American retailer of children’s apparels Carter’s has announced the closure of 200 of its 850 US stores as leases are coming up for renewal.
That’s 25 per cent of its stores!
However, the retailer was also quick to mention that it intends to launch 100 new co-branded stores in partnership with its sister concern Oshkosh B’gosh – and this would happen over the course of next 5 years.
The plan is to launch stores in better centres with better margins and to serve those consumers who love to shop online and then visit the store to pick the product.
While stating more on the closure of 200 stores, Michael Casey, CEO and Chairman, Carter’s said that 60 per cent of these store shutdowns may happen by the end of 2021.
“These stores are older and lower margin stores in declining centres and are less likely to support company’s focus on high-value omnichannel customers,” further substantiated Michael.
The childrenswear retailer, which generates revenue of US $ 3.4 billion, has nearly 85 per cent of its American stores in open-air centres that help in better same-day pickup service – a big edge over its mall-based rivals.
Besides Carter’s namesake brand, Oshkosh B’gosh and Skip Hop, Carter’s has exclusive lines at Amazon, Walmart and Target.