Additional Coverage:
Carter’s Announces Major Store Closures and Layoffs Amidst Tariff Concerns
[City, State] – Popular children’s clothing giant Carter’s, known for beloved brands like OshKosh B’gosh and Little Planet, has announced significant plans to close 150 stores nationwide and reduce its corporate workforce by 15%, impacting approximately 300 employees. The company cites tariffs implemented by the previous administration as a primary driver behind these strategic adjustments, aimed at “consistent, profitable growth.”
The announcement, made in a press release on October 27th, details a three-year plan for store closures, with 100 locations expected to shutter by the end of 2024 and 2025, and the remaining 50 by 2027, as leases expire. A specific list of affected stores has not yet been released, leaving local communities to await further information.
Carter’s highlighted the substantial financial burden of tariffs, stating that “additional tariffs have begun to add substantially to the approximately $110 million in duties on imported product paid by the Company.” The “significant uncertainty” surrounding these tariffs was also noted as a contributing factor to the restructuring.
In addition to store closures, the company will be reducing its “office-based” or corporate roles by 15%, leading to 300 layoffs by the end of this year. Carter’s has committed to providing severance packages and outplacement services for affected employees through the first half of 2026. The company did not, however, address potential layoffs related to the physical store closures.
This move by Carter’s follows a trend of other retailers, including Joann and Rite Aid, that have either closed stores or ceased operations entirely this year, contributing to an increasing number of vacant storefronts in shopping centers across the country. As the retail landscape continues to evolve, the impact of economic factors like tariffs remains a significant concern for businesses and consumers alike.