WRA urges Congressional action on credit crunch
Washington Retail Association President/CEO Jan Teague challenged state Congressional representatives this week to show leadership in addressing the nation's credit crunch.
In a letter to state Congressional representatives who voted against a credit relief bill on Monday, Teague called for an end to political bickering and reminded legislators of the threat to retailers and the nation's economy from inaction on addressing a credit crunch that sent stock prices tumbling the past week.
In addition to her letter to Congress, Teague issued an alert to WRA members to urge their elected representatives in Washington, D.C. to act in the face of a financial crisis.
Teague's letter follows below:
Dear Representatives Jay Inslee, Richard (Doc) Hastings, Cathy McMorris Rodgers and Dave Reichert:
I encourage you to take action to support the pending negotiated legislation that would resolve the credit crisis faced by our nation. The retail industry of Washington State can quickly become the first victim of inaction as consumers decide to hold on to their money and not shop. It won't take much of that to force the retail industry to first begin to lay off its sales force. The job spiral will quickly be out of your control. Smaller retailers have already been sharing with me a 20 percent drop in sales in recent weeks.
The retail industry in Washington State includes many parts of the state's economy. Retail uses distributors, wholesalers, and malls for their businesses. We use trucking companies to haul goods to stores. We buy from sales forces, use professional services and spend money with the media advertising products. We hire both union and non-union workers. These are high stakes for the Washington economy with many employees who work on "Main Street" who will soon find themselves in a food line if you aren't willing to agree to a compromise of some kind very soon.
The media and political leaders seem to focus on who is to blame for this situation. I encourage you to take some leadership and stop focusing on who is to blame. Inaction in Congress is to blame and will continue to be the responsible party if our economy continues to slide. It won't matter which party is in charge.
Make a decision now and vote yes for your state's economy.
Sincerely,
Jan Teague
President/CEO
Washington Retail Association
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Online voters' guide debuts
The state's Online Voters' Guide for the November 4 General Election is now available, Secretary of State Sam Reed announced.
"The Online Voters' Guide is another helpful and convenient tool for voters to use as they study the candidates and issues and fill out their ballot this fall," Reed said. "It's easy to access and provides plenty of useful information."
The guide includes updated candidate statements, biographies, videos, photos and ballot measure text for the General Election. It is available in English, Spanish and Chinese.
To access the Online Voters' Guide, go to www.vote.wa.gov and then click on the Online Voters' Guide button at the top.
A printed voter pamphlet will be distributed to most Washington voters the week of Oct. 13. A version for military and overseas and out-of-state workers was distributed last week.
Voters also may access an online voter guide produced by the G.R.O.W Program (Growing Roots for Our Workforce). The site allows unregistered voters to apply to qualify for the election in time for the Saturday, Oct. 4 registration deadline.
Access the G.R.O.W. site at www.growwa.com. |
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Businesses mull reactions to climate change initiative
Washington retailers are reviewing four options in reaction to long-range plans by western states to reduce greenhouse gas emissions.
The retailers' reaction comes as Washington state, part of the Western Climate Initiative, announced last week the design of a regional market-based "cap and trade" program, a component of plans to reduce greenhouse gas emissions 15 percent below 2005 levels by 2020. Under the plan, major energy users, including retailers, would reduce carbon dioxide releases and be allowed to trade for the rights to emit the gases.
The plan is scheduled for introduction to the 2009 session of the Legislature. Washington is working on the plan with other western states and four Canadian provinces.
The options retailers are considering include accepting the plan as structured; opposing it; amending it; or delaying consideration until more impacts can be studied and more work can be done on the plan.
The pollution reduction plan, touted by environmentalists, has generated concern in the business community. The business concerns center on the costs to achieve the goals and whether the emissions adjustments could damage the nation's already fragile economy. A national credit crunch, for example, has sent stock values plummeting in recent weeks, raising fears nationally and internationally about a deep and long U.S. recession.
