The Children's Place Retail Stores is reducing spending in store operations, distribution centres, shipping, travel, marketing, real estate and human resources this year in a bid to save US$20m.

Last month The Children's Place said it was relocating its e-commerce business to Alabama, eliminating 350 jobs at its New Jersey plant.

The relocation is expected to result in one-time severance costs of $0.9m, capital expenditures of $2.0m, and annual savings of $1.8m beginning in the second half of 2009.

"The actions we are announcing today reflect our ongoing commitment to nurture growth opportunities, while tightly-managing costs and expenses during this difficult retail environment,'' said Chuck Crovitz, interim chief executive officer.

The company is also continuing its search for a new permanent CEO.