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.
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.
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.
