From Yahoo Finance · · 2m
Torrid shut 177 stores. The math says it had to
A plus-size chain closed a fifth of its shops because its own shoppers already moved online.
In brief
A plus-size chain closed a fifth of its shops because its own shoppers already moved online. When most of your demand is digital, stores stop being a growth engine and start being rent you pay for a showroom. Originally reported by Yahoo Finance.
Why people still walk in
A Chatmeter survey found 52% of shoppers pick a store over a website specifically so they can try things on. Mentions of trying or testing products rose 32% year over year.
“References to trying on/testing products surged 32% YoY on average at retailers and were up 58% at beauty retailers”
Seeing beats scrolling
Asked about their favorite part of a recent store visit, 25% said seeing a product in real life and 21% said trying one. The physical bit is the draw.
The showroom trap
The writer bought shirts in-store, went back for more, then ordered the rest of the colors online. The store did the selling and the website took the sale.
Torrid saw the pattern
In June 2025 Torrid told investors it would close around 180 underperforming stores out of just over 620, cutting fixed costs to fund digital growth.
“We now plan to close up to 180 underperforming stores this year”
Digital is the main store
CEO Lisa Harper said online now approaches 70% of total demand. The shops were serving a shrinking slice of how customers actually buy.
“Digital continues to be our customers' preferred channel, now approaching 70% of total demand.”
177 doors, closed
By the second-quarter call the program was substantially done at 177 closures. Harper said retention held up as marketing pushed shoppers online or to nearby stores.
“Customer retention through this transition has remained strong”
Smaller sales, fatter margins
Net sales fell 11.8% to $231.7 million and comparable sales dropped 6.3%. But gross margin rose to 38.7% from 35.6%, and net income climbed to $5.2 million from $1.6 million.
Brutal but necessary
Retail analyst Dominick Miserandino called the cuts an admission that hundreds of low-productivity mall leases were burning cash a digital business did not need.
“maintaining hundreds of low-productivity mall leases is just burning cash”
The market is growing
Plus-size womenswear was worth $23.6 billion in 2024 and is forecast to hit $37.4 billion by 2033. E-commerce is over 60% of sales and growing fastest.
Retreat, not collapse
GlobalData's Neil Saunders backed the closures, saying freed-up capital goes into marketing, product, and the stores that still show potential. Torrid is shrinking to fund the channel that works.
“Money will also go into stores that are showing potential.”
The takeaway
When most of your demand is digital, stores stop being a growth engine and start being rent you pay for a showroom.
