Genesco has decided to increase the number of closures to restructure the Journeys retail chain's business.
Genesco has decided to increase the number of closures to restructure the Journeys retail chain's business. The retailer will close 100 stores at the end of 2023, saving up to $40 million.
Earlier last year, the company announced plans to reduce the chain by 60 stores and save $20-25 million. In the first quarter of 2023, Genesco's sales were down 7% overall and 13% at the Journeys chain. On a year-over-year basis, revenue was down 14%.
The retailer is closing mall outlets en masse. At the same time, as part of the new strategy, the company is developing networks in street retail. Thirteen Journeys stores have recently opened outside malls, and 12 more will open.
"We still have work to do, but so far we are encouraged by the first results and believe this initiative will be a key element in Journeys' continued growth," the press office commented.
Genesco is not the only retailer facing a decline in footwear sales. It was previously reported that Foot Locker chains lost more than 11% of sales in the first quarter and expects revenues to decline 6.5-8% for the year.
"Consumer demand for Journeys dropped significantly early in the quarter and did not improve as the seasons changed in the second half of March and April, offsetting another quarter of record Schuh and Johnston & Murphy sales," the company said. Genesco has revised its outlook for fiscal 2024 -- forecasting that the retailer's sales will decline by 4-5%. The company currently operates more than 1,400 stores of Journeys, Little Burgundy, Schuh, Johnston & Murphy and other brands.