One study earlier this year found that Washington state's economy would be hurt by current efforts to reduce greenhouse gases. Energy costs would rise, leading to lower industrial output and the loss of jobs, the study by Science Applications International Corporation found for the National Association of Manufacturers and the American Council for Capital Formation.
Washington state could lose up to 35,602 jobs by 2020 if a proposal to lower greenhouse gases became federal law, the study found.
The Seattle Post Intelligencer reported the first phases of the plan could affect about 190 manufacturers in the state and 100 power companies, local governments, businesses with large vehicle fleets and some non-manufacturing facilities. The paper reported that polluters either could cut their emissions or pay for "offsets" in which they pay for other efforts to reduce gases such as projects that produce cleaner energy. The plan allows for up to 49 percent of emissions to be offset.
Source: Seattle Post Intelligencer |
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WRA endorses four more for Legislature
The Washington Retail Association has endorsed four more candidates in races for the Legislature in the November election.
The endorsements include:
*Challenger Kevin Parker in the House District 6 race
*Bruce Dammeier for the open House District 25 seat
*Fred Finn for the open House District 35 seat
*Steve Van Luven for the open Senate District 40 seat.
The WRA announced an earlier group of endorsement in the election.
They included:
*Incumbent Republican Attorney General Rob McKenna.
*for Senate: incumbent Republicans Curtis King, Mark Schoesler, Don Benton, Dan Swecker and Bob McCaslin.
*for House of Representatives, incumbent Republicans Steve Hailey, Jaime Herrera, Joel Kretz, Dan Kristiansen, Jim McCune, Ed Orcutt, Kirk Pearson, Skip Priest, Dan Roach, Joe Schmick and Norma Smith.
*House Republican candidates and incumbent challengers Toby Nixon, Mark Hargrove and Marlyn Jensen; and Jan Angel, who is running for an open seat.
Each of these candidates promotes business growth and has indicated support for reducing taxes and regulatory burdens that stunt business growth, said Jan Teague, President/CEO of the Washington Retail Association.
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Paid family leave put on further hold
The future of the state's unfunded paid family leave program is in further doubt as Gov. Christine Gregoire has canceled further spending on a computer system to run the program.
Gregoire first mentioned canceling computer development funding during a debate last week with her election challenger, Dino Rossi.
The paid family leave program has become a favorite cost-cutting target as lawmakers preparing for the 2009 session grapple with a projected $3.2 billion state deficit, according to an article in The Olympian newspaper.
Lawmakers had approved a program that would pay new parents $250 a week for up to nine weeks to encourage taking time off from work to better bond with their infants. But lawmakers have identified no way to pay for the program. Benefits were to have started in October of next year, but delaying computer preparations work almost certainly will at least delay the start of benefits, The Olympian noted. The state Employment Security Department had not yet hired software engineers to develop a computer system for the leave program when Gregoire canceled spending on further preparations, ESD spokeswoman Sheryl Hutchison told The Olympian.
The paid family leave program likely will become a target for cancellation, Rep. Hans Danshee, vice chairman of the House budget committee, told the newspaper.
Source: The Olympian |
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Minimum wage increase to tax businesses
Washington's minimum wage will jump to $8.55 an hour in January, a 5.9 percent increase from the current $8.07, The Department of Labor and Industries reported.
Washington this year has the nation's highest minimum wage, higher than California and Massachusetts, which are next in line at $8.00 an hour.
For many businesses, being Number One in national minimum wages is not necessarily a good thing. Payroll costs are an especially crucial consideration for small businesses struggling to generate sufficient revenues in the face of start up costs. The increase also comes at a time of sinking consumer confidence, a slowing economy, a real estate slump, relatively high fuel prices and stock price plunges caused by a credit crunch in the banking industry.
In many cases, rising payroll costs lead to layoffs, which only worsen economic slowdowns. They also tamp down the pace of hiring as employers must consider rising costs in determining the size of their payrolls.
