To reduce its fixed costs and reinvest in long-term growth, plus-size clothing retailer Torrid plans to close up to 30 per cent of its retail locations this year. This move by the company involves closing down up to 180 of its underperforming stores.
According to Lisa Harper, CEO, the company registers 70 per cent of its total demand from online shopping. Founded in 2001, the brand is known for its direct-to-consumer apparel, intimates, and accessories catering to women's sizes 10 to 30. Over the years, It has grown into a standalone brand with over 600 stores across the United States.
These store closures are a part of Torrid's transition to a more digitally-focused strategy, as per the June 5 report. In Q1, FY25, the retailer’s sales declined by 5 per cent compared to the previous year. Since January, it has already closed two locations, bringing the chain's current store count to 632.
Having debuted its first New York Fashion Week collection in 2017, Torrid is accelerating its transformation to a more digitally led business, which includes optimizing its retail footprint, notes Harper.
In Q1, FY25, Torrid's net sales declined by 4.9 per cent to $266 million from $279 million in Q1, FY24. The company also reported a net loss of $7.3 million, a stark contrast to the $11.8 million profit during the same period in 2024.
The closures are intended to better align its current demand and sales channels, says the Harper report. Despite these planned closures and sales decline, the company reaffirmed its full-year 2025 outlook, anticipating net sales between $1.030 billion and $1.055 billion.
