growth. NRF continues to monitor these developments closely through its Monthly Economic Review.
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Back-to-class shopping trends highlight early purchasing
As of early July, over half (55%) of back-to-school and college shoppers have started purchasing items for the upcoming school year, according to the National Retail Federation's annual survey.
Despite early shopping, 86% of consumers have at least half of their purchases pending, primarily due to waiting for better deals or uncertainty about needed items. Many shoppers plan to take advantage of July sales events, such as Prime Day.
Families with K-12 children anticipate spending an average of $874.68 on clothing, supplies, and electronics, totaling an estimated $38.8 billion. This marks a slight decrease from last year’s record high but remains significant. Electronics, while still popular, see slightly reduced interest this year.
For college students, average spending is projected at $1,364.75, with total expenditures reaching $86.6 billion, consistent with last year’s figures. The most popular shopping venues include online platforms and department stores.
The NRF's survey, conducted with 7,533 consumers, reflects ongoing trends in back-to-class shopping and consumer behavior.
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Interim Seattle Police Chief Sue Rahr takes on tough job
Following Mayor Bruce Harrell’s May 29th announcement replacing Seattle Police Chief Adrian Diaz, interim Chief Sue Rahr has been busy.
Chief Rahr took over a department facing enormous challenges. A slew of lawsuits reveals deep divisions in the upper command of the Seattle Police Department. While the City negotiated a new contract with the Seattle Police Officers Guild to cover the three years that officers worked under an expired contract, the City must finalize a contract that will cover the next several years. Building stronger police accountability into that contract remains a stumbling block. The SPD still operates under a consent decree overseen by a federal judge.
Public safety is a serious concern of many Seattle residents, and Chief Rahr will have a hard time addressing it with low staffing numbers. In early 2020, the SPD had about 1,400 officers before a large exodus from the department. Despite increasingly aggressive recruitment efforts, SPD currently has about 950 officers.
In addition to running the SPD, Chief Rahr, along with former Seattle Chief Kathleen O’Toole, is leading the search to find a permanent chief. Despite all of the challenges facing SPD, Rahr is optimistic about the search, “If we can overcome the reputation of the political volatility and the acrimony between policing and the community, if we can show that stability, I really believe this will be a sought-after position.”
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Seattle Council approves record transportation levy for November ballot
The Seattle City Council has unanimously approved a significant property tax levy for the November ballot, marking the city's largest investment in transportation at $1.55 billion over eight years. This funding will enhance roads, bridges, sidewalks, and bikeways.
A last-minute amendment by Councilmember Dan Strauss allocated $20 million for the Burke-Gilman Trail's "missing link," a decision met with some opposition but seen as a way to resolve a long-standing debate. The levy will replace the expiring $930 million Levy to Move Seattle and will account for 30% of the Seattle Department of Transportation's budget.
Property owners will pay 65 cents per $1,000 of assessed value, leading to an estimated $520 annual cost for owners of median-priced homes. Key highlights include:
- $403 million for street maintenance
- $221 million for bridge repairs
- $193 million for pedestrian safety enhancements
- $160.5 million for Vision Zero and school safety programs
- $151 million for transit improvements
- $133.5 million for bikeways, including the Burke-Gilman Trail
- $69 million for climate initiatives
- $66.5 million for public space enhancements
This levy is expected to leverage additional funding, potentially exceeding $1.55 billion, and could access federal grants for further transportation improvements.
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AG Ferguson’s Organized Retail Crime Unit files two new prosecutions
Attorney General Bob Ferguson's Organized Retail Crime Unit has filed two new felony cases, marking a total of five prosecutions since the unit's establishment last year. Victor J. Matt is charged in Snohomish County with theft and forgery for stealing outboard boat motors worth $58,729 using fake checks and forged documents. In King County, Jerrell Davis and Tahj Franklin face charges for stealing over $10,400 in high-end alcohol from Fred Meyer and Safeway stores.
The unit, created in 2023, offers centralized resources and coordination across jurisdictions. With nine other states having similar task forces, Washington's unit, led by Assistant Attorney General Kent Liu, is set to bolster efforts against organized retail crime. The unit has secured its first conviction and is currently prosecuting two other cases.
Read the full release
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Former Governor Gregoire addresses ORC Task Force
Former Washington State Governor Christine Gregoire addressed the Attorney General’s Organized Retail Crime (ORC) Task Force yesterday in Seattle. Gregoire, the CEO of Challenge Seattle, an alliance of 23 of the region’s largest employers and most successful innovators, shared plans for an Organized Retail Crime Summit on October 2. WR is partnering with Challenge Seattle to present the summit, which will be hosted by Microsoft at their Redmond campus. Attendance is by invitation only and will include King County mayors, police chiefs, prosecutors, the county executive, sheriff, and retail loss prevention and asset protection leaders
In addition to Attorney General Bob Ferguson, attendees from WR included President/CEO Renée Sunde, Senior VP of Policy and Government Affairs Mark Johnson, and State and Local Government Affairs Manager Crystal Leatherman. Over 100 individuals attended the event either in person or remotely.
The unit staff provided updates on ORC cases filed and convictions made. A panel of western states ORC task force leaders shared their experiences, best practices, and challenges.
WR appreciates and supports the focus by Governor Gregoire, Challenge Seattle, and Attorney General Ferguson on this critical issue. Together, we are confident in making progress to hold these retail crime rings accountable, sending a message that such activities will not be tolerated in Washington State. This effort aims to create a safer community, a safer working environment for retail employees, and a more pleasant shopping experience.
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Blake Garfield of Bedrooms and More heads to D.C. as finalist for America’s Retail Champions
WR is excited to highlight Blake Garfield of Bedrooms and More in Seattle, WA, who has been named a finalist for the 2024 America’s Retail Champions program by the National Retail Federation. This prestigious recognition celebrates small business retailers who are outstanding advocates for the retail industry and their communities.
Blake, along with WR President & CEO Renée Sunde, will be heading to Washington, D.C. for the America’s Retail Champions banquet on July 25, where one retailer will be honored as the 2024 America’s Retail Champion. We wish Blake the best of luck at this important event!
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Target joins Aldi, Whole Foods in no longer accepting checks
Starting July 15, Target will no longer accept personal checks as a payment method, citing extremely low volumes. This change aligns with a broader trend of declining check usage, with many consumers preferring credit/debit cards and digital payments.
Target emphasizes its commitment to a smooth checkout experience, offering various payment options including Target Circle Cards, cash, digital wallets, SNAP/EBT, and buy now, pay later services.
Despite this shift, customers can still use checks to pay their Target Circle Card credit balance by mail. This move follows similar policies by Aldi and Whole Foods, while stores like Best Buy and Cub Foods continue to accept checks.
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Law firm suing thousands of businesses over website accessibility – Are you a target?
The surge in lawsuits under the Americans with Disabilities Act (ADA) has seen small businesses facing significant challenges. A New York-based firm, Mizrahi Kroub, has been notably aggressive, filing over 1,000 cases in 2022 alone, which accounted for a quarter of all ADA lawsuits that year. The firm’s tactics often target small to mid-sized businesses, leading to costly legal fees and settlements.
Many websites fail to meet ADA standards, with recent data showing that 96.3% of surveyed sites do not comply. Mizrahi Kroub's strategy has drawn criticism for prioritizing financial gain over genuine advocacy for accessibility improvements. The lack of clear standards under the ADA exacerbates this issue, leading to a rise in what some describe as "cut-and-paste" lawsuits.
One example is Bob Kramer of Kramer Knives in Bellingham, WA, who incurred nearly $40,000 in expenses due to a lawsuit alleging that his website was not accessible to disabled individuals. This case underscores the financial strain such legal actions can impose on small businesses.
As the trend of ADA lawsuits continues to grow, calls for reform are increasing. Legal experts suggest establishing clearer guidelines for website accessibility and allowing businesses a chance to address issues before facing litigation. Balancing the need for accessibility with protecting small businesses is crucial for fostering a fair digital environment.
Small businesses should be proactive in ensuring their websites comply with ADA standards to avoid potential legal actions that can result in significant financial burdens.
