Jan Teague

President/CEO

360.943.9198, ext. 19

jteague@retailassociation.org

Mark Johnson

Vice President of Government Affairs

360.943.9198, ext. 15

mark.johnson@retailassociation.org

Tammie Hetrick

Vice President of Retail Services (RASI)

360.943.9198, ext. 13

 tammie@retailassociation.org

Jim Szymanski

Is Congress impacting retail sales?

By Jan Teague, President/CEO

We are all watching the news stories about what impact the government shut down is having.  I have signed on to a number of letters from our national association partners encouraging Congress to come to an agreement. 

It concerns me to get emails every day with information about what kinds of disruptions this causes to our economy.  I do think that people are growing more angry and worried about what this means to the economy.  The news reports try to put a face on this with stories of agencies shutting down, but what about the money flow that goes along with that? 

It means millions of dollars that won't be circulating in the economy and that translates into retail sales.  State and local governments are dependant on that sales tax and any loss to us is a loss to them as well.  Their budget shortfalls translate into state and local budget talks focused on new cuts in services or new taxes -  a grueling challenge for our state and local officials given the long recession and long recovery. 

We have continued to slog along with our recovery and recent reports have been very good for the continued recovery.  Let's hope Congress itself doesn't create the next recession.  While Congress may deny we are in a recession, even a short economic dip at this time of year would be very bad given how much retailers depend on the holiday season for the largest part of their annual sales.   

WRA issues call to action to oppose I-517

WRA President and CEO Jan Teague is urging members to actively oppose Initiative 517 that would expand the powers of signature gatherers by infringing on the property rights of retailers.

In a "call to action," Teague urged WRA members to join the opposition coalition via www.No517.org and to add their names to a growing list of businesses opposed to I-517. The website allows visitors to make contributions to help raise the profile of this threat to the livelihood of retailers.

Teague said I-517 would severely hamper the rights of retailers to determine where signature gatherers operated and would allow petitioners greater access at entrances and exits of retail properties.

Among those opposed to I-517 include Rob McKenna, former Washington State Attorney General; Brian Sonntag, former Washington State Auditor; the Washington Food Industry Association and the Northwest Grocery Association.

For more information, contact Teague at 360-943-9198, Ext. 19 or at jteague@retailassociation.org. 

State's minimum wage set to climb on Jan. 1

By Mark Johnson, VP Government Affairs

The Department of Labor and Industries announced that the Washington State minimum wage will increase 13 cents an hour from $9.19 to $9.32 on January 1. The state's minimum wage will remain the highest state rate in the nation. The state's minimum wage increase is calculated each year according to the Consumer Price Index and inflation. 

So when is having the highest minimum wage in the country not always a good idea?

Now is not a good time for three reasons, in my mind.

First, it would be nice if the economy improved as much as the automatic, mandatory wage increase.  The truth is that businesses that often employ minimum wage workers are still struggling to survive.  Both large and small businesses are cutting costs in every way to keep their doors open.  I just spoke with one WRA member who told me that he was examining every non-essential business activity and either significantly reducing or outright eliminating the activity in an effort to cut costs. 

The economy is dragging along the bottom.  Consumer confidence is still low.  To arbitrarily increase operating costs is not a good idea.

Second, the higher the employment costs, the fewer employees a company can pay.  It is simple economics.  I spoke to a WRA member last week who is trying to do the same amount of work with fewer employees.  Increasing costs from new employee mandates, such as the Mandatory Seattle Sick Leave Ordinance, have increasingly strapped businesses.

Businesses have no choice but to reduce hours for existing employees and hire fewer people to work in their stores.  This not only impacts customer service but lessens the job opportunities for prospective employees.  Particularly hard hit are first time workers, such as teens and folks fresh out of school.  Why hire a teen with little or no job skills when you can hire an older, more experienced employee for the same amount?   

Third, the thing most folks don't think about when the minimum wage is increased is the rippling effect through a company.  When the base wage is increased the higher wage earners expect their wages to increase as well.  So not only does a business have to absorb the new costs for the entry level jobs, it often has to increase wages for the rest of its workforce.

Proponents of a high minimum wage argue that it allows workers to spend more and it stimulates the economy.  This is true in some respects, but don't you have to have a job first in order to make any kind of wage in the first place?

Help elect Jan Angel to the state Senate

State Representative Jan Angel needs your help to get elected to the state Senate in the 26^th Legislative District that includes Port Orchard, Gig Harbor and parts of Bremerton. 

Jan is a strong supporter of retail issues.  She scored a perfect 100 percent for the 2013 WRA Voting Record. 

Jan Angel can't win this election alone.  She needs your help.  If you are able, please make a donation, offer to doorbell, put up a yard sign or sign in your business, make phone calls, host a reception, anything to help get her elected.  She will be an excellent addition to the state Senate.

