Journeys Stores continue to change as parent company Genesco closes locations while pursuing a broader retail strategy. The company recently closed 25 stores during its second fiscal quarter of 2027. However, Genesco also opened three locations during the same period. Therefore, its overall store count declined by 22 locations during the quarter.
Genesco operates several footwear brands serving children, teenagers, and young adults across different markets. Its portfolio includes Journeys, Journeys Kidz, Little Burgundy, and Schuh. Meanwhile, the company has increasingly adjusted its physical retail footprint as shopping habits continue changing. The strategy includes closing weaker locations while investing in newer store formats.
At the end of the latest quarter, Genesco operated 1,186 stores across its portfolio. That figure represented a 5% decline compared with the same period one year earlier. The company also reported a 5% reduction in total retail square footage during that period. Consequently, Genesco continues to reduce its physical footprint while focusing resources on selected locations.
Journeys accounted for 17 of the 25 stores closed during the quarter. The closures followed several earlier reductions involving the broader retail portfolio. During the first quarter, Genesco closed 30 locations while opening only two additional stores. As a result, the company had already closed 55 stores during the first half of 2026.
Over the past several years, Genesco has steadily reduced its store presence across its brands. Company records show that Genesco closed more than 200 locations between 2023 and May 2026. The retailer previously announced plans to close more than 100 Journeys locations. Management expected those reductions to produce significant cost savings while improving the overall store portfolio.
However, store closures represent only one part of Genesco’s broader strategy. The company also continues investing in updated retail concepts designed around changing customer preferences. In particular, it has expanded its newer Journeys 4.0 store format across multiple locations.
During the first quarter, Genesco converted 21 existing stores into the newer format. Then, during the second quarter, the company remodeled another 25 locations. That activity brought the total number of remodeled Journeys 4.0 stores to approximately 130 locations.
The redesigned stores differ significantly from older Journeys locations built during previous decades. Traditional stores often emphasized large amounts of shoe inventory across extensive wall displays. The newer format instead provides more open space, updated fixtures, interactive elements, and revised product presentations.
Genesco says the updated stores have produced stronger sales performance than traditional locations. Management has described the new format as an important part of Journeys’ broader growth strategy. Furthermore, company executives say the concept has helped maintain existing customers while attracting additional shoppers.
The changes come as retailers continue responding to evolving shopping patterns across American malls. Although overall mall visits have increased in some areas, customers increasingly make shorter and more focused shopping trips. Therefore, retailers must consider both location quality and store productivity when deciding where to operate.
Mall performance also varies considerably between different types of shopping centers. Major malls can continue attracting strong customer traffic, while weaker properties face greater challenges. As major department stores reduce their footprints, specialty retailers can also lose some of the traffic those anchors previously generated.
Genesco’s financial results reflect the effects of its ongoing transformation. The company recorded net sales of approximately $530 million during the second fiscal quarter. That figure represented a 3% decline compared with the same quarter a year earlier.
Comparable sales declined by 1% during the period, although physical store sales increased slightly. Meanwhile, e-commerce sales decreased by 6% compared with the previous year. Despite the sales decline, the company reported improvements in several profitability measures.
Genesco’s gross margin improved significantly during the quarter, partly because of tariff-related refunds. Its operating margin also increased compared with the previous year. Consequently, the company continues balancing near-term sales pressure with efforts to improve profitability and store productivity.
The company has described recent store closures as part of deliberate optimization rather than a sudden retreat. Management continues evaluating locations based on performance, customer demand, and long-term potential. At the same time, Genesco continues remodeling stores that fit its updated retail strategy.
The approach means Journeys Stores will likely continue evolving as Genesco adjusts its physical footprint. Store closures can reduce costs and remove weaker locations from the portfolio. Meanwhile, newer formats could give the company opportunities to improve customer experiences and strengthen sales performance.
Overall, Genesco’s strategy combines selective closures with continued investment in updated retail locations. The company has reduced its store count while expanding its newer Journeys 4.0 concept. As consumer behavior changes, the retailer is using both measures to reshape its physical presence and support future growth.
