Americans still shop at malls, but they have become selective about which ones.
“Indoor malls surpassed open-air centers and outlet malls throughout the year as the only format to post visitation increases over all four quarters, indicating a shift from recovery to growth,” according to Placer.ai’s 2025 Shopping Center Index.
And, as the economy has struggled, wealthy customers have not abandoned shopping at malls.
“Across all formats, suburban and higher-income family segments are overrated among shopping center visitors. Indoor shopping centers and outdoor centers attract a disproportionate share of very wealthy and affluent suburban households, underscoring the continued relevance of shopping centers to consumers seeking family-friendly activities and experiences,” according to the research.
It’s a healthier retail environment than one 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 the chain to close 151 stores in 2025 with plans to close up to 30 more this year.
That disconnect underscores a growing divide: Traffic at malls may be leveling off, but mid-tier clothing 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 could close.”
“That information has not been finalized or shared with us yet,” the spokesperson wrote.
Since then, the chain has closed 151 stores.
“As we have discussed on previous calls, we identified up to 180 structurally unproductive stores for closure. These locations averaged approximately $350,000 in annual sales. We completed 85% of the closures by the fourth quarter, or 151 stores in 2025, and have closed an additional 11 so far in the first quarter,” CEO Lisa Harper shared during the chain’s fourth-quarter earnings call.
Harper attempted to put a positive spin on the network’s results in its fourth-quarter earnings release.
“2025 was a transformational year. We achieved $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 the deliberate strategic decisions necessary to put this business on a stronger footing. We closed 151 structurally unproductive locations, launched five sub-brands generating approximately $70 million in sales, and fundamentally restructured our product portfolio around major franchises,” he shared.
