Newsletter November 17, 2022

IN THIS ISSUE

POLICY

ECONOMY

RETAIL THEFT & PUBLIC SAFETY

Last chance to register for AG Ferguson’s 2nd Organized Retail Crime Task Force meeting

TRENDS

SAFETY

Preventing tragedy with proper ladder use

Public Safety and Retail Theft are top of mind at chamber luncheon

As members of the Thurston County Chamber gathered for their monthly Forum luncheon this past week, the issues surrounding retail theft and organized retail crime were on the minds of business leaders.

“Communities across the state are facing a staggering increase in theft and crime with growing concerns over safety at a time when the retail industry continues to recover from the impacts of the pandemic, the highest inflation in 40 years, retail workforce shortages, and supply chain challenges,” said Renée Sunde, WR President, and CEO. “This requires the response of community leaders and policymakers alike.”

Sunde spoke on how organized retail crime (ORC) has directly impacted Thurston County businesses and throughout Washington State. Her fact-filled presentation revealed the often-crippling effects of these brazen thefts on small businesses.

“Twenty-five percent of small businesses are reporting that they had to raise prices as a result of theft within their stores, and in some cases, ORC is even creating product shortages,” Sunde said. "The threat to personal safety is also impacting the mental well-being of a lot of employees. They felt threatened. What this is resulting in is employees that are afraid to come to work.”

Sunde addressed how retailers are making safety a top priority, with 52% saying they have increased their capital investments in safety and safety equipment. Many of which are employing new technologies.

Following her remarks, Sunde introduced, Attorney General Bob Ferguson. The AG spoke about the recently formed Washington State ORC Task Force which was launched in July to bring federal, state, and local law enforcement together with retailers. Coordination and “increased communication is critical because of the complexity of these crimes,” Ferguson said.

The packed room included local business leaders and was also well-attended by retail loss prevention officers and state, county, and local law enforcement officers.

Just released: WR’s first “about us” video

The Washington Retail Association (WR) premiered its first About us video during Tuesday’s Annual Meeting. Months in the making, this short video helps to tell the story of the association and how it works to meet the needs of its members and retailers throughout Washington State.

Washington Retail is the primary steward of Washington’s retail experience and it is our mission to safeguard the interests of retailers across the state. We advocate on important policy issues, offer insight on industry trends, and provide resources that help drive down the cost of doing business.

During the past few years, Washington retailers have been on the front lines as never before. Amidst inflation, economic uncertainty, and supply chain disruptions, they remain hard at work to meet the rapidly changing needs of individuals and families.

Retail contributes $200 billion to Washington’s economy and supports 42%of the state’s operating budget. Its workforce employs hundreds of thousands of Washingtonians and pays $27 billion in wages annually. Nationally, retail is the 4th largest employer of immigrants, and 34% of retail’s workforce are people of color.

New wage disclosure laws take effect January 1, 2023

Under current law, an employer must provide wage and salary information for a new position upon request of an applicant after the initial job offer is made. Additionally, employers are required to give the wage scale or salary range to an employee, if requested, if offered an internal transfer to a new position or promotion.

With the passage of SB 5761 in 2022 (5761-S.SL.pdf (wa.gov)), beginning January 1, 2023, employers will now be required to disclose the wage scale or salary range and a general description of all the benefits and other compensation to be offered, in each posting for a vacant position. This new requirement replaces existing requirements

Under the new law, a posting means “any solicitation intended to recruit job applicants for a specific available position, including recruitment done directly by an employer or indirectly through a third party.” A posting includes communication about a vacant position electronically or with a printed hard copy.

Additionally, employers are still required to provide the wage scale or salary range to an employee, if requested, that is offered an internal transfer to a new position or promotion.

These requirements do not apply to employers with fifteen or fewer employees.

The Department of Labor and Industries (L&I) is still developing administrative policies to assist employers in implementing the new law. The Washington Retail Association will provide additional information from L&I as it becomes available.

Battery stewardship bill to be introduced in 2023

Senator Derek Stanford (D-1-Bothell) intends to re-introduce a form of House Bill 1896. The bill was previously prime sponsored by Rep. Harris-Talley and heard during the 2022 Legislative Session but failed to pass.

