Americans still shop in malls, but they have become selective about which ones.
“Indoor malls outperformed both open-air centers and outlet malls on a full-year basis as the only format to post visit gains during all four quarters — signaling a shift from recovery into growth,” according to Placer.ai’s.2025 Mall Index.
And, as the economy has struggled, wealthy customers have not abandoned shopping at malls.
“Across formats, higher-income and suburban family segments over-index among mall visitors. Indoor malls and open-air centers attract a disproportionate share of ultra-wealthy and affluent suburban households, underscoring malls’ ongoing relevance for consumers seeking family-friendly activities and experiences,” according to the research.
It’s a healthier retail environment than you might expect, given the current economic stress facing the country, but retailers have still struggled.
Torrid, a leading mall retailer that markets to plus-size women, has struggled to find the right balance between its stores and online sales. That led to the chain closing 151 stores in 2025 with plans to close up to 30 more this year.
That disconnect underscores a growing divide: mall traffic may be stabilizing, but mid-tier apparel chains like Torrid are still losing ground as more sales shift online.
Torrid shrinks its retail profile
In January, Torrid confirmed that it planned to close some stores,
“At this time, we know that some store closures are planned,” a Torrid spokesperson said in a Jan. 20 message to TheStreet. “However, we do not have confirmed details on exactly how many stores will be affected or which specific locations may close.”
“That information has not been finalized or shared with us yet,” the spokesperson wrote.
The chain has since closed 151 stores.
“As we have discussed on prior calls, we identified up to 180 structurally unproductive stores for closure. These locations averaged roughly $350,000 in annual sales. We completed 85% of the closures by Q4, or 151 stores in 2025, and we have closed an additional 11 thus far in Q1,” CEO Lisa Harper shared during the chain’s fourth-quarter earnings call.
Torrid has struggled
Harper tried to put a positive spin on the chain’s results in the Q4 earnings release.
“2025 was a transformational year. We delivered $1 billion in net sales, in line with our guidance, and $63.6 million in Adjusted EBITDA , exceeding the high end of our outlook, while making deliberate strategic decisions required to put this business on a stronger footing. We closed 151 structurally unproductive locations, launched five sub-brands that generated approximately $70 million in sales, and fundamentally restructured our product assortment around core franchises,” she shared.
The numbers, however, were down.
- Net sales decreased 14.3% to $236.2 million, compared to $275.6 million for the fourth quarter of last year.
- Comparable sales decreased 10% in the fourth quarter.
- Gross profit margin was 30.0%, compared to 33.6% in the fourth quarter of last year.
- Net loss was $8.1 million, or ($0.08) per share, compared to a net loss of $3.0 million, or ($0.03) per share, in the fourth quarter of last year.
- For the full year, net sales decreased 9.4% to $1,000.1 million, compared to $1,103.7 million last year. Comparable sales decreased 7%, compared to last year.
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Torrid needs to close stores
While the market for women’s plus-sized clothes has grown, much of that growth has been online, according to market research firm Verified Market Reports.
“Global plus-size clothing market projected to achieve a robust CAGR of around 7% between 2025 and 2033, driven by rising awareness and demand for inclusive fashion. North America currently dominates the market, accounting for over 35% of total revenue, with Europe and Asia Pacific following closely. E‑commerce channels are growing at the fastest pace, comprising more than 60% of sales and outpacing traditional brick‑and‑mortar outlets,” according to the research.
William Blair analysts Dylan Carden and Anna Linscott supported the chain’s plans to reduce its retail footprint and shift to digital, Retail Dive reported.
“The bigger headline here for us is that management is taking a broader cut to store closures, which we believe is a positive step in freeing up capital to invest in new product and marketing to support clear momentum in its online channel,” Carden and Linscott wrote.
Whether those digital gains and new product lines can make up for shrinking store sales will likely determine how many more locations Torrid ultimately closes.
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