Retail briefs
By Staff -- Home Textiles Today, 3/10/2003
Kohl's adds table linen buyer
Kohl's buying office recently added Debbie Rowland, formerly in a planning position at the company, into the slot of table linens buyer. Carol Knuth, who had been in that position, is now manager, e-commerce content.
Compensation cuts Costco; home store 'encouraging'
Costco Wholesale today reported a 5 percent drop in second quarter profits, including a $26 million pre-tax charge for rising workers' compensation claims, particularly in California.
New compensation laws in California are "abusive," according to Richard Galanti, cfo. About one-third of Costco's employees work in California, but they account for two-thirds of the company's total compensation expense, he noted. Companywide, worker compensation claims average $26,000, while in California they average $70,000, he said in a conference call with analysts.
Still, Costco will continue to push growth adding about 30 units a year over the next two to three years, Galanti said.
Additionally, early reports from the company's new home furnishings specialty store, Costco Home, are encouraging, he said. The unit opened last December in Kirkland, WA, as a test.
"So far, so good," Galanti said. "My sense is that we won't make any plans beyond this first test location for at least another six months."
