Popular children’s clothing retailer Carter’s is planning to close stores nationwide and layoff hundreds, according to a recent press release. It joins a number of other businesses that have shuttered stores or gone out of business completely this year, including Joann and Rite Aid, leaving malls and storefronts empty.
Why Is Carter’s Closing Stores?
Carter’s, a store known for its brands like OshKosh B’gosh and Little Planet, announced in a press release on October 27th that it will be closing 150 stores as part of a plan to “return to consistent, profitable growth going forward.”
It cites tariffs implemented by President Trump as a major factor in the plan. “The Administration has implemented significant new tariffs on products imported into the United States from a wide range of countries,” the press release reads. “These additional tariffs have begun to add substantially to the approximately $110 million in duties on imported product paid by the Company.” It also cites the “significant uncertainty” around the tariffs as a contributing factor.
Which Carter’s Locations Are Closing?
Carter’s did not release a list of locations that will be closing. However, we know the company will close 150 stores when their leases expire over the next three years. One hundred of those store closures will occur this year and next, with the remaining in 2027. If you have a Carter’s nearby and wonder if it’ll be on the chopping block, keep your eyes on local news for reports of closings.
What About Layoffs?
Along with the store closures, Carter’s is also planning significant layoffs. It is reducing its “office-based” roles, otherwise known as corporate roles, by 15%. That will result in 300 people being laid off by the end of this year — the worst time for layoffs near the holidays. The company will be paying severance packages and for outplacement services for those affected in the “first half of 2026.” Carter’s did not address layoffs related to the planned store closures.
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