Children’s Place to Cut Spending

Secaucus, N.J. Children's Place Retail Stores Inc. said Thursday that it will lower spending across several business components during the first quarter as part of efforts that will save the company about $20 million a year.

The children's clothing retailer, which reported a 11% decline in January same-store sales, said it will cut spending for in-store operations, distribution centers, shipping, travel, marketing, real estate and human resources.

Further details of its savings plan will be discussed on March 19 when the company reports its fourth-quarter results.

Children's Place has been looking to save money as it contends with a strained retail environment and tightened consumer spending. Last month the company said it will relocate its e-commerce business to Alabama in June, affecting 350 jobs in New Jersey, where the unit is currently based.

The relocation will likely result in one-time severance costs of $900,000, $2 million in capital expenditures and annual savings of about $1.8 million beginning in the second half of the year.

Last year, Children's Place exited about 200 Disney Stores in North America, which it returned to Disney's control. The company has also cut its inventory to deal with softening demand.

Acting chair of the board and lead director Sally Frame Kasaks said in a statement that the completion of the company's strategic review now allows it to speed up its search for a permanent chief executive. Former CEO Ezra Dabah was forced out of the post in September 2007 after a company investigation found he had violated internal policies for securities trades.