Journeys to Close Massive Number of Stores
Popular shoe retailer Journeys will close 100 stores within the next year. Genesco, which owns the retailer, aimed primarily at teens and once dubbed the "anti-Foot Locker," previously confirmed it would close 60 Journeys locations, but announced earlier this month that the number has grown to 100 amid an "adverse" year of slow sales.
Journey's opened its first store at Rivergate Mall in Nashville, Tennessee in 1986 and quickly grew to more than 1,200 stores across the nation. In 1994, it was purchased by fellow Nashville-based retail company Genesco, which also owns Little Burgundy, Schuh, and Johnston & Murphy, among other brands. While Journey's was once a thriving retailer, Genesco board chair, president and CEO Mimi Vaughn revealed earlier this month that the retailers has struggled more recently. According to Genesco, sales at the store are down 13% this year compared to the previous year and net sales declined 7%.
"Following a positive end to the holiday season, the first quarter proved considerably more challenging than we anticipated. Consumer demand at Journeys dropped off significantly early in the quarter and did not improve as we changed seasons in the latter part of March and into April, offsetting another quarter of record sales at Schuh and Johnston & Murphy," Vaughn said in a statement. "In response, we are taking swift actions to mitigate the consumer shift in the marketplace, including closing more underperforming Journeys stores, reducing our cost base further, and working to quickly refine our product assortment. However, given the ongoing uncertainty around near-term consumer behavior, we are taking a much more conservative view and revising our outlook for the remainder of Fiscal 2024."
Vaughn did not say which stores would be closing or if any of the current Nashville and Tennessee-based stores will be affected. There are currently four Journeys stores in Nashville and 30 in Tennessee. The 100 impacted stores will close by April 2024, a move that Genesco anticipates will result in up to $40 million in cost reduction.
In announcing the closures, Vaughn added, "despite the difficulties in the current environment, we remain excited about our future prospects and the strength of our competitive positioning. Having navigated multiple adverse retail cycles, our team has demonstrated a track record of success, the resilience of our business, and the ability to rebound and come out ahead. As the leading destination for teen fashion footwear, and key partner to our brands, I feel confident that our footwear focused strategy and the strategic initiatives we are implementing will position Journeys to emerge from this period in an even stronger competitive position."