Retail

Retail Furloughs Now Well Over 1M Amid Coronavirus

Closed Store

Following the suspension of store staffers by one of the largest textile merchants, worker furloughs in the retail sector are now well past 1 million. TJX Companies Inc. said it would furlough most of its U.S. staffers at distribution centers and retail locations, Bloomberg reported.

Merchants throughout the nation halted paychecks during the last two weeks after closing their stores last month because of COVID-19. Many of the biggest retail employers in the United States, with the inclusion of Kohl’s Corp. and Macy’s Inc., among others, have decided to save on workforce costs and save cash as retail locations stay shuttered.

Over 200,000 stores have shuttered for a time per GlobalData Retail, while people in the U.S. follow stay-at-home orders to cut down on proliferation of the coronavirus. In addition, dates for re-openings have been delayed amid a deepening crisis. TJX Companies Inc., for its part, shuttered all of its approximately 3,300 Marshalls, T.J. Maxx, HomeSense and HomeGoods stores in the U.S. last month.

The merchant’s eCommerce shops have closed as well, and top management at headquarters will have pay reduced as well.

Macy’s, for its part, has had to put much of its labor force on furlough. According to a past report, the retail chain said it plans “to bring colleagues back on a staggered basis as business resumes.” Kohl’s has put most distribution center and retail location workers on leave beyond some corporate office workers.

In addition, Simon Property Group  has put approximately 30 percent of its workforce on furlough as stay-at-home orders and social distancing continue because of the coronavirus pandemic. The furloughs are said to impact workers at the company’s headquarters in Indianapolis in addition to outlets and malls throughout the country.

The company’s chief executive is also reportedly not taking a paycheck over the pandemic, while top management salaries are being cut by as much as 30 percent.

——————————

PYMNTS TV LIVE OCTOBER SERIES: B2B PAYMENTS 2021 – WHAT WILL YOU CHANGE? 

Banks, corporates and even regulators now recognize the imperative to modernize — not just digitize —the infrastructures and workflows that move money and data between businesses domestically and cross-border. Together with Visa, PYMNTS invites you to a month-long series of livestreamed programs on these issues as they reshape B2B payments. Masters of modernization share insights and answer questions during a mix of intimate fireside chats and vibrant virtual roundtables.

TRENDING RIGHT NOW