The narrative that malls are dying isn’t entirely true, but retailers continue to close stores as changes in shopping create a widening gap between winners and losers.
Store closures are no longer just a sign of retail weakness. They are increasingly a strategic decision about which malls are worth staying in and which are no longer viable.
“Traffic to shopping centers increased in the first quarter of 2026 in all three formats analyzed (indoor shopping centers, outdoor shopping centers and outlet shopping centers) largely thanks to strong performance in the first two months of the year, according to Placer.ai’s March 2026 Shopping Center Index.
That’s the general trend, but it doesn’t tell the whole story about the state of shopping centers.
“The American mall isn’t dying, it’s breaking up… However, this headline obscures a more nuanced reality: Upscale malls with luxury tenants and experiential offerings are flourishing, while lower-tier properties are struggling to survive,” according to Coldwell Banker Commercial.
That’s a situation that smart retailers understand and that has forced tough decisions to be made about store locations. Genesco, owner of Journeys, a traditionally mall-based shoe and sneaker 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 in-store presence since late 2023.
“Amid declining sales, Genesco is moving Journeys’ presence away from mall stores,” 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 game-changer.
“Given our strong track record of transforming businesses in challenging times, an even greater call to action to accelerate the pace of improvement for Journeys, and the initiatives already underway, we are well positioned to unlock Journeys’ considerable earnings and value potential,” he said on the call.
The closures continued through 2026 and 15 stores closed this year, according to Women’s Wear Daily.
Vaughn believes Journeys’ revival has progressed well.
“We’ve been very pleased with Journeys’ growth and performance over the last few years, and I’ll just go back and say this is our first full year of Journeys recovery. So when we look at where comps have been, we increased comps by 6% in FY25 and then 9% in FY26,” he said during Genesco’s fourth-quarter 2026 earnings conference call.
