Newsletter — September 26, 2024 | |
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Crystal Leatherman promoted to Director of Local and State Government Affairs
Washington Retail Association (WR) is proud to announce the promotion of Crystal Leatherman to Director of Local and State Government Affairs. The promotion reflects Crystal’s outstanding contributions in her first year as the Local and State Government Affairs Manager, where she demonstrated exceptional leadership, legislative expertise, and a strong commitment to advancing the association’s advocacy priorities.
Since joining WR, Crystal has quickly become an integral part of the team. She has been successful in building coalitions among key stakeholders, including lobbyists, state agencies, and retail member companies; driving the organization’s mission forward.
“Crystal’s legislative mastery and adaptability have been key assets to our team,” said WR President and CEO Renée Sunde. “Her ability to effectively communicate through written reports, oral testimony, or coalition-building efforts, has significantly enhanced WR’s impact in both our local and state government affairs efforts. We are excited to see her leadership grow in this new role.”
With a focus on future challenges, Crystal will play a pivotal role in WR’s efforts to enhance its grassroots advocacy and develop innovative solutions to support the retail community across Washington. Her commitment to high-quality work and leadership will continue to drive WR’s mission to advocate for a vibrant and thriving retail industry.
Please join us in congratulating Crystal Leatherman on her well-deserved promotion to Director of Local and State Government Affairs.
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POLICY
ECONOMY
ON THE LOCAL FRONT
POLITICAL NEWS
RETAIL THEFT & PUBLIC SAFETY
IN THE NEWS
TRENDS
SAFETY
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L&I’s proposed 3.8% average rate increase for 2025 raises underlying concerns
Last week, L&I proposed a 3.8% average workers’ compensation rate increase for 2025, which is lower than the 5.5% overall increase their actuaries projected. L&I utilized $64 million from its contingency reserves to preserve its philosophy of steady and predictable rates.
While the business community appreciates the moderate rate increase, concerns remain over the supplemental pension fund and whether L&I has the authority to heavily favor specific risk classes over others.
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L&I data shows that the supplemental pension fund stands out with a proposed 2.8% increase, far exceeding the actuary's break-even estimate of 0.1%. In contrast, all other funds either match or fall below the actuary’s break-even projections.
Firefighters' risk classes have seen significant cost increases since the Legislature approved workers' compensation coverage for post-traumatic stress disorder (PTSD) in 2018. These risk classes now show a 30% indicated rate increase, but L&I limited the 2025 increase to 15% by drawing from contingency reserves. This trend will accelerate because the Legislature expanded PTSD coverage in 2023 to include first responders and certain nurses.
Overall, most retail-related risk classes have experienced rate increases above the average, reflecting a higher-than-average trend in claim costs. Retail Services is offering a new and improved Safety Ambassador Program to help members lower rates by building a premier safety culture to prevent injuries in the first place.
Public hearings are scheduled on Oct 28 at 10 am (hybrid) or on Oct 29 at 10 am in Spokane.
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Fed cuts interest rates for first time in four years
The Federal Reserve has reduced its benchmark interest rate by half a percentage point, marking the first rate cut in over four years. This move aims to ease borrowing costs and stimulate economic growth, reflecting confidence in managing inflation, which has dropped to 2.5% from its 9.1% peak in June 2022. The cut follows a series of rate hikes that helped curb inflation but also led to rising borrowing expenses for consumers.
As inflation is now close to the Fed’s 2% target, the central bank's focus has shifted to supporting a weakening labor market, where unemployment has risen to 4.2%. Fed Chair Jerome Powell emphasized the importance of maintaining economic growth while ensuring a stable job market.
The rate cut may lead to lower borrowing costs for mortgages, auto loans, and credit cards, offering potential relief for businesses and consumers alike. However, many experts believe mortgage rates have already adjusted in anticipation of the Fed's decision. As the economy slows, this shift could bolster consumer spending and encourage investment in the months leading up to the presidential election.
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Understanding tariffs: What they are and who pays for them
A tariff is a tax imposed by a government on imported goods or services. These taxes are typically used to regulate trade by making foreign products more expensive, thereby encouraging consumers to purchase domestic goods. Tariffs are set as either a fixed fee per unit of the product or as a percentage of the total cost.