WRA has already endorsed Jan Angel.  We encourage you to contact her and offer to help.  Thank you in advance.

Please call 360-204-0776 or visit www.janangel.com.

Yakima Herald urges "no" vote on I-522

Like the WRA, the Yakima Herald newspaper is urging voters to defeat I-522, the November ballot initiative that would require labeling of genetically modified foods.

The requirement would be problematic for farmers, manufacturers, retailers and consumers, the Herald concluded in a recent editorial. A Washington Research Council analysis concluded that 522 could add up to $520 a year in additional food costs for a family of four due to the cost of complying with its regulatory requirements.

WRA opposes the measure because it would increase food prices and cause unwarranted and undue confusion for consumers. The newspaper also warned the initiative would encourage nuisance lawsuits and result in costly enforcement requirements on state government.

Since campaigning began, a growing coalition of more than 4,200 individuals and 75 organizations and businesses have come out against 522. Click here to see the list of opponents so far.

Ballots for the November election are scheduled to go into the mail the middle of this month. Visit No on 522 for further information. 

Satterberg fundraising breakfast is tomorrow

King County Prosecutor Dan Satterberg will hold a 2014 campaign fundraiser during a Thursday breakfast event at the Seattle Sheraton Hotel, 1400 6^th Avenue.

WRA supports Satterberg's work in advocating for tougher penalties for those convicted of organized retail theft and his testimony in favor of toughening penalties for pharmacy robberies, which the Legislature approved earlier this year.

To reserve a seat for the breakfast, e-mail SatterbergCampaign@hotmail.com or call 206-203-8331. For more information, visit www.DanSatterberg.com.

Satterberg won appointment in 2007 to succeed Norm Maleng after Maleng's death in 2007, then defeated an opponent in an election later than year. 

Seasonal sales could rise 4.5 percent, new forecast finds

The accounting firm Deloitte estimates that holiday sales this year could increase 4.5 percent compared to last year.

"Last year, there were far more unknowns," Jackie Fernandez, a partner at Deloitte tells Marketing Daily. "There was the election, and Hurricane Sandy - the planets were aligned for a really dismal holiday season. And yet we walked away with a 4 to 4.5 percent gain. So when I look at this year's forecast and another increase in that range, it seems really reasonable."

Improvements in real estate and the stock market have consumers feeling more secure, she says, with consumer confidence strengthening as a result. It will also help retailers that consumers are using their mobile devices and online shopping tools more enthusiastically. 

Click here for more information on Deloitte's holiday shopping forecast.

The National Retail Federation, which will be forecasting results for the holiday soon, has reported that holiday-related imports of merchandise are up about 5 percent this year. Click here for more details of that announcement.

Sources: Deloitte; National Retail Federation

TNT urges a halt to mandatory sick leave idea in Tacoma

A Tacoma News Tribune editorial has urged a halt to further consideration of requiring mandatory paid sick leave in Tacoma.

Seattle has instituted mandatory paid sick leave and SeaTac voters will decide a similar proposal in a special November election.

The Tacoma paper noted a host of problems with the idea in other cities. Smaller companies struggled with burdensome record keeping requirements and found they were less competitive with companies that did not have to provide the benefit. Click here to review the editorial.

In other cases, companies responded with diminishing hiring opportunities, delayed pay raises and shifted vacation days to sick days to address the increased costs posed by mandatory paid sick days, the paper noted.

WRA is opposed to paid sick days because they pose an overly burdensome and costly requirement on companies that can adjust to illnesses more efficiently and affordably in other ways. Such proposals also invite abuse and threaten productivity because employees are typically exempt from documenting reasons for seeking time off.

Temporary staff reassignments and job sharing present more creative ways to address employee illnesses, WRA believes.

The Tacoma/Pierce County Chamber of Commerce is working to defeat any proposal on paid sick leave that may come forward. It has established a website to accept testimony from companies that could not afford to comply with such a requirement.

L&I premiums due this month

WRA members who pay L&I workers' compensation insurance premiums are reminded that their payments are due by October 31.

Late payments can result in fines with interest, said Tammie Hetrick, WRA's VP of Retail Services.

The state recommends filing online. Using your computer, the state will calculate your rates, provide a printable confirmation page and allow payments by check or credit card.

Go to www.QuarterlyReports.Lni.wa.gov to file online.

L&I urges customers who file online to print a copy of their payment receipt in order to keep records up to date.

RASI website offers rate calculator for 2014 insurance rates

WRA invites companies to use a calculator on its website to figure out proposed workers' compensation insurance rates likely to go into effect in January.

