Macy's, Ralph Lauren and Tapestry join North American retailers shutting stores in response to coronavirus
With North American retailers implementing store closures to combat the spread of Covid-19 since the weekend, Tuesday’s announcements have come from companies including Macy's, Deckers Brands, Ralph Lauren, AEO, L Brands, Foot Locker and Tapestry.
American Eagle Outfitters (AEO) will be closing all American Eagle and Aerie stores in the U.S. and Canada at the end of the day on Tuesday and will not open them again before March 27 at the earliest.
In its corporate offices, the company has implemented remote working and introduced staggered schedules for employees completing in-office work, along with enhanced sanitization measures and deep cleaning.
As well as committing to compensating its store associates for scheduled time during the temporary closure of its retail locations, AEO has also established a Relief Fund to provide additional support to employees affected by Covid-19.
The company also withdrew its financial guidance for Q1 2020, as reported on March 4.
Capri, the parent company of Versace, Jimmy Choo and Michael Kors, will be shutting all of its directly operated stores in North America and Europe from March 19 through April 20 and has committed to maintaining pay for store employees during this period.
The luxury group also highlighted that the fourth-quarter guidance it reported on February 5 did not take into account the possible negative impact of Covid-19 spreading beyond China and said that it would provide further updates when it reports its full fiscal 2020 earnings later this year.
The Goleta, California-based owner of brands including Ugg, Hoka One One, Teva and Sanuk announced the closure of all Ugg stores in North America and Europe, as well as that of the Sanuk store in Orlando.
The locations will remain closed until March 31, during which time retail employees will continue to receive pay and benefits.
Deckers said that it is addressing issues at its corporate headquarters and other support offices around the world on a case by case basis but has "proactively shifted corporate employees to a work from home status as appropriate."
To support the company's ongoing e-commerce activities, its fulfillment and distribution centers are still in operation and have implemented increased precautionary health and safety measures.
Dover Street Market
Dover Street Market New York and Dover Street Market Los Angeles are now shut and will remain closed until March 27.
The cult multi-brand fashion retailer highlighted that it will continue to serve customers through its e-commerce site and provide information concerning launches and other updates via its social channels during this period.
Dover Street Market London, Ginza, Singapore and Beijing remain open at the present time.
NYC-based sports and footwear retailer Foot Locker announced that it has closed all of its stores in North America, EMEA and Malaysia until March 31. The temporary closures affect all of the company’s banners, which include Foot Locker, Lady Foot Locker, Kids Foot Locker, Footaction, Champs Sports, Runners Point and Sidestep.
In a release, Foot Locker CEO Richard Johnson said, “during this time period, we will continue to pay our highly-valued store associates.”
Foot Locker’s retail locations in the Asia Pacific region, which covers Hong Kong, Singapore, Australia and New Zealand, will remain open for the time being but their continued operations are subject to the decisions of local and national governments.
In light of the ongoing health crisis, the company has also withdrawn its previously reported financial guidance for the full fiscal year 2020 and will provide updates on its outlook in its first-quarter earnings call.
The owner of denim brands Wrangler and Lee, is closing all owned and operated retail locations in North America and Europe from March 18 until March 27.
Store closures will affect the company's VF Outlet, Lee-Wrangler Outlet, Lee-Wrangler Clearance Center, Wrangler and Hometown Studio locations, and impacted retail employees will continue to receive pay and benefits.
In addition to these closures, Kontoor has also implemented global travel restrictions, remote work flexibility and enhanced cleaning and sanitation protocols at all of its facilities, including corporate offices, manufacturing facilities and distribution centers.
Columbus, Ohio-based L Brands has closed all Victoria’s Secret, Pink, and Bath & Body Works stores in the U.S. and Canada through March 29, and has asked all office employees to work from home if possible.
Affected L Brands employees will continue to receive pay and benefits during the temporary disruptions.
