Footwear chain shutters more than 150 stores as mall traffic shifts

The narrative that malls are dying isn’t 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 retail weakness. They’re increasingly a strategic decision about which malls are worth staying in and which are no longer viable.

“Traffic to malls increased in Q1 2026 across all three formats analyzed — indoor malls, open-air shopping centers, and outlet malls — largely thanks 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 does not tell the full story about the state of malls.

“The American mall is not dying — it’s dividing… Yet this headline obscures a more nuanced reality: Premier shopping centers with luxury tenants and experiential offerings are flourishing, while lower-tier properties struggle to survive,” according to Coldwell Banker Commercial.

That’s a situation smart retailers understand, which has forced some tough decisions on store locations. Genesco, the owner of Journeys, a traditionally mall-based sneaker and footwear retailer, has been closing stores as part of a broader plan to address the changing nature of malls.

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

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

The Company closed 94 Journeys stores in Fiscal 2024 and is targeting up to 50 more closures in Fiscal 2025, according to its fourth-quarter 2024 earnings release.

Genesco CEO Mimi Vaughn called the situation at Journeys a turnaround.

“Given our strong track record of turning businesses around in challenging times, an even greater call to action to accelerate the pace of Journeys improvement and initiatives already underway, we are well positioned to unlock Journeys’ considerable earnings potential and value,” she said in the call.

The shutdowns have continued into 2026 with 15 stores closing this year, according to Women’s Wear Daily.

Vaughn thinks that Journeys’ revival has progressed well.

“We have been really pleased by Journeys’ growth and performance over the last couple of years, and I’ll just take you back and say that this is our first full year of the Journeys’ turnaround. And so when you look to see where comps have been, we increased comps by 6% in fiscal ’25 and then followed by 9% in fiscal ’26,” she said during Genesco’s fourth-quarter 2026 earnings call.

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

“The footwear retailer’s performance was anchored by robust comparable sales growth of 9% and continued momentum at its flagship Journeys brand, which posted 12% comp growth during the critical holiday quarter,” Investing.com reported.

Journeys has been on an upward trajectory.

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

Genesco is not alone in moving its stores out of failing malls.

“Brands are reinvesting in premium retail locations. Luxury retail square footage in the U.S. rose 65% in the first half of 2025, reflecting efforts to restore growth after previous declines. This aligns with consumer behavior showing that affluent shoppers remain willing to spend on quality and experience,” according to McKinsey’s State of Fashion 2026 report.

GlobalData Managing Director Neil Saunders believes that a change is happening in retail.

“It will result in shoppers becoming more selective about what they buy and where they shop,” he told MarketWatch.

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

“Properties with the right locations, tenant mixes, and experience offerings are capturing growing shares of discretionary spending even as overall mall counts decline and store closures surge. Lower-tier centers face a stark choice: invest heavily to reposition toward premium experiences, find alternative uses, or sell while value remains,” the commercial realty company shared.

Related: Costco fixes a major customer pain point

This story was originally published by TheStreet on Apr 16, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.