Latest news with #retailClosures
Daily Mail
2 days ago
- Business
- Daily Mail
Major clothing retailer to shut up to 180 stores
Once a favorite of celebs like Rebel Wilson and a trailblazer in plus-size fashion, Torrid is now closing up to 180 stores after a sharp drop in sales. The retailer, known for its high-profile collaborations and its history-making runway debut at New York Fashion Week, confirmed it will shutter nearly a third of its locations this year following a 4.9 percent dip in net sales. CEO Lisa Harper said the move is part of a strategy to become a 'more digitally-led business,' noting that 70 percent of customers already shop online. The closures will bring Torrid's total number of stores down from 658 to around 450. Founded in 2001, Torrid built its brand around plus-size fashion, collaborating with figures like Rebel Wilson, Betsey Johnson, and model Tara Lynn. The brand made headlines in 2014 when it featured Georgina Burke as its first official face and again 2017 when it became plus-size label to show at New York Fashion Week. Though some customers on Instagram expressed disappointment, many weren't surprised given the rise in online shopping. But store employees were blindsided, with some claiming they learned about the closures only after customers began asking questions in-store. 'When customers started asking me during my shift if our location was the one closing, I had nothing to say… because I didn't know either,' an Instagrammer wrote. 'We're the ones holding the stores together, and yet we're the last to know? It shouldn't be like this.' Other customers worried the decision could lead to 'the end of Torrid.' Retail expert Neil Saunders pointed out that Torrid's sales have been in decline as shoppers are either cutting back on costs or going to other retailers. 'While the slides are not dramatic they have put store productivity under pressure which, in turn, has damaged profitability,' Saunders told 'On top of this, more core shoppers are now using online which raises a question over how many stores Torrid needs to serve customers – especially since they have a number in secondary and tertiary malls.' Saunders believes the closures are sensible for the chain, and that it will 'free up capital' to invest in marketing and product developments. 'Money will also go into stores that are showing potential. This balanced approach shows that Torrid is still thinking about the customer and not just running up the white flag with store closures,' he said. 'However, with reduced visibility through stores the company will need to double down on efforts to acquire and retain customers.' In addition to store closures, Torrid has stopped selling shoes, citing rising costs from tariffs imposed under President Donald Trump. Looking ahead, the company says it aims to have 75 percent of its sales come from digital channels, with just 25 percent coming from stores. A full list of the stores being shuttered has not yet been released. Torrid's closures come after a widespread 'retail apocalypse' last year saw brick-and-mortar stores close in their droves. Up until mid-December, US retailers shut 7,300 stores - up nearly 60 percent from 2023. Macy's, for example, is in the process of closing 150 underperforming stores , including its Massapequa store in Sunrise Mall , and its beloved Center City, Philadelphia location . Other chains have been forced into bankruptcy, including the now-defunct Forever 21 and Rite Aid, which is also set to disappear from malls and Main Streets after its second bankruptcy in two years .
Daily Mail
3 days ago
- Business
- Daily Mail
Mall fashion staple to abruptly shut nearly 200 stores as retail apocalypse accelerates
Once a favorite of celebs like Rebel Wilson and a trailblazer in plus-size fashion, Torrid is now closing up to 180 stores after a sharp drop in sales. The retailer, known for its high-profile collaborations and its history-making runway debut at New York Fashion Week, confirmed it will shutter nearly a third of its locations this year following a 4.9 percent dip in net sales. CEO Lisa Harper said the move is part of a strategy to become a 'more digitally-led business,' noting that 70 percent of customers already shop online. The closures will bring Torrid's total number of stores down from 658 to around 450. Founded in 2001, Torrid built its brand around plus-size fashion, collaborating with figures like Rebel Wilson, Betsey Johnson, and model Tara Lynn. The brand made headlines in 2014 when it featured Georgina Burke as its first official face and again 2017 when it became plus-size label to show at New York Fashion Week. Though some customers on Instagram expressed disappointment, many weren't surprised given the rise in online shopping. But store employees were blindsided, with some claiming they learned about the closures only after customers began asking questions in-store. 'When customers started asking me during my shift if our location was the one closing, I had nothing to say… because I didn't know either,' an Instagrammer wrote. 'I was completely in the dark and had to go online to see what they were talking about.' Others said the lack of communication left them anxious and uncertain about their jobs. 'It's such a terrible feeling- confusing, disheartening, and honestly just sad,' another employee responded. 'We're the ones holding the stores together, and yet we're the last to know? It shouldn't be like this.' Other customers worried the decision could lead to 'the end of Torrid.' Retail expert Neil Saunders pointed out that Torrid's sales have been in decline as shoppers are either cutting back on costs or going to other retailers. 'While the slides are not dramatic they have put store productivity under pressure which, in turn, has damaged profitability,' Saunders told 'On top of this, more core shoppers are now using online which raises a question over how many stores Torrid needs to serve customers – especially since they have a number in secondary and tertiary malls.' Torrid is shuttering up to 180 stores this year after suffering a 4.9 percent decrease in net sales Saunders believes the closures are sensible for the chain, and that it will 'free up capital' to invest in marketing and product developments. 'Money will also go into stores that are showing potential. This balanced approach shows that Torrid is still thinking about the customer and not just running up the white flag with store closures,' he said. 'However, with reduced visibility through stores the company will need to double down on efforts to acquire and retain customers.' In addition to store closures, Torrid has stopped selling shoes, citing rising costs from tariffs imposed under President Donald Trump. Looking ahead, the company says it aims to have 75 percent of its sales come from digital channels, with just 25 percent coming from stores. A full list of the stores being shuttered has not yet been released. Torrid's closures come after a widespread 'retail apocalypse' last year saw brick-and-mortar stores close in their droves. Up until mid-December, US retailers shut 7,300 stores - up nearly 60 percent from 2023. Burke was the face of Torrid for one year. The brand also launched a lingerie collection with Tara Lynn in 2018 Macy's, for example, is in the process of closing 150 underperforming stores, including its Massapequa store in Sunrise Mall, and its beloved Center City, Philadelphia location. Other chains have been forced into bankruptcy, including the now-defunct Forever 21 and Rite Aid, which is also set to disappear from malls and Main Streets after its second bankruptcy in two years. Meanwhile, multiple big name home improvement stores — including Bed Bath and Beyond, Christmas Tree Shops, Bargain Hunt, Conn's, LL Flooring, and The Container Store — have all announced bankruptcies and store closures. The Container Store and LL Flooring have since emerged from bankruptcy. The other stores shuttered all of their locations and largely ceased operations
