Genesco Closes Another 25 Stores as Part of Ongoing Retail Restructuring
Genesco Inc., the parent company behind brands like Journeys and Schuh, has closed another 25 stores in Q2 fiscal 2027. This is part of a broader strategy to optimize its store footprint amid shifting consumer preferences and mall dynamics. The closures are not isolated; over the past three years, Genesco has shuttered an average of 62 locations annually, totaling more than 200 since early 2023. The company reported Q2 net sales of $530 million, a 3% year-over-year decline attributed to store closures and other strategic actions. Despite the drop in revenue, Genesco saw improvements in gross margin (up by 560 basis points) due largely to tariff refunds and cost management efforts. Genesco's CEO emphasized that these changes are part of long-term optimization goals aimed at improving profitability through reduced overhead costs and a more efficient retail network. The company plans to continue its store rationalization strategy as it shifts focus toward digital channels and alternative formats like open-air shopping centers.
Topics: Genesco Journeys mall retail decline store optimization