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

Holiday Questions Begin

By Jan Teague

This time of year I start getting media calls about the holiday sales that retailers offer.  The holiday shopping season is one week shorter than normal which matters when it comes to the pace of shopping and how much spare time people have to shop. 

Why do retailers open on Thanksgiving Day?  There are many different types of shoppers and appealing to them all is the challenge.  Not everyone has an all day family event to attend on Thanksgiving, or wants to sit around the house all day talking to relatives.  And, if a parent notices a special price on the perfect gift, making a quick stop at the store might save that family enough money to buy another gift.  What about the workers who have to work that day?  These folks are making a good wage at time and a half or double time.  That's money they can use for their shopping later.  It's good for everyone- the store, the shopper, the employee. 

What about late night or early morning store opening?  Crowd control is a challenge when everyone has the day after Thanksgiving off.  Retailers have experienced the shopper's frustration at the long check-out lines and the crowded aisles or the fights over an item in short supply.  If retailers can get those same shoppers to enter the store in a more staged fashion rather than all at once, it's a better shopping experience for everyone.

What's new for this year's keen eyed shoppers?  Retailers are posting their sales earlier on their web sites.  This helps people to plan their shopping strategy and to have more time to think about where they will go to pick up their items.  In fact, many retailers now offer free shipping during this time so you don't even have to make the trip to the store. 

When is the best time to get the best price?  Each store has their own answer to that.  This week Macys had a two day early opening at 7:00 AM with the "lowest prices for the season".  That caught my attention and I took a quick trip over to buy my grandson a beautiful puffer coat for $15.99 and the cutest Christmas dress for my granddaughter that was 65% percent off.  Now that is a deal.  Think about that.  One week BEFORE Black Friday, they offered their best prices of the season.  That's what you call getting out in front of the other retailers and catching those limited dollars that shoppers have this year.

Will shoppers spend more this year?  Not enough to claim a great year for retailers.  It remains a soft market with consumers being very budget conscious.  That puts a lot of pressure on retailers to compete for those limited dollars.  There are plenty of stores competing for the same customer.  That makes it good for the consumer and does help bring the total retail sales up a bit as some shoppers cash in on all the good deals.  Sales are expected to be up 3.9% over last year. 

How much will consumers spend online?  This is definitely a growth area with sales expected to be up 13%-15% over last year.  It's about 13% of the total sales. I can remember not too long ago when it was 2%.  Shoppers will spend $82 billion dollars shopping online this holiday season.

Prop 1 outcome awaits recount results, court case

The fate of SeaTac's proposal to spike minimum wages in that city to $15 hung this week on a vote recount and the outcome of a federal court challenge to Proposition 1.

WRA is part of a coalition of businesses opposed to the union-backed measure that would financially burden businesses located in SeaTac and the city government, lead to business closures and layoffs and discourage companies from expanding to SeaTac.

Proposition 1 is at a 52-vote lead stemming from November's election and current updated recount.

In addition to the recount, several businesses have filed a federal court challenge seeking to declare the measure illegal.

It would raise the current $9.19 minimum wage to $15 but also extend mandatory sick and safe leave benefits to SeaTac Airport businesses and hospitality and car rental businesses in SeaTac. Alaska Airlines and the Washington Restaurant Association are among those companies or organization challenging the proposition in federal court.

Prior to any court ruling, click on King County Elections to see final vote totals. Election results must be certified by Nov. 26.

State posts directions for retailers to collect E911 tax

The state has updated guidelines for retailers who must begin collecting an E911 tax on January 1 if they sell prepaid wireless phones.

Under the new law, retailers must collect the tax from the consumer and report it on their excise tax returns. The funds are to be used to maintain the state's enhanced 911 emergency telephone system.

For more details, go to the Department of Revenue website update. Revenue also has included an earlier notice about the new law's requirements.

WRA members with questions should contact Mark Johnson, WRA's Vice President of Government Affairs, at 360-943-9198, Ext. 15 or at mark.johnson@retailassociation.org. To contact Revenue on this issue, call 1-800-647-7706.

Trade Conference Review

By Mark Johnson, VP Government Affairs

The lineup of speakers and panels was impressive.  The luncheon keynote was Mr. Scott Price, President and CEO of Wal-Mart, Asia.  Wal-Mart has operations in 27 countries. 

I learned about the various trade agreements that are being worked on such as the Trans Pacific Partnership and the Trade Promotion Authority. 

One of the panels focused on keeping our ports competitive with other countries.  Canada is investing heavily in infrastructure to lure more shippers to their ports, such as Prince Rupert and Vancouver, B.C.  Port representatives from Tacoma, Seattle and Vancouver, WA, expressed their urgency for both the U.S. and our state to begin improving our ports and infrastructure to remain competitive. 

