Destination XL to Close Stores as It Shifts Focus Toward Digital Sales
Specialty clothing retailer Destination XL is closing several stores and reevaluating its retail footprint in response to shifting consumer preferences toward online shopping. The company's CFO, Peter Stratton, stated during the second-quarter earnings call that it will rationalize store locations over time as leases expire or kick-out rights become available. This strategy aims to reduce occupancy costs and improve return on assets by redirecting customers to more productive stores. The move mirrors broader trends in retail, where digital channels now account for a significant portion of demand—similar to what Torrid has experienced with its shift toward online sales after closing nearly 200 locations. Destination XL closed three stores in 2026 and plans to assess dozens more over the next year before deciding which additional locations will be shuttered. The company emphasized that this is a multiyear initiative intended to improve efficiency, including increasing sales per square foot and enhancing profitability at remaining physical locations.
Tickers: $DXLG
Topics: clothing retail corporate strategy online shopping shift