Kohl’s closes all its stores over virus
Store associates get ‘two calendar weeks of pay’
Kohl’s Corp. is closing all of its more than 1,100 retail stores nationwide and making other financial moves in response falling sales tied to the coronavirus pandemic.
Kohl’s stores will close at 7 p.m. local time Thursday, the company announced in a news release. The stores will be closed at least until April 1.
Kohl’s has withdrawn its estimates for its earnings this quarter and full year 2020 because of “the uncertainty related to the COVID-19 impact on its business, including the duration and demand for the merchandise it sells.”
The company also said it is adjusting “operational needs, including a significant reduction in expenses and inventory.” It is also temporarily suspending is share repurchases and evaluating its dividend program.
Additionally, Kohl’s has fully drawn its $1 billion unsecured credit facility.
“To demonstrate our support of the efforts underway to contain the spread of the coronavirus, we are closing all Kohl’s stores through at least April 1. We will support store associates with two calendar weeks of pay,” said Michelle Gass, Kohl’s chief executive officer in the news release.
Customers will still be able to shop through its website Kohls.com and the Kohl’s app. Orders placed for in-store pickup cannot be rerouted for home delivery.
“We look forward to reopening our stores soon to serve families across the country,” Gass said.
Kohl’s has stores in 49 states. Earlier this week, Kohl’s announced it would reduce the hours its stores were open.
The retailer said it had experienced “softening” sales in its stores because of the outbreak late last week. At that time, it said digital demand had not been affected.
Menomonee Falls-based Kohl’s follows other department store chains like Macy’s, Nordstrom and Bloomingdale’s in announcing a temporary shut down.
Lands’ End, based in Dodgeville, has closed its two dozen retail stores through March 29. The retail employees will be paid for the hours they were scheduled to work in the stores during that time, Lands’ End said in a news release.