Struggling retail chain sounds the alarm on growing problem

If you're in the market for a new outfit or addition to your wardrobe, you probably know of a few reliable places to look. 

The local mall or plaza likely has a few trusty stores where you know you'd find some worthy targets. 

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If you're seeking a deal, you might look at your nearest outlet mall or discount retailer, like a Ross or Marshalls. 

And if you know your size and a few key terms associated with your desired outfit, you're likely to look online, where a whole bounty of brands, deals, and options are to be found. 

It's easy enough to shop for yourself. It's almost as easy to shop for your spouse or a close friend when you know what you're looking for. 

But this ease of use doesn't necessarily extend to every member of the family, especially if you haven't met them yet or if their size keeps changing.

Children's retail is a challenging game

For example, it might be a little bit harder to buy clothing for a small child or a baby, particularly if it's your first time. 

Children's sizes change rapidly, and they go through a lot of clothing quickly. This creates demand, but it's hard to predict, and many parents value different things.

To that end, many children's retailers tend to struggle because trust and brand recognition, along with price competition, are paramount for many new parents. 

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Many parents pay more attention to things like material, quality, sizing, and trust than they might for a regular clothing brand for themselves. 

This makes for a particularly competitive, crowded market. Top children's retailers like Gymboree, The Children's Place, and Carter's have faced stiff competition from online giants, which often offer convenience and lower prices for similar quality. 

It can thus be harder for a niche store to stand out in an already niche market. 

Carter's continues to struggle

And even some of the larger brands struggle. 

Such is the case for Carter's  (CRI) , the baby and children's brand popular in malls and shopping plazas. 

The store has seen declining sales, particularly in the U.S., in recent months.

U.S. sales were down over 5% in Q1. Net income dropped by almost 60% to $15.5 million compared to one year prior.

Carter's also chose not to provide forward-looking guidance for investors and analysts; it said that President Trump's tariffs and new leadership at the helm of its company made things too murky to predict the future.

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The retailer also warned that tariffs could make things worse for customers, too. 

“This obviously is not our preference,” CFO and COO Richard Westenberger said on the company earnings call.

“The proposed tariffs have the potential to raise prices on a range of essential items, including our products that families with young children rely upon.”

Carter's has already raised prices on a number of its more popular brand inventory, including the children's toy line Skip Hop. 

It has been working to mitigate its reliance on Chinese-imported goods, instead looking at shifting production to lower-tariff areas, including Vietnam and India, though this process will take time.