Kids’ Clothing Giant Carter’s to Close 150 Stores Amid Tariff Pressures

Carter’s, a leading children’s clothing brand, announced significant operational changes that will see the closure of approximately 150 stores over the next few years. This decision, revealed during the company’s latest earnings call, is expected to impact hundreds of employees as the brand aims to streamline its retail presence. By 2026, around 100 locations are projected to shut down, with no plans to open new stores.

Challenges Leading to Store Closures

The retail landscape has been shifting, with many brick-and-mortar stores struggling against the rise of online shopping. However, Carter’s executives have pointed to another pressing factor: escalating tariffs on imported goods. These tariffs have significantly increased the cost of sourcing products, resulting in losses amounting to millions of dollars for the company this year.

To mitigate these financial challenges, Carter’s is also eliminating about 15 percent of its office-based workforce, totaling approximately 300 positions. This strategic cut is projected to save the company around $35 million annually once fully implemented.

Future Plans and Store Locations

As leases for existing stores expire, Carter’s will gradually close locations while re-evaluating its overall business model. In New Jersey, there are currently 32 Carter’s and Carter’s Outlet stores, including popular outlets in cities such as Atlantic City, Paramus, and Elizabeth. Specific store closures in New Jersey have not yet been disclosed, but customers may want to take advantage of in-store shopping for items like onesies and the iconic OshKosh B’gosh brand before the closures begin.

The retail sector continues to face numerous challenges, and Carter’s recent decisions reflect broader trends affecting the industry. As the company adjusts to these changes, it remains to be seen how they will reshape their market presence and respond to the evolving needs of consumers.