49-year-old clothing chain closing stores as its shoppers shrink

Destination XL, a specialty retailer catering to big and tall men, has announced plans to close a number of its stores as it evaluates its retail footprint. The company's CFO, Peter Stratton, stated that the decision is part of a broader effort to rationalize the store base over the next several years as leases expire or kickout rights become available.

Stratton emphasized the need to improve return on assets and reduce occupancy and store operating costs beginning in 2027. The decision to close stores comes as specialty retailers like Torrid have also reduced their physical store presence, with nearly 200 stores closing. The shift towards online shopping, now accounting for 70% of total demand, has affected traditional big and tall retailers.

Some shoppers, like David Lane, find it difficult to find clothing in stores that fits their size, prompting them to shop online. Retail experts warn that the rapid adoption of GLP-1 weight-loss drugs could further impact the retail industry, as customers may move between size bands within a single planning horizon, challenging inventory commitments and planning systems designed for gradual demographic evolution.