This Iconic Children's Brand Is Closing Stores Nationwide
The ongoing economic impact of the COVID-19 pandemic continues to plague retailers, and a popular, long-time children's clothing brand is making a hit this week. Carters, which owns Carter's stores and the OshKosh B'Gosh brands, just announced that around 35 percent of the company's stores would close when leases are up for renewal. That means over 200 Carters locations will be permanently closed. Read on to find out more, and for another recent shutdown, this beloved coffee chain just announced that it has filed for bankruptcy.
"Almost 60 percent of these closings could occur by the end of the year," Carter's CEO and Chairman Michael Casey said on October 23 in a call for profit. “And 80 percent of those closings are planned by the end of 2022. Generally, older, lower margin stores in declining centers, and we're less likely to focus on high quality omnichannel customers.” In short, the company will target busier areas concentrate with high visitor frequency.
Carters operates approximately 850 stores in the United States, Canada and Mexico under the Carter's and OshKosh B'Gosh brands. Founded in 1865, the company is the largest brand marketer of baby and children's clothing in the United States.
Despite its long history, the realities of the Carter's lockdown have hit just as much as other companies - on the profit call, Casey explained how sales in July were 90 percent year-on-year, while August sales were 87 percent. "With the children practically studying at home early in their school year, there was less need to buy outfits to go to school," he said.
Casey also pointed out that stores that historically benefited from tourist customers saw the largest decreases in traffic.
There are some positive signs for the company, however: with continued e-commerce sales, plans to open nearly 100 co-branded Carter's OshKosh stores by 2025. "Our focus is on fewer, better, more profitable stores near the consumer that are more likely to serve those omnichannel consumers," said Casey. "Those who like to shop online, stop by the store and pick up the product." Read on for other popular brands that have fallen victim to COVID and for another type of business that are closing their store, check out this popular gym that is closing all locations.
Lord & Taylor
Lord and Taylor store with closing sale sign
At the end of the summer, the almost 200-year-old Lord & Taylor department store announced that it would permanently close all 38 stores after its bankruptcy. "We feel it is advisable to liquidate the rest of the businesses at the same time in order to maximize the value of the property's inventory while pursuing options for the company's brands," said Ed Kremer, the company's primary structuring bureau Explanation.
H&M store front, brand names
H&M announced on October 1st that 250 of its 5,076 stores worldwide would be closed due to the massive loss of sales due to the lockdowns. "During the pandemic, more and more customers started shopping online," the company said in a statement. "Although the challenges are far from over, we believe the worst is behind us and we are well positioned to emerge stronger from the crisis," said Helena Helmersson, CEO of H & M, in a statement. And for another iconic brand in trouble, check out this popular beauty brand that is closing stores across the country.
Clarks Store entrance in the mall
After 195 years in business, it was reported in early October that British shoe brand Clarks would be closing many of its stores. In September, the Boston Globe reported that Clarks could close up to a quarter of its US retail stores by the end of 2021, which according to Clarks Americas brought the number of locations in the US down from 214 to "somewhere in the mid-100s," according to President Gary Champion. "We have overstretched our stationary portfolio," he explained. The number of store closures has not been confirmed by Clarks.
Las Vegas, Nevada, USA - May 24, 2014: The Neiman Marcus location on Las Vegas Boulevard in downtown Las Vegas, Nevada. Neiman Marcus is a chain of luxury department stores with locations in the United States.
Neiman Marcus cited "the unprecedented disruption caused by the COVID-19 pandemic" as the main driver behind his decision to file for bankruptcy in May. After closing 22 locations in the USA, Neiman Marcus emerged from bankruptcy proceedings in September. And for another store that wasn't as badly hit by the pandemic, check out This Cult Favorite Store Is Closing All US Locations.
Nordstrom announced that it would close 16 of its department stores in May, according to CNBC. However, Nordstrom Rack's locations remain untouched, and 100 of the company's department stores still stand.
A Stein Mart location in Rochester Hills, Michigan. Stein Mart is a department store chain in the USA.
Stein Mart discount department store, founded in 1908, filed for bankruptcy in August, and it wasn't long before the company announced its intention to close all 280 retail locations. If you want more news about your favorite stores, subscribe to our daily newsletter.
Century 21 department store exterior
Century 21, a legendary regional department store in New York, New Jersey, and Pennsylvania, announced in September that its 13 locations will be closing. "Our insurers, whom we have paid substantial premiums each year for protection against the unforeseen circumstances we are experiencing today, have turned their backs on us at this extremely critical time," said Raymond Gindi, Co-CEO of Century 21, in a strongly worded statement. And in order for you to be aware of yet another shutdown, this popular store is closing more than half of its locations.
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