Strong sales expected for some stores By Jan Teague, President/CEO
The teen market is one of the state's strong sales segments and that is expected to continue throughout the holiday season. General merchandise is about 17 percent of retail sales for Washington state and shopping for teens will likely be the key success story for the season. Of course teens love their technology and that too is expected to continue to show strong holiday sales.
So what's a parent to do? They can buy a gift card and let those teens go wild in the store. Not a bad idea and one for which the stores are very prepared.
In fact, some stores cater to teens with lots of throw away clothes and cheap glitz. Did I say "throw away" clothes? Yes, that is right. Clothes that can be worn, torn, not washed, given away, or just thrown away! That's the price that some clothes are being sold for. Their purpose? Wear it and throw it away. This is a new fashion trend and if you look closely at what the younger people are wearing, it does look like the clothes could be thrown away.
A new store that recently opened at Westfield Southcenter Mall, Forever 21, is catering to teens with a very inexpensive line of clothes. It's a great idea. It's one that the discount stores have understood for a number of years, making the discount stores the only ones to weather the recent economic storm that has settled over the country. What's different about Forever 21 is that it is a company owned by Koreans who manufacture their products and own their retail outlets, too. They have cut out a few handlers in the supply chain, which saves dollars usually passed on to consumers.
Some 62 percent of retail workers are women with one third under 24. This is a perfect workforce for the teen market that seems to be driving sales this year. Let's hope that people take advantage of the deals out there. When the economy is having a bad storm, people still need to find ways to enjoy their lives and retail remains a big part of our culture and the way that families enjoy the proceeds of their labors.
The WRA will work hard to keep you all informed on what retail news and trends we're hearing. We will make these reports interesting and work to provide you whatever glimmers we find. If you would like to share your story with others, things that remind us what works, what was fun, what was a surprise, please send it to me at jteague@retailassociation.org or Jim Szymanski at jim.szymanski@retailassociation.org.
Puget Sound malls report flat sales National retailers call for a new economic stimulus
A sampling of Puget Sound area shopping malls by the Washington Retail Association shows that sales this year have been flat or slightly down heading into the holiday shopping season.
Some mall representatives cautioned that it still might be too early to project holiday and year-end results, although the National Retail Federation projects a 2 percent gain for retailers nationwide in holiday spending this year.
WRA member malls reported that sales of electronics and juniors clothing lines were holding up well in the national and regional economic slowdown.
U.S. chain stores posted a 1 percent increase in same-store sales in September, according to the International Council of Shopping Centers. September proved to be the softest in sales since 2001, when the 9/11 terrorist attack spurred a pullback in consumer spending that resulted in 0.9 percent same-store sales growth in that month, ICSC reported.
ICSC predicts October same-story sales may exceed last year's. The association predicts increases of between 1.5 percent and 2.5 percent this month, compared to 1.6 percent for the same time last year.
Regardless of some bright spots, the National Retail Federation this week called on Congress to carry through on talk of scheduling a lame duck session after the Nov. 4 election to consider passing a second economic stimulus package this year.
In February, President Bush signed into law a $105.7 billion package of rebate checks to taxpayers. An NRF survey estimated that consumers re-circulated about $48 billion of those rebates into the economy, with most of the remainder going toward debt repayments or savings to help stimulate further spending.
"We believe a second round of economic stimulus is needed and must include relief for the consumer," Tracy Mullin, President and CEO of the National Retail Federation, said this week. "Increased consumer spending would create demand throughout all sectors of the nation's economy, from manufacturing to transportation to construction."
Taxable retail sales decline compared to last year
Taxable retail sales statewide declined 2.4 percent in the second quarter this year compared to the same three-month period last year, the Department of Revenue reported.
Retail trade, a narrower category that excludes construction, services and other non-retail business, was down 3.5 percent for the same period, the department reported.
Among the hardest hit sales categories were automobiles (down 13.5 percent); furniture and home sales (down 9.9 percent); and building materials, garden equipment and supplies (down nearly 8.8 percent), according to the report.
Regardless of signs of slowdown, the National Retail Federation predicts holiday gift sales this year will be 2.2 percent higher than 2007. This year's projection for sales increases, though, is smaller than the period 2003 through 2006, when gains ranged from 3.7 percent (2006) to 6 percent (2004).
Sources: Department of Revenue, National Retail Federation
Election ballots will soon be arriving
County elections officials across the state have until this week Friday to mail absentee ballots that should start arriving at homes beginning on Saturday for the November 4 elections.
It's important that Washington Retail Association members vote and consider supporting candidates endorsed in this year's elections. For a list of WRA endorsements, visit our Website at www.retailassociation.org.
Voters in 37 of Washington's 39 counties now vote entirely by mail.
The WRA supports candidates with the strongest pro-retail voting records or candidates who possess a firm grasp of the range of issues facing retailers and who are willing to work for the growth of the retail industry. This includes support for reducing undue regulatory burdens, including taxes.
