Zumiez to Protect Full Time Employees
Zumiez is taking a somewhat different approach to cutting costs than many other retailers, at least when it comes to employees.
All of the company’s stores are closed around the world, including Zumiez stores in North America, Blue Tomato stores in Europe, and Fast Time stores in Australia.
The company is keeping full time employees, including store and corporate staff, intact by either paying employees directly or with help from government programs.
“The Company views its work force as a core element of its brand and culture and critical to getting its operations up and running as quickly as possible,” Zumiez said in a statement.
It is laying off nearly all of its part time staff, however.
To preserve cash, the company is not paying rent on its stores while it negotiates rent relief, canceling or delaying orders, extending payment terms for merchandise vendors and other vendors, and eliminating all planned bonuses for 2020.
Zumiez ended the year with $250 million in cash and no debt.
Meanwhile, Lululemon also announced today that it would pay all of its store employees through June 1.
“At Lululemon, our people are our top priority. These decisions enable us to support our teams and immediate business priorities, while balancing what is required to plan for the recovery and growth to follow,” said Calvin McDonald, Chief Executive Officer. “We’re making the right commitments now as we navigate what’s ahead for the future.”