Already hammered by the twin blows of the retail apocalypse and the coronavirus outbreak, Kohl's (KSS -2.01%) has now been pounded by another. S&P Dow Jones Indices, the company that operates the S&P 500 stock index, announced that the retailer will no longer be a component of the benchmark index starting before market open on Monday, Sept. 21.

Kohl's is one of three stocks that is being removed from the S&P 500. The other two are tax preparation specialist H&R Block and cosmetics company Coty. All three are being moved to the S&P MidCap 400 index; H&R Block and Coty will make the transition on the same date and time as Kohl's.

Woman checking out at a Kohl's using a smartphone.

Image source: Kohl's.

The trio is being replaced in the S&P 500 with craft boutique operator Etsy, tech testing equipment specialist Teradyne, and pharmaceutical services company Catalent.

S&P Global Indices makes periodic adjustments to its indexes based on the market value of component stocks. In its press release detailing the latest changes, it provided its usual reason for the changes, saying that they are being made "to ensure each index more appropriately represents its market capitalization range."

Kohl's did not officially comment on its relegation to the new index. It did announce on Tuesday that it has launched a new customer loyalty program, Kohl's Rewards. Members will be eligible to earn 5% of the retailer's Kohl's Cash on every purchase they make, the company promises. The Kohl's Rewards program "evolves" the previous Yes2You Rewards program, the company said.

Judging by the market's reaction, investors are more happy about the new initiative then they are worried about the index relegation. Kohl's shares were falling less steeply than the level of the S&P 500 in mid-afternoon trading Tuesday.