The state has just set a record for voter registrations, beating the 3.5 million figure set in the 2004 election year. The latest number of registered voters reported by the Elections Division of the Secretary of State was 3,515,393.
"We couldn't be happier that so many Washington citizens are stepping up to the privilege and responsibility of voting," said Secretary of State Sam Reed. "Now we are hoping that voters also will participate in record-breaking numbers."
WRA also offers voters a helpful Website to learn about candidates and issues in the election and beyond.
The site, part of the G.R.O.W. Program (Growing Roots for Our Workforce), can help members determine which candidates will best support their needs as business owners and employees. Think of the Website as an enhanced voter guide, only online.
The site aims to promote public involvement in the political process including instructions on voter registration, a review of campaign issues and the qualifications of candidates running for office. The site will include periodic reminders about key dates to ensure maximum voter participation and review business issues being addressed by the state Legislature. To visit the site, go to www.growwa.com/RetailAssociation.
Voters who use absentee ballots must make sure they are postmarked no later than the Nov. 4 election day.
Delaware to hire prosecutor against retail theft
Delaware plans to add a prosecutor to its legal staff to focus on organized retail crime cases.
In the state's legislation, retailers pay for the position through a $15 surcharge to their annual licensing fees.
Organized retail theft has exploded as a problem the past few years. Eighty-five percent of retailers report being victims in the past year, up from 6 percent the year before, according to the National Retail Federation. The crime has grown to an estimated $40 billion in annual losses to retailers. Theft rings often are tied to drug crime as criminals re-sell stolen items to purchase illegal drugs.
The crime is growing so fast that the Federal Bureau of Investigation has established a division to address organized retail crime.
Source: delawareonline.com
WRA retro members enjoy reduced premiums
A new report indicates that 48 percent of the Washington Retail Association's retail retro members and 60 percent of its auto retro members are enjoying reduced workers' compensation insurance premiums from the claims free discount program.
Retro members can qualify for reduced premiums to the Department of Labor and Industries by committing to programs that improve workplace safety and reduce hazards. Members also receive safety and claims management assistance from WRA's retro staff.
Our retro members and the WRA staff deserve thanks and congratulations for making this benefit and savings possible.
Source: Department of Labor and Industries
Small business forums start this month
The Washington Policy Center will launch a series of six statewide small business forums later this month in Spokane.
The Washington Retail Association is a co-presenter of the series.
The forums aim to update small business owners on policy changes that affect their business operations. Attendees will hear from WPC research staff, hear a preview of the 2009 Legislative session and discuss how the November elections could affect them.
The $25 cost includes a meal and forum materials.
Locations include:
*Spokane, Oct 29, from 7:30 a.m. to 9:30 a.m., at the Spokane Red Lion at the Park. *Tri Cities, Oct. 30, from 11:30 a.m. to 1:30 p.m., at Red Lion Hotel - Richland Hanford House. *Bellevue, Nov. 12, from 7:30 a.m. to 9:30 a.m., at Bellevue's Red Lion. *Central Washington, Nov. 13, from 7:30 a.m. to 9:30 a.m., at Wenatchee's Red Lion Hotel. Register through Wenatchee Valley Chamber of Commerce. *Tacoma, Nov. 18, from 7:30 a.m. to 9:30 a.m,. at Tacoma's LaQuinta Inn. Register through Tacoma-Pierce County Chamber of Commerce. *Vancouver, Nov. 20, from 11:30 a.m. to 1:30 p.m., at Red Lion at the Quay.
Two additional companies this week emerged in news stories for their ventures into more environmentally-friendly products.
Clorox is showing sales success with its new Green Works line of cleaning products, the San Francisco Chronicle reported. Eight months after its introduction, the new line is outselling competitors in the niche of green cleaning products, the paper reported.
According to the paper, Clorox has "put considerable effort into formulating products made from 99 percent natural, non-petrochemical ingredients, rather than just slapping a green-looking label on a conventional product."
Payless ShoeSource also announced it plans to introduce an ecologically friendly line of shoes and handbags. The new brand will be made from organic cotton and linen, hemp and recycled rubber outsoles, the Pittsburgh Post Gazette reported.
Such ventures still account for a relatively small part of the overall merchandise market, said Marshal Cohen, chief industry analyst for the research firm NDP Group. The green footwear market, for example, accounts for less than 4 percent of the overall market, he said.
Sources: San Francisco Chronicle, Pittsburgh Post Gazette
"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
Washington Retail Association | 618 Quince St SE, STE A | PO Box 2227 | Olympia | WA | 98501
The Washington Retail Association, WRA, is a 501 C 6 trade association formed to advocate for Washington State’s retailers at the local, state and national level. Since 1987, the WRA has protected Washington's retailers from unreasonable taxes, fees, regulations and legislation. The efforts of the WRA benefit all Washington state retailers and help fuel statewide economic growth.