This crunch suggests it might be time for the Legislature to reconsider tying the state's minimum wage to economic conditions. Under such legislation, the minimum wage could rise with economic growth, but would hold steady when the economy slowed.
The state's rising minimum wage is required by voter approval of Initiative 688 in 1998. The law requires that the state's minimum wage be adjusted annually according to changes in the federal Consumer Price Index during the 12-month period ending each Aug. 31. The CPI is a national index covering the cost of goods and services needed for day-to-day living.
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Analysts predict a lean holiday sales season
Retailers nationally face the toughest holiday sales season since the 1991 national recession, a retail consulting firm predicts.
Sales are expected to increase about 1.5 percent this year, said Frank Badillo, an economist with Columbus, Ohio-based TNS Retail Forward. He and Mary Brett Whitfield, a company vice president, conducted an Internet seminar on holiday sales projections this week.
The company surveyed shoppers in August, before the recent credit crunch and strained Congressional debate on a credit relief financial aid package that caused wild stock price changes on Wall Street. Those strains on the economy, weakened by rising prices, unemployment and a real estate and construction slump, could further damage holiday sales, Badillo said.
"We will have a very weak holiday," he said. "At this point, you have to assume holiday 2009 isn't going to be much better. Most likely, the improvement is going to fall in 2010."
Large discount warehouse stores and Internet sellers will do best this season, while department stores, including home improvement and furniture stores, will struggle, Badillo said.
Among families, parents will cut back spending on each other in favor of their children, meaning toy sales should not suffer much, Whitfield said.
"Shoppers tend to cut back on themselves before they cut back on children," she said.
As a rule, department stores have ordered smaller inventories as a hedge against weaker consumer demand, Badillo said.
Inventories are higher among home improvement stores where consumers might expect some bargains this holiday season, Badillo said.
The survey does not include restaurants, food and drug stores, gasoline or auto sellers.
Source: TNS Retail Forward |
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Wal-Mart begins drive to reduce plastic bags
Wal-Mart has announced a plan to reduce the company's use of plastic shopping bags by an average 33 percent per store by 2013.
To reach the goal, Wal-Mart will reduce the number of bags it gives out and encourage use of reusable bags while allowing customers the ability to continue recycling plastic shopping bags. Beginning this month, Wal-Mart will begin selling reusable bags for 50 cents each.
"By reducing the number of plastic bags our customers use, increasing the availability and affordability of reusable bags and providing recycling solutions, we think we can eliminate plastic waste equivalent to nine billion plastic bags per year from our existing stores alone," said Matt Kistler, senior vice president for sustainability. "If we can encourage consumers to change their behavior, just one bag at a time, we believe real progress can be made toward our goal of creating zero waste."
Wal-Mart is carrying out its waste reduction strategy with the Environmental Defense Fund. Estimates are that 60 percent to 80 percent of marine debris is plastic. Wal-Mart also believes reducing plastic bag waste could save money for governments.
The company said California spends about $25 million a year to discard plastic bags into landfills.
Source: Wal-Mart Stores
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L&I proposes workers' comp rate increases
The state Labor & Industries Department has proposed an overall three percent increase in workers' compensation insurance rates, effective on January 1 of next year.
Hearings must first be held before a final impact on rates will be determined.
The department's proposal will include overall increases of 1.8 percent in the Accident Fund, 3.2 percent for the Medical Aid Fund and 7 percent for the Supplemental Pension Fund.
For most members of the Washington Retail Association, for example, the current premium rate of .0668 cents per hour per employee for the Supplemental Pension Fund would increase to .0836 cents per hour per employee, under the L&I proposal.
The proposal mostly includes tentative percentage increases in premiums across several risk pools and retail categories. Examples include retail stores, an overall 3.5 percent increase; tire sales and service, an overall 1.6 percent increase; household appliances installers, a 4.5 percent overall increase; and appliance stores, a reduction of less than 0.5 percent.
State-fund employers pick up the entire cost of the Accident Fund. Costs for the Medical Aid and Supplemental Pension funds are evenly split between employers and workers.
