A popular mall retailer with stores in California is closing 150 locations nationwide this year in a bid to stay afloat after being battered by tariffs.
The children’s clothier Carter’s has not disclosed what stores will be shuttered but said in a press release that stores would close as their leases expired as part of its turn-around push.
Atlanta-based Carter’s, which also operates the OshKosh and B’Gosh labels, has 104 stores in California.
Douglas C. Palladini, the former CEO of Carter’s, said last fall after the release of the company’s third-quarter 2025 earnings report that the company had made “meaningful progress in stabilizing our business. But, he added, “elevated product costs, in part due to the impact of higher tariffs, as well as additional investment, weighed meaningfully on our profitability.”
SEE ALSO: National Retailer To Close All California Locations, Including 2 South Bay Shops: Report
Carter’s previously planned to close 100 stores over the 2025 and 2026, but increased its target to 150 that collectively represent about $110 million in annual sales.
On top of the store closures, Carter’s also laid off about 300 employees to absorb losses, Retail Dive reported.
The Carter’s closings are among 1,400 stores expected to close in 2026, including other clothing stores such as Macy’s, Francesca’s and Eddie Bauer. The convenience store chain 7-Eleven is closing about 645 stores in North America.
Grocery Outlet and Kroger are also reducing their store footprints as grocery stores nationwide face pressure from rising food prices and labor costs, as well as evolving consumer preferences to online markets.
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