To access the calculator, go to www.retailassociationservices.com (Retail Association Services, Inc.) and click inside the red box that comes up on the page. Once at the worksheet, simply type in the numeric code inside the "risk class" box for your type of business and the calculator will generate how much rates to employers and employees are proposed to increase or decrease next year.

L&I is conducting public hearings around the state this month to take input before making a final decision on next year's rates. Click here to learn about times and locations for L&I's public hearings and how to submit written comments.

Website visitors do not have to be WRA members to use the rate calculator.

McKenna urges participation in Saturday summit to erase human trafficking

An organization dedicated to wiping out human trafficking in the state will conduct a summit meeting this Saturday in hopes of building a network of business support. Click here to view a brief video endorsement for the summit by former state Attorney General Rob McKenna.

The Engage for Impact summit will be held beginning at 8:30 a.m. on Saturday at Seattle Pacific University's Queen Anne Upper Room Gwinn Commons.

Click here to register. Go to Washington Engage to learn more. 

Watch video overview of WRA's discount shipping partner

WRA's third-party shipping provider, PartnerShip, has released a short video overview of the discount services it offers customers.

As a WRA member, you could begin saving up to 27 percent on select FedEx shipping services by joining PartnerShip free of charge.

Four other possible advantages of joining PartnerShip include:

*Routing management. Based on an analysis of shipments, PartnerShip will recommend the best shippers for particular routes. The recommendation is based on a carrier's cost effectiveness and customer service.

*Bill auditing. Vendors such as PartnerShip say they often find invoices with rate errors of up to 10 percent in favor of the freight carrier. Corrections are made before the third-party vendor sends the bill to the customer.

*Improved inbound shipping. By relying on vendors to control your inbound shipping, it can be difficult to learn how and when your orders will be shipped and delivered. You can gain that knowledge by arranging shipping through a third party partner such as PartnerShip.

*Consolidated invoices. For frequent shippers, this can mean paying only one bill weekly or monthly as opposed to paying for each shipment.

Click here to watch the video overview of the company and obtain contact information. Also, visit PartnerShip's website and its improved, separate shipping website. 

WRA attends Business Fair

WRA Director of Public Affairs Jim Szymanski attended last week's IRS small business fair at Renton Technical College.

An estimated 475 business owners and budding entrepreneurs attended the various seminars organized to share information on starting and growing a small businesses. Jim greeted many of the fairgoers and shared WRA's printed information on the range of services available to members. A total of 42 agencies exhibited at the fair.

Next year's fair, which is free to the public, is scheduled for Saturday, September 27.

Visit www.bizfair.org. to keep up with developments leading up to next year's event.

Seattle chamber endorsement is influential, surveys find

Voters tend to be favorably impressed with candidates who win an endorsement from the Seattle Metro Chamber, two new surveys have found.

The polling results of 829 registered Seattle voters were compiled by Elway Research and EMC Research.

Seattle Chamber President & CEO Maud Daudon reported the results in a letter to chamber officials. Twelve Seattle candidates endorsed by the chamber's political affiliate advanced from the primary to the general election this year, Daudon noted.

Click here for more information about the surveys.

State's Obamacare website stumbles

Opening day for the state's online health care exchange resulted in several reported delays and malfunctions on Tuesday.

The Seattle Times spent the day chronicling various complications for customers seeking to sign up for health care.

USA Today reported similar service problems at exchanges around the rest of the nation.

Online customers can try www.wahealthplanfinder.org to shop for various plans but the site was very slow to respond on the first day of service. To reach a newly-opened customer support telephone service, dial toll free, 1-855-WAFINDER (1-855-923-4633) or e-mail customersupport@wahbexchange.org.

Safety tip: (one in a series)

Earthquake drill in two weeks

More than 600,000 participants statewide are expected to practice earthquake survival skills during the 2013 Great Washington ShakeOut the morning of Oct. 17.

Millions of people worldwide will practice how to "drop, cover and hold on" at 10:17 a.m. on that day in a worldwide earthquake drill simulation. Organizers have begun conducting the drill annually to raise awareness and improve preparations for earthquakes.

Click here to register your company for the drill. Click here for a step-by-step guide on how to prepare your company and employees for the earthquake drill. Click here to review recent seismic activity in the Northwest.

WRA urges members to register and participate in the drill. Analysis of disasters shows that companies can increase their odds of surviving an earthquake through better preparation regarding safety steps that can be taken.

The state Emergency Management Division is offering several useful computer links for additional information.

Rick Means, WRA's Safety and Claims Administrator, will be reviewing the drills with the office staff. WRA plans to participate in the event this year.

Rick is available to WRA members to help draw up safety plans and suggest topics for safety meetings. Contact him at 360-200-6454, or rick.means@retailassociationservices.com.