Washington Information Network
Washington's resource for political activity and issues important to retail industry professionals. Distributed to 2,800 subscribers
January 15, 2014
 Staff Contacts

 Jan Teague

President/CEO

360.943.9198, ext. 19

[email protected]

 

Mark Johnson

Vice President of Government Affairs

360.943.9198, ext. 15

[email protected]

 

Tammie Hetrick

Vice President of Retail Services (RASI)

360.943.9198, ext. 13

 [email protected]

 

Jim Szymanski

Director of Public Affairs
360.943.9198  ext. 12

 

Quick Links
In This Issue...
National Retail Federation holds its Big Show
Bill to curb theft of liquor by minors is heard
Inslee calls for statewide minimum wage increase
Holiday sales finished up 3.8 percent
State schools superintendent proposes sales, property tax increases
Congressman Smith moves his offices closer to constituents
Latest state monthly revenue results are holding steady
2014 import volumes off to good start
Retailers express concerns about "real time" sales tax remittance proposals
Watch video overview of WRA's discount shipping partner
Why pay for free workplace posters?
Safety tip
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National Retail Federation holds its Big Show

By Jan Teague, President/CEO

 

I just got back from New York and the largest retail technology show in the world.  There were retailers there from all over the world with Brazil having almost 2,000 attendees.  Nearly 30,000 people attended the event. 

 

I had the opportunity to personally meet the CEOs of Macy's and Costco.  The CEO of IBM gave us a great view into the future of technology for retailers.  President George W. Bush was a keynote speaker talking about leadership and had some great stories about meeting Vladimir Putin, President of Russia.  Of course, Bush is known as the war president and he told of the tremendous challenges and decisions he faced after 9/11.  He is enjoying his retirement and doesn't miss being President with his greatest joy now being his first grandchild.  I had a front row seat for that event and was so excited to hear what he had to say.  As he left, I waved and smiled at President Bush and got a wave and smile back.  That will be my best wave story ever.

 

The National Retail Federation is a valuable partner with our state association.  NRF has been very helpful on key issues facing retailers and from time to time we give reports on what the national organization is doing to help retailers.  Events like this drive home the fact that retailers from all over the country have a lot of the same interests.

 

At the event David Vite, who recently retired as the President/CEO of the Illinois Retail Merchants Association, received the NRF Lifetime Achievement Award.  He had worked at the state association since 1978 and became its President/CEO in 1985.  State associations were mentioned for their strategic work across the country.

 

We had a number of state retail association executives in attendance and NRF hosted us all.  We had opportunities to talk with retailers, to meet various vendors and attend sessions to hear about trends and the new technology being offered to retailers.

 

Mobile payments is one area that is changing rapidly as people expect easier check out systems for their purchases.  It's being called "Customer-Centric Convergence."  The next generation of shoppers, those 15-25 years old, have an always -connected perspective and already have a high expectation for their customer experience. Retailers will be thinking differently about how they develop this experience to make shopping easier. 

 

For instance, we watched a demonstration by PayPal, which will be rolling out new software for cell phones that directs the shopper to the types of merchandise they like in the store where they're shopping. The customer could key in an item they want and PayPal could tell them where to find it and some other items that might work well to buy with it.   Microsoft is partnering with a vendor that will offer software that shows your image wearing an item, so if you don't want to try merchandise on in the store, you can see how it looks on you on your cell phone or iPad screen.  The program takes your picture, evaluates your specific size, and shows your picture in that dress or jacket. 

 

The CEO of IBM told us that in the next five years there would be an entirely new way of storing and delivering information and providing services to customers.  When asked about privacy, she said that with the new systems, information will be kept in unique ways so that it will be safe.  She said retailers will evaluate what needs to be kept secure and have policies that protect sensitive information.  She encouraged retailers to adopt new policies that isolate this information or to not even collect sensitive information so that it is not part of a retailer's database resources. 

 

New York is an impressive site for a large event like this.  We flew across a frozen nation with no problem and landed in a dry city airport where the temperature had changed from below zero to around 50 degrees.  Luck was with me on this trip by a few days.

Bill to curb theft of liquor by minors is heard

By Mark Johnson, VP Government Affairs

 

A bill seeking to prevent the retail theft of liquor by underage consumers was heard on the first day of the 2014 legislative session on Monday.

 

House Bill 2155 lists Rep. Cathy Dahlquist, (R- Enumclaw) as its prime sponsor and Rep. Chris Hurst, (D - Enumclaw) as the co-sponsor. The hearing was before members of the House Committee on Government Accountability and Oversight.

