URGENT UPDATE: Torrid, a leading plus-size women’s apparel retailer, has just confirmed plans to close nearly 200 stores across the United States, significantly impacting retail landscapes nationwide. The closures are aimed at optimizing its operations and achieving a target of 180 stores by the end of February 2025.
Several Torrid locations are set to close this month, including stores in Peoria, Illinois, Cherry Hill, New Jersey, and near Sacramento, California. Specifically, the Cherry Hill and Sacramento stores shut their doors on January 19, adding to the growing list of closures. With plans to close up to 106 additional locations by the end of January, the retailer is in the midst of a significant downsizing effort.
In the first three quarters of the current fiscal year, Torrid has already shuttered 74 stores, and CEO Lisa Harper expressed optimism during a recent earnings call. “We’re accelerating our transformation to a more digitally-led business, which includes optimizing our retail footprint,” she stated. Harper emphasized that these closures will allow Torrid to reduce fixed costs and reinvest in long-term growth strategies, particularly enhancing its online shopping experience.
Despite the downsizing, Torrid has reported financial struggles, with net sales plummeting 10.8% to $235.2 million compared to $263.8 million during the same period last year. Harper acknowledged the company’s disappointing performance, attributing some of the issues to “missteps” in its product assortment.
In a statement to The Street, a Torrid spokesperson noted that while closures are planned, specific details on the number of affected stores have not been finalized. “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 stated, highlighting the uncertainty surrounding the retailer’s future.
As the retail landscape continues to evolve, Torrid’s shift towards a more robust online presence aligns with a broader trend where consumers increasingly prefer shopping digitally. Approximately 70% of Torrid’s customers currently favor online purchases over in-store shopping, indicating a significant shift in consumer behavior.
WHAT’S NEXT: As Torrid moves forward with its closures, all eyes will be on how the company navigates its transformation and whether it can stabilize its financial performance amidst ongoing challenges. The upcoming weeks will be crucial for both the retailer and its loyal customer base as they adjust to these significant changes.
Stay tuned for more updates on this developing story, as Torrid’s future hangs in the balance and the impact of these closures reverberates through shopping malls and consumer habits across the nation.
