More than two-thirds (67%) of American adults with an income of $100,000 or more are parents, representing a lot of spending power. And now, as a whole new demographic (Gen Z) ventures further into parenthood, brands and retailers need to adapt their strategies to reflect this cohort’s behaviors, priorities and even beliefs.
That is why Carter’s, the baby and children’s retailer behind Carter’s, OshKosh B’Gosh, Little Planet and Skip Hop, recently implemented a fresh direction and approach that spans marketing, product development and even store design. The goal, according to Allison Peterson, Chief Retail & Digital Officer at Carter’s, is to connect with the next generation of families while doubling down on the issues (like sustainability) that the business has prioritized for years.
In a recent interview with Retail TouchPoints, Peterson shared more details on this transformation journey, including Carter’s investments in:
- An immersive, reimagined retail experience complete with a Mothers’ Lounge, toddler-tested Playhouse, Kid Interactive Zone, gift shop, community events and more. The new store concept was unveiled at Carter’s first flagship in Atlanta this past October, with plans to expand the concept nationwide by 2026.
- A revamped product assortment that leans into trend-forward products and styles mimicking parents’ personal styles, including “mini me” versions of fashionable items. The company also is unveiling new artwork, fonts, colors, prints and fabrics based on consumer insights and trends.
- Reimagined marketing creative and campaigns that authentically demonstrate the new realities of modern parenthood.
Retail TouchPoints (RTP): What inspired Carter’s to implement a new direction and approach for the overall business?
Allison Peterson: Our strategy began with the insight that Gen Z consumers, who we’ve been talking about for a long time, are now beginning their parenting journeys. It is projected that nearly two-thirds of expecting and new parents will be Gen Z by 2025. Around 18 months ago, we began to implement a refreshed approach to trend-forward products, a reimagined retail experience and new creative marketing that underscores what it’s like to be a modern parent. Carter’s has been a leader in the baby and children’s space for nearly 160 years, and we’re dedicated to being the go-to source for parents with young children for many generations to come.
Our long-term strategy for Carter’s is to continuously anticipate and meet the evolving needs of our shoppers. As consumer needs and preferences change, we’ll evolve accordingly, from our product to our retail experience, all while staying committed to providing reliable, stylish products at an affordable value.
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RTP: How have you used data and insights to inform your approach?
Peterson: At Carter’s, we prioritize listening to parents, particularly millennials and Gen Z, because their feedback has been the catalyst for this brand refresh. We have a comprehensive data-gathering process that includes traditional focus groups, surveys and social listening, alongside retail tests in our stores across the country. This effort involves team collaboration to analyze insights and ensure that our products and experience are not only rooted in data, but also aligned with the needs of today’s parents.
Our most critical takeaway [from this process] has been recognizing that the wants and needs of parents have evolved. We found that this customer prioritizes in-store shopping, value, social influence and style-forward products that mimic their own personal style. That insight is our North Star, leading us to our goal of providing the right product parents can trust through an engaging experience and at an accessible value.
RTP: How did you take the learnings and conceptualize the reimagined store experience? Who were the key players in this process?
Peterson: Our reimagined retail experience is fully captured at Carter’s first-ever flagship in Atlanta. The 12-month development process was deeply informed by the work of our Consumer Insights team, as well as on-site store testing across the fleet.
Our partners at Rush Creative Studio invested a lot of time on the front end of the project, helping the Carter’s internal team define the vision. From there, our talented team of designers and visual merchandisers executed an interactive, easy and inspiring experience. The result is our 9,000-square-foot space and the best representation of Carter’s house of brands.
RTP: Beyond the experiential components, how did Carter’s elevate the visual storytelling and in-store creative elements to reflect the new behaviors and expectations of modern parents?
Peterson: A big unlock is understanding how our customers shop by gender and size across our house of brands. At the Atlanta flagship, we’ve merchandised that way with storytelling moments throughout. For example, the baby section spotlights our newest brand, PurelySoft, which is merchandised alongside Carter’s by Davinci nursery furniture, because we know that expecting parents create their nursery and build a baby’s wardrobe together.
Another example is Little Planet, our fastest-growing and most sustainable brand, which is highlighted in a distinct shop-in-shop environment, still within the baby zone. We have moments like this in toddler and kid areas as well. The store inspires parents with video on digital screens in each area showing how to style key looks seen on mannequins throughout the floor. And of course, we have those unique experiential components.
RTP: Carter’s refined product assortment is more trend-forward. Can you share some examples of what that entails?
Peterson: The product assortment is a refinement in some areas and expansion in others. Customers will find a cleaner, pared down aesthetic with a larger assortment of textured knitwear. We’ve also introduced more fashion-forward collections that reflect the personal style of parents: varsity, ballet core, wide-leg jeans and tiny Y2K cargo pants, to name a few. We’re also expanding our innovations like Carter’s PurelySoft and Little Planet, showcasing our commitment to relevant styling and premium, sustainable fabrics like organic cotton and the largest assortment of OEKO-TEX certified baby apparel.
RTP: You noted that Little Planet is your most sustainable brand. What role does ESG play in the broader Carter’s business strategy?
Peterson: Sustainability plays a vital role in our product development strategy at Carter’s. For generations, we’ve been trusted to provide families with safe, high-quality children’s apparel, and our commitment to sustainability and social responsibility continues to be integral to that mission. Since launching our Little Planet brand in 2021, we’ve prioritized sustainable innovation and established practices that benefit all our brands, with investments in resources such as GOTS-certified organic cotton and sustainably sourced materials.
RTP: Carter’s is reimagining its marketing to focus on ‘real’ parenthood moments. Have there been any messaging or visual shifts to reflect this authenticity?
Peterson: Our shifts in messaging reflect our understanding of what modern parents truly seek: authentic, honest accounts of parenting. For example, our ‘More Than Just Cute’ campaign embodies this new approach, emphasizing that as a nearly 160-year-old brand, we recognize that cute clothes alone aren’t enough. Performance and value are now foundational to our entire house of brands. To ensure that our visual and written changes resonate consistently across all channels — whether it’s TV, social media, paid digital or in-store — we’ve established a cohesive strategy that reinforces our commitment to real parenting experiences. By staying true to these values, we connect with today’s families in a meaningful way.