The State of California recently adopted two new battery-related laws, with one targeted at batteries and the other on products with batteries embedded. The bill Stanford is considering at this time would contain both. His bill seeks to establish a producer responsibility stewardship program administered by the Department of Ecology to ensure batteries are properly disposed of or recycled.

Washington Retail has many members that sell batteries, items that contain batteries, or both, so this is of great interest to them, and they want it to be done right. From WR's perspective, several key points must be included in the final proposed bill. First, a retailer taking back end-of-life batteries should be voluntary. With 938 battery collection sites already in place throughout Washington, we don't see a need to force retailers’ stores to serve as collection points. Second, the program's cost should be borne by the manufacturers of the batteries, not by retailers and their customers. Third, the program's cost should be embedded in the cost of the batteries or battery-containing devices. The cost should not be in a tax or fee at the point of sale. Fourth, warnings should be issued first for inadvertent mistakes before a fine is levied. And fifth, the definition of "producer" must be written to ensure retailers aren't left holding the costs for store-branded items.

Retailers care about the environment for their customers, employees, themselves, and their families. Many retailers have already voluntarily adopted battery recycling programs at their own cost to benefit the environment and bring customers into their stores.

WR looks forward to working with Senator Stanford, a potential House sponsor, and concerned stakeholders to create an effective, convenient, and cost-efficient program. Examples of well-run programs are the E-waste program and the unused drug disposal program.

If you are interested in joining the discussion about batteries, please let us know, and we will connect you to the stakeholder group.

Retail sales rise as holiday season begins

Retail sales continued to increase in October as consumers disregarded inflation concerns, with many getting a head start on the holiday season.

October retail sales data confirms that consumers continue to make their dollars go further as they prioritize household expenditures while still including holiday gifts for their family and loved ones.

According to the U.S. Census Bureau , overall retail sales in October were up 1.3% from September and up 8.3% year over year. In September, sales were flat month over month but up 8.6% year over year.

Retail spending has gradually slowed but remains strong. Alongside inflationary prices, employment and wages are rising, supporting holiday spending, as is the cushion of accumulated savings. And, with retailers deeply discounting excess inventories, spending is expected to remain strong through the holidays.

Despite inflation, Home Depot and Lowe’s post strong Q3 sales

Consumers have shifted their spending priorities due to inflation, but the largest home improvement retailers experienced strong sales in Q3.

This week, Home Depot reported net sales increased 5.6% year over year to $38.9 billion. The home improvement retailer’s operating income grew 6.1% from the year-ago period to $6.1 billion, while its net income increased 5.1% to $4.3 billion.

“In the second quarter, we delivered the highest quarterly sales and earnings in our company’s history,” said Ted Decker, CEO and president. “Our performance reflects continued strength in demand for home improvement projects.”

Meanwhile, Lowe’s reported third-quarter net sales were up 2.4% to $22.5 billion. Overall comparable sales were up 2.2% — beating both FactSet (0.8%), and Telsey Advisory Group (1%) estimates. Excluding an impairment charge related to the sale of its Canadian business to Sycamore Partners, the retailer’s earnings per share increased by 19.8%.

Lowe’s is also experiencing the impacts of inflation on consumers, as transactions have fallen 5.4%, but average ticket amounts increased 8.4% to $101.80.

The retailer has launched a number of initiatives targeting professional customers, including faster delivery and the return of its “PROvember” sales event. Sales growth among pro customers increased 19% this quarter compared to a 13% increase last quarter.

Last chance to register for AG Ferguson’s 2nd Organized Retail Crime Task Force meeting

Please join us on Wednesday, November 30 between 9:00am and 12:00pm for the 2nd Organized Retail Crime Task Force meeting this year. The meeting will be a hybrid meeting and in-person attendance at the AG’s Seattle office is limited due to limited space. RSVPs for in-person attendance will be accepted in the order in which received. To attend, RSVP by tomorrow, Friday, November 18. A formal agenda will be sent out prior to the meeting.

All in-person attendees are required to show proof of full vaccination and booster and complete a wellness screening.

Masks are optional and will be available on-site. Individuals who cannot verify their vaccination and booster status will not be admitted to the in-person meeting but may participate via Zoom. In-person attendees can complete the verification and screening process in advance using theCLEAR app. The Health Pass Org Code is WAAGOVISITOR. Detailed instructions will be attached in the invitation email. On-site verification will also be available.

