If you’ve seen headlines or stories about Carter’s closing stores, you’re probably wondering: is Carter’s going out of business? The quick answer is, no — Carter’s isn’t shutting down everywhere. But the brand is shrinking its physical presence and making some tough decisions, mostly around cost-cutting.
Let’s break down what’s actually happening with Carter’s right now, why you might see more “store closing” signs, and what all this means if you’re a parent, relative, or anyone who just wants to buy tiny overalls and onesies.
Carter’s Current Situation: What’s True, What’s Rumor
First thing—Carter’s isn’t disappearing. The company, which owns Carter’s and OshKosh B’gosh, is shifting gears. This isn’t a bankruptcy or a dramatic fire sale. It’s more like a spring cleaning, just on a corporate level.
Right now, Carter’s is starting on a plan to close around 150 stores across North America. This isn’t a handful of locations, but it also won’t wipe them off the map. The bulk of these closures will roll out as leases expire, not through an overnight shutdown. You’ll still see Carter’s stores and plenty of their onesies on shelves.
How Many Stores Are Closing? And How Fast?
Here’s what the numbers look like: Carter’s operates about 1,000 to 1,200 stores in the U.S., so closing around 150 means they’ll lose about 10–15% of their physical retail spots.
But the timeline is gradual. Only about 100 closures are expected by 2026. If you’re picturing a wave of empty storefronts popping up in malls next week, that’s not Carter’s plan. They’re letting stores wind down as existing leases finish.
The move isn’t unique to Carter’s, either. Lots of brick-and-mortar retailers are shrinking real estate as online shopping takes a bigger slice of the retail pie.
Which Carter’s Stores Are Affected?
So, who gets the chop? Carter’s has said it’s closing “low-margin” stores. Translation: locations that don’t bring in much profit or that cost too much to run. This could mean spots with high rent, thin foot traffic, or strong competition nearby.
They aren’t sharing a public list of every location on the way out, at least not yet. But companies tend to prioritize closing stores in expensive markets first or in areas where they have lots of overlap (for example, two stores within a short drive of each other).
California will see a bigger impact than other states. Some news sites have flagged that Carter’s has targeted several locations for closure in metro areas across California. If you shop there, it might be worth double-checking whether your usual stop is sticking around.
Again—the closures are spaced out rather than dumped all at once. So if your neighborhood store does eventually close, it won’t be because Carter’s packed up overnight.
What About Jobs and Corporate Changes?
It’s not just retail staff being affected. Carter’s will cut about 15% of its office jobs, or roughly 300 corporate roles. These aren’t jobs in the stores, but the behind-the-scenes folks—people in management, design, distribution, and support.
Carter’s is also pausing new store openings in the U.S. under its current model. So don’t expect a shiny new Carter’s popping up at your mall anytime soon.
Another big change: They’re shrinking their product lineup by 20–30%. That means fewer styles and less variety on shelves, aiming to make inventory easier to manage and push the strongest sellers.
Why Carter’s Is Making These Changes
There isn’t just one reason. Part of it is about money—the costs of making and shipping baby clothes have gone up. Tariffs, especially on goods imported from China, have squeezed Carter’s margins. Company filings mention tens of millions of dollars lost just from tariffs over the last few quarters.
But there’s more. Fewer babies are being born in the U.S. these days, and families buy differently than they used to. A lot more parents are shopping online and choosing delivery or curbside pickup rather than trekking through stores.
When you add up less foot traffic, higher rents, labor costs, and tariffs, some stores just don’t make sense for Carter’s to keep open. The company says closing these under-performers lets them focus on what actually works.
This reset isn’t an isolated thing, either. Many big-name retailers have closed stores and trimmed staff in the past five years, for a mix of similar reasons.
Savings and Goals: What Carter’s Expects
If it hurts to see your local store closing, you might wonder: Is it even worth it for Carter’s? According to their CEO and financial officers, yes.
Trimming these stores and letting go of some office roles should save about $35 million a year. Management believes focusing on their strongest outlets (both in-person and online) will leave the company in better shape. They want to keep Carter’s profitable, not just big.
Despite all the cuts, Carter’s still calls itself the largest branded marketer for baby and young children’s clothes in the U.S. They sell out of their own stores, through OshKosh B’gosh, at countless department stores, big-box retailers, and—of course—on their own website.
If you’re into tracking companies behind the scenes, Carter’s is still moving money around via capital markets, for example issuing senior notes, which is a fancy way of saying they’re not locked out of financing like a company headed for shutdown.
What This Means for Shoppers and Parents
It’s normal to worry when you hear a favorite store is closing nearby. Maybe Carter’s in your city is on the chopping block—or maybe not. Either way, you’ll still have plenty of options.
Even after closing 150 stores, there will be hundreds of Carter’s and OshKosh B’gosh locations left. Carter’s products will also stick around at chain stores (think Target, Walmart, Kohl’s) and on their website.
The company is talking about steering customers to nearby stores or online shopping if their usual store goes away. If you’re used to buying Carter’s in person, that could mean a little more planning. But you won’t have to search too hard—baby bodysuits are still just a couple of clicks away.
Let’s say your local store closes next year. Carter’s is promising that you’ll still find their full range online, including some web-exclusives. And if you prefer shopping through other retailers, plenty of those will be carrying Carter’s too.
For parents used to browsing racks in person or snagging last-minute gifts, there may be a learning curve. But many shoppers have already gotten comfortable shopping for kids’ clothes online, especially over the past couple years.
Wholesale partnerships should help Carter’s reach customers even if its own stores disappear from your mall. This way, even as physical stores shrink, Carter’s products remain easy to buy.
If you want to better understand how store closures affect brands (or if you’re curious about business planning in general), sites like StartBizPlan break down these moves and what they mean for both companies and customers.
The Bigger Picture: Carter’s Is Restructuring, Not Shutting Down
To wrap it up—Carter’s isn’t “going out of business” in the usual sense. They’re not bankrupt, and they’re not about to disappear from the baby clothes world.
What’s really happening is a big restructure. The company is cutting locations and jobs that no longer fit its plan for long-term health. Carter’s hopes a slimmer, more focused approach will help keep it profitable (and relevant) while costs for making clothes keep rising and families shop differently.
If you rely on Carter’s, most signs point to continued access—just maybe at a different location, or through a website instead of a store near you.
At the end of the day, Carter’s wants to adapt and stick around. And for parents, grandparents, and anyone else who’s shopped for a toddler’s wardrobe, that’s probably the reality that matters most.
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