In response to the financial uncertainty generated by the Covid-19 pandemic, the company has withdrawn the earnings guidance it issued for the first quarter of 2020 on February 26, and decided to draw down $950 million from its secured revolving credit facility “in an abundance of caution and as a proactive measure.”
The department store chain has closed tits full network of stores, which includes not only its namesake Macy's locations, but also stores operated under the Bloomingdale's, Bluemercury, Macy's Backstage, Bloomingdales the Outlet, and Market by Macy's banners.
The closures will continue through at least March 31, but Macy's chairman and CEO Jeff Gennette said that the retailer would be consulting with government and health officials in order to determine the best time to reopen its stores.
The company stated that it "will provide benefits and compensation to its impacted workforce."
The iconic American fashion house will be shuttering all North American stores from March 18 through April 1, providing all affected team members with their full standard pay during the two-week period.
The company’s corporate offices are still in operation, but all travel has been frozen and employees have been asked to work from home when coming into the office is not essential. Deep cleaning has also been introduced in all of the group’s work environments, and distribution centers are now working on staggered shifts.
Ralph Lauren, which had already implemented a number of store closures in Asia and Europe, said that it will be closely monitoring the evolution of the pandemic in order to determine the right time to reopen its retail locations in each region.
Saks off 5th
The Hudson's Bay-owned department store followed its parent company's lead and will be closing all of its stores in the U.S. and Canada for two weeks starting March 18.
The company said that it will continue to pay retail associates for their scheduled hours during this period but explained that pay and benefits will continue to be evaluated as the situation evolves.
The owner of Men’s Wearhouse, Jos. A. Bank, Moores Clothing for Men and K&G shut all stores in the U.S. and Canada on Tuesday and will keep them closed through Saturday, March 28. The company’s store employees will receive pay for scheduled hours during this time.
A reduced workforce is also being kept on where possible so as to allow for in-store order and rental pick-up.
Tailored Brands committed to accommodating customers’ plans as they change in response to the health crisis. Should an event be postponed, the company will maintain order details and measurements in order to facilitate its reactivation at a later date. In the case of event cancellations, the retailer is offering the choice between a gift card and a discount for future use, or a full refund.
The luxury conglomerate announced the closure of all company-owned Coach, Kate Spade and Stuart Weitzman stores in North America and Europe until at least March 27. Affected employees will continue to receive full pay and benefits.
Most of the group’s retail locations in China have now reopened after a period of temporary closures towards the beginning of the Covid-19 outbreak, but store traffic remains slow and the company has since had to shut locations in other parts of Asia.
Tapestry said that it would provide an update on the operational and financial impact of the coronavirus pandemic on its business when it reports its third-quarter financial results at the end of April.
Having previously announced limited store closures and the suspension of its in-store hair and beauty services, American cosmetics retailer Ulta Beauty has now decided to temporarily shut all of its retail locations from 6:00 PM on March 19 until at least March 31.
The majority of the company’s stores will, however, continue to serve as outlets where customers can pick up online orders, as far as is permitted by restrictions put in place by local authorities.
“At Ulta Beauty, our associates are at the heart of our company,” commented Ulta Beauty CEO Mary Dillon in a release. “As such, we will continue to pay our store and salon associates and provide benefits for those who are currently enrolled during this period.”
The New York-based fashion group announced that it will be temporarily closing all of its namesake Vince and Rebecca Taylor stores in North America and the United Kingdom, effective March 17 through March 29.
The company also committed to compensating retail employees for their scheduled shifts during the period of the closures, while CEO Brendan Hoffman attempted to reassure shareholders, stating “despite the near-term uncertainty, we remain confident in the long term fundamentals of our business.”
These announcements are the latest to come from North American retailers choosing to close their stores in an attempt to counteract the continued spread of the novel coronavirus Covid-19, including the likes of Nordstrom, Guess, Canada Goose, VF Corp, PVH Corp, Nike, Abercrombie & Fitch, Gap and Urban Outfitters.
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