The debate over a massive, multi-year, multi-billion dollar state transportation package continues in Olympia.  Hope for a national solution according to the speakers is bleak.  Efforts to alter the Harbor Maintenance Tax (HMT) have been introduced but without much hope.  Retailers are cautious about attempts to alter the way taxes are levied as not to add further expenses on importations from a variety of locations and modes of transportation.

Trade is a huge issue for Washington state and the retailers that have operations here and use our ports to import their goods.  Expect to see this issue continue to receive considerable attention now and in the future.

WRA discourages imposing expensive computer security

The President has issued an executive order seeking to standardize computer security practices for government and private companies.

The National Institute of Standards and Technology (NIST) expects to outline a framework for the plan in February.

Meanwhile, companies, especially those that do business with government, are encouraged to review the proposal, available for review on WRA's website. The report includes a link for comments that NIST will accept through the close of business on Dec. 13.

WRA is concerned that the security standards would impose severe financial burdens on companies. There is no current plan to impose a financial penalty for non compliance, but estimates are that a small business could expect to pay between $10,000 and $20,000 to meet recommended security standards.

Please click on the WRA website to review an explanation of the order and to make comments.

NRF touts the value of joining a state retail association

Fresh from a recent national meeting in Nashville, the National Retail Federation is strongly urging retailers of all shapes and sizes to consider joining and becoming active in a state retail organization.

NRF sent several representatives to the Council of State Retail Association's annual meeting, where WRA was in attendance, and was favorably impressed with the presenters and range of issues addressed at the meeting.

Click here to read the commentary in a blog by Michael Cys, NRF's VP of State Relations and Political Affairs. NRF also lists state associations including WRA on its website. (link).

WRA offers members a host of benefits and lobbying representation in the state legislature and others levels of government that can prove invaluable. To learn more about WRA membership, contact Terry Hopsecger, Director of Business Development, at 360-943-9198, Ext. 24 or at terry@retailassociationservices.com.

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.

HR seminar Dec. 5 in Seattle

WRA members may obtain a discounted registration fee for the Dec. 5 Labor and Employment seminar to be hosted in Seattle by the law firm Lane Powell.

Topics to be covered include recent legal trends related to human resources, the Affordable Care Act, the effects of Seattle's criminal background check ordinance and same-sex marriages.

The event, beginning at 7:30 a.m., will be held in the Johnson Lobby Lounge of the Washington Athletic Club, 1325 Sixth Avenue in Seattle.

Click here to register or call 206-223-1227 or e-mail Jean Delovino, delovino@lanepowell.com with questions.

OSHA seeks new workplace injury reporting requirements

The Occupational Safety and Health Administration has proposed new electronic reporting requirements of companies where workplace injuries occur.

OSHA says its proposed rule is meant to improve workplace safety and health through the collection of useful, accessible injury and illness data to which it currently does not have direct access. In short, the proposal would amend current requirements by adding three new electronic reporting requirements.

The full posting of the rule, with new requirements for companies with 10 or more employees, can be found by visiting The Federal Register. 

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 website and its improved, separate shipping website. 

WRA shipping partner offers prize sweepstakes

WRA members who sign up for shipping savings through PartnerShip, 

affiliated with WRA, will qualify for a prize sweepstakes through the FedEx shipping service.

Joining Partnership automatically qualifies a company to enter the contest. Also, each shipment through PartnerShip between Nov. 4 and Dec. 27 will qualify a company for additional contest entries, up to a limit of 50 entries.

Prizes include a $10,000 grand prize, a $2,500 first price and weekly drawings for $100 American Express gift cards. Click here to learn more about the contest and to enroll in Partnership.

As an enrolled WRA member of PartnerShip, companies can save up to 27 percent on select FedEx services.

Safety tip: (one in a series)

Keep your OSHA safety log current

It's almost the end of the year, not a good time to forget to keep your OSHA accident log current. 

If your company has 20 or more employees, this form needs to be filled out and include all recordable accidents listed on form 300 for FY2013.  Rick Means, WRA's safety advisor, also recommends keeping a copy of the Report of Accident for each incident behind that log sheet.  You will need to keep up to 5 years of these logs in a secure place.

Doing a poor job of this record keeping could result in punishment from state or federal inspectors, including fines.

In January of 2014, you should fill out form 300A, a summary sheet of form 300, which will need to be posted for all employees to see from Feb 1 through April 15, 2014. 

If you need to learn more about this process or take a refresher course on the OSHA 300 log, here is a list of free workshops offered by L&I.

Additional information can be found at the OSHA Recordkeeping Advisor:

To see if you are exempt from reporting, click here.

There is talk of taking this process to the web at some point and we will keep you posted as those changes take place.

WRA employs Means as a safety advisor to members. He's available for workplace safety visits or to help outline safety plans and to suggest topics for safety meetings. Contact him at 360-943-9198, Ext. 18 or at rick.means@retailassociationservices.com.