CarMax Announces Bonuses for 22,000 Associates

Rhea-AI Summary

CarMax (NYSE: KMX) announces $500 bonuses for full-time and $250 for part-time associates to recognize their hard work amid challenges. This incentive affects over 80% of its 22,000 associates, rewarding their commitment to customer service and innovation. The company has adapted to changing market conditions by launching CarMax Curbside and other initiatives, enhancing its omni-channel platform. CarMax has been recognized as one of the FORTUNE 100 Best Companies to Work For® for 16 consecutive years and is currently hiring 1,750 new associates.

Positive

• Bonuses totaling $500 for full-time and $250 for part-time associates enhance employee morale and retention.
• Company has introduced innovative services like CarMax Curbside, improving customer experience and sales process.
• Strong recognition as a top employer, with a FORTUNE ranking of 20, suggests positive workplace culture.

Negative

• None.

Bonuses of $500 to full-time associates, $250 to part-time associates in recognition of their dedication and hard work

RICHMOND, VA, March 03, 2021 (GLOBE NEWSWIRE) -- CarMax, Inc. (NYSE: KMX), the nation’s largest retailer of used cars, today announced that it will issue bonuses to 22,000 associates in recognition of their commitment and dedication to provide excellent customer service and introduce new innovative offerings in the midst of a challenging year. 

This bonus is being provided to more than 80% of CarMax associates. Full-time associates will receive $500 and eligible part-time associates employed by March 1, 2020 will receive $250. Bonuses for eligible associates hired after March 1, 2020 will be prorated. The remaining associates are eligible for other bonus plans. 

“Associates are the heart of CarMax, and I think it’s truly remarkable how well they adapted over the past year to meet the expectations of our customers, all the while implementing new and exciting consumer offerings that have transformed our business,” said Bill Nash, president and CEO of CarMax. “No one could have forecasted the challenges that we all faced this year. Our associates have worked tirelessly to take care of each other and our customers, and this reward is in appreciation of their efforts.”

Known for disrupting the industry with the first used vehicle “no-haggle” buying and selling experience, CarMax continues to accelerate innovations in the auto retail industry. In response to the need for social distancing, CarMax launched CarMax Curbside, a new contactless way for customers to complete the car buying and selling experience. Customers save time by completing most of the process online in advance and can test drive and complete their purchase outside the store. In September 2020, CarMax announced the completion of its omni-channel platform rollout, which continues to evolve. This platform empowers customers to buy a car on their terms – online (including home delivery), in-store, and a seamless integration of both. In January 2021, the company introduced the Love Your Car Guarantee, which gives customers the ability to take 24-Hour Test Drives before committing to purchase, and features a new 30-Day Money Back Guarantee – the only consumer offering of its kind in the automotive retail industry.   

CarMax has more than 25,000 associates nationwide and for 16 consecutive years has been named as one of the FORTUNE 100 Best Companies to Work For®. In 2020, CarMax achieved its highest ranking ever on the list, at number 20. The company is currently hiring for approximately 1,750 associates across a variety of positions among its customer experience centers, corporate locations and 220 stores nationwide. Candidates can apply now for open positions at the CarMax careers website.

About CarMax

CarMax, the nation’s largest retailer of used cars, revolutionized the automotive retail industry by driving integrity, honesty and transparency in every interaction. The company offers a truly personalized experience with the option for customers to do as much, or as little, online and in-store as they want. CarMax also provides a variety of vehicle delivery methods, including home delivery, contactless curbside pickup and appointments in its stores. During the fiscal year ending February 29, 2020, CarMax sold more than 830,000 used cars and more than 465,000 wholesale vehicles at its in-store auctions. CarMax has 220 stores, over 25,000 Associates, and is proud to have been recognized for 16 consecutive years as one of the Fortune 100 Best Companies to Work For®. For more information, visit www.carmax.com.

Media Contact

pr@carmax.com

Forward-Looking Statements

We caution readers that the statements contained in this release about our future business plans, operations, challenges, opportunities or prospects, including without limitation any statements or factors regarding expected operating capacity, sales, market share, margins, expenses, liquidity, capital expenditures, debt obligations, tax rates or earnings, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  You can identify these forward-looking statements by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “predict,” “should,” “will” and other similar expressions, whether in the negative or affirmative.  Such forward-looking statements are based upon management’s current knowledge and assumptions about future events and involve risks and uncertainties that could cause actual results to differ materially from anticipated results.  Among the factors that could cause actual results and outcomes to differ materially from those contained in the forward-looking statements are the following:

• The effect and consequences of the Coronavirus public health crisis on matters including U.S. and local economies; our business operations and continuity; the availability of corporate and consumer financing; the health and productivity of our associates; the ability of third-party providers to continue uninterrupted service; and the regulatory environment in which we operate.
• Changes in general or regional U.S. economic conditions.
• Changes in the availability or cost of capital and working capital financing, including changes related to the asset-backed securitization market.
• Changes in the competitive landscape and/or our failure to successfully adjust to such changes.
• Events that damage our reputation or harm the perception of the quality of our brand.
• Our inability to realize the benefits associated with our omni-channel initiatives.
• Our inability to recruit, develop and retain associates and maintain positive associate relations.
• The loss of key associates from our store, regional or corporate management teams or a significant increase in labor costs.
• Security breaches or other events that result in the misappropriation, loss or other unauthorized disclosure of confidential customer, associate or corporate information.
• Significant changes in prices of new and used vehicles.
• Changes in economic conditions or other factors that result in greater credit losses for CAF’s portfolio of auto loans receivable than anticipated.
• A reduction in the availability of or access to sources of inventory or a failure to expeditiously liquidate inventory.
• Changes in consumer credit availability provided by our third-party finance providers.
• Changes in the availability of extended protection plan products from third-party providers.
• Factors related to the regulatory and legislative environment in which we operate.
• Factors related to geographic and sales growth, including the inability to effectively manage our growth.
• The failure of or inability to sufficiently enhance key information systems.
• The performance of the third-party vendors we rely on for key components of our business.
• The effect of various litigation matters.
• Adverse conditions affecting one or more automotive manufacturers, and manufacturer recalls.
• The failure or inability to realize the benefits associated with our strategic investments.
• The inaccuracy of estimates and assumptions used in the preparation of our financial statements, or the effect of new accounting requirements or changes to U.S. generally accepted accounting principles.
• The volatility in the market price for our common stock.
• The failure or inability to adequately protect our intellectual property.
• The occurrence of severe weather events.
• Factors related to the geographic concentration of our stores.

 

For more details on factors that could affect expectations, see our Annual Report on Form 10-K for the fiscal year ended February 29, 2020, and our quarterly or current reports as filed with or furnished to the U.S. Securities and Exchange Commission.  Our filings are publicly available on our investor information home page at investors.carmax.com.  Requests for information may also be made to the Investor Relations Department by email to investor_relations@carmax.com or by calling (804) 747-0422 x7865.  We undertake no obligation to update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise. 

 

# # #

FAQ

What are the bonuses announced by CarMax for associates in March 2021?

CarMax announced bonuses of $500 for full-time associates and $250 for part-time associates.

How many associates are receiving bonuses at CarMax?

Bonuses will be given to over 80% of CarMax's 22,000 associates.

What new services has CarMax introduced to enhance customer experience?

CarMax launched CarMax Curbside and its omni-channel sales platform to improve the buying process.

How long has CarMax been recognized as one of the best companies to work for?

CarMax has been recognized as one of the FORTUNE 100 Best Companies to Work For® for 16 consecutive years.

How many new positions is CarMax currently hiring for?

CarMax is hiring approximately 1,750 new associates across various positions.