Carter’s to Close 150 Stores Amid Rising Tariffs and Costs

Carter’s, a leading name in children’s clothing, has announced plans to close approximately 150 of its stores over the next few years, a decision that will directly impact hundreds of employees. The company revealed this significant change during its latest earnings call, indicating that around 100 locations are expected to shut down by 2026, with no new stores slated to open.

Reasons Behind the Store Closures

While the trend of brick-and-mortar retail closures is often attributed to the shift towards online shopping, Carter’s executives have pointed to rising tariffs as a key factor. The increased costs associated with importing products from overseas have become burdensome, costing the company millions of dollars this year alone. To address these financial challenges, Carter’s has also announced the elimination of approximately 300 office-based positions, which represents about 15 percent of its workforce in that area. This move is projected to save the company around $35 million annually once fully implemented.

The closures will primarily occur as leases expire, allowing Carter’s the opportunity to “rethink its business model.” Currently, there are 32 Carter’s and Carter’s Outlet locations in New Jersey, with notable stores in Atlantic City, Clifton, and Paramus among others. As of now, the company has not disclosed which specific locations will be affected by the closures, leaving many customers to consider stocking up on popular items like onesies and the iconic OshKosh B’gosh brand while they still can.

The Future of Carter’s

Carter’s decision reflects a broader trend within the retail sector as companies adapt to evolving consumer preferences and economic pressures. As the landscape continues to shift, the company aims to utilize this transitional period to explore new strategies that align with changing market demands. The impending store closures signal a significant transformation for Carter’s, which has long been a staple in children’s apparel.

With the closure of these stores, the impact on local communities and employees will be noteworthy. As the retail environment evolves, many will be watching how Carter’s navigates these challenges in the coming years.