Fabric Outlet / Cali Fabrics

Q2 2026 Quarterly Account Review

Review period: April 1 through June 30, 2026
Account identity: Fabric Outlet, apparently continuing operationally as Fabric Mart, Inc. dba Cali Fabrics
Review status: Preliminary, pending USPS account data and account-name validation

1. Executive Account Summary

Fabric Outlet was a long-running San Francisco fabric retailer located at 2109 Mission Street. The physical store permanently closed on November 23, 2024 after nearly 30 years in operation. The online business continued under CaliFabrics.com, which had already operated as an online fabric store since June 2011.

The evidence does not support describing the change as a 2026 acquisition or merger. Instead:

CaliFabrics.com existed well before the Fabric Outlet closure.
The Fabric Outlet domain now displays Cali Fabrics content.
Cali Fabrics’ legal terms identify the operating company as Fabric Mart, Inc. dba Cali Fabrics.
The current Cali Fabrics warehouse and pickup location is listed at 1136 N. Carpenter Road, Suite 7, Modesto, California.

The account should therefore be reviewed for a possible legal-entity, account-name, and shipping-origin change rather than as a conventional acquisition.

Cali Fabrics remains an active family-operated e-commerce fabric retailer specializing in designer deadstock, knit fabrics, woven fabrics, linen, wool, denim, costume fabrics, notions, and trims. Its current shipping policy uses a multi-carrier model that includes USPS Ground Advantage, USPS Priority Mail, UPS Ground, and UPS Ground Saver. Cali Fabrics selects the carrier based on package weight, size, order value, and service requirements.

The most relevant Q2 2026 findings were:

Continued e-commerce operation from the Modesto warehouse.
Regular addition of new fabrics and sewing supplies.
Continued use of USPS Ground Advantage and Priority Mail within the economy-shipping mix.
Continued competition from UPS Ground and UPS Ground Saver.
Ongoing online returns and customer-service processes.
No verified Q2 announcement involving a merger, acquisition, new warehouse, ownership change, major funding event, or new fulfillment provider.

Preliminary USPS assessment: USPS remains a confirmed carrier for Cali Fabrics, but the account may still be recorded under the obsolete Fabric Outlet name or former San Francisco address. The immediate priority is to validate the legal entity, Salesforce account, CRID, permit, payment account, Modesto shipping origin, and current USPS revenue attribution.

2. Quarterly Performance Comparison

USPS account performance

Metric	Q2 2026	Q1 2026	Q2 2025	Change
USPS revenue	Unavailable	Unavailable	Unavailable	Not calculable
USPS package volume	Unavailable	Unavailable	Unavailable	Not calculable
Average revenue per package	Unavailable	Unavailable	Unavailable	Not calculable
Ground Advantage volume	Unavailable	Unavailable	Unavailable	Not calculable
Priority Mail volume	Unavailable	Unavailable	Unavailable	Not calculable
Returns volume	Unavailable	Unavailable	Unavailable	Not calculable
USPS product mix	Unavailable	Unavailable	Unavailable	Not calculable

Average revenue per package should be calculated as:

USPS revenue ÷ USPS package volume

The Project spreadsheet is required to calculate:

Q2 2026 versus Q1 2026 revenue and volume.
Q2 2026 versus Q2 2025 revenue and volume.
Revenue and volume percentage changes.
Average revenue per package.
Ground Advantage versus Priority Mail migration.
San Francisco versus Modesto origin changes.
Account-name or CRID fragmentation.
USPS versus UPS carrier-share movement.
Returns and replacement-shipment trends.

