A beloved brand's bitter pill: Yankee Candle's store closures and layoffs. The iconic candle company, known for its scented delights, is facing a challenging chapter.
Yankee Candle, with its roots firmly planted in Massachusetts, is closing 20 stores across North America. This news comes from its parent company, Newell Brands, based in Atlanta. But here's where it gets controversial: Newell is also laying off 900 employees worldwide, a significant 10% of its professional and clerical workforce.
The company attributes these moves to underperforming sales, partly linked to tariff pressures. US-based layoffs are expected by year-end.
Yankee Candle's presence in Massachusetts is strong, with 15 stores, including its flagship store in Deerfield. The brand also operates stores in New Hampshire and Rhode Island. However, the specific stores facing closure remain undisclosed.
"This adjustment is a strategic move to align with modern consumer shopping habits," a Newell spokesperson explained.
Newell aims to save $110-$130 million annually through these cuts, with severance and restructuring costs estimated at $75-$90 million. CEO Chris Peterson emphasized the plan's focus on efficiency and long-term value for shareholders.
These closures are part of a larger contraction for Newell and Yankee Candle, which has seen job cuts and adaptations to the hybrid work environment.
According to Newell's annual report, Yankee Candle retail stores account for 90% of its global property footprint.
Newell's sales have taken a hit, with a 7.2% slump in the third quarter of 2025. Home fragrance sales dropped 17%, from $165 million to $136 million.
CEO Peterson cited international sales slumps and tariff costs as challenges. He also noted trade disruptions affecting consumer behavior.
"The international business, once on a positive growth trajectory, took a turn in September," he said.
While Yankee Candle products are largely made in the US, Newell's kitchen brands, like Crockpot and Mr. Coffee, face tariff pressures on imports from China and Southeast Asia.
Peterson expressed optimism for the fourth quarter, citing a recent rebrand using generative AI.
"The company's structural economics are stronger post-transformation," he added.
Newell acquired Yankee Candle in 2015 for $13.2 billion and owns other household brands like Sharpie and Rubbermaid.
What do you think about these changes? Are they necessary for the brand's survival, or do they signal a shift in consumer preferences? Share your thoughts in the comments!
