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.

According to Placer.ai’s March 2026 Mall Index, traffic to malls increased in Q1 2026 across all formats analyzed, including indoor malls, open-air shopping centers, and outlet malls. This was largely due to strong performances in the first two months of the year. However, this broad trend does not tell the full story about the state of malls.

Coldwell Banker Commercial noted that the American mall is not dying but rather dividing. Premier shopping centers with luxury tenants and experiential offerings are flourishing, while lower-tier properties struggle to survive. This has led smart retailers to make tough decisions about their store locations.

One such retailer is Genesco, the owner of Journeys, a mall-based sneaker and footwear retailer. Genesco has been shifting its store presence away from malls since late 2023. The company closed 94 Journeys stores in Fiscal 2024 and is targeting up to 50 more closures in Fiscal 2025. Genesco CEO Mimi Vaughn called the situation at Journeys a turnaround and expressed confidence in unlocking the brand’s earnings potential and value.

In 2026, 15 Journeys stores have already closed, signaling a continued shift in the company’s retail footprint. Vaughn highlighted Journeys’ growth and performance in recent years, with double-digit comparable sales growth in fiscal ’25 and ’26.

Investing.com noted that Journeys played a significant role in Genesco’s strong quarter, with robust comparable sales growth and momentum at its flagship brand. The analysts highlighted Journeys’ double-digit gains in the fourth quarter, reflecting a positive trend in the competitive teen footwear market.

Genesco is not alone in moving its stores out of failing malls. Brands are reinvesting in premium retail locations, with luxury retail square footage in the U.S. rising 65% in the first half of 2025. This aligns with consumer behavior showing that affluent shoppers prioritize quality and experience.

Neil Saunders, Managing Director at GlobalData, believes that a change is happening in retail, with shoppers becoming more selective about what they buy and where they shop. Coldwell Banker reiterated the divide between successful and failing malls, emphasizing the need for lower-tier centers to invest in premium experiences or find alternative uses.

In conclusion, the retail landscape is evolving, and retailers like Genesco are adapting to these changes by shifting their store presence to align with consumer preferences. The divide between successful and failing malls is becoming more pronounced, highlighting the importance of strategic decision-making in the retail sector.