Contrary to common belief, the tariff itself is paid by the importer of the goods, usually a business or distributor that brings the products into the country. This added cost is often passed along to the consumer in the form of higher prices. For example, if a tariff is placed on electronics imported from another country, the cost for retailers and, eventually, consumers will likely increase.
Tariffs can serve various purposes, such as protecting domestic industries, retaliating against unfair trade practices, or generating revenue for the government. However, their economic impact can be complex, influencing both consumers and businesses across different industries. Understanding tariffs helps businesses make informed decisions about pricing, sourcing, and supply chain management.
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WR Leadership join BOMA Panel highlighting the essential role of retail in communities
At Bellevue Square’s Center Court, the September Membership Meeting of the Building Owners and Managers Association (BOMA) focused on the vital topic, “Why Retail is Essential to Thriving Buildings and Cities.” BOMA President Phillip Scott welcomed attendees, followed by Monica Wallace from Kidder Mathews, who moderated the panel discussion.
Panelists included Renée Sunde, CEO of the Washington Retail Association (WR); Alesha Shemwell, WR Board Chairwoman; and Heather Almond from Avison Young. They explored retail's critical role in the economy and emerging trends. Sunde highlighted retail as the largest private sector employer in the U.S., contributing $5.3 trillion to GDP, and employing 1 in 4 workers. In Washington, retail supports 400,000 jobs and generates $19.8 million in wages.
The panel addressed retailer priorities, including public safety, theft, and organized retail crime, which are impacting profitability and employee safety. Large retailers invest in security technologies, but smaller businesses struggle. In response, WR developed a Guide for Navigating Public Safety and Retail Crime.
Audience feedback praised the event as "valuable, timely, and relevant." BOMA continues its mission to enhance commercial real estate through advocacy, education, and networking.
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WR launches legislative store tours
The WR team, alongside representatives from WR member North 40 Outfitters, recently hosted a tour for three state legislators from Spokane and Spokane Valley. The tour provided an opportunity for discussions on various aspects of the retail industry, including career opportunities, local economic impact, and the challenges and opportunities facing businesses in the sector.
State Representatives Jenny Graham, Suzanne Schmidt, and Leonard Christian were welcomed by North 40 staff and the WR Government Affairs team. Key topics covered during the tour included loss prevention, asset protection, employee safety, firearm sales and safety, supply chain reporting, farm animal vaccinations, and career opportunities.
The North 40 Outfitters showcase store stood out as an exemplary model of a well-run, efficient, and welcoming retail environment. Many employees at the store have been with the company for several years, with some embarking on their second careers.
WR plans to continue hosting legislators at member stores across the state to educate and inform decision-makers about the retail industry's vital role in the state’s economy and its diverse job opportunities that cater to people of all talents and abilities.
Special thanks to North 40 Outfitters for hosting our inaugural Legislative Store Tour!
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Seattle City Council votes to put competing housing proposals on February 11th special election ballot
In February, Seattle voters will have a chance to vote on two very different proposals to create additional affordable housing in the city.
Social housing advocates collected signatures to place Initiative 137 (I-137) on the November 2024 general election ballot. The initiative would establish an “excess compensation tax” of 5% on employers. The tax would apply to compensation above $1 million paid to an employee in Seattle. Backers of I-137 expect the tax to raise about $52 million annually. Those revenues would finance the development of social housing in which a people with a wide range of incomes would live together, with higher income residents subsidizing the rent for lower income people living in the building.
The City Council voiced concerns about channeling this revenue stream to a newly-formed public development authority with no prior housing construction experience. As an alternate, the Council proposed allocating $10 million per year from JumpStart tax revenes to the public development authority for five years. According to the sponsor of the Council alternative, Councilmember Maritza Rivera, it “balances the need for innovation with the need for accountability.”
The Council voted to place both proposals on a February 11, 2025 special election ballot, removing I-137 from the 2024 general election ballot.
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Candidates debate for statewide offices
The WR Government Affairs team attended the AWB Policy Summit in Spokane where a number of candidates participated in statewide office debates. The four, hour-long debates featured candidates for Governor, Attorney General, Public Lands Commissioner, and Superintendent of Public Instruction.
The debates were broadcast on local television and statewide on TVW.
