A popular children’s clothing chain with a significant footprint in California is gearing up to shut down several stores nationwide, navigating through rising expenses.
Carter’s, which is also the parent company of Oshkosh B’gosh, is set to close 150 locations across the U.S. This move is part of an early-stage downsizing as the company aims for a larger turnaround.
The closures will happen gradually as leases expire over the coming years. The intention is, well, to cut costs and enhance profitability, as mentioned in a press statement from the company.
In light of these changes, the company has already laid off 300 employees due to these escalating costs.
These upcoming store closures are expected to affect locations generating about $110 million in annual sales. Yet, Carter’s believes this strategy could lead to better revenue as customers shift to nearby stores and online shopping.
California might feel the impact more than others.
With over 100 stores in the state, which is one of Carter’s largest markets, the company hasn’t specified which locations will be affected.
As financial challenges mount, these layoffs come at a tough time for the retailer.
Carter’s latest financial update indicated that, despite efforts to stabilize, increasing product costs—partly due to tariffs—are seriously affecting profitability.
The company has expanded its store closure plans from 100 to 150 and had to let go of about 300 employees.
Uncertainty looms for shoppers.
Carter’s stores are common sights in malls and outlet centers from Los Angeles to San Diego and even in Central Valley communities, many of which have seen a dip in customer traffic in recent times.
With store closures on the horizon and no clear announcements yet, shoppers across California are left wondering which (if any) locations will be impacted.
