Newsletter — June 27, 2024

IN THIS ISSUE

POLICY


ECONOMY


ON THE LOCAL FRONT


POLITICAL NEWS


RETAIL THEFT & PUBLIC SAFETY

Ensuring reasonable lead limits in cosmetics 


WR, in collaboration with The Personal Care Products Council, spearheaded an urgent initiative earlier this month. In light of a 2023 legislative mandate that restricted certain chemicals, including lead content in cosmetics and personal care products to an unprecedented 1 part per million (ppm), WR mobilized to address the potential repercussions of this stringent limit.


This regulation, while well-intended, fails to account for the natural occurrence of lead in various materials, including those used for cosmetic coloring. Consequently, trace levels of lead are unavoidable, even in safe, high-quality products. The U.S. Food & Drug Administration limits lead (when present as an impurity) in color additives to 10-20 PPM.


Crystal Leatherman, WR's State & Local Government Affairs Manager, co-led this effort with PCPC, successfully garnering signatories from numerous businesses as well as state and national associations for a letter urging the Department of Ecology (DOE) to consider a more reasonable lead limit. WR called on the business community to join this collective effort to influence the final decision and mitigate the economic impact on the retail industry.


WR aims to protect the retail industry and ensure the continued availability of a wide range of cosmetic products in Washington.


Read the letter to DOE

AG Ferguson announces members of newly formed AI Task Force


Attorney General Bob Ferguson has announced the formation of an Artificial Intelligence (AI) Task Force in the Attorney General’s Office, with notable appointees including WR’s State & Local Government Affairs Manager, Crystal Leatherman. The task force, formed in collaboration with Sen. Joe Nguyen and Rep. Travis Couture, will gather experts from diverse sectors such as technology, civil liberties, and labor organizations to address the rapid development of AI technologies and their implications.


Ferguson emphasized the significance of AI's impact on the economy and daily life, stating, "Washington will lead on innovative and ethical AI." The task force, with bipartisan support, aims to establish guiding principles and policy recommendations by 2026.


Crystal Leatherman's inclusion highlights the retail sector's critical role in the AI dialogue, ensuring that the retail industry's interests and challenges are represented. Other members include technology policy directors, privacy officers, and representatives from various governmental and non-governmental organizations.


The task force will meet multiple times a year, focusing on education, public safety, healthcare, labor, cybersecurity, consumer protection, and innovation. Subcommittees will delve into specific issues, and advisory groups will provide updates on AI's impact on businesses and tribal communities. The task force’s work will culminate in a comprehensive report due by July 1, 2026, positioning Washington as a leader in ethical AI development and application.


Attorney General’s Press Release

Retail sales show positive growth in May


The latest data from the U.S. Census Bureau reveals that retail sales experienced a modest growth in May, indicating a stable and resilient consumer market, according to National Retail Federation (NRF) Chief Economist Jack Kleinhenz. The report highlights a 0.1% increase in overall retail sales from April to May and a 2.3% rise compared to the same month last year. This growth is a slight improvement from April's figures, which saw a 0.2% decrease month-over-month and a 2.7% increase year-over-year.


Kleinhenz emphasized that May's retail sales figures provide a snapshot of a reasonably healthy consumer environment, with the economy continuing to expand at a solid pace. He noted that strong job gains are bolstering consumers' ability and willingness to spend, even as higher prices for services remain a concern.


Aligning with the Census Bureau’s data, the CNBC/NRF Retail Monitor, which utilizes anonymized credit and debit card data from Affinity Solutions, reported a 1.2% increase in retail sales for May. This represents a significant rise from April's 0.4% growth, further supporting the narrative of steady consumer spending.

Independence Day 2024 spending set to boom


As Independence Day approaches, a significant majority of consumers are gearing up for celebrations, with 87% planning to partake in festivities. According to a recent survey, individuals are expected to spend an average of $90.42 per person on food items for their Fourth of July celebrations.


In addition to food expenses, 31% of celebrants also plan to purchase additional patriotic items, adding to the vibrant spirit of the holiday.


The survey, conducted between June 3 and June 9, 2024, included responses from 8,952 consumers. These findings indicate a strong retail outlook for the holiday, suggesting retailers should prepare for a surge in demand for both food and patriotic merchandise.


As we approach the Fourth of July, retailers can expect an influx of shoppers eager to stock up on celebratory essentials, promising a bustling and prosperous holiday season for the retail sector.

WR issues statement in support of Seattle City Attorney, City Council’s move to improve public safety 

Ordinance allowing for license plate readers approved by Council; City Attorney Ann Davison’s policy to that would enact greater consequences for street racing also to be considered before Council’s Public Safety Committee

 

With the focus by retailers on measures that create safe communities and a vibrant downtown, Renée Sunde, president and CEO of the Washington Retail Association which represents approximately 3,500 retail storefronts across Washington state, issued the following statement:

 

“We appreciate the committed leadership of City Attorney Ann Davison and Seattle City Councilmember Robert Kettle, chair of the Public Safety Committee, to make the City safer to better protect workers, shoppers and businesses. As retailers, we are often on the front lines of issues that impact public safety, whether that’s Organized Retail Crime, violent crime or street racing. We appreciate the recent vote by the Seattle City Council to approve license plate readers and today’s action by the Public Safety Committee to address the growing problem of ‘street takeovers’ that create public safety issues in business districts.