 

I testified to express WRA's concerns with the bill as drafted.  While no retailer wants liquor to get into the hands of minors, we want to ensure that the proposal will help improve the system and not simply add another layer of regulations and policies that increase the costs for businesses without impacting the issue.  Retailers work on very slim margins.  Theft of liquor or any product impacts the bottom line.  Retailers are interested in reducing all theft.  Many retailers have voluntarily implemented theft reduction measures at their stores depending on where they are located and the level of theft.

 

In particular, some of the terms in the bill are vague and may be difficult to define, such as "unacceptable rates of theft."  What is acceptable to one retailer and law enforcement agency may be unacceptable to another. 

 

Rep. Hurst, the chairman of the committee, has spent several months working on this issue.  He will be convening a stakeholder meeting next week to work on the language.  I encourage you to share with me any and all suggestions that I can bring to this meeting.  Thank you in advance.

 

To read the bill, please click here:  HB 2155 

Inslee calls for statewide minimum wage increase

 

Gov. Jay Inslee called for an increase in the state's $9.32 minimum wage in his State of the State address to the Legislature on Tuesday.

 

Though Inslee maintained raising the minimum wage would not result in layoffs, WRA disagrees. Also, legislators immediately expressed their concern about the proposal. Washington's is the highest state minimum wage in the nation.

 

Though Inslee did not suggest a specific size for a wage increase, he mentioned a range from $1.50 to $2.50 cents an hour.

 

WRA opposes a higher minimum wage because it adds financial burdens on marginal businesses and causes layoffs that dampen consumers' spending power.

 

Sen. Michael Baumgartner, R-Spokane, said he was "very concerned" by Inslee's proposal. He said finding ways to encourage hiring would help the economy while forcing employers to lay off employees because of higher payroll expenses could only hurt the economy.

 

Baumgartner added that his eastern Washington district neighbors Idaho, where businesses already operate with the advantage of lower expenses because of that state's $7.25 minimum wage.

 

To read the text of Inslee's address, click here.

 

Sources include Seattle Times, Governor's office 

Holiday sales finished up 3.8 percent

 

Holiday sales for November and December were $601.8 billion, an increase of 3.8 percent compared to the year before, the National Retail Federation announced this week.

 

NRF had forecast a 3.9 percent increase before the holiday shopping season began.

 

NRF officials said heavy promotions and discounting helped retailers overcome the shorter-than-normal shopping season between Thanksgiving and Christmas and severe winter weather in many parts of the country.

 

"Retail sales have been volatile all year and the holiday season was no exception," said NRF Chief Economist Jack Kleinhenz. "Solid job growth in the months of October and November led to a more confident consumer and healthy shopping season for many retailers. While economic and policy uncertainties remain, the economy seems set for steady growth in the New Year."

 

NRF's sales results exclude automobiles, gas stations and restaurants. Including those results, the U.S. Census Bureau reported that holiday sales were up 4.1 percent last year.

 

Discounting probably has lowered profits, but Kleinhenz said it would be less necessary to cut prices as the economy improves. Click here to read more about this story.

 

Source: NRF

State schools superintendent proposes sales, property tax increases

 

In an attempt to spur legislative action, state Superintendent Randy Dorn has proposed a tax increase formula to meet a Supreme Court mandate to fully fund state schools.

 

Dorn's formula, included in the bill draft:

 

*A one percent increase in sales tax.

*A state property tax increase to $3.60 per $1,000 of assessed value, the maximum allowed by law.

*A decrease in local school tax levy authority.

 

The Supreme Court has ordered that the state fully fund its school systems within the next four years. Though Dorn believes schools need $1.4 billion in funding during the current biennium to meet the court's requirement, the Legislature added $1 billion last year.

 

Dorn said he doesn't believe the Legislature is working at a pace sufficient to meet the court's goal for school funding.

 

"This bill is a blunt but necessary instrument," Dorn said. "A general increase in the sales tax is not the best solution to this problem. But something has to be done and passage of this bill will, I hope, spur the legislature into action."

 

WRA has concerns about the economic impacts to our members and their customers from raising the sales tax and property tax. WRA would prefer that the state live within the existing budget without raising taxes. 

Congressman Smith moves his offices closer to constituents

 

Congressman Adam Smith has begun offering mobile office hours throughout the 9th District for the convenience of his constituents.

 

Congressman Smith's office staff sets up office operations in public libraries in Seattle, Federal Way and Bellevue. Services include offering help with contacting federal agencies to address issues including Social Security and the Veterans' Administration; resources for loan modifications and avoiding foreclosure; immigration; and information about federal grants.

 

Click here to see dates, times and locations for the mobile offices. To answer other questions about the service, contact Smith's Renton office at 425-793-5180.

