April 1, 2020
Photo by istock.com
Calling it “unprecedented times,” Kohl’s is extending the timeframe of its temporary store closures given the ongoing and expanding COVID-19 outbreak in the U.S.
The pandemic, according to a press release, is having a significant impact on the retailer’s business and the extended closure is one of several actions Kohl’s is taking to boost its financial flexibility.
“At Kohl’s we are committed to doing our part as we extend the duration of our store closures to protect the health and safety of our customers and our associates,” said Michelle Gass, Kohl’s CEO, in a release. “As a company, we operate with great discipline to maintain a strong balance sheet and financial flexibility. Given these extraordinary circumstances, we are taking difficult and decisive actions to strengthen our financial liquidity and secure the financial position of the company for the long-term benefit of our associates, customers and shareholders.”
Kohl’s, on the initial store closure action, provided two calendar weeks of pay to all store and store distribution center associates.
Now it is temporarily furloughing store associates as well as some corporate office staff.
The company will continue to provide existing health benefits to furloughed associates at this time, according to the release. Gass has stated she will not take a salary at this time.
As part of the COVID-19 response, Kohl’s is also:
• Decreasing capital expenditures by approximately $500 million.
• Managing inventory meaningfully lower to align with anticipated sales.
• Significantly reducing expenses across the business including marketing, technology and operations while stores remain closed.
• Temporarily suspending share repurchases and evaluating its dividend program.
• Fully drawing down its $1 billion revolving credit facility.
Please check here for more news and insight on how COVID-19 is impacting the retail industry.
Topics: Coronavirus / COVID-19, Customer Experience, Top 100 Retail, Trends / Statistics
Companies: Kohl’s