The US economy is again a protagonist due to the retail crisis. One of the most well-known clothing stores in the United States has announced the closure of 180 branches throughout the country. We talk about the Torrid commerce, dedicated to the fashion retail, especially large sizes. Consumers are seeing more and more retail companies shut down due to increased online demand and rising costs. Will the small business cease to exist and all our purchases will be made online in a medium-long period of time?
Torrid
In 2001 it opened its doors for the first time in California, specifically at the Brea Mall. By 2024, there were already more than 650 stores throughout the North American continent and some in Canada. This is a women’s fashion shop, with sizes from 10 to 30. Known for its plus size offer, it has announced the closure of 180 of its branches before the end of this year.
Bad news for consumers
There are many people who come to the shops of Torrid to make their purchases. However, some of them will not be able to continue in person after the announcement of the closure of 180 of their establishments. Lisa Harper, the Executive Director of the brand, has stated that it is a problem related to reduced face-to-face sales and increased costs. 30% of its physical establishments have been hit by an incessant online demand, 70% in fact and the need to reduce fixed costs. This massive closure is not only a surprise for consumers and a chore for the company, but it involves thousands of jobs that, along with the physical establishment, will disappear.
Thus, Torrid is committed to a transformation towards the digital world, with the intention of optimizing its sales. The stores that have been chosen to be closed with those that reverted less profits, with the idea of reducing these costs and reinvesting them in a better strategy. However, they also aim to improve in order to optimise establishments. Harper explains it with this statement “We are accelerating our transformation into a business with digital leadership, which includes optimizing our physical presence”.
The strategy of sub-brands
Another strategy that the Torrid brand has put in place has been the use of sub-brands. According to Harper, they are seeing very positive results. The brands we will see in stores in 2026 will be Lovesick and Studio Luxe. She stated that thanks to the loyalty program and the efforts generated by the brand, Torrid will succeed in positioning itself on the market with a remarkable growth and a constantly growing revenue; “Our acquisition and retention efforts, along with the backing of our popular loyalty program, will position Torrid for more efficient and accelerated revenue growth”.
Mysterious closures
Despite having made this statement, the brand Torrid has not given any further information. It is not known when this closure will occur and which establishments will be affected. It is not known whether there will be another communication with such pending information, or if the closures will occur automatically and without prior notice. However, you can still enjoy the physical establishments or, failing that, continue to enjoy their fashion trends through orders on their website.
The mass closure of small-scale brand stores has increased significantly in recent years. However, some of the country’s big companies are also falling. Whether it is a small shop or a large market, they are all affected by exactly the same factors: increased online sales and the need to reduce fixed costs. It seems that a future where physical stores disappear and all purchases are carried out through e-commerce is closer and closer. What do you think? Do you like this new scenario?
What other major brands in the country are closing?