Latest state monthly revenue results are holding steady

 

The state entered 2014 with stable revenues in the period from Dec. 11, 2013 through Friday of last week, the Economic Revenue Forecast Council reported this week.

 

Revenues for the month-long review period were 0.7 percent lower than a November forecast. The next ERFC report will be issued on Feb. 19, when the 2014 legislative session is taking a closer look at how to adjust the biennial budget to maintain a balance between revenues and expenses.

 

The ERFC noted that the Puget Sound region's housing market continues to recover, another positive sign for the economy.

 

Several retail sectors also showed signs of economic strength in the last revenue review period, the report noted.

 

The higher monthly tax payment increases to the state were from furniture stores (up 11.5 percent); drug stores (up 8.5 percent); and building materials stores (up 6.4 percent).

 

Click here to read the entire report.

2014 import volumes off to good start 

 

Retail import volumes this month are expected to increase 4.8 percent compared to the same time a year ago.

 

Retailers view import volumes as a reliable measure that sales are likely to increase this year compared to the last.

 

"The new year looks to be stronger than the outgoing one, with better-than-expected GDP (gross domestic product) figures, lower unemployment rates and continued low inflation," said Ben Hackett, founder of a company that consults with and does research for the National Retail Federation. "Expectations of a stronger dollar will also help to increase consumer confidence as import prices continue to fall."

 

For all of 2013, retail import volumes rose 2.8 percent compared to 2012. Click here to read more about this story.

 

Source: NRF 

Retailers express concerns about "real time" sales tax remittance proposals

 

In a letter to state legislatures, The National Conference of State Legislatures has reflected retailers' concerns about various state proposals to allow third parties such as credit card companies to substitute for retailers in making instantaneous sales tax payments to states.

 

Members of the Retail Industry Leaders Association are concerned about the complexity and expense of making such a switch and raise the possibility such a requirement could result in legal and constitutional challenges.

 

The Council of State Taxation has prepared a background document for legislators that outlines the retailers' numerous concerns about the proposals. In the document, the council points out that there is no patented computer technology that could accomplish the goal of faster sales tax payments to government on a sale-by-sale basis.

 

The council's backgrounder labels the proposals "a solution in search of a problem" in asking legislators to take more time to study the impacts of the idea. The document concludes that real time remittance would not result in new government revenues while complicating the payment system and generating burdensome costs for retailers to comply.

 

The current payment system is well understood, retailers note. Taking tax payments out of the hands of retailers would be too complicated, expensive and prone to errors to be worth the expense, the background document concludes.

 

Click here to read the letter to legislators. Click here to review background questions and answers about the issue.

 

Source: RILA 

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. This is even more important in the New Year because the major national shippers have just increased rates. Click here to obtain a rate analysis matching your needs.

 

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.

Why pay for free workplace posters?

 

Earlier this year, WRA received a mailed solicitation from a California company seeking a $25.90 check for required workplace posters that the state provides for free.

 

Private companies do sell the posters that include information on such topics as the current minimum wage, employee rights, job safety and first aid.

 

WRA urges businesses that receive such a solicitation to save their money and instead contact any Labor & Industries office or call 1-866-219-7321.

 

For a current list of active required posters, contact WRA's safety advisor Rick Means at 360-943-9198, Ext. 18 or at [email protected]. L&I also has issued businesses a warning about not responding to requests for payment for the posters.         

 

Safety tip: (one in a series)

 Is your Accident Prevention Program (APP) current?

All employers in Washington State are required to create a written Accident Prevention Program (APP). Many businesses regard their APP as the cornerstone of their overall safety program.

 

In order to meet state requirements, businesses must:

  • Inspect their property to identify workplace hazards that could hurt employees.
  • Find and apply ways to reduce or eliminate hazards.
  • Provide a detailed safety orientation to employees so they understand the possible hazards of their particular job and how to work safely.

In addition to APP requirements, other health & safety program requirements may apply to your business depending on the activities and hazards in your workplace.

 

If you do not have an APP, you better get one going real soon, as OSHA inspectors have this item high on their checklist! WRA has a basic template available to help you get started and Rick Means, WRA's safety advisor, is available to help you fine tune it.

 

If you have a current APP but it is a few years old, take some time to review it and see if it is still meeting the needs of your company. You most likely will find some things have changed and you need to update your plan.

 

It is the beginning of the New Year, a good time to be paying attention to some of these details that were put on the back burner during the holiday season.

 

Rick is available to members to help draw up safety plans and suggest topics for safety meetings. Contact him at 360-200-6454, or [email protected].

 

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