Torrid, a Southern California-founded women's fashion retailer, has closed 177 stores since last year as part of a strategic pivot to digital sales. The company plans to close approximately 180 locations in total, a move aimed at optimizing its retail footprint and reducing fixed costs.
"Digital continues to be our customers’ preferred channel, now approaching 70% of total demand," Torrid CEO Lisa Harper stated in a previous earnings call. "We’re accelerating our transformation to a more digitally-led business, which includes optimizing our retail footprint."
This strategic shift allows the company to reinvest in areas that drive long-term growth, according to Harper. As of this month, Torrid operates 457 stores across the U.S., Puerto Rico, and Canada. The company reported that customer retention during the transition has remained strong, with marketing efforts redirecting customers to both online channels and remaining physical stores.
Founded in 2001, Torrid opened its first store at the Brea Mall and offers clothing and accessories for women sizes 10-30. The company's net sales for the second quarter decreased 11.8% to $231.7 million compared to the same period last year, with comparable sales down 6.3%. However, the gross profit margin increased to 38.7% from 35.6%, and net income rose to $5.2 million from $1.2 million year-over-year.
Industry analysts suggest that shedding a significant number of physical stores is a necessary response to evolving consumer behavior. "Torrid shedding a huge chunk of its stores is a brutal, necessary acknowledgment that physical stores were becoming a drag on their bottom line," said RTM Nexus CEO Dominick Miserandino. "When over 70% of your sales are happening online, maintaining hundreds of low-productivity mall leases is just burning cash." Miserandino added that the closures align with customer preferences for online shopping. This move is expected to benefit the business in the long term by focusing resources on its most effective sales channels.