Carters plans to close 150 stores to cut costs and protect margins. Could rising tariffs and a move toward e-commerce reshape its retail footprint in 2026?
Why Carter’s is closing 150 stores and what it means for revenue, margins and pricing in 2026
Carter’s is closing 150 stores. This big move aims to help the company deal with tough times. They face challenges like high tariffs and rising operating costs. These issues have been squeezing their profits. By closing these stores, Carter’s hopes to improve its financial health and become more efficient.
Strategic Shift to E-commerce and Better Stores
The company is also changing how it sells baby and kids’ clothes. They are moving more sales online. This means focusing on their website and digital channels. They also want to guide customers to nearby stores that are performing better. This strategic shift is part of a plan to be more profitable by 2026. It’s about adapting to how people shop today.
Impact on Revenue and Profit Margins
What does this mean for Carter’s money? They expect to see better revenue and stronger profit margins. Closing stores that don’t make enough money helps cut expenses. This strategy should lead to stronger financial results for the company. The main goal is to make the business more profitable and sustainable in the long run.
Future Pricing and Customer Experience
Customers might wonder about future pricing. While the main goal is profit, these changes could affect how products are priced. The focus remains on offering good value while managing costs effectively. Carter’s hopes to keep customers happy with their improved online shopping and remaining store options. This big change is all about making Carter’s stronger for the future.
Fonte: Fortune.com
