Washington Retail Report

WR board of directors map out future strategies for a thriving marketplace and political influence

The Washington Retail Association 20-member Board of Directors met in mid-June at the beautiful Suncadia Lodge in Cle-Elum, Washington. The association’s board, led by President & CEO Renée Sunde, and chaired by Kent Wilson, Target, is comprised of a strategic mix of Washington-based retailers and multi-state retailers who represent hundreds of thousands of employees in all regions of the state.

In addition to important association business– leaders representing retail storefronts in all 49 legislative districts met to discuss two primary goals.

As we set the stage for Washington’s future, a focus on creating the necessary long-term political infrastructure that will support a free enterprise marketplace, maintain fiscal responsibility, and support personal accountability is a critical place to start. We also recognize that setting the stage for Washington Retail Association’s future means retailers may be better positioned than other business interests to highlight policies that are strongly aligned with the current political majority. These include positions on sustainability, community engagement, employee education, and reskilling opportunities through our diverse and inclusive workforce.

These goals helped to set the stage for two days of dynamic speakers and focused strategic planning. Sally Poliak, Co-Quarter back of Project 42, and Executive Director Kaitlyn Virtertun of League of Our Own shared the many “capacities” established over the past years to help build a durable infrastructure for Washington’s future. Newly elected state representative April Connors (D-8) from the Tri-cities is an excellent example of League of Our Own’s success in electing moderate, consensus-building, pro-business candidates.

Senator Mark Mullet, (D-5-Issaquah) gubernatorial candidate in the race for Washington State Governor, spoke about his commitment to pragmatic leadership and reasonable, balanced governance necessary to accomplish things in Olympia. The newly elected deputy Republican House leader, Representative Mike Steele (D-12 Chelan) spoke about a similar commitment to bring together both parties to work towards common sense solutions. Both leaders spoke about their commitment to making Washington State a welcoming environment for citizens and businesses alike.

A facilitated work session focused on preparing for WR’s future was facilitated by Doug Mah of Mah & Associates. The outcomes included discussing how WR will sustain successes while developing top priorities to meet the many identified challenges. The role of WR’s Board of Directors has never been more important and timelier - as we meet both challenges and opportunities ahead.

ECONOMY

Retail sales increase again in May

Retail sales rose again in May as consumers continued to spend despite economic challenges. Consumers continued to spend on household priorities in May, supported by gains in the job market and wages. Retailers recognize the ongoing pressure on cost-sensitive consumers and are offering competitive pricing, a wide product mix, and convenient shopping options to help stretch family budgets.

Despite inflation and interest rate pressures, there are no signs of an abrupt slowing ahead. Shoppers have slowed purchases in some categories year-over-year, but these numbers confirm that consumers are still spending. Job growth and wages are providing support, although inflation continues to nibble away at consumer income. As spring shopping peaks, May has historically been a strong month for retail, but above-average temperatures and below-average precipitation have likely played a favorable role. The U.S. Census Bureau said overall retail sales in May were up 0.3% from April and up 1.6% year over year. In April, sales were up 0.4% month over month and up 1.2% year over year. Core retail sales, which exclude automobile dealers, gasoline stations, and restaurants, showed May was up 0.4% from April and up 4.4% unadjusted year over year. In April, sales were up 0.6% month over month and 1.4% year over year.

How commercial real estate owners can combat organized retail theft

The widespread issue of organized retail theft is creating substantial challenges across the United States, particularly impacting retail tenants, landlords, and customers in Washington state. This form of criminal activity, which involves multiple individuals stealing goods to fund various illicit pursuits, has been expanding in magnitude and intricacy. In response, property owners and retailers are on a quest to find effective ways to safeguard the welfare of their customers and staff while also trying to mitigate the economic impact of such crimes on their businesses.

In a recent episode of The Property Line podcast, an enlightening discussion on this rising problem took place. The guests on the show, Alesha Shemwell, WR Vice Chair, and Carl Kleinknecht from the Kemper Development Company and the Bellevue Collection, joined hosts Brian Atherton and Eric Greenberg to share their encounters with organized retail theft. They also discussed various technological solutions and resources that landlords and retail tenants can leverage to deter these criminal activities. Carl Kleinknecht mentioned the ‘Guide to Navigating Public Safety & Retail Crime.’ This guide is a complimentary resource WR offers on its Public Safety and Retail Crime webpage. It is designed to equip retailers with knowledge and tools to effectively respond to and prevent such theft.

TRENDS

Most consumers dump a brand after one bad experience

Walmart, the largest retailer in the U.S., is planning a significant overhaul of its packaging to curb waste. One significant change will be replacing plastic mailers with recyclable paper versions, a move expected to remove over 2,000 tons of plastic from circulation in the country by next January. Walmart also intends to deploy technology that creates custom-fit boxes at around 50% of its fulfillment centers, reducing material usage and optimizing truckload efficiency. The retail giant will also offer customers the option to skip using plastic bags for curbside pickups by the end of the year, demonstrating a continued commitment to environmental responsibility. Walmart's new initiatives align with a growing business focus on digital sales, representing about 13% of the company's total annual sales.

Senior Vice President of Sustainability at Walmart, Jane Ewing, stressed that the aim is to make sustainability an effortless choice for customers, with eco-friendly products not carrying a higher price. This approach is expected to resonate with environmentally conscious consumers and those frustrated by accumulating packaging waste at home.

Walmart's move to more sustainable packaging mirrors initiatives by other major retailers, including Amazon and Target. Amazon has also adopted custom-fit packaging and encouraged vendors to use their own containers, while Target has introduced recyclable paper cushioning and returnable bags at select stores.

The sustainability drive isn't just for appealing to consumers. It also brings cost benefits. Custom-fit packaging, for instance, not only lessens the use of materials but also makes transportation more efficient and simplifies labor tasks. By championing sustainable practices, Walmart hopes to meet customer demand and reduce its environmental footprint.

SAFETY

Safety training for employees working different shifts

Taking the time to discuss the safe use of tools and equipment specific to your operation is crucial. It is also important to document these discussions. Making a log to verify those who attended is tangible evidence of your proactive approach to safety. According to L&I, a lack of documentation verifying regular employee safety meetings was the second most cited item during workplace inspections in 2022.

Employers with workers on different shifts or aren’t scheduled on safety training days often wonder how to offer flexible ways to ensure training for all employees. Thankfully, there are alternate methods for employees to make up for the missed training while satisfying L&I’s requirements:

1.  After safety meetings, make detailed topic notes available in designated areas for workers to review on their next shift.

2.  Provide a convenient method for workers to ask questions on the subject matter to ensure comprehension.

3.  Ensure workers sign off, confirming their review of the training content upon completion.

Our Retro members can find a variety of safety topic ideas in our safety packet which we send to members monthly. These packets are also available on our web portal.Another tool is RS SafetyTV, which contains a variety of video topics to assist you with your safety meeting. Our safety team is available to help members elevate their safety practices from simply meeting requirements to implementing quality safety measures. Contact us at safety@waretailservices.com to learn more.