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2024 top 100 retailers: NRF’s annual rankings
The National Retail Federation (NRF) has released its annual Top 100 Retailers list, highlighting the best-performing U.S. retailers based on sales. The data reveals that while pandemic-era spending is waning, major players remain stable due to their significant financial resources. Walmart retains the top spot with over $533 billion in U.S. sales, while Aldi sees substantial growth at 17%.
Notable movements include DICK'S Sporting Goods rising in the rankings and Overstock.com achieving a remarkable 135.1% growth thanks to its acquisition of Bed Bath & Beyond’s online assets. Mergers and acquisitions are a key strategy for growth among top retailers, though ongoing legal challenges, like the Kroger-Albertsons merger, have affected their performance.
Grocery retailers continue to show strength, with six holding spots in the Top 20, driven by improved inventory and strong consumer demand, despite inflationary pressures. Notably, the Defense Commissary Agency and the Army and Air Force Exchange Service also climbed the ranks, reflecting stable performance in a unique retail model.
As retailers adapt to post-pandemic dynamics, the focus on convenience and strategic growth is essential. Lessons from leaders like Walmart, Amazon, and Costco include steady investment in core operations and exploration of retail media opportunities.
Top 10 Retailers
- Walmart: $533.96 billion
- Amazon.com: $250.11 billion
- Costco Wholesale: $175.39 billion
- The Kroger Co.: $149.61 billion
- The Home Depot: $141.45 billion
- CVS Health Corporation: $113.92 billion
- Target: $105.84 billion
- Walgreens Boots Alliance: $105.10 billion
- Lowe's Companies: $84.04 billion
- Albertsons Companies: $77.86 billion
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Inside JCPenney’s transformation: A data-driven vision and future-ready tech stack
JCPenney is undergoing a significant transformation to reclaim its status as a leading department store retailer, driven by a $1 billion turnaround plan announced in September 2023. The retailer has made strides by simplifying its loyalty program, upgrading its Reno distribution center, and rolling out next-generation store technology across its 650+ stores, with a focus on enhancing customer experience through improved POS systems, WiFi, and network bandwidth.
CIO Sharmeelee Bala, who joined in 2022, emphasized the importance of customer data in driving these changes. Bala's strategy involves modernizing JCPenney’s tech infrastructure without overhauling every system, investing in customer touch points, and utilizing AI and machine learning for efficiency in areas like merchandising and supply chain. Bala highlighted the integration of personalized online shopping features, mobile-first POS systems, and scalable digital ecosystems built with microservices. The transformation aims to balance maintaining current operations while preparing for future growth, ensuring that technology upgrades directly enhance customer satisfaction and operational efficiency.
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Walmart offers college credit for work experience
Walmart is taking innovative steps to support its employees' educational pursuits by offering college credit for on-the-job training and work experience. This initiative involves partnerships with various colleges, enabling employees to convert their training into academic credits.
At Walmart, employees can earn credit through programs like Walmart Academy, which offers training courses that count towards degrees at partnering institutions.
These efforts aim to attract and retain talent by creating a strong internal talent pipeline. While programs are still developing, they signify a shift towards recognizing practical work experience as valuable educational credit, challenging traditional higher education norms.
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Washington leads nation in OSHA inspections: Retail heavily impacted
Washington State has the highest rate of inspections to employee ratio in the nation, with over 10% of Washington’s inspections occurring within the retail trade. Alarmingly, more than 84% of inspections are focused on small businesses with fewer than 50 employees.
The data reveals some concerning trends:
- Washington accounts for over 7.5% of inspections nationwide.
- The state’s inspection rate is three times the national average.
- Year-over-year, Washington’s inspection rate has increased 10%.
- Washington ranks as the second most inspected state in the nation.
As inspections increase among small businesses, it becomes increasingly important to ensure that your safety standards and regulations are up to date. WR can assist with any safety needs or questions you may have. WR provides free onsite safety visits to our members, offering a specialized breakdown of any safety concerns or incidents that need to be addressed.
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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.
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Renée Sunde, President/CEO — 360.200.6450 — Email
Mark Johnson, Sr. VP of Policy & Government Affairs — 360.943.0667 — Email
Crystal Leatherman, State & Local GA Manager — 360.200-6453 — Email
Rose Gundersen, VP of Operations & Retail Services — 360.200.6452 — Email
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