 

“While we have more issues to solve with public safety, including Organized Retail Crime, tackling one issue at a time, like street racing, and holding the perpetrators accountable is a great step forward.”

Revitalizing downtown Seattle: Pacific Place leads retail recovery 


Downtown Seattle’s retail scene is on the brink of a vibrant revival, with Pacific Place set to spearhead this exciting transformation. Once bustling with activity, the city’s largest mall is now ready for a resurgence that promises to rejuvenate the entire area.


The pandemic presented significant challenges, but the community's resilience is paving the way for a comeback. Efforts like the city’s Seattle Restored program have already seen success, with several small business pop-ups transitioning to long-term leases. This momentum is growing as BH Properties, the new owners of Pacific Place, are dedicated to creating a first-class shopping destination that reflects Seattle's unique character. Their vision includes attracting a dynamic mix of local and national retailers to fill the mall's spacious, inviting environment.


Signs of recovery are already evident downtown. New street-level storefronts are opening, and high-profile restaurants are setting up, signaling a positive trend. This renewed energy is crucial for downtown’s broader retail revival, with Pacific Place acting as the engine driving this transformation.


As Pacific Place fills up, the positive effects will ripple throughout downtown, creating a thriving urban core. With strategic investments and a focus on safety and unique experiences, the future looks bright for Seattle’s downtown retail scene. The community’s collective efforts are bringing back the vibrancy, ensuring downtown Seattle is not just back but better than ever.

WR attends first annual Senate Republican Roast


Last week, the Policy and Government Affairs team had the pleasure of attending the first annual Senate Republican Campaign Committee Roast fundraiser. The event took place at a picturesque ranch in rural Lewis County and was hosted by Senate Republican Leader John Braun.


The WR Action Council Political Action Committee (PAC) proudly contributed to the fundraiser, supporting efforts to retain and elect pro-retail Senators. The PAC is committed to engaging in races across the state, both Republican and Democrat, to make a positive impact on the retail industry.


If you are interested in contributing to WR’s PAC and supporting our initiatives, please reach out to  Sr. VP of Policy and Government Affairs, Mark Johnson at mjohnson@washingtonretail.org or call 360-704-0048.

Join the Washington State Organized Retail Crime Task Force meeting July 17


The Office of the Attorney General has announced the sixth Washington State Organized Retail Crime Task Force meeting, set for Wednesday, July 17, 2024, from 10:00 a.m. to 12:00 p.m. This meeting will address critical issues related to organized retail crime in Washington State.


Interested parties are encouraged to RSVP by Wednesday, July 10, 2024. The meeting will be hybrid, with options for both in-person and virtual attendance. Due to limited space at the Seattle Office, in-person attendance will be on a first-come, first-served basis based on the order of received RSVPs. A formal agenda and meeting materials will be distributed to those who RSVP prior to the meeting.


For more information or questions, attendees can reach out to the Policy Team at policy_team@atg.wa.gov. This meeting presents an important opportunity for collaboration on strategies to combat organized retail crime, enhancing security and success within the retail community.


RSVP Here

WR presents on retail crime at the Association of Washington Cities Conference


WR presented on a panel addressing "Retail Crime: Current Challenges and Strategies to Address the Problem" at the annual Association of Washington Cities (AWC) conference in Vancouver, Washington, last week.


Leading the panel was Issaquah Mayor Mary Lou Pauly, a leader in the fight against organized retail crime (ORC), retail theft, and increasing public safety. Mayor Pauly shared lessons learned and strategies for bringing together retailers, policymakers, police, prosecutors, and the public. Issaquah has seen a notable decline in ORC and retail theft, serving as a model for other cities.


Mark Johnson, WR Senior VP for Policy and Government Affairs, followed Mayor Pauly. He described the magnitude of the problem, its importance, ongoing efforts, and what more is needed. Johnson highlighted the federal Combatting Organized Retail Crime Act (CORCA S. 140 and HR 895), poised to pass Congress with broad bipartisan support. He also mentioned the recent approval of funding by the legislature to establish three ORC pilot programs to gather data and best practices for the 2025 Legislative Session. Mark shared the WR “Guide to Navigating Public Safety and Retail Crime” to help small and mid-sized businesses reduce vulnerability to crime, train employees, and provide useful information for law enforcement and prosecutors in case of retail crime.


The Vancouver Police Department, with two presenters experienced in ORC and retail theft, followed Johnson. They highlighted the cooperation with the Washington State Organized Retail Crime Association (WAORCA) and emphasized the need for collaboration among retailers, law enforcement, prosecutors, elected officials, and the public to address this serious issue affecting not only Vancouver and Washington but the entire country and even worldwide.


WR thanks Mayor Pauly and the Association of Washington Cities for focusing on this important issue and on solutions and strategies to make our communities safe and welcoming for consumers and employees alike.

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, State & Local GA Manager — 360.200-6453 — Email

Rose Gundersen, VP of Operations & Retail Services — 360.200.6452 — Email