The candidates are as follows:
WR values the candidates' focus on the retail industry and is eager to collaborate with the elected leaders. We urge voters to research the candidates and submit their ballots, which will arrive in late October. Ballots must be returned by November 5, with results starting at 8:00 PM on election night.
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WR endorses three for U.S. Congress
The WR Retail Action Council Political Action Committee has unanimously endorsed three candidates for the U.S. House of Representatives.
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District 4, Central Washington: Incumbent Dan Newhouse (R), representing areas including Yakima, the Tri-Cities, Moses Lake, Zillah, and Ephrata. Dan is a third-generation Yakima Valley farmer and small business owner
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District 5, Eastern Washington: Michael Baumgartner (R), running for an open seat in a district covering Spokane, Colville, Pullman, Odessa, Kettle Falls, and Medical Lake. Michael currently serves as Spokane County Treasurer and was previously a Washington State Senator and diplomat.
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District 10, Western Washington: Incumbent Marilyn Strickland (D), representing areas including Olympia, Tacoma, Fife, Lakewood, Yelm, Dupont, and Steilacoom. Marilyn is the former Mayor of Tacoma and President/CEO of the Seattle Chamber of Commerce.
Each candidate has demonstrated strong support for the retail industry. Washington Retail looks forward to collaborating with Congress to enhance and protect the business climate for the benefit of employees, customers, and owners alike.
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Seattle City Council passes bills to restrict prostitution and illegal drug activity
On September 17, the Seattle City Council approved legislation aimed at curbing illegal prostitution and drug dealing in specific areas of the city.
Councilmember Cathy Moore sponsored CB 120836, which gives the City the authority to create Stay Out of Area of Prostitution (“SOAP”) zones. The first SOAP zone, established under this legislation, encompasses Aurora Avenue North (including two blocks east and west) from 85th Street to the city’s northern border at 145th Street. This legislation targets those who promote prostitution or purchase such services while offering additional support for victims of the sex trade.
Similarly, CB 120835, introduced by Committee Chair Bob Kettle, authorizes the City to establish Stay Out of Drug Area (“SODA”) zones. Initially, two SODA zones were created: one in the Chinatown-International District and another downtown, covering areas north and south of 3rd and Pine. Amendments approved by the Public Safety Committee added SODA zones in Belltown, Pioneer Square, Capitol Hill, and the University District, and expanded the Chinatown-International District zone. An amendment by Councilmember Rob Saka also requires judges to consider an offender’s residence, place of employment, and location of service providers when crafting a SODA order. This legislation was drafted by Seattle City Attorney Ann Davison.
Both pieces of legislation passed with an 8-1 vote, with Councilmember Tammy Morales casting the sole vote against. The bills now move to Mayor Bruce Harrell, whose spokesperson stated that he is "supportive of additional tools to help keep neighborhoods safe."
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Organized retail crime surge: A growing concern for Washington State
A recent report on Organized Retail Crime (ORC) highlights a troubling trend of increasing retail theft across the United States, with significant implications for Washington State. The study, conducted by the Loss Prevention Research Council, reveals that ORC continues to escalate, with 68.27% of respondents reporting an increase over the past 12 months. Notably, Washington retailers face challenges as retail crime remains underreported, complicating efforts to accurately track and address these incidents.
The report underscores the need for better data collection to understand crime trends fully, as many retail crimes go unreported to law enforcement. This underreporting varies by jurisdiction, further obscuring the true scope of ORC. While states like California and Indiana saw the most significant increases, Washington’s retail sector is not immune to these rising threats.
As ORC evolves, Washington retailers must be vigilant and proactive in addressing these challenges. The full results of this study will be detailed in a series of upcoming reports, which will also explore the changing dynamics of ORC, including the rise in violence and the impact on retail employees.
Loss Prevention Magazine
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Opinion: Regional collaboration is key to our economic future
Published in the Puget Sound Business Journal, Opinion
By Jared Nieuwenhuis – Bellevue city councilmember
Sep 10, 2024
For decades, the Puget Sound region has been a beacon of innovation and entrepreneurship. Our proactive leadership, clean streets and strong public safety attracted global companies, making us a hub of opportunity. In recent years, we have faced a concerning fragmentation in policies across our metropolitan areas and the greater region. Many in the business community have wondered if our best days are behind us.