Self-insured employers pay 100 percent of the Supplement Pension premiums.
L&I Director Judy Schurke said her department tried to balance the need for keeping up with inflation while making the least possible impact on businesses from higher rates.
"This proposal balances our goal of stable, predictable rates with the impact on employers and workers in today's economic times," Schurke wrote in a memo to member of the Workers' Compensation Advisory Council. "We are all aware that many Washington businesses are struggling and working families are impacted by the increased cost of food, gas and household goods."
Tammie Hetrick, Vice President of Retail Services for the Washington Retail Association, has been evaluating the rate increases and can share additional risk class information with any member interested in more specific information.
"We have seen a significant reduction in hours reported by retailers," Hetrick said. "I am concerned that any increase may affect the employers' ability to retain the same number of employees and will certainly impact the hiring of additional workers as we approach the holiday season. This increase will also impact the employee's paycheck since their deductions will increase." |
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Advice for retailers to combat fake receipts
The growing problem of organized retail crime has a new twist: the appearance of Websites purporting to produce fake receipts for a fee.
The fake receipts allow criminals to illegally obtain refunds at stores for items they have not purchased but merely taken from the shelves.
Adrienne Viergutz, a data analyst in loss prevention for the Northwest Safeway stories, recently came across one of many such fake receipt Websites and shared the warning with the Washington Retail Association.
Of the few steps retailers can take to combat invalid receipts, Viergutz recommended:
*Verifying the sale actually happened against a store's sales logs. Stores keep archives of recorded sales for varying periods of time, she said, and sometimes assign an employee to verify receipts against sales.
*Scanning the receipt the customer provides to determine if its bar code matches that of the store's.
*Amending the store's return policy to prohibit returns after a specific period of time, such as 30 days.
Stores have no foolproof way to stop all illegal attempts at refunds, Viergutz said. But the issue is important not just to store personnel, but customers, too, she said.
"These costs have to be passed on somewhere," said Viergutz, who said stores must reflect sales lost to theft by adding to the price of their merchandise.
Source: Safeway loss prevention |
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Coupon use picking up
U.S. coupon use showed a slight increase in the first quarter of this year, the first such quarterly increase in 15 years, research shows.
The research company Unilever NV found that 7.4 percent of product volumes were sold with coupons in the first quarter, up from 7 percent the first quarter of last year. The company studied 47,000 consumers across the country.
"Consumers are looking for coping mechanisms," says Lisa Klauser, vice president of consumer and customer solutions, at products company Unilever U.S. "Coupons are one way they are trying to make ends meet, get more bang for the buck."
The weakening economy is pushing some companies to use coupons as a creative way of promising better "value" to consumers. As consumers eat out less, Kraft Foods Inc., for instance, has created coupons that are intended to make the idea of a brown-bag lunch more financially appetizing. The company has put together coupon booklets with a dollar off on each of six brands that go toward making a sandwich: Oscar Mayer deli meats, Kraft cheese slices, mustard, pickles, mayonnaise and Ritz toasted chips.
Source: Wall Street Journal |
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"E-Cycle" Website launches
A Website has been launched to explain a free statewide electronics recycling program beginning in January.
The Website www.ecyclewashington.org outlines how the program will allow owners of televisions, computers, laptops and monitors to recycle them free of charge. The program is a collective effort by electronics manufacturers, collectors, recyclers, local and state governments and non-profit groups.
The Washington Materials Management & Financing Authority charged with overseeing the program expects to offer more than 200 drop off locations in every state county and community with a population of more than 10,000.
Recycling companies currently charge fees to dispose of obsolete electronics equipment. The new free program will not accept certain items such as computer mice, printers, cell phones or scanners.
The Electronic Products Recycling Act of 2006 permitted the collection program with the aim of reducing the landfill volumes of metals, glass, plastics and other materials contained in electronic components.
Source: Washington Materials Management & Financing Authority |
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