Retail
COVID-19

Reopened Journeys Experiences Regional Differences

Share:

As of yesterday, more than 900 Journeys stores had reopened across the U.S. While traffic hasbeen down double-digits versus the year-ago period, parent Genesco says the business has been able to offset the traffic headwind through “significantly higher conversion and higher transaction size” at open locations.

There have also been noticeable regional differences among the re-opened doors with California, Ohio, Illinois, Indiana and Tennessee showing strength, and tourist-dependent states such as Hawaii and Florida on the weaker side. Texas stores have posted “flattish” results thus far.

While it was promotional online for a period of time when the COVID-19 pandemic broke, reopened Journeys stores haven’t followed suit as overall inventory was down 10 percent at the end of May after being up 14 percent at period end on May 2.

“We don’t expect that we’re going to have to promote in order to clear through our inventory,”Genesco President and CEO Mimi Vaughn told analysts. “There has been a difference betweenfootwear and apparel. I think the consumers’ appetite for footwear has been stronger. It’s an easier purchase. I think that perhaps some consumers are still just a little bit more cautious trying on apparel.”

Overall first-quarter sales were down 48 percent at Journeys to $167.5 million as stores were shuttered. Vaughn said Journeys was able to convert many of its in-store customers to online and acquired a lot of new customers during the period as well. Nearly 90 percent of Journeys’ e-commerce traffic was generated by mobile devices as conversion grew 65 percent. In April, the banner, which generated approximately 13 percent of its FY19 topline from e-commerce, delivered all-time record e-commerce shipments bolstered by recent investments in fulfillment capabilities.