The shoe chain is closing more than 150 stores as the mall’s traffic changes

The story that supermarkets are dying is not entirely true, but retailers are still closing stores as shopping shifts create a widening gap between winners and losers.

Store closures are no longer just a sign of weak sales. They are becoming more and more a strategic decision about which malls to stay in and which can no longer work.

“Traffic to malls increased in Q1 2026 in all three channels analyzed – indoor malls, open-air malls, and malls – mainly due to strong performances in the first two months of the year, according to Placer.ai’s March 2026 Mall Index.

That’s the broad trend, but it doesn’t tell the full story about the state of supermarkets.

“The American mall isn’t dying – it’s falling apart… Yet this headline hides a strange truth: Premier stores with luxury tenants and experiential offerings are thriving, while low-end properties are struggling to survive,” according to Coldwell Banker Commercial.

That’s a situation smart retailers understand, which has forced some tough decisions about store locations. Genesco, the owner of Journeys, a traditional sneaker and shoe retailer in the mall, has been closing stores as part of a broader plan to address the changing retail landscape.

Genesco has been working to change its store presence since late 2023.

“Amid declining sales, Genesco is shifting Journeys’ store presence away from supermarkets,” RetailDive reported.

The company closed 94 Journeys stores in fiscal 2024 and is targeting up to 50 additional closures in fiscal 2025, according to its fourth quarter 2024 release.

Genesco CEO Mimi Vaughn called the situation at Journeys revolutionary.

“Given our strong track record of turning businesses around during difficult times, the even bigger announcement to accelerate the pace of development of Journeys and the initiatives already underway, we are well positioned to unlock more opportunities for profitability and value for Journeys,” he said on the call.

The closures continued until 2026 with 15 stores closing this year, according to Women’s Wear Daily.

Vaughn thinks the Journeys revival has gone well.

“We’ve been very pleased with the growth and performance of Journeys over the last few years, and I’ll take it back and say this is our first full year of transformation for Journeys. And so if you look to see where the comps have been, we increased comps by 6% in fiscal ’25 and then followed by 9% in fiscal ’26 for 20-2 for Genetersco’s fourth quarter,” he said.

Investing.com noted that Journeys helped Genesco deliver a strong quarter.

“The shoe retailer’s performance was supported by strong sales growth of 9% and continued momentum in its flagship company Journeys, which boosted growth by 12% during the all-important holiday quarter,” Investing.com reported.

The trip was on the way up.

“The Journeys segment led with comparable sales growth of 12%, marking its second consecutive year of double-digit gains in the fourth quarter. This performance is particularly noteworthy given the competitive youth footwear market,” the analysts added.

Genesco is not alone in moving its stores to failing supermarkets.

“Brands are also investing in high-end retail spaces. Square footage of luxury sales in the US increased by 65% ​​in the first quarter of 2025, indicating efforts to restore growth after a previous decline. This is in line with consumer behavior that shows that affluent consumers remain willing to spend on quality and experience,” according to McKinsey’s State of Fashion 2026 report.

GlobalData Managing Director Neil Saunders believes there is a shift happening in retail.

“It will lead to consumers being more selective about what they buy and where they buy it,” he told MarketWatch.

Coldwell Banker reiterated its stance on the mall’s turnaround, noting that the divide between successful and unsuccessful properties has widened.

“Buildings with the right locations, tenant mixes, and experiential offerings capture growing shares of discretionary spending even as the overall value of the mall shrinks and the number of store closures increases. Low-end centers face a tough choice: invest more to replace the premium experience, find another use, or sell while the value is still there,” the commercial firm shared.

Related: Costco is fixing a major customer pain point

This story was originally published by TheStreet on April 16, 2026, where it appeared first in the Marketing section. Add TheStreet as a favorite source by clicking here.