A mall chain many consumers around the United States grew up visiting has closed another 25 stores over the last three months. Earlier this year, we saw a number of mall retailers close locations, despite July 2026 Placer.ai data revealing that foot traffic across all three mall formats grew year over year. As part of my retail coverage for TheStreet, I reported on Vera Bradley cutting its traditional mall footprint by more than 43%, and Fossil Group quietly closing 219 stores over five years.
Most retailers choosing not to renew their mall leases are shifting their strategies. Some are pivoting to open-air shopping centers, which have been outperforming traditional malls for a while, while others are responding to changing consumer preferences by investing more in their online presence. Founded in 1924, Genesco is a footwear-first company and the engine behind popular brands focused on kids, teens, and young adults.
These include Little Burgundy, Journeys, and Schuh. Genesco has closed another 25 stores across its portfolio, including 17 Journeys Group locations, in the second quarter of fiscal 2027, according to the company's latest earnings release. While the company closed 25 stores, it also opened three, for a net decrease of 22 stores for the period.
However, it saw a 5% year-over-year decrease in store count. "The company ended the quarter with 1,186 stores compared with 1,253 stores at the end of the second quarter last year, or a decrease of 5%. Square footage was down 5% on a year-over-year basis," Genesco said.
For the reporting period, the company reported a net sales decline, attributing it to store optimization, among other factors. Net sales of $530 million decreased 3% year over year. Comparable sales decreased 1% compared to last year, with stores up 1% while e-commerce decreased 6%.
Gross margin improved 560 basis points compared to last year, reflecting tariff refunds; adjusted gross margin improved by 140 basis points compared to last year. Operating margin improved by 330 basis points compared to last year; adjusted operating margin improved by 100 basis points compared to last year. "As anticipated, the decline in sales was driven by 3 shorter-term headwinds tied to strategic actions we're taking to improve our business, namely continued store closures, as we optimize our fleet, the license transition ahead of the Wrangler launch, and our intentional pullback on discounting and promotional activity at Schuh," CEO Mimi Vaughn said during the earnings call.
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