The retail landscape continues evolving at breakneck speed, and Torrid, the prominent plus-size women’s clothing retailer, has just announced one of the most significant store closure plans of 2025. The company will shutter up to 180 locations by year’s end, representing nearly 30% of its current 632-store footprint. This dramatic decision reflects broader changes in consumer behavior and the relentless march toward digital-first retail experiences.
The Numbers Behind the Decision
Torrid’s first quarter 2025 financial results paint a clear picture of why this transformation became necessary. Net sales declined 4.9% to $266 million compared to $279.8 million in the previous year’s first quarter. More telling, however, is the shift in where customers prefer to shop. Digital sales now account for approximately 70% of Torrid’s total business, with CEO Lisa Harper expecting this figure to reach the “low-to-mid 70%” range by next year.
The company’s leadership isn’t sugar-coating the situation. During recent earnings calls, executives explained that this massive closure plan represents a strategic pivot rather than simply cost-cutting measures. The retailer initially planned to close just 40 to 50 stores in 2025, but dramatically expanded these plans after evaluating store performance and customer channel preferences.
Strategic Reasoning Behind the Closures
## Digital Transformation Acceleration
The driving force behind Torrid’s decision centers on customer preferences. “Digital continues to be our customers’ preferred channel, now approaching 70% of total demand,” Harper stated during the company’s earnings call. This shift isn’t temporary—it represents a fundamental change in how plus-size fashion consumers shop.
Understanding customer loyalty plays a crucial role in this strategy. An impressive 95% of Torrid’s customers participate in the company’s loyalty program, providing the retailer with detailed insights into shopping patterns and preferences. This data clearly shows the migration toward digital channels.
## Financial Optimization
The closure strategy focuses on underperforming locations that drag down overall profitability. The company is systematically targeting stores averaging just $350,000 in annual sales, significantly below the company’s average performance. By eliminating these weaker performers, Torrid expects to improve overall margin performance and redirect resources toward more profitable operations.
Despite closing stores, Torrid plans to refresh 135 existing locations in Q3, describing these as “low-capital investments with an expected fast return”. This approach demonstrates the company’s commitment to maintaining a physical presence while optimizing performance.
Industry Context and Market Pressures
## Retail Apocalypse Continues
Torrid’s announcement comes amid a broader wave of retail closures affecting multiple sectors. Industry analysts estimate approximately 15,000 store closures will occur in 2025, nearly double the 7,325 stores that closed in 2024. Major retailers including Macy’s, Kohl’s, and Walgreens have all announced significant closure plans.
The pattern reflects changing consumer behavior accelerated by the pandemic and sustained by convenience preferences. Online shopping offers advantages traditional retail struggles to match: broader selection, competitive pricing, and the comfort of home shopping—particularly important for plus-size customers who may feel self-conscious in traditional retail environments.
## Economic Pressures
External economic factors compound these challenges. Torrid faces a projected $20 million impact from tariffs based on current rates, though the company plans to offset this through discretionary cost reductions, store optimization, and project prioritization. These pressures make operational efficiency even more critical.
Customer Impact and Retention Strategy
## Minimizing Customer Disruption
Torrid executives express confidence in retaining customers from closed locations. The company claims it retains 60% of customers from shuttered stores, leveraging its robust loyalty program that encompasses 95% of its customer base. This retention rate suggests strong brand loyalty among Torrid’s target demographic.
The company emphasizes that physical stores will continue serving important functions beyond pure sales. “Stores serve as community hubs and immersive brand-building experiences, introducing customers to our brand and sub-brands, offering the dressing room experience, and acting as service centers for purchases made online or in stores,” Harper explained.
## Community Impact
Store closures inevitably affect local communities and employees. While specific job loss numbers haven’t been disclosed, the closure of 180 locations will impact hundreds of retail workers across the country. Torrid has historically emphasized the role of store associates in building customer relationships, making these closures particularly challenging from a human resources perspective.
Future Outlook and Strategic Initiatives
## Sub-Brand Strategy
Torrid’s sub-brand strategy shows promising results, with upcoming launches of Lovesick and Studio Luxe expected to represent nearly a third of the business by 2026. These brands target younger demographics and command higher margins, supporting the company’s digital-first approach.
## Technology Investment
The savings from store closures will fund technology improvements and customer acquisition efforts. Harper indicated plans to “reinvest in areas that drive long-term growth, including customer acquisition and omnichannel enhancements”. This investment strategy positions Torrid to compete more effectively in the digital marketplace.
Broader Retail Industry Implications
Torrid’s transformation illustrates broader trends reshaping retail. Traditional brick-and-mortar advantages—immediate gratification, try-before-buying, personal service—increasingly cannot overcome digital shopping’s convenience and cost advantages. This shift particularly affects specialty retailers serving niche markets like plus-size fashion.
The success of Torrid’s strategy will serve as a case study for other specialty retailers facing similar pressures. If the company can maintain customer loyalty while dramatically reducing physical footprint, it may provide a roadmap for sustainable retail operations in the digital age.
The closure announcement represents more than cost-cutting—it’s a fundamental business model transformation. Whether this bold strategy succeeds will depend on Torrid’s ability to replicate the personal connection and community feeling of physical stores in digital environments while maintaining the operational efficiency that drove this decision.
Torrid Store Closure Specifications
| Metric | Details |
|---|---|
| Total Closures | Up to 180 stores |
| Percentage of Fleet | 30% of current locations |
| Current Store Count | 632 stores |
| Timeline | By end of 2025 |
| Original Plan | 40-50 closures |
| Q1 Closures | 2 stores |
Financial Performance Metrics
| Metric | Q1 2025 | Q1 2024 | Change |
|---|---|---|---|
| Net Sales | $266 million | $279.8 million | -4.9% |
| Net Income | $5.9 million | $12.2 million | -49% |
| Earnings Per Share | $0.06 | $0.12 | -50% |
| Comparable Sales | N/A | N/A | -3.5% |
| Digital Sales % | ~70% | N/A | Growing |
Strategic Priorities 2025
| Initiative | Description | Investment Level |
|---|---|---|
| Store Optimization | Close 180 underperforming locations | Major restructuring |
| Store Refreshes | Upgrade 135 existing stores in Q3 | Low-capital investment |
| Digital Enhancement | Improve omnichannel capabilities | Significant investment |
| Sub-brand Development | Launch Lovesick and Studio Luxe | Strategic investment |
| Tariff Mitigation | Offset $20M impact through cost reduction | Operational focus |
Frequently Asked Questions
Q: When will Torrid stores close?
Most closures will occur by the end of 2025, with specific timing varying by location.
Q: Will Torrid continue operating physical stores?
Yes, approximately 450+ stores will remain open, with 135 receiving upgrades in Q3 2025.
Q: How can customers find alternative shopping options?
Torrid’s website and mobile app offer the full product range, with 95% of customers already enrolled in the loyalty program for seamless transitions.