Genesco Enhancing Omnichannel at Journeys
Genesco has begun introducing new point-of-sale hardware and software in some of Journeys’ 828 U.S. doors as part of its effort to digitize stores and enhance customers overall omnichannel shopping experience. In-store tablets will enable Journeys’ customers to access all available inventory within the chain’s system, and a new mobile checkout option will allow those utilizing it to skip the traditional checkout line.
In Q2, where Journeys experienced strong demand and full-price selling in women’s and kids’ offerings, the banners Top 10 brands were evenly split between casual and fashion athletic labels. Journeys Group revenues were 25 percent higher than the year-ago quarter at an implied $344.2 million and up 10 percent from Q2/20. The chain’s H1 revenues were approximately $726.0 million. Genesco’s Q2 inventory was down 27 percent from Q2/20 and the company was challenged in keeping pace with consumer demand due to delivery delays. Still, Genesco senior executives told analysts last week that it “experienced a more normalized Back-To-School selling season at Journeys” through the first weeks of Q3 where revenues are forecast to be higher than in Q3/20.
After spending nearly $2 million on air freight to get key products into stores in Q2, Genesco has earmarked nearly $7 million for air freight expenses in Q3, a cost that will negatively impact gross margins.
“In our retail business, we’re seeing good product flow right now,” Genesco president and CEO Mimi Vaughn told analysts, “But it’s lower that we would like…We’re an important partner to our brands. They’ve worked with us as much as possible. Journeys always gets more than a fair share of products.”