Plus size retailer shutters 177 stores in major…
They’re on a tear.
The brick-and-mortar massacre continues for an iconic Southern California fashion retailer.
Orange County-founded Torrid has reportedly shuttered a complete of 177 stores since last 12 months — as half of an ongoing company shift to digital gross sales, the company said.
Popular plus-size fashion model Torrid has now shuttered 177 stores out of the 180 or so it intends to get rid of, as the company shifts to digital gross sales. Daniel Boczarski
The plus-sized retailer announced earlier they’d be closing roughly 180 stores in complete.
“Digital continues to be our customers’ preferred channel, now approaching 70% of total demand. We’re accelerating our transformation to a more digitally-led business, which includes optimizing our retail footprint,” Torrid CEO Lisa Harper said in a earlier earnings call.
Harper said the transfer would permit the company to “reduce fixed costs and reinvest in areas that drive long-term growth.”
As of this month, Torrid’s complete quantity of stores is down to 457 areas across the U.S., Puerto Rico, and Canada — and that’s nice, the CEO insisted.
“Customer retention through this transition has remained strong, with our marketing efforts successfully redirecting traffic both online and to nearby stores,” Harper said in the company’s latest earnings call.
A crowd fills a Torrid store in Chicago back in 2015 — a decade before the company announced it was scaling back retail areas. Daniel Boczarski
Torrid was based in 2001 and opened its first location at the Brea Mall, in Brea. The retailer provides garments and equipment for ladies sizes 10-30.
The company’s internet gross sales decreased 11.8% to $231.7 million in contrast to $262.8 million for the second quarter of last 12 months, and its comparable gross sales decreased 6.3% in the second quarter.
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The company’s gross revenue margin, however, elevated 38.7% in contrast to 35.6% in the second quarter of last 12 months. It’s internet income also went up to $5.2 million, in contrast to a internet income of 1.2 million in last 12 months’s second quarter.
The dramatic transfer to slash stores might help the business in the long run.
“Torrid shedding a huge chunk of its stores is a brutal, necessary acknowledgment that physical stores were becoming a drag on their bottom line. When over 70% of your sales are happening online, maintaining hundreds of low-productivity mall leases is just burning cash,” RTM Nexus CEO Dominick Miserandino told TheAvenue.
The closures meet the wants of its buyer base, which clearly prefers online purchasing, he explained.
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