Yet another retailer, Children’s Place, is all set to close down its stores much like other giants, including Macy’s, Foot Locker, The RealReal, and JCPenney, among others.
It’s like a wave out there that’s forcing these companies to announce such disheartening news.
Keep on reading to access the list of Children’s Place closing stores this year and to find out the reason behind this step.
Is Children’s Place Closing Stores?
Yes, Children’s Place is closing stores.
In 2013, Children’s Place developed a strategic plan to transform from a brick-and-mortar location to a digital-first business, spending over $50 million in the coming years.
In 2023, this year, Children’s Place plans to close down 100 of its stores.
After closing down 100 stores, Children’s Place will operate with approximately 500 stores which will allow them to scale their operations.
Why is Children’s Place Closing Stores?
Children’s Place is closing stores as a part of its multi-year digital transformation strategy.
As per this strategy, Children’s Place wants to reduce its brick-and-mortar footprint to stay relevant to the shifting consumer habits towards online shopping platforms.
Jane Elfers, the President and SEO of Children’s Place said, “We are confident that our projected fleet size of approximately 500 stores allows us to maximize our omnichannel capabilities and grow our industry-leading digital penetration and service our young, digitally savvy customers through our highest operating margin channel,”
As such, the Kid’s retail store plans to start 2024 with an “optimized fleet” with just 500 stores.
“By the end of 2023, our fleet optimization strategy will be substantially complete, positioning us in the optimum brick-and-mortar locations to service our millennial and Gen Z consumers’ omnichannel shopping preferences,” Elfers added.
List of 100 Children’s Place Closing Stores In 2023
We only know that Children’s Place is shutting down additional 100 stores in 2023, but the company has not revealed the locations yet.
We hope they will reveal the locations that will bear the brunt very soon, so keep an eye out.
Is Children’s Place Closing Stores Permanently?
Yes, Children’s Place is closing stores permanently.
Ever since the company announced its strategy, it has closed down 586 Children’s Place stores permanently, including 315 during the onset of Covid and 613 recently in 2022.
This year too, they will be winding up 100 more stores.
What Is The Future of Children’s Place?
Children’s Place’s decision to reduce its in-store footprint is the need of the hour.
The company realizes and says that if they continue to operate in-store and do not cater to the changing demands of millennials, then soon they will end up like other companies which are closing permanently.
Sheamus Toal, senior vice president and chief financial officer of Children’s Place said, By 2025, The Children’s Place projects more than 60% of total retail sales will be digital, doubling its digital penetration in six years and putting it on track to be a $1 billion business.
Children’s Place plans to invest $40 million in additional e-commerce fulfillment capabilities over the next 18 months to improve and increase its profit margins and earnings.
Children’s Place’s decision seems a good step towards a protected future for the company.
Children’s Place plans to close 100 stores this year to cut down its fleet to 500 stores only.
This seems like a good decision that would s
Shefali Jain is a Content Writer & Editor at USWorkforce.org
After completing her graduation in hospitality, Shefali decided to follow her passion and started writing. Shefali has been writing for two years now and contributes to our website as a skilled editor and content writer with strong research skills. Writing product and service reviews, biographies, and book reviews are some of her key areas, among many others in which she specializes. In her time at the organization, she has written and edited content on a range of topics, including employment law, human resources, and business management.