How retailers can turn seasonal workers into long-term employees

Retailers have an opportunity this holiday season to fortify their workforce numbers for the coming year by using strategies to attract and retain seasonal workers. Retailers are expected to hire between 450,000 and 600,000 seasonal workers nationally this year, and holiday hiring serves as a significant pipeline to year-round work. Many retailers are using broader recruiting tactics, simplifying their hiring processes, and offering higher wages and benefits to maintain a talented workforce.

Speed is essential in hiring, so having an application that takes as little as five minutes and a response time or job offer to candidates within 48 hours can give retailers a definite edge. This doesn’t mean cutting corners but rather composing an application of questions that truly matter. Macy’s, for example, has moved to converting associates immediately into open permanent roles rather than waiting until the end of the holiday season to determine permanent hires.

Retailers across the country have also raised their hourly wages and benefits to remain competitive. Walmart offers tuition reimbursements and helps its associates save money on gas and delivery with free membership in its Walmart+ program.

One of the critical components to keeping talented employees is offering a long-term career path. NRF Foundation’s RISE Up program helps provide retailers in the onboarding process by providing training and skills certification programs.

RISE Up currently offers four different credentials. The program’s partners include high schools, community colleges, and workforce organizations to train participants, preparing them for their first retail job. Ninety-four percent of credential holders say the training helped them feel more confident when applying for jobs, and 92% say the credential would help with future career success.

Target goes supersize

Last week, Target Corp. announced the next evolution of its new story strategy and design to serve its guests and team members better. In recent years, Target has opened small-format concept stores tailored to urban areas and younger shoppers. In a significant pivot, the company is now set to open a new large-format store that will stand at approximately 150,000 square feet—roughly 20,000 square feet larger than its average, according to a company release.

While Target will focus on developing these large format stores in the coming years, it will also continue opening stores of other sizes.

The large format store, the first of which is opening outside of Houston, Texas, is the result of Target “playing around with other design elements ,” including what it described as a more open layout and localized elements, which the retailer said it would add to future remodels as well.

Target’s new stores with a larger footprint will feature the following:

More space: The new store layout delivers a backroom fulfillment space that’s five times larger than previous stores of similar size. This additional space will help support the ongoing growth Target has experienced, with its stores fulfilling more than 95% of the retailer’s digital orders and same-day services accounting for more than 10% of its overall sales.
Built-in sustainability: The retailer’s stores and operations play a pivotal role in its goal to achieve net zero emissions by 2040. Its future new stores and remodels will include updates such as natural (CO2) refrigerants to help lower the retailer’s emissions and EV charging ports for its guests, with many locations including rooftop solar.

Read the entire article

Preventing tragedy with proper ladder use

Most ladder accidents happen as the user makes their way back down from steps less than ten feet in height.

Falls from ladders are one of the leading causes of workplace fatalities and permanent impairment. Approximately 65,000 Americans are sent to the emergency room each year from ladder falls.

Stay safe with these ladder safety tips:

Review ladder safety materials and weight rating. Ladders are made from a variety of materials with different weight limit ratings. Ensure the ladder is made from the right materials for the job and is rated to support the worker's weight, plus any tools or materials they will be carrying.
Business versus home ladder use. Businesses need to use Type IA, I, or II ladders – Type III ladders are only rated for home use and will not stand up to the rigors of daily workplace use.
Ladder height matters. Ensure the ladder is tall enough for the task. Workers should reach the required height without the need to stand on the top three rungs of a regular ladder or the top two steps of a stepladder.
Watch for wear and tear. Examine ladders for potential defects or damage. Similarly, ensure ladders are protected from unnecessary damage by storing them in weather-resistant locations.

Make safety the epicenter of your workplace by encouraging employees to stay safe and keep these safety tips in mind when using ladders.

Maintaining safety in the workplace and worker safety training is easy with these ladder safety resources:

SAFEME Essentials has a ladder module
Ladder safety videos on RS SafetyTV
The Ladder safety section of the RS Safety Library (members only - login required)

Rick Means, Director of Safety and Education, is available to help members with safety. Contact Rick at 360-943-9198, Ext. 118 or rmeans@waretailservices.com

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.