Carter's to Close at Least 200 Stores
Carter’s is permanently shutting down hundreds of stores. The children’s apparel and accessories retailer announced today that it plans to close 25 percent of its brick-and-mortar fleet, or about 200 locations, as the leases of those units expire. Speaking to analysts, Carter's CEO Michael Casey said that nearly 60 percent of those outposts will likely be shuttered by the end of next year and 80 percent will shut down by the end of 2022. Carter’s currently operates about 850 stores in the United States, Canada and Mexico under its namesake banner and OshKosh B’Gosh brand.
Total Retail's Take: Carter's is making the strategic decision to shutter its unprofitable stores, many of which are located in less dense shopping centers. The children's apparel brand is rethinking the future of its physical retail stores, opting for outposts located closer to the consumer that have a higher likelihood of serving omnichannel customers. For example, Carter's wants to capitalize on growing demand for services such as buy online, pick up in-store (BOPIS) and curbside pickup, which are tightly integrated with its e-commerce business. However, Carter's is far from giving up on brick-and-mortar retail. In fact, it's sees an opportunity now to strengthen that part of the business.
“As other retailers struggle and downsize, new and more attractive real estate opportunities become available to us," noted Casey. "It’s a buyer’s market, and we plan to pursue those better opportunities in better centers that provide convenience for our consumers and a high return on investment for our shareholders.”