Verified current shipping profile

Shipping element	Published information
Operating brand	Cali Fabrics
Legal name shown in terms	Fabric Mart, Inc. dba Cali Fabrics
Current warehouse	1136 N. Carpenter Road, Suite 7, Modesto, CA 95351
Former retail operation	Fabric Outlet, 2109 Mission Street, San Francisco
Physical-store status	Closed November 23, 2024
Economy carriers	USPS Ground Advantage, USPS Priority Mail, UPS Ground and UPS Ground Saver
Carrier selection	Based on value, weight and package size
Express processing	Priority turnaround generally listed as one to two business days
Returns	Online return-request process
Free-shipping returns	15% restocking fee stated for qualifying returns

Account interpretation: USPS is part of the active carrier mix, but the current account relationship may be obscured if USPS activity remains attached to Fabric Outlet, the former San Francisco address, Fabric Mart, Inc., or a separate Cali Fabrics account.

3. Important Changes and Trends

Physical retail closed, e-commerce continued

Fabric Outlet closed its Mission District store in November 2024. Cali Fabrics continues operating online and lists a Modesto warehouse as its current pickup location.

Potential USPS significance: The account likely shifted from mixed retail and e-commerce operations to warehouse-based e-commerce fulfillment. USPS should determine whether package volume, pickup arrangements, account ownership, and origin-entry points moved from San Francisco to Modesto.

Multi-carrier parcel allocation

Cali Fabrics’ economy-shipping policy permits orders to be assigned to USPS Ground Advantage, USPS Priority Mail, UPS Ground, or UPS Ground Saver. The company chooses the service based on weight, size, and order value.

Potential USPS significance: USPS is competing at the shipping-rule level. The strongest sales opportunity is to determine why particular orders are assigned to UPS and whether Ground Advantage can capture a greater share.

Continuous product additions

Cali Fabrics continues adding designer deadstock, knits, wovens, seasonal fabrics, notions, and trims to its online catalog. The site’s newest-fabric section remained active during Q2, and at least one newly listed knit product carried a May 18, 2026 date.

Potential USPS significance: New-product drops and limited deadstock quantities may create irregular but recurring parcel increases. USPS should ask whether email announcements and social-media launches produce daily pickup spikes.

Shipping cost sensitivity

Fabric is generally sold by length, meaning package weight can increase quickly as customers add yardage. Cali Fabrics chooses its economy carrier using package weight and size, indicating that transportation economics are a meaningful order-routing factor.

Potential USPS significance: Ground Advantage may be strongest for smaller fabric orders, swatches, notions, trims, and lightweight knits. Larger bolts, bulk orders, and heavier fabrics may remain more competitive with UPS unless USPS pricing is improved.

Returns are managed online

Cali Fabrics requires customers to submit a return request with identifying information, order number, product details, and photographs when merchandise is damaged or incorrect.

Potential USPS significance: The account team should determine whether Cali Fabrics issues prepaid return labels, which carrier handles returns, and whether incorrect cuts or damaged fabric generate replacement shipments rather than physical returns.

4. Relevant Company Developments

No Q2 acquisition or merger verified

No reliable source published between April 1 and June 30, 2026 identified an acquisition, merger, or ownership change involving Fabric Outlet and Cali Fabrics.

The available evidence instead shows that:

CaliFabrics.com launched in 2011.
Fabric Outlet was the associated San Francisco retail operation.
Fabric Outlet closed in November 2024.
Fabric Mart, Inc. identifies itself as doing business as Cali Fabrics.
The online operation currently lists a Modesto warehouse.

USPS analysis: The Salesforce account may need to be renamed, merged, or related to a Cali Fabrics account, but that is an internal account-management action, not evidence of a corporate merger.

May 18, 2026: New fabric listing

Cali Fabrics listed a coral floral double-brushed polyester knit on May 18, 2026 as part of its active fabric assortment.

USPS analysis: A single product listing is not material by itself. It does confirm that the company remained actively merchandising and adding inventory during Q2.

Continued product and catalog activity

The company continued offering new designer deadstock, cottons, knits, linens, canvas, corduroy, sewing tools, and notions during Q2.

USPS analysis: A broad assortment creates several shipping profiles. Lightweight notions and apparel fabrics may fit USPS well, while canvas, denim, upholstery fabrics, and large-yardage orders may be heavier.

Continued Modesto warehouse operation

Cali Fabrics continued listing its Modesto location as a pickup-only warehouse during Q2.

USPS analysis: The Modesto location should be confirmed as the active USPS origin. The former San Francisco address should be removed from any operational or pickup records unless it remains tied to billing or legal documentation.

5. Potential USPS Impact

Ground Advantage

Ground Advantage may be suitable for:

Fabric swatches.
One- to three-yard apparel-fabric orders.
Lightweight knit fabrics.
Notions and trims.
Sewing tools.
Thread.
Patterns or instructional materials.
Small deadstock purchases.
Replacement shipments.
Residential e-commerce orders.

USPS is already listed as one of Cali Fabrics’ economy-shipping services.

Priority Mail

Priority Mail may support:

Express customer orders.
Time-sensitive costume and event projects.
Replacement fabric.
Orders needed before sewing deadlines.
Samples for designers and small businesses.
Higher-value designer deadstock.
Orders where faster delivery is selected.

Cali Fabrics includes USPS Priority Mail among the possible methods used for economy shipping, though its precise assignment rules are not published.

Returns and replacements

Fabric returns are operationally different from ordinary retail returns because cut yardage may be difficult to resell. Cali Fabrics’ public return form asks customers to identify damaged or incorrect merchandise and provide photographs.

USPS should determine:

Whether cut fabric is returnable.
Which carrier supplies return labels.
Whether defects result in refunds or replacements.
How frequently incorrect cuts are reshipped.
Whether swatches reduce return frequency.
Whether return shipping is deducted from refunds.
Whether the 15% restocking fee affects customer behavior.

Pickup requirements

The Modesto warehouse likely processes online orders with varying weights and package sizes.

USPS should review:

Average daily USPS volume.
Peak daily volume.
Cutting and processing lead time.
Pickup cutoff time.
Number of containers.
Weekend fulfillment.
Seasonal peaks around Halloween, cosplay events, holidays, and school productions.
New-product email and social campaign volume.
UPS and USPS pickup differences.

Account and origin alignment

The former Fabric Outlet account name and San Francisco address may no longer accurately represent the shipping operation.

Potential internal USPS actions include:

Validate the legal name.
Confirm whether Fabric Mart, Inc. is the contracting entity.
Confirm the Cali Fabrics DBA.
Identify the active Modesto CRID and permit.
Determine whether duplicate Salesforce accounts exist.
Transfer or associate revenue correctly.
Confirm the responsible USPS sales territory after the origin move.

Competitive carrier position

UPS Ground and UPS Ground Saver are direct competitors in Cali Fabrics’ economy-shipping rules.

USPS should compare:

Packages below one pound.
Packages between one and five pounds.
Residential destinations.
Rural and extended-area destinations.
Alaska, Hawaii, P.O. boxes, military addresses, and territories.
Total cost including UPS residential and delivery-area charges.
Delivery performance.
Claims and tracking.
Pickup convenience.

6. Opportunities

1. Correct the account identity

Determine whether the USPS account should be maintained as:

Fabric Mart, Inc.
Cali Fabrics.
Fabric Outlet.
Fabric Mart, Inc. dba Cali Fabrics.

The preferred structure may be a legal-account name with Cali Fabrics listed as the DBA and Fabric Outlet retained only as a former name.

2. Consolidate duplicate revenue records

Search for separate Salesforce, CRID, permit, and payment records under Fabric Outlet, Cali Fabrics, Fabric Mart, Inc., and the San Francisco and Modesto addresses.

3. Expand Ground Advantage share

Obtain all-carrier shipment data and compare USPS with UPS for fabric orders by:

Weight.
Dimensions.
Zone.
Order value.
Fabric category.
Yardage.
Destination type.

4. Protect USPS Priority Mail usage

Determine when Cali Fabrics assigns Priority Mail and whether UPS is capturing expedited or higher-value orders that USPS could retain.

5. Develop a swatch-shipping program

Fabric swatches are small, lightweight, and often lead to larger purchases. USPS should determine current swatch volume, packaging, service, and conversion value.

6. Analyze replacement shipments

Incorrect fabric, damage, cutting errors, or short shipments may generate replacements. These may be strong USPS opportunities because they are generally small and time-sensitive.

7. Improve Modesto pickup support

Confirm that the new warehouse has appropriate pickup timing, capacity, scanning, equipment, and escalation contacts.

8. Support seasonal forecasting

Develop forecasts around:

Halloween and costume season.
School and theater productions.
Holiday sewing.
Cosplay conventions.
New designer deadstock releases.
Promotional sales.
Email and social-media product drops.

9. Review free-shipping economics

Cali Fabrics chooses economy carriers using weight, size, and order value. USPS can evaluate whether expanded Ground Advantage use reduces the cost of free-shipping orders.

10. Assess returns-carrier opportunity

Confirm whether UPS or USPS currently handles authorized returns and whether USPS Returns or printerless options would improve convenience.

7. Risks and Concerns

USPS account data were unavailable.
The Fabric Outlet account name may be obsolete.
The former San Francisco store closed in 2024.
The active fulfillment origin appears to be Modesto.
Revenue may be attached to a separate Cali Fabrics or Fabric Mart account.
UPS Ground and UPS Ground Saver compete directly for economy orders.
Heavy fabric and larger-yardage orders may be less competitive for USPS.
Fabric dimensions and density vary significantly by material.
Cut fabric may have limited return eligibility.
Digital marketing and new-product drops can create irregular volume.
The current USPS pricing agreement and expiration date are unknown.
Pickup and service issues at the Modesto warehouse are unknown.
The Cali Fabrics website retains some references to the former San Francisco store, creating potential confusion about current operations.
No material Q2 company announcement was found, limiting external explanation of account changes.

8. Customer Questions

Is Fabric Mart, Inc. the current legal operating entity?
Is Cali Fabrics the only active DBA?
Is Fabric Outlet now only a former retail name?
Are any operations still conducted from 2109 Mission Street?
Is 1136 N. Carpenter Road in Modesto the sole fulfillment origin?
Are there separate USPS accounts under Fabric Outlet and Cali Fabrics?
What were Q2 2026 USPS revenue and package volume compared with Q1 2026 and Q2 2025?
What percentage of orders currently moves through:
- USPS Ground Advantage?
- USPS Priority Mail?
- UPS Ground?
- UPS Ground Saver?
How are carrier-routing decisions made?
What are the average package weight, dimensions, zone, and order value?
What percentage of packages weighs:

Under one pound?
One to three pounds?
Three to five pounds?
More than five pounds?

How many swatch orders ship each quarter?
Which carrier handles returns?
Are cut fabrics eligible for return?
How many replacement shipments result from damage, cutting errors, or incorrect merchandise?
Does new-product marketing create order spikes?
Are pickup times and capacity adequate at the Modesto warehouse?
Are UPS residential or extended-area charges affecting carrier decisions?
Are there known USPS tracking, delivery, claims, billing, or pickup issues?
When does the current USPS pricing agreement expire?
Which commitments from the previous QAR remain open?

9. Recommended Actions

USPS actions

Retrieve the Fabric Outlet account row and search for related Cali Fabrics and Fabric Mart records.
Validate the legal entity and DBA.
Confirm the active Modesto shipping origin.
Identify all CRIDs, permits, payment accounts, and Salesforce records.
Consolidate or relate duplicate accounts where appropriate.
Retrieve Q2 2026, Q1 2026, and Q2 2025 USPS revenue and volume.
Calculate quarter-over-quarter and year-over-year changes.
Calculate average revenue per package.
Obtain an all-carrier shipment file.
Analyze USPS and UPS assignments by weight, size, zone, value, and fabric category.
Review Ground Advantage expansion opportunities.
Confirm current Priority Mail usage.
Analyze swatches, returns, and replacement shipments.
Review Modesto pickup and scanning performance.
Prepare seasonal volume forecasts.
Confirm pricing-agreement expiration and renewal requirements.
Document service issues, prior commitments, owners, and due dates.

Recommended customer follow-up

Schedule a QAR with Cali Fabrics ownership or management and the individuals responsible for:

Warehouse operations.
Shipping.
Customer service.
E-commerce.
Returns.
Finance.
Carrier procurement.

The meeting should begin by confirming the legal entity, account name, closed San Francisco location, Modesto fulfillment operation, and ownership of USPS permits and postage accounts.

10. Salesforce-Ready Account Update

Q2 2026 QAR: Fabric Outlet’s San Francisco retail store closed on November 23, 2024. Available evidence indicates that Fabric Outlet was associated with the same family business operating CaliFabrics.com, rather than being acquired or merged during Q2 2026. Cali Fabrics identifies its legal operator as Fabric Mart, Inc. dba Cali Fabrics and currently lists a pickup-only warehouse at 1136 N. Carpenter Road, Suite 7, Modesto.

Cali Fabrics remains an active e-commerce fabric retailer and uses USPS Ground Advantage, USPS Priority Mail, UPS Ground, and UPS Ground Saver for economy shipping. Carrier selection is based on weight, package size, and order value.

Potential USPS opportunities include correcting the account identity, consolidating duplicate Fabric Outlet and Cali Fabrics records, expanding Ground Advantage share, protecting Priority Mail, developing swatch and replacement-shipment opportunities, reviewing returns, and improving Modesto pickup support.

Risks: USPS revenue and volume data were unavailable. The account may still be attached to an obsolete company name or former San Francisco address. UPS directly competes for economy shipments, and heavier fabric orders may be less suitable for USPS.

Next steps: Validate the legal entity and active DBA, identify all related Salesforce and postal accounts, retrieve quarterly performance, obtain all-carrier shipping data, review the Modesto pickup operation, and schedule a customer transportation review.

Follow-up date: Not provided.

11. Information Required to Finalize the QAR

Current legal account name.
Confirmed DBA structure.
Salesforce account ID.
Active Modesto shipping address.
Q2 2026 USPS revenue and volume.
Q1 2026 USPS revenue and volume.
Q2 2025 USPS revenue and volume.
Average revenue per package.
Ground Advantage volume.
Priority Mail volume.
UPS volume.
Package weight and dimensional distribution.
Shipping platform.
Pickup arrangement.
Returns carrier and volume.
Swatch volume.
Replacement-shipment volume.
Current pricing agreement.
Agreement expiration date.
Known service issues.
Previous commitments.
Open opportunities.
Last meeting and QAR dates.
Next action and follow-up date.

12. Sources

Cali Fabrics, company history: CaliFabrics.com launched in June 2011 and continued as a family-operated online fabric retailer. Published date not shown; reviewed June 30, 2026.
Mission Local, September 27, 2024: Fabric Outlet announced that its San Francisco store would close on November 23, 2024.
The Bold Italic, September 28, 2024: Reporting on Fabric Outlet’s closing sale and final operating date.
Cali Fabrics Terms of Service: Fabric Mart, Inc. identified as doing business as Cali Fabrics. Published date not shown; reviewed June 30, 2026.
Cali Fabrics Support Center: Current Modesto warehouse and pickup location. Published date not shown; reviewed June 30, 2026.
Cali Fabrics Shipping Policy: USPS Ground Advantage, USPS Priority Mail, UPS Ground, and UPS Ground Saver listed as economy-shipping options. Published date not shown; reviewed June 30, 2026.
Cali Fabrics Return Request: Current online return-request process. Published date not shown; reviewed June 30, 2026.
Cali Fabrics Newest Fabrics: Continued active product additions during Q2 2026. Published date not shown; reviewed June 30, 2026.
Cali Fabrics product listing, May 18, 2026: New double-brushed knit product added during the Q2 review period.

Fabric Outlet