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Home»Finance»Footwear chain shutters more than 150 stores as mall traffic shifts
Finance

Footwear chain shutters more than 150 stores as mall traffic shifts

April 17, 2026No Comments4 Mins Read
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Footwear chain shutters more than 150 stores as mall traffic shifts
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The narrative that malls are dying isn’t completely true, however retailers are nonetheless closing shops as procuring shifts create a widening hole between winners and losers.

Retailer closures are not only a signal of retail weak spot. They’re more and more a strategic determination about which malls are price staying in and that are not viable.

“Visitors to malls elevated in Q1 2026 throughout all three codecs analyzed — indoor malls, open-air procuring facilities, and outlet malls — largely because of sturdy performances within the first two months of the 12 months, in response to Placer.ai’s March 2026 Mall Index.

That is the broad pattern, nevertheless it doesn’t inform the complete story concerning the state of malls.

“The American mall isn’t dying — it is dividing… But this headline obscures a extra nuanced actuality: Premier procuring facilities with luxurious tenants and experiential choices are flourishing, whereas lower-tier properties battle to outlive,” in response to Coldwell Banker Business.

That is a scenario sensible retailers perceive, which has pressured some powerful selections on retailer places. Genesco, the proprietor of Journeys, a historically mall-based sneaker and footwear retailer, has been closing shops as a part of a broader plan to deal with the altering nature of malls.

Genesco has been working to shift its retailer presence since late 2023.

“Amid declining gross sales, Genesco is shifting the shop presence of Journeys away from malls,” RetailDive reported.

The Firm closed 94 Journeys shops in Fiscal 2024 and is concentrating on as much as 50 extra closures in Fiscal 2025, in response to its fourth-quarter 2024 earnings launch.

Genesco CEO Mimi Vaughn known as the scenario at Journeys a turnaround.

“Given our sturdy observe report of turning companies round in difficult occasions, an excellent larger name to motion to speed up the tempo of Journeys enchancment and initiatives already underway, we’re effectively positioned to unlock Journeys’ appreciable earnings potential and worth,” she stated within the name.

The shutdowns have continued into 2026 with 15 shops closing this 12 months, in response to Ladies’s Put on Each day.

Vaughn thinks that Journeys’ revival has progressed effectively.

“We have now been actually happy by Journeys’ development and efficiency during the last couple of years, and I will simply take you again and say that that is our first full 12 months of the Journeys’ turnaround. And so if you look to see the place comps have been, we elevated comps by 6% in fiscal ’25 after which adopted by 9% in fiscal ’26,” she stated throughout Genesco’s fourth-quarter 2026 earnings name.

Investing.com famous that Journeys helped Genesco ship a robust quarter.

“The footwear retailer’s efficiency was anchored by strong comparable gross sales development of 9% and continued momentum at its flagship Journeys model, which posted 12% comp development through the essential vacation quarter,” Investing.com reported.

Journeys has been on an upward trajectory.

“The Journeys division led the cost with 12% comparable gross sales development, marking its second consecutive 12 months of double-digit features within the fourth quarter. This efficiency was significantly notable given the aggressive teen footwear market,” the analysts added.

Journeys has been changing its retail footprint. Shutterstock
Journeys has been altering its retail footprint. Shutterstock

Genesco isn’t alone in transferring its shops out of failing malls.

“Manufacturers are reinvesting in premium retail places. Luxurious retail sq. footage within the U.S. rose 65% within the first half of 2025, reflecting efforts to revive development after earlier declines. This aligns with client habits displaying that prosperous consumers stay keen to spend on high quality and expertise,” in response to McKinsey’s State of Style 2026 report.

GlobalData Managing Director Neil Saunders believes {that a} change is going on in retail.

“It can end in consumers changing into extra selective about what they purchase and the place they store,” he instructed MarketWatch.

Coldwell Banker reiterated its stance on the altering nature of malls, noting that the divide between profitable and failing properties has accelerated.

“Properties with the correct places, tenant mixes, and expertise choices are capturing rising shares of discretionary spending at the same time as total mall counts decline and retailer closures surge. Decrease-tier facilities face a stark selection: make investments closely to reposition towards premium experiences, discover various makes use of, or promote whereas worth stays,” the industrial realty firm shared.

Associated: Costco fixes a serious buyer ache level

This story was initially revealed by TheStreet on Apr 16, 2026, the place it first appeared within the Retail part. Add TheStreet as a Most well-liked Supply by clicking right here.

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