Kohl's is latest retailer to boost holiday hiring

MENOMONEE FALLS, Wis. (AP) β€” Kohl's is increasing its holiday hiring this season 21%, another major retailer to boost its employee count this winter.

The department store chain said Wednesday it expects to hire more than 40,000 people this season, up from 33,000 last year.

Not all the jobs news was encouraging.

Payroll company ADP said private employers cut 39,000 jobs in September, the first job cuts in seven months.

MORE RETAIL: Stores plan to keep hot toys in stock

Kohl's (KSS) plans to hire an average of 35 employees per store at 1,089 stores. It also expects to hire 2,200 people at distribution centers and 60 people at credit operations.

The Menomonee Falls, Wis., company said seasonal workers can work from a few hours to more than 20 a week.

Hiring has begun and most jobs will be filled by the middle of November.

Macy's, Toys R Us, Pier 1, American Eagle Outfitters and Borders Group plan to hire more temporary holiday workers this year than last, emboldened by months of sales gains and a slowly improving economy.

Retailers will add 550,000 to 650,000 jobs this holiday season, according to an updated forecast from the national outsourcing firm Challenger Gray and Christmas. They added 501,400 last year. It's still well below the 720,800 added in 2007, just before the recession began.


JOBS OUTLOOK: Latest data for all states, 384 metros

The jobs are temporary, and the amount of new hires may not be enough to bring down the jobless rate, which stands at nearly 10%.

A spending report out Wednesday said that Americans kept spending carefully last month, buying electronics and back-to-school clothes but holding back on luxuries.

Erratic weather and tepid economic news dampened sales, according to data by MasterCard Advisors' SpendingPulse, which includes transactions in all forms including cash.

But pockets of growth during the five weeks between Aug. 29 and Oct. 2 point to a modestly more robust holiday season this year than last.

Clothing sales rose 3.8%, driven by children's and family clothing, which includes teen retailers, as stores offered back-to-school discounts.

Other positive categories included electronics, up 4.7%. In that category, most of the growth came in sales between $500 to $1,000, as well as under $25.

Footwear and jewelry each inched up 0.7%. And, as usual, online sales were a bright spot, rising 7.8%, led by higher online clothing sales.

But luxury sales, excluding jewelry, fell 5.4% from last year's already weak totals, losing ground despite recovery in the stock market β€” the S&P 500 rose 9% during the month.

"The overall story here is there is some growth but not dynamic growth," said Michael McNamara, vice president of research and analysis for Spending Pulse. He said September was like August, with "mild growth in certain areas, but some (areas) continued somewhat struggling."

The results come as the crucial holiday season looms, but this one could be better than last year's if the stock market keeps recovering and unemployment improves, McNamara said.

"If we can just get some stability in the economic environment, that puts you in a better position for the spending environment as you enter November and December," he said.

Meanwhile, the National Retail Federation, a trade group, said it expects sales during the holiday season to rise 2.3% to $447.1 billion, better than the 0.4% gain in 2009's holiday season.

That increase would be the largest since 2006, when retailers had a 3.1% increase. But it would still fall short of the 10-year historic average of 2.5%, according to NRF calculations.

The total retail sales figures from the NRF exclude auto dealers, gas stations, restaurants and businesses that operate only online but include online sales from physical stores.

The forecast is roughly parallel with those from economists, who generally foresee holiday sales rising. The International Council of Shopping Centers expects selected U.S. chain stores reporting monthly revenue Thursday to show 3% to 3.5% increases at locations open at least a year β€” the largest increase since 2006.

Michael Niemira, chief economist and director of research for ICSC, predicts stores' holiday hiring will rise a bit from last year. He also sees overall employment growth, which should support increased spending.

"September's numbers may not be anything to write home about, but underlying trends still are relatively positive," Niemira said. "If consumers didn't spend in September, they'll have more to spend when the holiday season rolls around."

http://www.usatoday.com/money/industrie ... ding_N.htm