Menomonee Falls-based Kohl’s Corp. said Monday it will the extend the temporary closure of its stores until further notice because of the coronavirus outbreak.
The company said it would also temporarily furlough store and store distribution center employees along with some corporate office employees who have seen their work reduced by store closures.
On March 19, Kohl’s announced a plan to close its stores through April 1. At the time, the company said it would provide employees from the stores with two calendar weeks of pay.
In its announcement Monday, Kohl’s said it would provide existing health benefits to furloughed employees and noted they may also benefit from recently passed coronavirus relief or stimulus legislation.
“It is an incredibly difficult decision to extend our store closures and temporarily furlough some of our associates,” said Michelle Gass, chief executive officer of Kohl’s. “We look forward to the day that we can reopen our stores to welcome our associates back and serve the millions of families across the country that shop Kohl’s.”
Gass will not take a salary as the company manages through the coronavirus crisis, the company said.
She had a base salary of almost $1.43 million last year. Her total compensation, including stock awards and other benefits, was nearly $9 million.
The median Kohl’s employee had total compensation of $9,738 in 2019, according to securities filings.
Kohl’s is continuing to serve customers through its website and app. Digital sales accounted for around 24% of revenue for the company last year.
Starting April 2, the company will allow customers to pick up items at most Kohl’s stores between 11 a.m. and 7 p.m.
Kohl’s also said it will reduce capital expenditures by around $500 million, reduce inventory to align with anticipated sales, cut expenses across the business including in marketing, technology and operation, suspend share repurchases and evaluate its dividend.
The company had planned around $300 million to $400 million in share repurchases and $750 million in capital expenditures for the year.
Kohl’s previously disclosed it had fully drawn its $1 billion revolving credit facility to provide financial flexibility.
Get more news and insights in the March 30 issue of BizTimes Milwaukee:
