UPDATE: Torrid, a major plus-size women’s apparel retailer, has just confirmed the urgent closure of nearly 200 underperforming stores across the United States. This announcement comes as part of a strategic plan to optimize its retail footprint and shift towards a more digitally-led business model.
The retailer, which has been struggling with declining sales, is set to close locations in Peoria, Illinois, Cherry Hill, New Jersey, and near Sacramento, California as early as January 19, 2025. Torrid aims to reduce its store count to 180 by the end of the current fiscal year in February, with up to 106 locations potentially shuttered before the month concludes.
In recent earnings reports, Torrid revealed a significant 10.8% decrease in net sales, dropping to $235.2 million compared to $263.8 million for the same period last year. CEO Lisa Harper expressed disappointment over the company’s performance, citing “missteps” in the overall product assortment.
“By accelerating our transformation to a more digitally-led business, we are optimizing our retail footprint,” Harper stated during the earnings call. “This allows us to reduce fixed costs and reinvest in areas that drive long-term growth, including customer acquisition and omnichannel enhancements. We remain in a strong financial position and are executing with clarity and focus.”
Despite the significant changes, a spokesperson for Torrid indicated that specific details regarding the closures remain uncertain. “At this time, we know that some store closures are planned. However, we do not have confirmed details on exactly how many stores will be affected or which specific locations may close,” they said.
The shift towards online shopping is evident, with Harper noting that approximately 70% of Torrid’s customer base prefers to shop online rather than in-store. This strategic pivot aims to cater to evolving consumer behaviors and preferences, especially in the wake of the pandemic.
Torrid’s future remains uncertain as it navigates these closures, but the retailer is committed to adapting its strategy to meet customer demands. As the landscape of retail continues to change, Torrid’s moves reflect a broader trend in the industry towards digital transformation and cost management.
With the company facing these challenges, observers will be watching closely to see how these closures impact Torrid’s financial viability and market positioning in the coming months.