Despite these challenges, I remain optimistic. The recent shift to the center in Seattle City Hall gives me hope that we can tackle pressing regional issues such as public safety, economic viability for small businesses and coherent tax and spending policies through collaboration and intentional leadership. However, this requires leaders to embrace a regional vision and align their policies to foster safer communities and economic synergy. In other words, we need leaders who decide they want these goals for our region.
Recently, in partnership with the Ethnic Chamber of Commerce Coalition, we celebrated our minority-owned restaurateurs, who understand all too well the impact of varying policies across cities on wages, gig-worker pay and regulations. The narrative that business deterrence in Seattle benefits Bellevue might hold some truth, as evidenced by Bellevue securing four of the region's five largest tech office leases this year. But these gains are temporary and do not outweigh the risks a declining Seattle poses to the entire region.
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Amazon mandates full-time office return by 2025
Amazon will require employees to return to the office full time starting January 2025, ending its hybrid work model. CEO Andy Jassy announced the change, citing the need for better collaboration, innovation, and cultural connection to deliver top results for customers and the business. Amazon's previous three-day-a-week policy, implemented in 2023, reinforced the company's belief that working together in-person is essential.
The decision aligns Amazon with other major U.S. companies, such as JP Morgan Chase, which have also reverted to full-time office policies.
Jassy also revealed plans to reduce bureaucracy, aiming to cut managerial layers and increase the ratio of individual contributors to managers by 15% by Q1 2025. He emphasized operating Amazon like a "world's largest startup," focusing on customer-driven innovation, fast decision-making, and team collaboration. While acknowledging the possibility of layoffs, Jassy's announcement underscores Amazon’s commitment to streamlining its workforce after years of rapid hiring.
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Early Halloween shopping is on the rise
The National Retail Federation (NRF) reports that early Halloween shopping is on the rise, with 47% of consumers planning to start purchasing before October. According to NRF’s annual survey with Prosper Insights & Analytics, Halloween spending is expected to reach $11.6 billion this year, slightly down from last year's record of $12.2 billion. Katherine Cullen, NRF’s Vice President of Industry and Consumer Insights, provided key insights into consumer trends in a recent analysis.
NRF offers valuable resources for businesses looking to capitalize on this Halloween season, including infographics and a Halloween Data Center.
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Walmart kicks off holiday deals earlier this year
Walmart is launching its holiday deals event earlier this year, running from October 8 to October 13, both online and in stores. This extension increases the event from four to six days, offering discounts on products such as tech, toys, fashion, and home goods. Additionally, Walmart will lower prices on holiday meal items starting October 14, weeks earlier than last year.
Walmart believes this strategy gives customers more time to plan and shop, reducing last-minute stress. Walmart is also expanding its same-day delivery services to an additional 12 million households, with four of its five new high-tech fulfillment centers fully operational, streamlining deliveries.
Walmart’s earlier holiday event reflects shifting consumer behavior, as more shoppers start buying gifts before November to manage their budgets. Surveys show nearly half of holiday shoppers begin purchasing as early as August, and companies like Walmart are adapting their marketing to align with this trend, offering more value-focused deals earlier in the season. Despite inflationary pressures, Walmart saw a 5% revenue increase in the second quarter and remains optimistic about consumer demand.
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NRF Foundation launches Customer Conflict
De-escalation training for front-line workers
The NRF Foundation has partnered with the Crisis Prevention Institute (CPI) to launch a new 30-minute online course, Customer Conflict De-escalation. As part of the RISE Up program, this training is specifically designed to help front-line retail employees manage conflict. The course provides employees with essential de-escalation techniques to handle tense situations, reduce potential risks, and ensure a safer environment for both staff and customers.
In addition to enhancing safety, the Customer Conflict De-escalation program aims to improve the overall shopping experience by fostering more positive interactions between employees and customers. With the growing demands on retail employees to manage difficult situations, this course serves as a valuable resource in empowering staff to handle customer conflicts confidently and professionally.
Learn More
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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, Dir of Local & State Government Affairs — 360.200-6453 — Email
Rose Gundersen, VP of Operations & Retail Services — 360.200.6452 — Email
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