In a notable shift in its brick-and-mortar footprint, Carter's, a leading retailer in baby and children's apparel, stated it will be closing 150 stores across North America. This strategic move is part of a major restructuring effort undertaken by the company in response to adverse fiscal pressures. According to a report by KRON4, closures will begin next year and extend over three years, with cutbacks also impacting the company's corporate structure, which promises to eliminate approximately 300 office-based roles.
Carter's President and CEO, Douglas C. Palladini, cited the company's grappling with the "impact of higher tariffs," a consequence attributed to trade policies under the Trump Administration. These policies, as stated in the company's third-quarter fiscal report, have substantially increased the duties paid by the firm, with an estimated $110 million forked over in the previous fiscal year. Palladini confirmed that pay cuts for himself and the board of directors are on the horizon for 2026, a measure proposed to shore up the company's finances, according to SFGATE.
While Carter's withheld information regarding which specific locations will be shuttered, the decision sends ripples through retail markets, particularly in California, where the company boasts 83 stores. This includes 16 in the Bay Area alone, spanning from Antioch to San Jose. The closures align with a broader trend among retailers facing financial strain, following in the footsteps of Macy's and Kohl's, which also closed several Bay Area stores this year.
In concert with store closures, Palladini mentioned structural changes, including "right-sizing" the company and "honing product choices" as part of Carter's strategic recalibration. The brand, known for its Carter's and OshKosh B'gosh lines, maintains a significant presence with over 1,000 stores across the United States, Canada, and Mexico. However, the implications of the forthcoming closures remain a point of concern for employees and consumers alike, as these locations have accounted for roughly $110 million in sales over the past year, according to SFGATE.
